Pulmonx Corp (LUNG) stock analysis

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

Pulmonx's price-to-book of 3.74 is above the Surgical, Medical, and Dental Instruments and Supplies median of 3.22.

Trading below fair value

The share price of $2.98 is below our fair value estimate of $4.84.

Margin of safety over 20%

The price is 38.4% below fair value, more than the 20% cushion we look for.

Revenue growing 10%+ a year

Revenue grew 19.0% 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 slower than the industry

Revenue grew -3.2% over the last twelve months; the Surgical, Medical, and Dental Instruments and Supplies median is 11.0%.

Guidance lowered

Pulmonx lowered its full year 2026 cash, cash equivalents, and marketable securities to decrease outlook on Oct 27, 2026.

Gross margin improving

Gross margin was 77.4% over the last twelve months, against 73.3% a year earlier.

Return on equity under 15%

Return on equity was -90.3% over the last twelve months and averaged -46.9% over five years; we look for 15% on both.

Return on capital under 10%

Return on invested capital was -156%, below the 10% that usually covers the cost of capital.

Return on equity below the industry

Pulmonx's return on equity of -90.3% is below the Surgical, Medical, and Dental Instruments and Supplies median of -31.3%.

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 -47.9% over the last twelve months, against a 5-year average of -85.2%.

Net margin below the industry

Pulmonx's net margin of -47.9% is below the Surgical, Medical, and Dental Instruments and Supplies median of -14.1%.

High debt

Debt is 111% of shareholders' equity, above the 40% we consider low.

Debt rising against equity

Debt to equity rose from 0.0% five years ago to 111%.

Debt not well covered by cash flow

Operating cash flow over the last twelve months equals -67.6% of total debt; we look for at least 20%.

Interest not well covered

Operating income covers interest expense -9.4 times; we look for at least 5.

Short-term assets cover short-term debts

Current assets are 4.05 times current liabilities.

Elevated bankruptcy risk

The Altman Z-score is -5.71; above 3 is the safe zone and below 1.8 the distress zone.

No dividend

Pulmonx 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.