ADAG Adagene Inc. - Fundamental Analysis

BULLISH

ADAG Stock | Fundamental Analysis & Investment Insights

NASDAQ • Healthcare • Biotechnology

Current Price Live

$3.25

Analyst Target

$10.18

+213.2% Upside

52W High

$3.25

52W Low

$1.3

Overview AI Snowflake Price Valuation Profitability Growth Health Peers Insiders

At a glance

Key valuation, profitability, growth, and risk metrics.

Updated Feb 14, 2026

Market cap

$153.18M

P/E

N/A

ROE

-63.3%

Profit margin

N/A

Debt/Equity

0.18

Dividend yield

N/A

AI Analysis

Confidence Score

85%

Analysis Accuracy

ADAG exhibits a weak Piotroski F-Score of 4/9, indicating marginal financial health, and lacks an Altman Z-Score, raising concerns about distress risk. Despite this, the company shows strong earnings surprise momentum with a 39.09% average beat over the last four quarters and significant Q/Q EPS growth of +58.3%. The stock is trading at a steep valuation (Price/Sales of 1484.21) but is supported by a strong analyst consensus of 'strong_buy' and a target price of $10.18. The 1-year return of +79.6% and 6-month surge of +92.3% reflect strong market momentum, though the 5-year decline of -87.3% underscores long-term volatility. The absence of dividends and negative profitability metrics highlight speculative risk, but growth expectations and insider sentiment suggest potential upside.

Key Strengths

Strong earnings surprise history with 3 of last 4 quarters beating estimates by an average of 39.09%

Significant Q/Q EPS growth of +58.3%, indicating improving profitability trends

Analyst consensus is 'strong_buy' with a high target price of $10.18, implying strong growth expectations

High insider sentiment (40/100) suggests some confidence in management's direction

Positive technical trend (10/100) and strong recent price momentum (92.3% in 6 months)

Key Risks

Piotroski F-Score of 4/9 indicates weak financial health and limited operational efficiency

Negative ROE (-63.26%) and ROA (-24.89%) reflect deep unprofitability despite high gross margins

Price/Sales ratio of 1484.21 is extremely elevated, signaling extreme valuation premium

No Graham Number or intrinsic value estimate, making fair value assessment highly speculative

Lack of Altman Z-Score and absence of cash/debt data raise concerns about financial stability and bankruptcy risk

Performance Snowflake

Multi-dimensional analysis across 5 key categories

Overall

Weak

Value

Future

Past

Health

Dividend

AI Verdict

bullish

Key drivers: Strong earnings surprise history, High analyst target price and consensus, Significant recent price momentum, Improving Q/Q EPS growth, Positive technical trend

Confidence

85%

Value

25/100

Ref P/E, PEG, Graham Number – All unavailable or meaningless due to negative earnings; Price/Sales is extreme, indicating premium valuation based on growth expectations rather than fundamentals.

Positives

High growth expectations priced in by analysts

Watchpoints

Price/Sales of 1484.21 is unsustainable for most traditional valuation models
No Graham Number or intrinsic value estimate available
Negative profitability and high debt/equity ratio (0.18) undermine fundamental value

Future

88/100

Ref Growth rates – While actual growth metrics are missing, the earnings surprise trend and analyst targets suggest strong forward momentum.

Positives

Consistent earnings beat history with 39.09% average surprise
Q/Q EPS growth of +58.3% suggests improving performance
Strong analyst target price of $10.18 implies high growth expectations

Watchpoints

No revenue or earnings growth data available for YoY/Q/Q
Forward P/E of -4.51 indicates continued losses expected

Past

55/100

Ref Historical trends – The company has a history of negative earnings and misses, but recent quarters show improvement.

Positives

Recent quarters show improvement in EPS vs. estimates
52-week high reached at current price ($3.25), indicating strong recent performance

Watchpoints

5-year return of -87.3% reflects long-term underperformance
Historical earnings have been consistently negative with large misses in 2021

Health

30/100

Ref Altman Z-Score, Piotroski F-Score – Piotroski score is weak; absence of Altman Z-Score prevents distress risk assessment, but negative profitability and low score signal financial fragility.

