INSMED Inc (INSM) stock analysis
Close on Nov 12, 2026Market cap $25.90BP/E –Yield –
StockData Score
Prices as of Nov 11, 2026How the score works
Weak8 of 30 checks passed
Insmed passes 8 of the 30 checks behind our score; 13 could not be run for lack of data and count as not passed. Each dot in the shape is one check — hover it for the numbers.
- Valuation
- 0/6
- Growth
- 3/6
- Past performance
- 2/6
- Financial health
- 3/6
- Dividend
- 0/6
What stands out
Revenue growing 10%+ a year
Revenue grew 35.2% a year over the last three fiscal years.
Low bankruptcy risk
The Altman Z-score is 7.32; above 3 is the safe zone and below 1.8 the distress zone.
Growing faster than the industry
Revenue grew 240% over the last twelve months; the Drugs median is 8.0%.
Gross margin improving
Gross margin was 84.4% over the last twelve months, against 76.5% a year earlier.
What to watch
Margin of safety under 20%
The price is 97.1% above fair value, so there is no margin of safety.
Trading above fair value
The share price of $120.75 is above our fair value estimate of $61.27.
High debt
Debt is 76.4% of shareholders' equity, above the 40% we consider low.
Interest not well covered
Operating income covers interest expense -6.9 times; we look for at least 5.
Valuation0/6
P/E against its history
Not enough price and earnings history to compare.
P/E against the industry
Needs positive earnings and enough profitable companies in the industry.
EV/EBITDA against its history
Needs positive EBITDA and price history.
P/B above the industry
Insmed's price-to-book of 36.48 is above the Drugs median of 2.29.
Trading above fair value
The share price of $120.75 is above our fair value estimate of $61.27.
Margin of safety under 20%
The price is 97.1% above fair value, so there is no margin of safety.
Growth3/6
Revenue growing 10%+ a year
Revenue grew 35.2% a year over the last three fiscal years.
EPS growth over 3 years
Needs positive EPS three years ago and today.
Earnings acceleration
Needs positive net income now, a year ago and five years ago.
Growing faster than the industry
Revenue grew 240% over the last twelve months; the Drugs median is 8.0%.
Guidance lowered
Insmed lowered its full-year 2026 ARIKAYCE revenue outlook on Oct 29, 2026.
Gross margin improving
Gross margin was 84.4% over the last twelve months, against 76.5% a year earlier.
Past performance2/6
Return on equity
Needs positive equity and five years of results.
Return on invested capital
Needs operating income and invested capital.
Return on equity below the industry
Insmed's return on equity of -72.5% is below the Drugs median of -58.9%.
Earnings over 5 years
Needs positive net income five years ago and in the latest year.
Net margin above its 5-year average
Net margin was -39.9% over the last twelve months, against a 5-year average of -227%.
Net margin above the industry
Insmed's net margin of -39.9% is above the Drugs median of -53.0%.
Financial health3/6
High debt
Debt is 76.4% of shareholders' equity, above the 40% we consider low.
Debt falling against equity
Debt to equity fell from 129% five years ago to 76.4%.
Debt not well covered by cash flow
Operating cash flow over the last twelve months equals -107% of total debt; we look for at least 20%.
Interest not well covered
Operating income covers interest expense -6.9 times; we look for at least 5.
Short-term assets cover short-term debts
Current assets are 2.86 times current liabilities.
Low bankruptcy risk
The Altman Z-score is 7.32; above 3 is the safe zone and below 1.8 the distress zone.
Dividend0/6
No dividend
Insmed has not paid a dividend in the last twelve months.
Yield against Treasuries
No dividend.
Yield against the market
No dividend.
Dividend stability
No dividend.
Earnings cover
No dividend.
Cash-flow cover
No dividend.
