ADAG Adagene Inc. - Fundamental Analysis

ADAG's Piotroski F-Score of 4/9 indicates weak financial health, and the absence of an Altman Z-Score raises concern about distress risk, particularly given its negative profitability and high valuation multiples. However, the company shows strong earnings surprise momentum (39.09% average over last 4 quarters) and a recent 58.3% Q/Q EPS improvement, signaling potential operational turnaround. Analysts maintain a strong_buy consensus with a $8.00 target, implying significant upside. Despite massive losses and a price-to-sales ratio of 1433.98, the stock is trading at a steep premium due to high growth expectations in the biotech sector. The 1M and 6M returns of +85.8% and +31.4% reflect strong short-term momentum.