Investment Thesis
Oramed is a pre-commercial biotech company with concerning operational fundamentals: negative operating cash flow of -$2.9M on minimal $2.0M revenue, deep operating losses (-182.9% margin), and significant cash burn despite strong balance sheet liquidity. The anomalously high net income ($38.3M on $2.0M revenue) indicates large non-operating gains masking weak core operations, raising sustainability questions.
Strengths
- Strong balance sheet with low liabilities ($502.7K) and high stockholders' equity ($238.3M)
- Excellent liquidity position with 6.45x current ratio and $13.2M cash
- Revenue growth of 49.3% YoY demonstrates market traction despite minimal absolute scale
- Conservative leverage at 0.31x debt-to-equity ratio
Risks
- Severe operational cash burn of -$2.9M annually with negative free cash flow and no path to profitability visible
- Unexplained massive divergence between $38.3M net income and -$2.9M operating cash flow suggests non-recurring gains masking fundamental operational distress
- Operating margin of -182.9% indicates business model not yet scaled to break-even; tiny $2.0M revenue base insufficient to support operations
- Early-stage biotech with execution risk on clinical trials and regulatory approvals; cash runway limited if cash burn accelerates
Key Metrics to Watch
- Operating cash flow trend and runway until cash depletion at current burn rate
- Gross margin expansion as revenue scales and commercialization progresses
- Operating income path to profitability and sustainability of non-operating gains
- Pipeline advancement milestones and regulatory approval status for lead candidates
Financial Metrics
Revenue
2.0M
Net Income
38.3M
EPS (Diluted)
$0.91
Free Cash Flow
-2.9M
Total Assets
268.8M
Cash
13.2M
Profitability Ratios
Gross Margin
0.7%
Operating Margin
-183.0%
Net Margin
1,915.5%
ROE
16.1%
ROA
14.2%
FCF Margin
-146.0%
Balance Sheet & Liquidity
Current Ratio
6.45x
Quick Ratio
6.45x
Debt/Equity
0.31x
Debt/Assets
0.2%
Interest Coverage
-1.41x
Long-term Debt
74.6M
Disclaimer: This analysis is generated by AI based on publicly available SEC EDGAR filings.
It does not include stock price data and should not be considered financial advice.
All fundamental data is sourced from SEC public domain filings.
Always conduct your own research before making investment decisions.
Data Source: SEC EDGAR |
Analysis Date: 2026-05-23T08:58:54.066929 |
Data as of: 2026-03-31 |
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