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AGIO

BEARISH
$27.85 Live
Agios Pharmaceuticals, Inc. · NASDAQ
Target $39.88 (+43.2%)
$22.24 52W Range $46.0

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AI Analysis

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Confidence
85%
AGIO's Advanced Deterministic Scorecard reveals severe financial distress: a Piotroski F-Score of 1/9 indicates poor operational and financial health, while the absence of an Altman Z-Score raises red flags for potential bankruptcy risk. Despite strong revenue growth of 86.1% YoY, the company reports a 0.00% profit margin, negative operating margin of -608.89%, and negative ROE of -30.20%, signaling deep operational inefficiencies. Insider selling activity totaling $2.06M over six months, with multiple officer sales, underscores lack of confidence from within the organization. The stock trades at a premium valuation (Price/Sales of 30.20) with no earnings or cash flow support, and its 52-week high is 65% above current levels, indicating overvaluation relative to fundamentals.

Key Strengths

Strong revenue growth of 86.1% YoY, indicating market traction and product demand
High analyst consensus with a 'buy' recommendation from 8 analysts
Extremely low debt/equity ratio of 0.03, suggesting minimal leverage risk
High current and quick ratios (11.46 and 10.53) indicating strong short-term liquidity
Positive earnings surprise in two of the last four quarters, including a +11.9% beat

Key Risks

Piotroski F-Score of 1/9 indicates severe financial deterioration and weak operational performance
Negative operating margin (-608.89%) and zero profit margin reflect unsustainable business model
Insider selling of 35,569 shares ($2.06M value) signals internal skepticism
No positive cash flow or free cash flow data, raising concerns about capital sustainability
Price/Sales of 30.20 is extremely high for a pre-profit company, indicating overvaluation

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