Innoviva, Inc. (INVA) stock analysis

INVANasdaqPharmaceutical PreparationsFiscal year ends December 31

Financials through Q3 FY2026, quarter ended Sep 30, 2026Last filing: 10-Q on Nov 4, 2026Score 14/3041% below fair value

$18.97+0.11 (+0.58%)

Close on Nov 12, 2026Market cap $1.37BP/E 9.6Yield –

StockData Score

Prices as of Nov 11, 2026How the score works

Mixed14 of 30 checks passed

Innoviva passes 14 of the 30 checks behind our score; 12 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: 5/6
Growth: 2/6
Past performance: 1/6
Financial health: 6/6
Dividend: 0/6

What stands out

Margin of safety over 20%
The price is 40.9% below fair value, more than the 20% cushion we look for.
Trading below fair value
The share price of $18.86 is below our fair value estimate of $31.93.
Return on capital over 10%
Return on invested capital was 18.0%, above the 10% that usually covers the cost of capital.
Low debt
Debt is 22.8% of shareholders' equity, under the 40% we consider low.

What to watch

Revenue growing under 10% a year
Revenue grew 7.5% a year over the last three fiscal years, short of the 10% we look for.
P/E above its 5-year median
Innoviva's P/E of 9.6 is above its own 5-year median of 6.7.
Gross margin slipping
Gross margin was 74.5% over the last twelve months, against 79.8% a year earlier.
No dividend
Innoviva has not paid a dividend in the last twelve months.

Valuation5/6

P/E above its 5-year median
Innoviva's P/E of 9.6 is above its own 5-year median of 6.7.
P/E below the industry
Innoviva's P/E of 9.6 is below the Drugs median of 25.1.
EV/EBITDA below its 5-year median
Innoviva's EV/EBITDA of 6.1 is below its 5-year median of 7.2.
P/B below the industry
Innoviva's price-to-book of 1.20 is below the Drugs median of 2.29.
Trading below fair value
The share price of $18.86 is below our fair value estimate of $31.93.
Margin of safety over 20%
The price is 40.9% below fair value, more than the 20% cushion we look for.

Growth2/6

Revenue growing under 10% a year
Revenue grew 7.5% a year over the last three fiscal years, short of the 10% we look for.
EPS growing 10%+ a year
Diluted EPS grew 11.7% a year over the last three fiscal years.
Earnings acceleration
Needs positive net income now, a year ago and five years ago.
Growing faster than the industry
Revenue grew 12.8% over the last twelve months; the Drugs median is 8.0%.
Guidance issued
The latest outlook (2026 IST U.S. net product sales, Aug 5, 2026) was issued for the first time, so it neither adds nor takes away points.
Gross margin slipping
Gross margin was 74.5% over the last twelve months, against 79.8% a year earlier.

Past performance1/6

Return on equity
Needs positive equity and five years of results.
Return on capital over 10%
Return on invested capital was 18.0%, above the 10% that usually covers the cost of capital.
Return on equity against the industry
Needs positive equity.
Earnings over 5 years
Needs positive net income five years ago and in the latest year.
Net margin against its history
Needs five years of revenue and net income.
Net margin against the industry
Needs revenue and net income.

Financial health6/6

Low debt
Debt is 22.8% of shareholders' equity, under the 40% we consider low.
Debt falling against equity
Debt to equity fell from 71.4% five years ago to 22.8%.
Debt covered by cash flow
Operating cash flow over the last twelve months equals 70.9% of total debt.
Interest well covered
Operating income covers interest expense 8.6 times.
Short-term assets cover short-term debts
Current assets are 15.44 times current liabilities.
Low bankruptcy risk
The Altman Z-score is 3.53; above 3 is the safe zone and below 1.8 the distress zone.

Dividend0/6

No dividend
Innoviva 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.

Scores of similar companies

Fair value

How we estimate it

Our estimate per share

$31.93

The share price is 41% below this estimate.

20%+ below

Near fair value

20%+ above

$18.86Price$31.93Fair value

Method	Multiple used	Own 5Y median	Industry median	Value per share	Weight
P/E	15.8×	6.7×	25.1×	$31.15	40%
EV/EBITDA	12.1×	7.2×	17.1×	$32.92	35%
P/B	1.9×	1.6×	2.3×	$30.29	10%
Earnings power	7.4% cost of equity	–	–	$32.81	15%
Fair value				$31.93	100%

Valuation over time

Using the earnings and balance sheet published at each date, not today's.

P/E at month end
Own 5-year median 6.7
Drugs median 25.1

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

Medium risk

Average value traded per day: $16.64M
Value traded per 1% price move: $14.81M

Downside

Low risk

Typical loss in a bad month: 9.7%
Volatility (annualized): 26%
Sharpe ratio, 1 year: -0.55
Beta to the S&P 500 (5Y): 0.23

Typical bad-month loss, week by week

Margins

Share of revenue, fiscal years 2011 to 2025

Gross margin

74.8%

Operating margin

39.8%−55.5 pts over 5 years

Growth rates

Compound annual growth to fiscal 2025

Per year	1 year	3 years	5 years	10 years
Revenue	+14.7%	+7.5%	+4.1%	+22.5%
Gross profit	+3.9%	–	–	–
Operating income	-1.9%	–	-12.6%	+17.9%
EPS, diluted	+816.7%	+11.7%	+10.3%	–
Free cash flow	+3.9%	-1.0%	-9.0%	+34.5%

Returns and balance sheet

10 fiscal years. Hover a measure to see how it is calculated.

Measure	FY2016	FY2020	FY2025
Current ratio	9.88	55.98	14.64
Debt to equity	-2.03	0.71	0.22
Net debt to EBITDA	4.86×	0.42×	–
Interest coverage	2.1×	17.5×	9.8×
Inventory turnover	–	–	2.8×
Capex to revenue	0.2%	0.0%	0.3%
Diluted shares	123M	114M	85M