Shoulder Innovations Inc. Common Stock (SI)

FairStock Score: 22/100 — RISKY

Key Financials

AI Analysis

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

I approach this as Graham would: first ask what is proven by numbers. Shoulder Innovations is a healthcare company with real revenue growth. In fiscal 2025, the year ended 2025-12-31, revenue was $47.3M and net income was -$40.4M. A year earlier, in fiscal 2024, the year ended 2024-12-31, revenue was $31.6M and net income was -$15.6M. So sales grew, but the loss widened. More recently, in fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $17.2M and net income was -$10.2M, a -59.11% margin. In fiscal Q1 2026, the quarter ended 2026-03-31, revenue was $16.7M and net income was -$8.4M. The business is growing, but it is not yet self-funding. Trailing free cash flow is -$47.1M, a -12.5% FCF yield on the $376.2M market cap as calculated by FairStock at the 2026-10-13 close. That is a lot of cash consumption. The FairStock P/E is 22.06 and PEG is 0.47, but with negative free cash flow those require faith in future profitability. Piotroski is 3/9, Altman Z is 7.97, and FairStock score is 22/100. I see no clear moat in these figures. Limited filings mean FairStock assigns no Lynch category because only two years of filed results exist. At $18.07, the market is paying about 8x fiscal 2025 revenue for a loss-making company. I would want evidence that losses are shrinking and cash burn is ending before calling it a value investment.

In plain English: This is a small healthcare company. It is growing sales quickly, but it still loses money and spends cash. Sales rose from fiscal 2024 to fiscal 2025, yet losses also grew, and the latest quarter still showed a large loss. At the recent price near $18, the stock does not look cheap given the lack of profits; it looks full or expensive unless the company turns profitable soon.

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 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)

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