ZVRA

Zevra Therapeutics, Inc.

Fundamental data last updated:August 22, 2026

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company profile

SECTOR

Healthcare

industry

Biotechnology

Exchange

NASDAQ

County of HQ

US

Next Earnings Date

Pending Announcement

Business Summary

Zevra Therapeutics, Inc., a rare disease company melding science, discovers and develops various proprietary prodrugs to treat serious medical conditions in the United States. The company utilizes its Ligand Activated Therapy technology to generate improved prodrug versions of FDA-approved drugs, as well as to generate prodrug versions of existing compounds that may have applications for new disease indications. Its prodrug product candidate pipeline is focused on the high need areas of attention deficit hyperactivity disorder, stimulant use disorder, and CNS rare diseases, including idiopathic hypersomnia (IH). The company's lead product candidate KP1077, which is under Phase II clinical trial for the treatment of IH and narcolepsy, is based on its prodrug of d-methylphenidate, known as serdexmethylphenidate. It is also developing KP879, a prodrug product candidate for the treatment of stimulant use disorder and is under Phase II clinical trial. In addition, the company has received FDA approval for AZSTARYS, a once-daily treatment for attention deficit hyperactivity disorder in patents age six years and older, and for APADAZ, an immediate-release combination product containing benzhydrocodone, a prodrug of hydrocodone, and acetaminophen. The company's product pipeline include, arimoclomol It has collaboration and license agreement with KVK-Tech, Inc. and Commave Therapeutics SA. The company was formerly known as KemPharm, Inc. and changed its name to Zevra Therapeutics, Inc. in February 2023. Zevra Therapeutics, Inc. was incorporated in 2006 and is headquartered in Celebration, Florida.

 


VALUATION

P/E

5.36

Market Cap ($M USD)

$673.91M

Forward P/E

3.36

PEG

0.06

PRICE TO SALES

5.51

PRICE TO BOOK

3.24

EV / EBITDA

5.46

5-Year Average P/E

Free Cash Flow Yield

1.78%

DCF Value

$-41.13

Graham Number

$12.99

Price to FCF

56.18

EV to FCF

48.31

Earnings Yield

18.66%

FCF Yield

1.78%

DIVIDEND

Yield

0.00%

Annual Payout

$0.00

Payout Ratio

0.00%

Consecutive Years of Dividend Growth

5-Year Dividend Growth Rate

Financial Health & Profitability

Earnings Per Share

$2.13

Next Year EPS Growth Estimate

$3.39

Next Year Revenue Growth Estimate

$409.70M

Return on Equity (ROE)

81.34%

FREE CASH FLOW

Operating Margin

-39.86%

Debt-to-Equity

0.41

Piotroski F-Score

7

Altman Z-Score

5.86

Return on Invested Capital (ROIC)

-21.05%

Current Ratio

4.89

Quick Ratio

4.84

Net Debt to EBITDA

-0.89

Interest Coverage

-11.34

Gross Profit margin

85.51%

FCF PER SHARE

$0.21

REVENUE PER SHARE

$2.09

Gainseekers Quantitative Analysis

Summary

ZVRA Zevra Therapeutics, Inc. presents a perplexing valuation scenario. Despite a staggering negative DCF value, the stock has traded at a price that suggests the market is overlooking its intrinsic worth. The Forward P/E of 3.28 and an Earnings Yield of 19.11% indicate a potential undervaluation, while the robust Altman Z-score of 5.95 suggests financial stability. However, the market’s optimism might be tempered by the company’s negative operating margin, raising questions about its profitability trajectory. Overall, the stock appears mispriced relative to its Graham Number, hinting at a potential opportunity for discerning investors.

AI Exposure / Tech Reliance

Operating within the biotechnology sector, Zevra Therapeutics is strategically positioned to leverage AI advancements in drug discovery and personalized medicine. The industry's inherent reliance on cutting-edge technology provides a fertile ground for integrating AI solutions. This adaptability could enhance their R&D efficiency and accelerate time-to-market for new therapies.

The Bull Case

For value or GARP investors, Zevra Therapeutics offers compelling reasons to consider a position. The company's impressive Return on Equity of 81.34% and a solid Piotroski F-Score of 7 highlight its operational efficiency and financial health. Despite a modest FCF Yield of 1.82%, the high gross profit margin of 85.81% suggests strong pricing power. These metrics collectively paint a picture of a company capable of generating substantial returns on invested capital, making it an attractive prospect for those seeking growth at a reasonable price.

The Bear Case

However, the bear case for Zevra Therapeutics cannot be ignored. The negative operating margin of -39.86% is a glaring red flag, indicating potential inefficiencies or high costs that could erode profitability. Additionally, the Price to FCF ratio of 54.85 suggests the stock is expensive relative to its cash flow generation. With the stock trading closer to its 52-week high than low, there is a risk of technical overextension, which could lead to a correction if growth expectations are not met.

Market Sentiment & Smart Money

Short Interest %

Analyst Consensus

Buy

Average Analyst Price Target

$25.50

Institutional Ownership %

1-Year Beta

0.88

Insider Buying % (6 Mo)

Distance to 52-Week High

15.44%

Distance to 52-Week Low

37.19%

EARNINGS SURPRISE %

200.00%

50-DAY SMA

$10.11

200-DAY SMA

$9.39

⚠️ Financial Disclaimer:
This content is for informational purposes only and is not financial advice. Information may be delayed or inaccurate. We may earn a commission from partner links.