Soleno Therapeutics, Inc.

Soleno Therapeutics, Inc.

SLNOยทNASDAQ

$53.01

+0.038%
HealthcareBiotechnology

Soleno Therapeutics, Inc., a clinical-stage biopharmaceutical company, focuses on the development and commercialization of novel therapeutics for the treatment of rare diseases. Its lead candidate is Diazoxide Choline Controlled-Release, a once-daily oral tablet for the treatment of Prader-Willi Syndrome, which is being evaluated in an ongoing Phase III clinical development program. The company was formerly known as Capnia, Inc. and changed its name to Soleno Therapeutics, Inc. in May 2017. Soleno Therapeutics, Inc. was incorporated in 1999 and is based in Redwood City, California.

At a Glance

Live Snapshot
Market Cap$2.76B
EPS0.4100
P/E Ratio117.86
Earnings Date08/05/2026

Intrinsic Alpha Methodology

Thesis Lenses

Signal ยท Driver ยท Risk

Signal

High confidence

Valuation multiple is elevated (P/E 117.9).

Valuation inputs: P/E 117.9, earnings yield +0.8%, momentum +0.0%.

If multiples stay elevated while momentum fades, downside repricing risk rises.

Driver

High confidence

Return profile is soft (ROE +4.6%, ROIC +3.0%).

Profitability stack: net margin +11.0%, ROE +4.6%, ROIC +3.0%.

Quality deterioration often appears in margins before it shows up in headline EPS.

Risk

High confidence

Downside profile looks controlled across current risk inputs.

Risk factors: liabilities/assets +20.2%, momentum +0.0%, net margin +11.0%.

Higher leverage with weak momentum and thin margins can amplify drawdown severity.

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Soleno Therapeutics, Inc. Market vs Earnings Trajectory

SLNO ยท NASDAQ

Loading price and EPS data...

Soleno Therapeutics, Inc.

Soleno Therapeutics, Inc. Fair Value Envelope

SLNO ยท NASDAQ

Our analysis suggests that SLNO has a fair value of HIDDEN per share in the Base Case projection. With shares currently trading at $53.01, this represents a potential HIDDEN relative to our calculated worth for Soleno Therapeutics, Inc..

Intrinsic Value
Current Price: $53.01
3Y-114.0%
5Y-111.0%
10Y-101.0%
3Y-
5Y-
10Y+13024.0%
3Y-187.0%
5Y-185.0%
10Y-273.0%
3Y-325.0%
5Y-286.0%
10Y-447.0%
3Y-325.0%
5Y-285.0%
10Y-445.0%
3Y+2028.0%
5Y+768.0%
10Y+10032.0%
Soleno Therapeutics, Inc.

Soleno Therapeutics, Inc. Profit Bridge

SLNO ยท NASDAQ
Revenue190.41M
Cost of Goods Sold (2.70M)
Gross Profit187.71M
Operating Expenses (172.75M)
Operating Income14.95M
Interest Expense (5.48M)
Other Income/Expense5.94M
Pretax Income20.89M
Income Tax (0.00)
Net Income20.89M
Net Income
20.89M

Profitability Analysis

Gross Margin

98.6%

Exceptional pricing power and cost management. The company retains over half of revenue after direct costs.

Operating Margin

7.9%

Acceptable margins but limited operational leverage. Operating expense control is important.

Net Profit Margin

11.0%

Strong net margins indicate efficient operations and favorable tax/interest management.

Effective Tax Rate

0.0%

Below-average tax rate suggests effective tax planning, favorable jurisdictions, or tax credits.

Profitability Insight

Margin squeeze alert: Healthy gross margins but weak operating margins suggest excessive operating expenses. Cost optimization could unlock significant value.

98.58%
Gross Profit Margin
3Y-
5Y-
10Y-2544.0%
7.85%
Operating Profit Margin
3Y-
5Y-
10Y-101.0%
10.97%
Net Profit Margin
3Y-
5Y-
10Y-101.0%
4.64%
Return on Equity
-106%
3Y-102.0%
5Y-109.0%
10Y-101.0%
3.71%
Return on Assets
-107%
3Y-104.0%
5Y-110.0%
10Y-102.0%
2.97%
Return on Invested Capital
-105%
3Y-102.0%
5Y-105.0%
10Y-101.0%
SLNO

Soleno Therapeutics, Inc. Cash Conversion Engine

SLNO ยท NASDAQ
Net Income20.89M
Depreciation & Amortization2.02M
Stock-Based Compensation45.85M
Change in Working Capital-24.63M
Others2.68M
Capital Expenditures-73.00K
Free Cash Flow46.73M

Cash Flow Quality Analysis

FCF Conversion Rate

223.7%

Excellent cash generation. The company converts earnings to cash at or above 100%, indicating high-quality earnings.

CapEx Intensity

0.2%

Asset-light business model. Low capital requirements leave more cash available for shareholders and growth investments.

