Soleno Therapeutics, Inc.
Soleno Therapeutics, Inc. Fundamental Analysis
Soleno Therapeutics, Inc. (SLNO) shows moderate financial fundamentals with a PE ratio of 28.75, profit margin of 33.70%, and ROE of 22.86%. The company generates $0.3B in annual revenue with weak year-over-year growth of 0.00%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 68.0/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze SLNO's fundamental strength across five key dimensions:
Efficiency Score
ExcellentSLNO demonstrates superior asset utilization.
Valuation Score
ModerateSLNO shows balanced valuation metrics.
Growth Score
WeakSLNO faces weak or negative growth trends.
Financial Health Score
ExcellentSLNO maintains a strong and stable balance sheet.
Profitability Score
ExcellentSLNO achieves industry-leading margins.
Key Financial Metrics
Is SLNO Expensive or Cheap?
P/E Ratio
SLNO trades at 28.75 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, SLNO's PEG of 0.02 indicates potential undervaluation.
Price to Book
The market values Soleno Therapeutics, Inc. at 5.57 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 28.19 times EBITDA. This signals the market has high growth expectations.
How Well Does SLNO Make Money?
Net Profit Margin
For every $100 in sales, Soleno Therapeutics, Inc. keeps $33.70 as profit after all expenses.
Operating Margin
Core operations generate 30.80 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $22.86 in profit for every $100 of shareholder equity.
ROA
Soleno Therapeutics, Inc. generates $15.79 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Soleno Therapeutics, Inc. generates strong operating cash flow of $105.77M, reflecting robust business health.
Free Cash Flow
Soleno Therapeutics, Inc. generates strong free cash flow of $105.66M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $2.03 in free cash annually.
FCF Yield
SLNO converts 3.82% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
28.75
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.02
vs 25 benchmark
P/B Ratio
Price to book value ratio
5.57
vs 25 benchmark
P/S Ratio
Price to sales ratio
9.69
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.009
vs 25 benchmark
Current Ratio
Current assets to current liabilities
5.62
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.23
vs 25 benchmark
ROA
Return on assets percentage
0.16
vs 25 benchmark
ROCE
Return on capital employed
0.16
vs 25 benchmark
How SLNO Stacks Against Its Sector Peers
| Metric | SLNO Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 28.75 | 28.92 | Neutral |
| ROE | 22.86% | 747.00% | Weak |
| Net Margin | 33.70% | -49468.00% (disorted) | Strong |
| Debt/Equity | 0.01 | 0.40 | Strong (Low Leverage) |
| Current Ratio | 5.62 | 4.13 | Strong Liquidity |
| ROA | 15.79% | -19478.00% (disorted) | Strong |
SLNO outperforms its industry in 4 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Soleno Therapeutics, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
0.00%
Industry Style: Defensive, Growth, Innovation
DecliningEPS CAGR
106.66%
Industry Style: Defensive, Growth, Innovation
High GrowthFCF CAGR
114.57%
Industry Style: Defensive, Growth, Innovation
High Growth