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AKBA Akebia Therapeutics, Inc. - Fundamental Analysis

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AKBA Stock | Fundamental Analysis & Investment Insights
NASDAQ Healthcare Drug Manufacturers - Specialty & Generic
Current Price Live
$1.36
Analyst Target
$5.4
+297.1% Upside
52W High
$4.08
52W Low
$1.3

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Confidence Score
65%
Analysis Accuracy
The Advanced Deterministic Scorecard shows a Piotroski F-Score of 4/9, indicating stable but not strong financial health, while the Altman Z-Score is unavailable, limiting bankruptcy risk assessment. Despite a high revenue growth rate of 57% YoY and strong analyst recommendation of 'strong_buy', the company remains unprofitable with a negative profit margin of -7.07% and elevated Debt/Equity of 4.78, raising sustainability concerns. Valuation metrics such as a Price/Book of 8.66 and Forward P/E of 8.00 suggest pricing ahead of fundamentals, while insider sentiment is weak at 40/100. The stock trades significantly below the $5.40 analyst target, implying upside potential if execution improves.

Key Strengths

Exceptional year-over-year revenue growth of 57.00%, outpacing sector average of 62.37% and signaling strong commercial traction
High gross margin of 83.32%, reflecting pricing power and low cost of goods, typical of specialty pharma business models
Recent earnings surprises are strongly positive, with 3 out of last 4 quarters beating estimates and an average surprise of 120.58%
Current Ratio of 1.94 and Quick Ratio of 1.74 indicate sufficient short-term liquidity to meet obligations
Analyst consensus is 'strong_buy' with a $5.40 target price, implying ~297% upside from current levels

Key Risks

Piotroski F-Score of 4/9 indicates borderline financial health, with risk of deterioration if profitability or leverage worsens
Debt/Equity ratio of 4.78 is significantly above sector average of 2.70, increasing financial risk and refinancing pressure
Profit margin is negative at -7.07%, and ROE is unavailable, suggesting ongoing unprofitability and weak return generation
Insider sentiment is weak at 40/100, indicating lack of confidence from company insiders despite bullish analyst views
Technical trend score of 0/100 signals strong bearish momentum, with 1-year return of -43.1% and 6-month return of -61.8%
AI Fair Value Estimate
Based on comprehensive analysis
$5.4
+297.1% above current price

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