BridgeBio Pharma Rated Low by Validea's Value Investor Model

BridgeBio Pharma's rating stands at 43% according to a Value Investor model analysis. The report reveals shortcomings in sales and long-term EPS growth, signaling potential stock price impact.

Date: 13-02-2025

AI Rating: 4

Investment Sentiment towards BridgeBio Pharma Inc

According to the report, BridgeBio Pharma Inc. (BBIO) has been evaluated under the Value Investor model inspired by Benjamin Graham, which emphasizes deep value traits such as low P/B and P/E ratios, manageable debt, and robust long-term earnings growth. Currently, BBIO's score of 43% reveals significant concerns that could influence stock price negatively.

Sales and Growth Metrics

Critical factors affecting the stock's outlook include fundamental discrepancies in multiple areas. The sales criteria has been marked as a FAIL, which could indicate a stagnation or decline in revenue growth, directly impacting investor confidence. Additionally, the long-term EPS growth is flagged with a FAIL rating. This could suggest the company is not projected to increase earnings per share in the long run, a crucial metric for potential investors looking for growth opportunities.

Debt and Valuation

The report highlights that BBIO fails to meet the criteria concerning the long-term debt in relation to net current assets, marked as another FAIL. This could raise concerns about the company's leverage and financial health, further discouraging investment. Although the company has passed the current ratio and price/book ratio tests, these factors alone may not be enough to offset the significant concerns raised regarding profitability and growth.

In summary, the mixed assessment from the Value Investor model indicates that while BBIO has some strengths, the significant failures in areas such as sales and long-term EPS growth are notable drawbacks that may dampen investor enthusiasm and negatively affect stock prices in the near future.

Stocks: BBIO