Theravance Biopharma Inc. Ordinary Shares (TBPH)

FairStock Score: 79/100 — HIGH CONVICTION

Key Financials

AI Analysis

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

Measured against Graham's caution and Buffett's preference for durable franchises, Theravance is a mixed picture. It sells YUPELRI for COPD and is developing Ampreloxetine for neurogenic orthostatic hypotension in multiple system atrophy, so the business rests on a commercial product and a binary Phase 3 asset. In the 2026-Q2 quarter, revenue was $20.7 million and net income was a loss of $5.9 million, a -28.45% margin. That is not a self-funding compounding machine yet. Still, trailing free cash flow was $53.7 million, a 6.3% FCF yield on the $847.3 million market cap, and debt/equity is only 0.13, so liquidity is not the immediate issue. The data set reports revenue growth of 15.02% and profit growth of 63.67%, but I would want the filed periods to judge durability. Valuation is contradictory: a P/E of 16.38 and PEG of 0.26 look undemanding if earnings persist, while the Graham Number of $11.43 leaves the $17.03 close with a -48.99% margin of safety. ROCE is only 1.33%, suggesting weak capital efficiency, and the Piotroski F-Score of 3/9 with Altman Z-Score of 1.27 points to financial fragility. A moat is not obvious from the provided data; YUPELRI is a commercial COPD product and Ampreloxetine's value depends on trial results. FairStock's Lynch category is none because only 0 years of filed results exist and it needs 3. I see a speculative, event-driven biotech with positive cash flow but insufficient margin of safety.

In plain English: Theravance Biopharma is a small healthcare company that sells YUPELRI, a COPD medicine, and is testing another drug for a rare blood-pressure-related condition. Its latest reported quarter showed $20.7 million of revenue and a $5.9 million net loss, but it generated positive cash over the past year and carries little debt. At $17.03, the shares look more reasonable against reported earnings than against the company's net assets, so the price appears full rather than clearly cheap.

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Data as of 2026-09-25 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