FCF Growth Trend

+167.4%

Strong FCF growth demonstrates improving cash generation and business momentum. Positive signal for sustainability.

Working Capital Impact

-$24.63M

Significant working capital drain. Growth may be consuming cash through inventory buildup or receivables extensionโ€”monitor closely.

Cash Flow Quality Insight

Exceptional cash generation: High-quality earnings converting to growing free cash flow. The company demonstrates strong pricing power, efficient operations, and disciplined capital allocation.

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Soleno Therapeutics, Inc. Funding & Solvency Profile

SLNO ยท NASDAQ
Cash & Cash Equivalents133.03M
Net Receivables47.14M
Inventory17.31M
Other Current Assets6.33M
Total Current Assets326 M
Property, Plant & Equipment4.09M
Goodwill & Intangible Assets4.37M
Long-Term Investments0.00
Other Non-Current Assets273.55M
Total Non-Current Assets278 M
Total Assets
608.39M

Financial Health Analysis

Current Ratio

5.62x

Excellent liquidity position. The company can easily cover its short-term obligations with substantial cushion.

Debt-to-Equity Ratio

0.23x

Conservative capital structure. The company relies primarily on equity financing, indicating low financial risk.

Working Capital

268 M

Strong working capital position provides significant operational flexibility and financial cushion.

Asset Composition

54% Current

Balanced asset mix between current and non-current assets, typical of many stable businesses.

Financial Health Insight

Strong financial foundation: Excellent liquidity combined with conservative leverage suggests the company is well-positioned to weather economic uncertainties and fund growth opportunities.

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Soleno Therapeutics, Inc. Street Expectations Map

SLNO ยท NASDAQ

Wall Street analysts project that SLNO stock may rise significantly over the coming 12 months. The consensus 1-year price target stands at 80.00, with estimates ranging from a low of 53.00 to a high of 107.00.

Lowest Target
53.00
-0.02%
Consensus Target
80.00
50.91%
Highest Target
107.00
101.85%

The consensus 1-year price target stands at 80.00, with estimates ranging from a low of 53.00 to a high of 107.00.

Analyst Consensus Analysis

Upside Potential

+50.9%

Substantial upside potential. Analysts see significant value gap, suggesting the stock may be materially undervalued at current levels.

Analyst Agreement

67.5% spread

High uncertainty. Very wide target spread indicates significant disagreement among analystsโ€”major valuation uncertainty or transformation underway.

Risk-Reward Profile

5399.00x

Favorable risk-reward. Potential upside significantly exceeds downside risk, offering asymmetric return profile attractive for risk-tolerant investors.

Analyst Conviction

Low

High uncertainty: Wide dispersion indicates analysts struggle to agree on valuationโ€”proceed with caution and independent analysis.

Market Sentiment Insight

High risk, high reward: Substantial upside potential exists, but wide analyst disagreement signals execution risk or unclear catalysts. Thorough due diligence essential before committing capital.

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Soleno Therapeutics, Inc. Insider Positioning

SLNO ยท NASDAQ

During the last 12 months, insiders have sold $485K worth of SLNO shares, with no buying activity reported.

3 Months

Bought

0

0.00

Sold

4.9K

146.10K

Net Activity

-146K

-$146K

3-6 Months

Bought

0

0.00

Sold

0

0.00

Net Activity

+0

+$0

6-9 Months

Bought

0

0.00

Sold

0

0.00

Net Activity

+0

+$0

9-12 Months

Bought

0

0.00

Sold

4.1K

339.38K

Net Activity

-339K

-$339K

Top Buyers

No buying activity

Top Sellers

1
HPC

Hirano Patricia C

Officer: See Remarks

4.1K sharesโ€ข2 transactions

$339K

2
MM

Manning Meredith

Officer: Chief Commercial Officer

4.9K sharesโ€ข1 transactions

$146K

Insider Activity Analysis

Net Insider Sentiment

Bearish

Strong bearish signal with $485K net selling. Heavy insider selling may indicate concerns about valuation or near-term prospects.

Buy/Sell Ratio

0.00:1

Very poor ratio. Heavy selling with minimal buying suggests insiders may be concerned about valuation or outlook.

Recent Trend (3 Months)

$146K

Heavy recent selling activity. Recent insider sales notably exceed purchasesโ€”may warrant investigation into company developments.

Insider Participation

High Selling

2 insider sellers vs. 0 buyers. Widespread selling across multiple insiders may signal concerns.

Insider Activity Insight

Persistent selling pressure: Consistent insider selling with weak buy/sell ratio suggests insiders may be capitalizing on current valuation. Exercise caution and review recent earnings quality and management commentary.

No Dividend Yield Data

SLNO has not reported any dividend yield values in the available annual periods.

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slno Dividend History

SLNO
10Y CAGR +0%
Latest $0
Annual $0
Stable dividend payments
Last Period: +0%