TherapeuticsMD Inc. Common Stock (TXMD)

FairStock Score: 52/100 — MIXED

Key Financials

Strengths

• Generates $1 million in annual free cash flow (5.3% yield on market cap)
• Conservative balance sheet with debt-to-equity of just 0.18, providing financial flexibility
• Revenue growth of 33.9% demonstrates strong top-line momentum

Concerns

• Trades significantly above Graham Number ($1) with negative 201% margin of safety—limited downside protection
• Currently unprofitable—sustained losses could lead to dilutive capital raises or balance sheet deterioration
• Altman Z-Score of -33.8 places it in the financial distress zone—elevated bankruptcy risk

AI Analysis

TherapeuticsMD Inc. Common Stock is a micro-cap healthcare company valued at $25 million. Revenue stands at $3 million, though the company is currently unprofitable. From a quality standpoint, TherapeuticsMD shows solid Piotroski F-Score of 6/9 and distressed Altman Z-Score of -33.8 warrants caution. On valuation, the stock is commanding a steep 199.0x multiple, with trades far above its Graham Number ($1) with no margin of safety. Growth dynamics show revenue growing at 33.9% and profit growth of -345.6%. Our composite FairStock Score of 52/100 reflects mixed fundamentals overall. Without profitability, this remains speculative—suitable only for those with high risk tolerance and a long time horizon.

Bull Case

TherapeuticsMD's 34% revenue growth trajectory could accelerate as it captures additional market share in the healthcare sector. With $1 million in annual free cash flow (5.3% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

At 199x 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