Phathom Pharmaceuticals, Inc.
$10.09
+4.6%Phathom Pharmaceuticals, Inc., a clinical-stage biopharmaceutical company, focuses on developing and commercializing treatments for gastrointestinal diseases. The company has the rights in the United States, Europe, and Canada to vonoprazan, a potassium-competitive acid blocker (P-CAB) that blocks acid secretion in the stomach. It is also developing vonoprazan, which is in Phase III clinical trials for the treatment of erosive gastroesophageal reflux disease; and in combination with antibiotics for the treatment of Helicobacter pylori infection. Phathom Pharmaceuticals, Inc. was incorporated in 2018 and is headquartered in Florham Park, New Jersey.
At a Glance
Live SnapshotIntrinsic Alpha Methodology
Thesis Lenses
Signal
Medium confidenceValuation multiple is compressed (P/E -3.3).
Valuation inputs: P/E -3.3, earnings yield N/A, momentum +4.6%.
If multiples stay elevated while momentum fades, downside repricing risk rises.
Driver
High confidenceReturn profile is strong (ROE +50.5%, ROIC -1.3%).
Profitability stack: net margin -1.3%, ROE +50.5%, ROIC -1.3%.
Quality deterioration often appears in margins before it shows up in headline EPS.
Risk
High confidenceDownside profile is elevated and scenario stress-testing is essential.
Risk factors: liabilities/assets +269.1%, momentum +4.6%, net margin -1.3%.
Higher leverage with weak momentum and thin margins can amplify drawdown severity.
Phathom Pharmaceuticals, Inc. Market vs Earnings Trajectory
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Phathom Pharmaceuticals, Inc. Fair Value Envelope
Phathom Pharmaceuticals, Inc. Profit Bridge
Profitability Analysis
Gross Margin
Exceptional pricing power and cost management. The company retains over half of revenue after direct costs.
Operating Margin
Operating losses indicate the core business is unprofitable. Requires restructuring or revenue growth.
Net Profit Margin
Net losses indicate the company is burning cash. Sustainability depends on path to profitability.
Profitability Insight
Margin squeeze alert: Healthy gross margins but weak operating margins suggest excessive operating expenses. Cost optimization could unlock significant value.
Phathom Pharmaceuticals, Inc. Cash Conversion Engine
Cash Flow Quality Analysis
FCF Conversion Rate
Moderate conversion rate. Some gap between earnings and cash flow may warrant investigation into working capital or non-cash items.
CapEx Intensity
Asset-light business model. Low capital requirements leave more cash available for shareholders and growth investments.
FCF Growth Trend
Strong FCF growth demonstrates improving cash generation and business momentum. Positive signal for sustainability.
Working Capital Impact
Minimal working capital impact on FCF. Changes in operating assets and liabilities well-managed.
Cash Flow Quality Insight
Working capital strain: Significant cash tied up in operations. Monitor receivables collection, inventory turns, and payment terms to optimize cash conversion cycle.
Phathom Pharmaceuticals, Inc. Funding & Solvency Profile
Financial Health Analysis
Current Ratio
Excellent liquidity position. The company can easily cover its short-term obligations with substantial cushion.
Working Capital
Strong working capital position provides significant operational flexibility and financial cushion.
Asset Composition
Asset-light business model with high liquidity. Majority of assets are easily convertible to cash.
Phathom Pharmaceuticals, Inc. Street Expectations Map
Wall Street analysts project that PHAT stock may rise significantly over the coming 12 months. The consensus 1-year price target stands at 24.67, with estimates ranging from a low of 18.00 to a high of 28.00.
The consensus 1-year price target stands at 24.67, with estimates ranging from a low of 18.00 to a high of 28.00.
Analyst Consensus Analysis
Upside Potential
Substantial upside potential. Analysts see significant value gap, suggesting the stock may be materially undervalued at current levels.
Analyst Agreement
Mixed analyst views. Wide target range suggests differing opinions on key value drivers, growth prospects, or risk factors.
Analyst Conviction
Neutral sentiment. Fair value pricing with moderate agreement suggests wait-and-see approach or catalyst-driven opportunity.
Market Sentiment Insight
Monitor and evaluate: Current analyst consensus suggests limited conviction or near-term catalysts. Stay informed on company developments and reassess positioning as new information emerges.
Phathom Pharmaceuticals, Inc. Insider Positioning
During the last 12 months, insiders have purchased $2.32M and sold $7K worth of PHAT shares, resulting in $2.31M of net buying activity.
3 Months
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3-6 Months
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6-9 Months
200.0K
2.32M
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7.08K
+2.3M
+$2.31M
9-12 Months
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Top Buyers
Narula Sanjeev
Officer: Chief Financial & Bus. Officer
$2.32M
Top Sellers
Breedlove Robert Charles
Officer: Principal Accounting Officer
$7K
Insider Activity Analysis
Net Insider Sentiment
Strong bullish signal with $2.31M net buying. Insiders are aggressively accumulating shares, suggesting significant confidence in future prospects.
Buy/Sell Ratio
Exceptional buy/sell ratio. Buying dramatically outweighs selling—one of the strongest possible insider signals.
Insider Participation
1 insider buyers and 1 sellers. Equal participation suggests mixed or neutral insider views.
No Dividend Yield Data
PHAT has not reported any dividend yield values in the available annual periods.
phat Dividend History
Learning Layer
Related Guides
Build conviction on PHAT by pairing this stock hub with focused valuation guides.
Research Paths
Snapshot
Start with context, operating signals, and key market metrics.
Value Model
Stress test fair value across bear, base, and bull assumptions.
Statements
Validate revenue quality, margins, and balance sheet durability.
Earnings Call
Read management commentary and compare it with reported outcomes.
Dividends
Check payout sustainability and long-term distribution behavior.
Analyst Expectations
Review consensus spread and where estimate risk is concentrated.