Positives

Current ratio of 2.29 and quick ratio of 2.20 suggest strong short-term liquidity
Debt/Equity of 0.18 is low, indicating conservative leverage

Watchpoints

Piotroski F-Score of 4/9 is below threshold for financial stability
Negative ROE, ROA, and operating margin indicate deep unprofitability
No Altman Z-Score available, raising bankruptcy risk concerns

Dividend

0/100

Ref Yield, Payout – No dividend payments or history; not applicable for income investors.

Positives

No standout positives identified.

Watchpoints

No dividend yield or payout ratio
Dividend strength is 0/100, indicating no dividend policy

Stock Price & Analyst Targets

Real-time price movements and analyst price targets

Current Price

$3.25

Analyst Target

$10.18

Upside/Downside

+213.2%

Multi-Horizon Performance vs Peers

Price momentum across 5Y → 1W horizons for ADAG and closest competitors.

Updated 2026-02-13

Company	5Y	3Y	1Y	6M	1M	1W
ADAG Adagene Inc. Primary	-87.3%	+73.8%	+79.6%	+92.3%	+80.6%	+23.6%
ANIK Anika Therapeutics, Inc. Peer	-72.8%	-67.0%	-41.2%	+29.0%	+6.3%	+13.3%
APYX Apyx Medical Corporation Peer	-63.3%	+11.5%	+179.1%	+78.0%	+12.1%	-3.5%
ACH Accendra Health, Inc. Peer	-92.8%	-89.2%	-85.8%	-73.2%	-22.1%	-16.3%
AGEN Agenus Inc. Peer	-95.8%	-93.6%	-13.8%	-45.6%	-3.3%	-3.0%

Positive values indicate cumulative gains over the specified period. Comparables pulled from the same sector to highlight whether momentum is stock-specific or industry-wide.

Historical Performance Trends

Long-term financial metrics and growth patterns

Revenue & Net Income

Profit & Operating Margins

Return on Equity (ROE)

Quarterly Revenue Growth

Historical data shows last 12 quarters (3 years)

Valuation Metrics

Key valuation ratios and pricing indicators

N/A

-4.51

N/A

4.04

1484.21

1312.86

-4.13

$153.18M

Profitability

Profit margins and return metrics

Profit Margin N/A

Operating Margin -32283.6%

Gross Margin 100.0%

ROE -63.26%

ROA -24.89%

Growth

Revenue and earnings growth rates

Revenue Growth N/A

Earnings Growth N/A

Q/Q Revenue Growth N/A

Q/Q Earnings Growth N/A

Financial Health

Balance sheet strength and liquidity metrics

Debt/Equity

0.18

Low debt

Current Ratio

2.29

Strong

Quick Ratio

2.2

Excellent

Cash/Share

$1.07

Quarterly Earnings History

EPS performance vs analyst estimates

2023-04-28

$-0.15

+58.3% surprise

2022-11-03

$-0.36

2022-08-30

$-0.34

+35.9% surprise

2022-04-25

$-0.25

+23.1% surprise

Healthcare Sector Comparison

Comparing ADAG against 146 companies in the Healthcare sector (10 bullish, 60 neutral, 76 bearish)

Return on Equity (ROE)

-63.26%

This Stock

-56.84%

Sector Avg

+11.3% (Excellent)

Debt to Equity

0.18

This Stock

2.68

Sector Avg

-93.3% (Less Debt)

Current Ratio

2.29

This Stock

3.47

Sector Avg

-33.9% (Weaker)

Similar Companies

Peer comparison within the same industry

Company	AI Rating	Market Cap	P/E	ROE	Profit Margin	Price
ADAG Adagene Inc.	BULLISH	$153.18M	-	-63.3%	-%	$3.25
ANIK Anika Therapeutics, Inc.	BEARISH	$150.85M	-	-8.7%	-29.3%	$10.46
APYX Apyx Medical Corporation	BEARISH	$159.19M	-	-168.1%	-30.4%	$3.88
ACH Accendra Health, Inc.	BEARISH	$163.2M	-	-196.4%	-12.4%	$2.11
AGEN Agenus Inc.	BEARISH	$117.1M	-	-%	-32.9%	$3.24

Wall Street Analysts

Professional analyst ratings and price targets

Consensus

STRONG_BUY

6 analysts

Guggenheim

2025-11-24

init

Buy

LUCID CAPITAL MARKETS

2025-09-18

init

Buy

Past News Coverage

Recent headlines mentioning ADAG from our newsroom.

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