Phreesia Inc. Common Stock (PHR)

FairStock Score: 44/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I approach Phreesia as a potential turnaround, not a proven compounder. It sells software and payment tools that sit inside healthcare workflows, a business that can be sticky once providers adopt it. The filed numbers show progress. In FY2026, period ended 2026-01-31, revenue was $467.8M and net income was $2.3M, versus FY2025 revenue of $410.5M and a net loss of $58.5M, and FY2024 revenue of $346.0M and a net loss of $136.9M. In fiscal Q2 2027, quarter ended 2026-07-31, revenue was $129.5M and net income was $1.9M, compared with fiscal Q2 2026 revenue of $117.3M and net income of $654,000. So the direction is right, but profits are thin. The strongest financial fact is cash generation: trailing free cash flow is $67.5M, a FairStock FCF yield of 10.1% on the $667.3M market cap at the 2026-10-13 close. Debt/equity is 0.18, and Piotroski is 6/9. Yet FairStock shows ROE of 3.12%, ROCE of 2.58%, and an Altman Z-Score of 0.18, so the quality of earnings is not yet impressive. FY2026 net margin was only about 0.5%, and the latest quarter's margin was about 1.5%. Valuation is mixed. At the 2026-10-13 close of $10.75, FairStock calculates P/E 59.72, P/B 1.79, EV/EBITDA 13.24, PEG 0.31, and Graham Number $4.93; the price is far above that Graham value. FairStock Score is 44/100, and its Lynch category is TURNAROUND—returned to profit after a loss within the last three years. I would need more evidence that the profit is durable rather than a low-base bounce.

In plain English: Phreesia sells software and payment tools that help healthcare offices manage appointments, patient messages, and payments. The business has become profitable after earlier losses and it produces cash, but profits are still thin. At the recent price of $10.75, the stock looks expensive compared with the company's small earnings, even though the cash flow is a positive.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2027 10-Q (period ended 2026-07-31) · fiscal Q1 2027 10-Q (period ended 2026-04-30) · fiscal Q3 2026 10-Q (period ended 2025-10-31) · fiscal Q2 2026 10-Q (period ended 2025-07-31) · FY2026 10-K (period ended 2026-01-31) · FY2025 10-K (period ended 2025-01-31) · FY2024 10-K (period ended 2024-01-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer