Phreesia Inc. Common Stock (PHR)

FairStock Score: 44/100 — MIXED

Key Financials

Strengths

• Generates $56 million in annual free cash flow (10.4% yield on market cap)
• Conservative balance sheet with debt-to-equity of just 0.30, providing financial flexibility
• Revenue growth of 15.8% demonstrates strong top-line momentum

Concerns

• Trades significantly above Graham Number ($2) with negative 295% margin of safety—limited downside protection
• Weak Piotroski F-Score of 3/9 suggests deteriorating financial quality across multiple dimensions
• Altman Z-Score of -0.4 places it in the financial distress zone—elevated bankruptcy risk

AI Analysis

Phreesia Inc. Common Stock is a micro-cap healthcare company valued at $537 million. The business generates $481 million in annual revenue with a 0.3% net margin and $56 million in free cash flow. From a quality standpoint, Phreesia shows weak Piotroski F-Score of 3/9 signaling deteriorating fundamentals and distressed Altman Z-Score of -0.4 warrants caution. On valuation, the stock is commanding a steep 221.3x multiple, with trades far above its Graham Number ($2) with no margin of safety. Growth dynamics show revenue growing at 15.8% and profit growth of 120.3%. Our composite FairStock Score of 44/100 reflects below-average fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

Phreesia's 16% revenue growth trajectory could accelerate as it captures additional market share in the healthcare sector. With $56 million in annual free cash flow (10.4% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

At 221x earnings, any growth disappointment triggers rapid multiple compression—a 20% earnings miss plus multiple contraction to 20x implies 40%+ downside. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer