Zevra Therapeutics Inc. Common Stock (ZVRA)

FairStock Score: 78/100 — HIGH CONVICTION

Key Financials

AI Analysis

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

I look for businesses that earn more than they consume and sell for less than a conservative estimate of value. Zevra is a commercial-stage rare-disease company with only 61 employees, so scale is small. The filed figures show a dramatic turn: revenue rose from $23.6 million in fiscal 2024 (period ended 2024-12-31) to $106.5 million in fiscal 2025 (period ended 2025-12-31), while net income moved from a $105.5 million loss to $83.2 million of profit. In fiscal Q2 2026 (quarter ended 2026-06-30), revenue was $39.7 million and net income was $8.8 million, or $0.14 diluted EPS, against fiscal Q2 2025 revenue of $25.9 million and net income of $74.7 million. That comparison shows the prior-year profit was unusually large, while the latest quarter was positive but smaller. Financial health looks better than most small biotechs: debt/equity is 0.01, Altman Z-Score is 3.73, and trailing free cash flow is $32.6 million, a 5.3% FCF yield on the $617 million market cap. FairStock's calculations at the 2026-10-13 close of $10.39 show a P/E of 11.17, P/B of 2.83, ROE of 34.80%, ROCE of 8.74%, and EV/EBITDA of 6.19. The Graham Number is $8.76, implying a negative 18.61% margin of safety. The Lynch category is TURNAROUND, because it returned to profit after losses within the last three years. I would need to see durable commercial sales and Phase 3 outcomes before calling the moat strong; the stock is not a classic bargain versus the Graham Number, but the cash generation and low leverage are notable.

In plain English: Zevra Therapeutics is a small healthcare company that makes and develops treatments for rare diseases, including a sleep-related drug in late testing. The business looks much stronger than a few years ago: it has grown revenue and swung from losses to profit, with little debt and positive cash flow. At the 2026-10-13 price of $10.39, the shares look somewhat above a simple value estimate based on earnings and book value, so the price seems fair-to-full rather than clearly cheap.

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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