Phathom Pharmaceuticals, Inc. (PHAT) stock analysis
Close on Nov 11, 2026Market cap $510.51MP/E –Yield –
StockData Score
Prices as of Nov 11, 2026How the score works
Weak4 of 30 checks passed
Phathom Pharmaceuticals passes 4 of the 30 checks behind our score; 20 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
- 1/6
- Growth
- 1/6
- Past performance
- 1/6
- Financial health
- 1/6
- Dividend
- 0/6
What stands out
P/S below the industry
Phathom Pharmaceuticals's price-to-sales of 1.86 is below the Drugs median of 4.80 (book value is negative, so we use sales).
Growing faster than the industry
Revenue grew 86.8% over the last twelve months; the Drugs median is 8.0%.
Net margin above the industry
Phathom Pharmaceuticals's net margin of -30.2% is above the Drugs median of -53.0%.
Short-term assets cover short-term debts
Current assets are 1.76 times current liabilities.
What to watch
Interest not well covered
Operating income covers interest expense -0.4 times; we look for at least 5.
Debt not well covered by cash flow
Operating cash flow over the last twelve months equals -12.5% of total debt; we look for at least 20%.
Elevated bankruptcy risk
The Altman Z-score is -4.82; above 3 is the safe zone and below 1.8 the distress zone.
Guidance lowered
Phathom Pharmaceuticals lowered its FY 2026 Net revenue outlook on Oct 29, 2026.
Valuation1/6
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/S below the industry
Phathom Pharmaceuticals's price-to-sales of 1.86 is below the Drugs median of 4.80 (book value is negative, so we use sales).
Price against fair value
We could not estimate a fair value: it needs at least two valuation methods with positive inputs.
Margin of safety
Depends on the fair value estimate.
Growth1/6
Revenue growth over 3 years
Needs three years of positive revenue.
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 86.8% over the last twelve months; the Drugs median is 8.0%.
Guidance lowered
Phathom Pharmaceuticals lowered its FY 2026 Net revenue outlook on Oct 29, 2026.
Gross margin slipping
Gross margin was 80.7% over the last twelve months, against 87.2% a year earlier.
Past performance1/6
Return on equity
Needs positive equity and five years of results.
Return on invested capital
Needs operating income and invested capital.
Return on equity 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 above the industry
Phathom Pharmaceuticals's net margin of -30.2% is above the Drugs median of -53.0%.
Financial health1/6
Debt level
Needs debt and equity figures.
Debt trend
Needs a balance sheet from five years ago with positive equity.
Debt not well covered by cash flow
Operating cash flow over the last twelve months equals -12.5% of total debt; we look for at least 20%.
Interest not well covered
Operating income covers interest expense -0.4 times; we look for at least 5.
Short-term assets cover short-term debts
Current assets are 1.76 times current liabilities.
Elevated bankruptcy risk
The Altman Z-score is -4.82; above 3 is the safe zone and below 1.8 the distress zone.
Dividend0/6
No dividend
Phathom Pharmaceuticals 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 itWe don't publish a fair value for Phathom Pharmaceuticals. It needs a US-dollar share price, at least two valuation methods with positive inputs (earnings, EBITDA, book value or sales) and, for companies with several share classes, classes that trade at the same price.
Valuation over time
Using the earnings and balance sheet published at each date, not today's.
- P/B at month end
- 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
Medium risk
- Average value traded per day
- $10.86M
- Value traded per 1% price move
- $2.88M
Downside
High risk
- Typical loss in a bad month
- 29.1%
- Volatility (annualized)
- 69%
- Sharpe ratio, 1 year
- -0.84
- Beta to the S&P 500 (5Y)
- 1.63
Typical bad-month loss, week by week
Margins
Share of revenue, fiscal years 2017 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 | +216.9% | – | – | – | |
| Gross profit | +222.6% | – | – | – |
Returns and balance sheet
9 fiscal years. Hover a measure to see how it is calculated.
| Measure | FY2017 | FY2020 | FY2025 | Trend |
|---|---|---|---|---|
| Return on equity | – | -61.1% | 64.0% | |
| Return on assets | – | -46.7% | -69.4% | |
| Current ratio | – | 5.25 | 1.73 | |
| Debt to equity | – | 0.24 | -0.48 | |
| Net debt to EBITDA | – | 1.92× | -0.50× | |
| Interest coverage | – | -27.4× | -2.3× | |
| Inventory turnover | – | – | 5.2× | |
| Capex to revenue | – | – | 0.1% | |
| Diluted shares | – | 33M | 73M |
Where the cash went
Fiscal 2021 to 2025, five years combined
Phathom Pharmaceuticals generated $866.11M from operations and spent $3.37M 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 | -126.3% | 0.55× | -0.92× | 64.0% |
| FY2024 | -605.1% | 0.14× | -2.43× | 204.9% |
| FY2023 | -29558.9% | 0.00× | -3.92× | 273.2% |
Piotroski F-Score
Nine tests of profitability, balance sheet and efficiency, fiscal 2025 against fiscal 2024
- ProfitableNet income above zero-$221.25M
- Cash generatingOperating cash flow above zero-$166.78M
- Return on assets improvedROA up on the prior year-80.8% → -58.5%
- Earnings backed by cashOperating cash flow above net income-$166.78M vs -$221.25M
- Less leverageLong-term debt to assets fell53.2% → 80.7%
- Better liquidityCurrent ratio rose4.20 → 1.73
- No dilutionShare count did not rise63M → 73M
- Gross margin improvedGross margin up on the prior year85.57% → 87.09%
- More efficientAsset turnover rose0.13 → 0.46
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