Scholar Rock Holding Corporation Common Stock (SRRK)

FairStock Score: 15/100 — RISKY

Key Financials

AI Analysis

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

Benjamin Graham taught me to insist on a margin of safety, and Warren Buffett to buy understandable businesses with durable competitive advantages. Scholar Rock is not that today. It is a biopharmaceutical firm with 289 employees, focused on rare neuromuscular diseases such as spinal muscular atrophy, using a proprietary TGF-beta platform. That science may be valuable, but the filed figures show no revenue in fiscal 2023, the year ended 2023-12-31; fiscal 2024, the year ended 2024-12-31; fiscal 2025, the year ended 2025-12-31; fiscal Q1 2026, the quarter ended 2026-03-31; and fiscal Q2 2026, the quarter ended 2026-06-30. Net losses have widened: $165.8 million in fiscal 2023, $246.3 million in fiscal 2024, $377.9 million in fiscal 2025, then $105.5 million in fiscal Q1 2026 and $109.9 million in fiscal Q2 2026. Trailing free cash flow is negative $297.0 million, and the FairStock FCF yield is -6.0%. At the close on 2026-10-13, the stock was $40.52 with a $4.9 billion market cap. FairStock calculations show a P/E of -12.24, P/B of 19.39, ROE of -167.77%, ROCE of -58.82%, Piotroski F-Score of 0/9, and FairStock Score of 15/100. The Altman Z-Score of 7.92 suggests lower distress risk on that model, and debt-to-equity is 0.80. But no revenue and widening losses mean the price rests on future pipeline success. The Lynch category is none because the company lost money in each of the last four years. Without earnings, book value is thin relative to price, and cash burn requires financing. I see speculative optionality, not a Graham-style bargain.

In plain English: Scholar Rock is a small drug company trying to make medicines for spinal muscular atrophy and other rare nerve and muscle diseases. In the filings shown, it reports no revenue and its yearly losses are getting bigger, reaching about $378 million in fiscal 2025. At a price of $40.52 on 2026-10-13 and a market value near $4.9 billion, the stock looks expensive compared with today's losses and cash use; the investment case depends mainly on future drug success.

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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