BIOHAVEN LTD Scores 45% in Guru Fundamental Report

In a recent report on BIOHAVEN LTD (BHVN), the stock received a 45% rating based on the Small-Cap Growth Investor model. However, it failed multiple key tests, indicating significant weaknesses in its financials, which could impact stock performance negatively.

Date: 03-10-2024

AI Rating: 4

The report assesses BIOHAVEN LTD (BHVN) using the Small-Cap Growth Investor model, leading to a rating of 45% based on the firm’s fundamentals and stock valuation. A score below 80% typically suggests limited interest from the strategy, indicating potential concerns for investors.

Key areas analyzed include:

Profit Margin: FAIL - This failure suggests that the company's ability to control costs and generate profits from its sales is weak, which could hinder overall profitability.
Sales and EPS Growth: FAIL - Not meeting expectations in this area could indicate stagnant or declining performance compared to previous periods, potentially driving down investor confidence.
Cash Flow from Operations: FAIL - Insufficient operational cash flows can limit a company's ability to reinvest in growth or pay down debt, negatively affecting its financial health.
Profit Margin Consistency: FAIL - This points to volatility in profit margins, which can make earnings less predictable and increase risk for investors.
R&D as a Percentage of Sales: FAIL - A low ratio could imply inadequate investment in innovation, potentially affecting future growth prospects.
Cash and Cash Equivalents: FAIL - Limited liquidity may restrict the company’s ability to respond to unexpected costs or opportunities.
Income Tax Percentage: FAIL - This could reflect inefficiencies in tax planning or an unfavorable tax situation, spanning future earnings availability.

Despite some passes in areas like insider holdings and long-term debt/equity ratio, the failures in the crucial aspects of profitability and growth could lead to negative stock performance. The overall score implies that investors should proceed with caution when considering BHVN as a potential investment.

Stocks: BHVN