Zevra Therapeutics Inc. Common Stock (ZVRA)

FairStock Score: 78/100 — HIGH CONVICTION

Key Financials

Strengths

• High return on equity of 85.7% demonstrating efficient capital deployment
• Conservative balance sheet with debt-to-equity of just 0.41, providing financial flexibility
• Healthy net profit margin of 11.4% showing consistent profitability
• Revenue growth of 183.4% demonstrates strong top-line momentum
• FairStock composite score of 78/100 places it in the top tier across value, quality, and momentum factors

Concerns

• Altman Z-Score of 1.7 places it in the financial distress zone—elevated bankruptcy risk

AI Analysis

Zevra Therapeutics Inc. Common Stock is a micro-cap healthcare company valued at $599 million. The business generates $106 million in annual revenue with a 11.4% net margin. From a quality standpoint, Zevra shows solid Piotroski F-Score of 6/9 and distressed Altman Z-Score of 1.7 warrants caution. On valuation, the stock is deeply undervalued on a P/E basis at 7.5x, with trades above its Graham Number with a negative 11% margin. Growth dynamics show revenue growing at 183.4% and profit growth of 134.0%. Our composite FairStock Score of 78/100 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

Zevra's 183% 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