Vanda Pharmaceuticals Inc (VNDA) Stock Analysis
Verdict: AVOID
Severe cash burn with <10 months runway and persistent earnings misses outweigh high gross margins and pipeline growth.
Investment score: 30/100
Analysis as of
Is Vanda Pharmaceuticals Inc stock worth reviewing? The TradeMates thesis
The TradeMates model designates VNDA as an AVOID due to an impending cash runway shortfall (<10 months based on 2025 FCF of -$110.44M vs $84.85M cash), negative insider sentiment, and severe earnings execution misses.
7-factor investment score
- Valuation: 35/100 (weight 20%)
- Financial Health: 20/100 (weight 15%)
- Technical Momentum: 30/100 (weight 15%)
- Earnings Quality: 25/100 (weight 15%)
- Insider Sentiment: 15/100 (weight 10%)
- Analyst Consensus: 60/100 (weight 10%)
- Risk-Adjusted Return: 25/100 (weight 15%)
Vanda Pharmaceuticals Inc opportunities and risks
What speaks for VNDA
- Commercial Gross Margin Strength
What speaks against VNDA
- Imminent Cash Runway Exhaustion
Peers and competitors
| Ticker | P/E | P/S | EV/EBITDA | Gross margin | Net margin | FCF yield |
|---|---|---|---|---|---|---|
| VNDA | n/a | 1.5x | n/a | 92.8% | -127.4% | -61.3% |
| UPB | n/a | 102.7x | n/a | 98.4% | -4955.7% | -42.0% |
| SABS | 1.0x | 0.0x | n/a | 0.0% | 0.0% | -23.0% |
| LYEL | n/a | 11689.5x | n/a | -8537.0% | -920285.2% | -42.4% |
| RCEL | n/a | 3.3x | n/a | 81.6% | -57.0% | -9.3% |
| AGEN | 2.5x | 2.2x | 2.0x | 75.6% | 69.3% | -34.5% |
| Peer median | n/a | 3.3x | n/a | 75.6% | -57.0% | -34.5% |
Frequently asked questions about Vanda Pharmaceuticals Inc (VNDA)
Is VNDA stock a good investment?
The TradeMates model rates Vanda Pharmaceuticals Inc as AVOID with an investment score of 30/100. The TradeMates model designates VNDA as an AVOID due to an impending cash runway shortfall (<10 months based on 2025 FCF of -$110.44M vs $84.85M cash), negative insider sentiment, and severe earnings execution misses. This is algorithmic model output, not personal investment advice.
Is VNDA stock a buy?
The TradeMates model verdict for VNDA is AVOID with an investment score of 30/100. Treat this as a model signal to review, not a personal buy recommendation.