Avita Medical Inc. Common Stock (RCEL)

FairStock Score: 16/100 — RISKY

Key Financials

AI Analysis

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

As a value investor, I start with the business. Avita Medical sells RECELL, an acute wound-care device, and has 226 employees. Revenue has climbed: filed figures show fiscal 2023 revenue of $50.1 million, fiscal 2024 revenue of $63.9 million, and fiscal 2025 revenue of $70.9 million. In fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $21.5 million, up from $18.2 million in fiscal Q2 2025, the quarter ended 2025-06-30, and net loss narrowed to $7.7 million from $9.9 million. That is progress. But the company has lost money in each of the last four years. Fiscal 2025 net loss was $48.6 million, fiscal 2024 was $61.8 million, and fiscal 2023 was $35.4 million. Trailing free cash flow is negative $25.3 million, a negative 6.1% free cash flow yield on the $413.2 million market cap. FairStock's Piotroski score is 4/9 and Altman Z-score is -10.26, signs of financial fragility. The balance sheet data provided lacks D/E and P/B, so I cannot fully judge leverage, but the cash burn is real. Valuation offers no margin of safety: P/E is -9.34 at the 2026-10-13 close, ROCE is -41.56%, and the FairStock score is 16/100. The Lynch category is none, because losses in each of the last four years fit no category. RECELL's uses in burns, full-thickness skin defects, and vitiligo repigmentation are a specialized niche, but a true moat is hard to prove while sales are under $100 million and losses persist. The evidence does not yet support a margin of safety until earnings and cash flow turn consistently positive.

In plain English: Avita Medical makes a device that uses a patient's own skin cells to treat burns and other skin problems. The business is still losing money and has not yet turned a profit, so its finances look weak. At $13.36, the stock does not look cheap compared with those losses, even though revenue has grown from year to year.

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

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

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