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Verdict
Quantitative factor alignment verified for current market regime.
Quant Score
Rank
#3721
Positioning
Market Dominance
Manufacturing
Medical Equipment
$486M
Todd M. Fruchterman
Butterfly Network, Inc. develops, manufactures, and commercializes ultrasound imaging solutions in the United States and internationally. It offers Butterfly iQ, a handheld and single-probe whole body ultrasound system; Butterfly Blueprint, a system-wide ultrasound platform with Compass software. The company also provides Butterfly system, which includes probes, and related accessories and software subscriptions.
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| Stock | Rating | Score▼ | Quality | Value | Momentum | P/E | EV/EBITDA | ROE | ROA | Gross Mgn | Op Mgn | Net Mgn | Rev Growth | Div Yield | D/E | Mkt Cap | AUDIT |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
$UL UNILEVER PLC | 78 | 96 | 98 | 59 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$ASML ASML HOLDING NV | 77 | 89 | 86 | 83 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$ESLT ELBIT SYSTEMS LTD | 76 | 81 | 87 | 85 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$MT ArcelorMittal | 75 | 71 | 98 | 85 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$AMAT APPLIED MATERIALS INC /DE | 75 | 85 | 87 | 84 | 20.9x | 13.6x | 32.9% | 20.5% | 48.8% | 30.6% | 24.4% | 7.7% | 0.9% | 32.0x | $148.6B | VS | |
$SIMO Silicon Motion Technology CORP | 75 | 84 | 86 | 85 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$CODA Coda Octopus Group, Inc. | 74 | 83 | 90 | 79 | 16.3x | 11.9x | 7.4% | 7.5% | 68.3% | 19.5% | 18.2% | 29.0% | 0.0% | 0.0x | $84M | VS | |
$GSK GSK plc | 74 | 84 | 90 | 70 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$EFXT Enerflex Ltd. | 74 | 80 | 91 | 83 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$BUD Anheuser-Busch InBev SA/NV | 74 | 84 | 97 | 63 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$BFLY Butterfly Network, Inc. | 39 | 26 | 36 | 55 | - | - | -38.6% | -27.1% | 42.2% | -100.8% | -91.3% | 0.0% | 0.0% | 42.0x | $486M | ||
| SECTOR BENCH | - | - | - | - | - | 22.3x | 11.5x | -1.9% | 0.9% | 44.1% | 2.5% | 1.0% | 6.7% | 0.0% | 0.2x | - | REF |
Butterfly Network, Inc. (BFLY) receives a "Avoid" rating with a composite score of 38.6/100. It ranks #3721 out of 7,333 stocks in our coverage universe and carries a 1-star rating. Ratings are driven by a 6-factor quantitative model measuring quality, value, momentum, investment, stability, and short interest.
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In-line with peers — no strong momentum signal
Fair valuation relative to peers
Weak fundamentals — higher risk of value trap
High volatility — wider range of outcomes increases timing risk
Aggressive spending — empire-building risk, dilutive growth
Below-average composite — caution warranted
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Relative valuation derived from Manufacturing sector benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Re-calculated daily.
No analyst ratings for BFLY.
View All Ratings| Factor | Global | Sector | Tilt |
|---|---|---|---|
| PROFITABILITY | 26 | 10 | +16ALPHA |
| MOMENTUM | 55 | 53 | +2NEUTRAL |
| VALUATION | 36 | 24 | +12ALPHA |
| INVESTMENT | 29 | 36 | -7DRAG |
| STABILITY | 26 | 10 | +16ALPHA |
| SHORT INT | 57 | 66 | -9DRAG |
Global = full universe. Sector = relative to industry peers. Positive tilt indicates idiosyncratic strength.
ROE proxy -38.6% (sector -1.9%)
GM 42% vs sector 44%, OM -101% vs sector 3%
Capital turnover N/A, R&D intensity 40.8%
Rev growth 0%, 5yr history
Interest coverage -91.3x
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation and elite competitive moats.
Profit generated per dollar of shareholder equity
Efficiency of asset utilization
Pricing power and cost efficiency
Core business profitability
Bottom-line profitability
The Quality factor evaluates the persistence and magnitude of realized cash flows. Companies with scores >70 exhibit superior pricing power and structural financial resilience through diverse economic regimes.
Our uncertainty rating tracks the predictability of future cash flows and potential for permanent capital loss. Moderate visibility with standard industry cyclicality.
We rate Butterfly Network, Inc. (BFLY) as Avoid with a composite score of 38.6/100 at a current price of $2.95. The stock falls in the bottom quintile, and the multi-factor weakness suggests a high probability of continued underperformance.
Butterfly Network, Inc. holds a top-quartile position (#0 of 50) within the Manufacturing sector, based on our composite quantitative scoring across quality, value, momentum, and stability factors. The composite score of 38.6/100 places it at rank #3721 in our full universe.
No Moat
Very High
Poor
Fair Value
Gross margins of 42% signal strong pricing power.
Stable competitive position in a defensive sector.
Below-average quality raises earnings sustainability concerns.
