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Verdict
Quantitative factor alignment verified for current market regime.
Quant Score
Rank
#4377
Positioning
Market Dominance
Manufacturing
Pharmaceutical Products
$155M
David-Alexandre C. Gros
Eledon Pharmaceuticals, Inc. focuses on developing medicines for the patients living with autoimmune disease and amyotrophic lateral sclerosis. Its lead product candidate includes AT-1501, a humanized monoclonal antibody to target CD40 Ligand that is a molecule expressed on the surface of human immune system T cells, which is in Phase 2a clinical trials for the treatment of ALS.
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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 | - | - | 28.5% | 8.0% | 100.0% | 100.0% | 10.4% | -4.6% | 3.3% | 0.0x | $141.8B | VS | |
$ASML ASML HOLDING NV | 77 | 89 | 86 | 83 | - | - | 46.1% | 16.6% | 51.3% | 31.9% | 26.8% | -4.0% | 1.0% | 25.0x | $272.1B | VS | |
$ESLT ELBIT SYSTEMS LTD | 76 | 81 | 87 | 85 | - | - | 10.3% | 3.1% | 24.1% | 7.2% | 4.7% | 14.3% | 0.8% | 25.0x | $11.4B | VS | |
$MT ArcelorMittal | 75 | 71 | 98 | 85 | - | - | 2.2% | 1.5% | 9.3% | 5.3% | 2.2% | -8.5% | 2.2% | 16.0x | $18.9B | VS | |
$AMAT APPLIED MATERIALS INC /DE | 75 | 85 | 87 | 84 | 20.9x | 13.6x | 35.5% | 19.8% | 48.7% | 29.2% | 24.7% | 4.4% | 0.8% | 32.0x | $181.9B | VS | |
$SIMO Silicon Motion Technology CORP | 75 | 84 | 86 | 85 | - | - | 11.8% | 8.8% | 45.9% | 11.3% | 11.1% | 25.7% | 3.7% | 0.0x | $1.8B | VS | |
$CODA Coda Octopus Group, Inc. | 74 | 83 | 90 | 79 | 16.3x | 11.9x | 7.6% | 7.0% | 66.5% | 17.1% | 15.6% | 39.0% | 0.0% | 0.0x | $115M | VS | |
$GSK GSK plc | 74 | 84 | 90 | 70 | - | - | 22.6% | 4.9% | 71.2% | 12.8% | 9.4% | 1.7% | 5.9% | 124.0x | $72.1B | VS | |
$EFXT Enerflex Ltd. | 74 | 80 | 91 | 83 | - | - | 3.0% | 1.1% | 20.9% | 7.3% | 1.3% | 3.0% | 0.9% | 67.0x | $1.2B | VS | |
$BUD Anheuser-Busch InBev SA/NV | 74 | 84 | 97 | 63 | - | - | 8.2% | 3.5% | 55.3% | 25.9% | 12.4% | 0.7% | 1.7% | 0.0x | $87.0B | VS | |
$ELDN Eledon Pharmaceuticals, Inc. | 32 | 26 | 23 | 28 | 4.2x | - | 118.2% | 32.2% | - | - | - | - | 0.0% | 110.0x | $155M | ||
| SECTOR BENCH | - | - | - | - | - | 22.3x | 11.5x | -2.5% | -0.1% | 42.5% | 1.3% | -0.2% | 5.9% | 0.0% | 0.2x | - | REF |
Eledon Pharmaceuticals, Inc. (ELDN) receives a "Avoid" rating with a composite score of 32.0/100. It ranks #4377 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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Equity capital efficiency
Asset base utilization
Financial leverage load
Direct cash return
David-Alexandre C. Gros
Chief Executive Officer
Labor Force
10
26
25
33
Audit Verdict: Lower quality and stability scores may indicate governance concerns.
No recent insider transactions available for ELDN
Lagging peers — losers tend to keep underperforming
Expensive relative to fundamentals — limited margin of safety
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.
Projection based on user-defined inputs. Re-calculated daily against current market data.
