Soleno Therapeutics Inc. Common Stock (SLNO)

FairStock Score: 41/100 — MIXED

Key Financials

AI Analysis

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

I approach Soleno as a Graham-style analyst: what is proven, and what am I paying for? The business focuses on a rare-disease therapy, VYKAT XR, for Prader-Willi Syndrome. In the first quarter of 2026, revenue was $94.6M and net income $31.4M, a 33.17% margin. That is real profitability, and trailing free cash flow is $105.4M, a 3.9% FCF yield on the $2.7B market cap. Debt is modest with D/E 0.12, and the supplied Altman Z-score is 14.48, so near-term solvency is not the issue. But at the 2026-05-18 close of $53.01, FairStock's P/E is 135.92 and P/B is 6.16; the Graham Number is $9.17, leaving a negative 478.08% margin of safety. ROE is 6.01% and ROCE 2.09%, hardly wonderful. PEG of 0.79 looks cheap only if rapid growth persists, yet the Lynch category is none because there are 0 years of filed results and three are needed. Piotroski is 4/9. The 52-week range of $29.43 to $72.88 shows how widely the market has swung, and the FairStock Score is 41/100. The beta of -2.81 is unusual and makes the risk profile harder to classify. The company may have orphan-drug pricing power, but a single-product biotech with a short record is not a durable moat I can underwrite. I would want the price to reflect the risk; today it seems to discount near-perfect execution.

In plain English: Soleno Therapeutics is a healthcare company focused on a rare disease treatment called VYKAT XR for Prader-Willi Syndrome. In the first quarter of 2026, it earned $31.4 million on $94.6 million of sales, so the business is now profitable and generating cash. At the recent $53.01 price, however, the stock looks expensive relative to its current profits and accounting value, and it relies heavily on one product.

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

Data as of 2026-05-18 close · note generated 2026-10-15 · model deepseek-flash

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