Theravance Biopharma Inc. Ordinary Shares (TBPH)

FairStock Score: 79/100 — HIGH CONVICTION

Key Financials

Strengths

• High return on equity of 44.8% demonstrating efficient capital deployment
• Conservative balance sheet with debt-to-equity of just 0.14, providing financial flexibility
• Superior net profit margin of 56.8% indicating pricing power and operational efficiency
• Revenue growth of 144.7% demonstrates strong top-line momentum
• FairStock composite score of 79/100 places it in the top tier across value, quality, and momentum factors

Concerns

• Altman Z-Score of 1.4 places it in the financial distress zone—elevated bankruptcy risk

AI Analysis

Theravance Biopharma Inc. Ordinary Shares is a micro-cap healthcare company valued at $847 million. The business generates $107 million in annual revenue with a 56.8% net margin. From a quality standpoint, Theravance shows distressed Altman Z-Score of 1.4 warrants caution and extraordinary 45% return on equity. On valuation, the stock is deeply undervalued on a P/E basis at 7.9x, with trades above its Graham Number with a negative 0% margin. Growth dynamics show revenue growing at 144.7% and profit growth of 493.0%. Our composite FairStock Score of 79/100 reflects strong fundamentals overall. This combination of reasonable valuation, solid returns, and conservative leverage makes it worth a closer look for value-oriented portfolios.

Bull Case

Theravance's 145% revenue growth trajectory could accelerate as it captures additional market share in the healthcare sector. Operational leverage in the business model means incremental revenue growth could disproportionately boost bottom-line profitability.

Bear Case

Macro headwinds or sector-specific disruption could pressure margins, particularly if competitive intensity increases in the healthcare space. 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