Vulnerability to macroeconomic shocks and interest rate volatility.
Butterfly Network, Inc. represents a avoid based on multi-factor quantitative performance.
Our quantitative model flags Butterfly Network, Inc. with an Avoid rating, assigning a composite score of 38.6/100 and 1 out of 5 stars. Ranked #3721 of 7,333 stocks, BFLY falls in the bottom tier across key factors. Historically, stocks with this profile have faced elevated risk of underperformance and capital loss.
BFLY's quality score of 26/100 is below average, suggesting challenges with profitability or capital efficiency. The company reports a return on equity of -38.6% (sector avg: -1.9%), gross margins of 42.2% (sector avg: 44.1%), net margins of -91.3% (sector avg: 1.0%). Investors should examine whether management is actively addressing these weaknesses or if they reflect structural industry headwinds.
With a value score of 36/100, BFLY appears somewhat expensive relative to its fundamentals. Key valuation metrics include a P/B ratio of 3.69x. Investors paying a premium here are likely betting on above-average growth or margin expansion to justify current prices.
Butterfly Network, Inc.'s investment score of 29/100 suggests limited reinvestment activity. Key growth metrics include revenue growth of 0.0% vs. a sector average of 6.7% and a return on assets of -27.1% (sector: 0.9%). While this can be positive for mature, cash-generative businesses returning capital to shareholders, it may also signal a lack of growth opportunities or management conservatism.
BFLY demonstrates moderate momentum with a score of 55/100, suggesting a neutral price trend without strong directional conviction. Revenue growth stands at 0.0% year-over-year, while a beta of 2.30 reflects its sensitivity to broader market moves. Moderate momentum may indicate the stock is consolidating or transitioning between trends, warranting close monitoring of upcoming catalysts.
BFLY's stability score of 26/100 signals elevated volatility and/or leverage concerns. Key stability metrics include a beta of 2.30 and a debt-to-equity ratio of 42.00x (sector avg: 0.2x). Investors should be prepared for wider-than-average price swings and consider position sizing accordingly to manage portfolio risk.
The short interest score of 57/100 for BFLY suggests somewhat elevated bearish positioning by institutional traders. Specific risk factors include high market sensitivity (beta: 2.30), elevated leverage (D/E: 42.00x), small-cap liquidity risk. With a $486M market cap (small-cap), Butterfly Network, Inc. may experience above-average volatility. Investors should consider whether the short thesis has merit or if it creates a potential short-squeeze opportunity.
Butterfly Network, Inc. is a small-cap company in the Manufacturing sector, ranked #0 of 50 in its sector (100th percentile) and #3721 of 7,333 overall (49th percentile). Key comparisons include ROE of -38.6% trailing the -1.9% sector median and operating margins of -100.8% below the 2.5% sector average. This top-quartile standing reflects exceptional competitive strength relative to Manufacturing peers.
While BFLY currently exhibits a AVOID profile, superior opportunities exist within the MANUFACTURING sector. Our model identifies several "Strong Buy" candidates with higher quality scores and more attractive valuations among direct industry competitors.
View Top Manufacturing Alpha →Quant Factor Profile
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Improvement in Quality (26) would have the largest impact on the composite score.
ROE 1932% ABOVE SECTOR MEDIAN (FAVORABLE)
Gross Margin IN LINE WITH SECTOR BENCHMARKS
Op. Margin 4116% BELOW SECTOR MEDIAN
The Russell 2000 index reached an all-time high after the Federal Reserve signaled potential interest rate cuts, boosting small-cap stocks and providing cheaper borrowing opportunities for smaller companies.
Butterfly Network reported Q2 2025 results with 9% revenue growth, record 63.7% gross margin, and narrowed losses. The company revised full-year revenue guidance lower and is focusing on AI-driven software and international expansion.
NEW YORK & BURLINGTON, Mass., February 17, 2026--Butterfly Network, Inc. (NYSE: BFLY) ("Butterfly"), a digital health company transforming care with semiconductor chip-based ultrasound devices, software and AI, today announced that it will participate at the TD Cowen 46th Annual Health Care Conference in Boston on March 3, 2026. Joseph DeVivo, President, Chief Executive Officer & Chairman; John Doherty, EVP, Chief Financial Officer; and Megan Carlson, SVP, Accounting & Finance – Chief Accounting
AI-driven clinical intelligence is transforming medical imaging, with point-of-care diagnostics projected to reach $70.92 billion by 2032. The CMS ACCESS Model launching in July 2026 will reward outcome-based care, driving adoption of software-defined imaging platforms. Key players including VentriPoint Diagnostics, Butterfly Network, Hyperfine, Hologic, and GE HealthCare are advancing portable, AI-powered diagnostic solutions that deliver hospital-grade precision at the bedside, reducing facility overhead while improving patient outcomes.
Claritev Corporation (CTEV) delivered earnings and revenue surprises of -23.23% and +2.13%, respectively, for the quarter ended December 2025. Do the numbers hold clues to what lies ahead for the stock?
Above 50MA
37.18%
Net New Highs
+51081