Sarepta Therapeutics Inc. Common Stock (DE) (SRPT)
StalwartFairStock Score: 36/100 — MIXED
Key Financials
| Current Price | $17.55 |
| Market Cap | $2.1B |
| P/E Ratio | 50.14 |
| ROE | 4.91% |
| Dividend Yield | —% |
| Sector | Healthcare |
Strengths
- Generates $205 million in annual free cash flow (9.8% yield on market cap)
Concerns
- Trades significantly above Graham Number ($9) with negative 116% margin of safety—limited downside protection
- Currently unprofitable—sustained losses could lead to dilutive capital raises or balance sheet deterioration
- Revenue declining at 32.7% year-over-year signals potential demand weakness or market share loss
- Altman Z-Score of -1.2 places it in the financial distress zone—elevated bankruptcy risk
AI Analysis
Sarepta Therapeutics Inc. Common Stock (DE) is a small-cap healthcare company valued at $2.1 billion. Revenue stands at $2.2 billion, though the company is currently unprofitable. From a quality standpoint, Sarepta shows distressed Altman Z-Score of -1.2 warrants caution and modest 5% ROE. On valuation, the stock is commanding a steep 57.0x multiple, with trades far above its Graham Number ($9) with no margin of safety. Growth dynamics show revenue growing at -32.7% and profit growth of -277.8%. Our composite FairStock Score of 36/100 reflects below-average fundamentals overall. Without profitability, this remains speculative—suitable only for those with high risk tolerance and a long time horizon.
Bull Case
Improving fundamentals and sector tailwinds could drive meaningful earnings growth, compressing the effective multiple for patient investors. With $205 million in annual free cash flow (9.8% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.
Bear Case
At 57x 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