Fair value
How we estimate itOur estimate per share
$61.27
The share price is 97% above this estimate.
| Method | Multiple used | Own 5Y median | Industry median | Value per share | Weight |
|---|---|---|---|---|---|
| P/B | 12.0× | 31.8× | 2.3× | $39.72 | 50% |
| P/S | 12.0× | 19.0× | 4.8× | $82.81 | 50% |
| Fair value | $61.27 | 100% | |||
Valuation over time
Using the earnings and balance sheet published at each date, not today's.
- P/B at month end
- Own 5-year median 31.8
- Drugs median 2.3
An estimate from reported numbers and market multiples, not a price target or investment advice. It can be far off for companies whose profits are about to change sharply.
Market risk
From the past year of daily prices.
Liquidity
Low risk
- Average value traded per day
- $384.68M
- Value traded per 1% price move
- $142.85M
Downside
High risk
- Typical loss in a bad month
- 27.1%
- Volatility (annualized)
- 63%
- Sharpe ratio, 1 year
- -0.66
- Beta to the S&P 500 (5Y)
- 0.75
Typical bad-month loss, week by week
Margins
Share of revenue, fiscal years 2011 to 2025
Gross margin
Operating margin
Net margin
Growth rates
Compound annual growth to fiscal 2025
| Per year | 1 year | 3 years | 5 years | 10 years | Five-year pace |
|---|---|---|---|---|---|
| Revenue | +66.7% | +35.2% | +29.8% | – | |
| Gross profit | +73.9% | +36.5% | +31.2% | – |
Returns and balance sheet
10 fiscal years. Hover a measure to see how it is calculated.
| Measure | FY2016 | FY2020 | FY2025 | Trend |
|---|---|---|---|---|
| Return on equity | -75.6% | -109.4% | -249.3% | |
| Return on assets | -59.3% | -38.2% | -59.5% | |
| Current ratio | 6.02 | 5.24 | 3.83 | |
| Debt to equity | 0.35 | 1.29 | 0.73 | |
| Net debt to EBITDA | 0.63× | 0.69× | – | |
| Interest coverage | -49.6× | -9.0× | -14.9× | |
| Inventory turnover | – | 1.0× | 1.1× | |
| Capex to revenue | – | 3.8% | 5.4% | |
| Diluted shares | 62M | 98M | 199M |
Where the cash went
Fiscal 2021 to 2025, five years combined
Insmed generated $2.92B from operations and spent $84.94M on capital expenditure, dividends and share buybacks. 100% of that went back into the business.
DuPont analysis
Return on equity split into margin, efficiency and leverage
| Fiscal year | Net margin | Asset turnover | Equity multiplier | Return on equity |
|---|---|---|---|---|
| FY2025 | -210.5% | 0.28× | 4.19× | -249.3% |
| FY2024 | -251.2% | 0.22× | -72.08× | 3926.5% |
| FY2023 | -245.6% | 0.20× | -12.24× | 614.5% |
| FY2022 | -196.3% | 0.17× | 5.82× | -193.2% |
| FY2021 | -230.6% | 0.18× | 2.97× | -126.7% |
| FY2020 | -178.9% | 0.21× | 2.86× | -109.4% |
| FY2019 | -186.4% | 0.20× | 2.87× | -108.2% |
| FY2018 | -3297.2% | 0.02× | 1.87× | -113.9% |
Piotroski F-Score
Nine tests of profitability, balance sheet and efficiency, fiscal 2025 against fiscal 2024
- ProfitableNet income above zero-$1.28B
- Cash generatingOperating cash flow above zero-$935.01M
- Return on assets improvedROA up on the prior year-68.7% → -63.0%
- Earnings backed by cashOperating cash flow above net income-$935.01M vs -$1.28B
- Less leverageLong-term debt to assets fell54.5% → 23.9%
- Better liquidityCurrent ratio rose5.45 → 3.83
- No dilutionShare count did not rise164M → 199M
- Gross margin improvedGross margin up on the prior year76.43% → 79.73%
- More efficientAsset turnover rose0.27 → 0.30
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