Xeris Biopharma Holdings Inc. Common Stock (XERS)

FairStock Score: 51/100 — MIXED

Key Financials

Strengths

• Generates $42 million in annual free cash flow (4.1% yield on market cap)
• Strong Piotroski F-Score of 8/9 indicating robust financial health across profitability, leverage, and efficiency metrics
• Revenue growth of 42.8% demonstrates strong top-line momentum

Concerns

• Trades significantly above Graham Number ($0) with negative 1590% margin of safety—limited downside protection
• High leverage at 19.87x debt-to-equity increases financial risk and interest expense burden
• Altman Z-Score of -0.0 places it in the financial distress zone—elevated bankruptcy risk

AI Analysis

Xeris Biopharma Holdings Inc. Common Stock is a micro-cap healthcare company valued at $1.0 billion. The business generates $315 million in annual revenue with a 3.5% net margin and $42 million in free cash flow. From a quality standpoint, Xeris shows near-perfect Piotroski F-Score of 8/9 indicating exceptional financial health and distressed Altman Z-Score of -0.0 warrants caution. On valuation, the stock is commanding a steep 89.1x multiple, with trades far above its Graham Number ($0) with no margin of safety. Growth dynamics show revenue growing at 42.8% and profit growth of 316.7%. Our composite FairStock Score of 51/100 reflects mixed fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

Xeris's 43% revenue growth trajectory could accelerate as it captures additional market share in the healthcare sector. With $42 million in annual free cash flow (4.1% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

At 89x 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