Reverse DCF Framework — Mauboussin Methodology
Institutional-grade Reverse DCF analysis. This model identifies the growth hurdles embedded in current market prices. When implied growth is significantly lower than historical or projected rates, a margin of safety may exist. Re-audited daily.
No analyst ratings for ELDN.
View All RatingsInsufficient data for Financial Analysis
ROE proxy 118.2% (sector -2.5%)
GM N/A vs sector 43%, OM N/A vs sector 1%
Capital turnover N/A
Rev growth N/A, 9yr history
Interest coverage N/A
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.
Our quantitative model flags Eledon Pharmaceuticals, Inc. with an Avoid rating, assigning a composite score of 32.0/100 and 1 out of 5 stars. Ranked #4377 of 7,333 stocks, ELDN falls in the bottom tier across key factors. Historically, stocks with this profile have faced elevated risk of underperformance and capital loss.
ELDN's quality score of 26/100 is below average, suggesting challenges with profitability or capital efficiency. The company reports a return on equity of 118.2% (sector avg: -2.5%). Investors should examine whether management is actively addressing these weaknesses or if they reflect structural industry headwinds.
ELDN registers a value score of just 23/100, suggesting the stock trades at a significant premium to its fundamental metrics. Key valuation metrics include a P/E ratio of 4.17x, a P/B ratio of 4.93x. High-premium valuations like this require strong future execution to avoid multiple compression, and downside risk is elevated if growth disappoints.
Eledon Pharmaceuticals, Inc.'s investment score of 25/100 suggests limited reinvestment activity. Key growth metrics include a return on assets of 32.2% (sector: -0.1%). 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.
Eledon Pharmaceuticals, Inc. is experiencing notably weak momentum with a score of just 28/100. The stock has underperformed its peers and is trending below major moving averages. Revenue growth data is not currently available, while a beta of 1.43 reflects its sensitivity to broader market moves. While deep momentum weakness can occasionally present value opportunities, it often reflects deteriorating fundamentals or structural headwinds that may persist.
ELDN's stability score of 33/100 signals elevated volatility and/or leverage concerns. Key stability metrics include a beta of 1.43 and a debt-to-equity ratio of 110.00x (sector avg: 0.2x). Investors should be prepared for wider-than-average price swings and consider position sizing accordingly to manage portfolio risk.
Eledon Pharmaceuticals, Inc.'s short interest score of 24/100 reveals significant bearish positioning, suggesting institutional investors are actively betting against the stock. Specific risk factors include above-average market sensitivity (beta: 1.43), elevated leverage (D/E: 110.00x), micro-cap liquidity risk. At $155M (micro-cap), ELDN carries meaningful risk and is best suited for investors with high risk tolerance who have thoroughly evaluated the bear thesis.
Eledon Pharmaceuticals, Inc. is a micro-cap company in the Manufacturing sector, ranked #0 of 50 in its sector (100th percentile) and #4377 of 7,333 overall (40th percentile). Key comparisons include ROE of 118.2% exceeding the -2.5% sector median. This top-quartile standing reflects exceptional competitive strength relative to Manufacturing peers.
While ELDN 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.
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Improvement in Value (23) would have the largest impact on the composite score.
ROE 4867% BELOW SECTOR MEDIAN
Debt/Equity 54900% ABOVE SECTOR MEDIAN
Div. Yield NaN% BELOW SECTOR MEDIAN
AUDIT DATA AS OF SEP 30, 2025 (Q2 FY2025)
We rate Eledon Pharmaceuticals, Inc. (ELDN) as Avoid with a composite score of 32.0/100 at a current price of $2.46. The stock falls in the bottom quintile of our universe across key quantitative factors, and the multi-factor weakness suggests a high probability of continued underperformance.
The rating is primarily driven by strength in stability (33th percentile) and momentum (28th percentile), which together account for the majority of the composite score. Offsetting weakness in value (23th percentile) and investment (25th percentile) tempers our overall conviction. We assign a No Moat rating (28/100), High uncertainty, and Standard capital allocation.
Key items to watch: momentum to confirm whether the current price trend has legs; balance sheet deleveraging progress; valuation compression risk if growth disappoints. Any material change in these dynamics could warrant a reassessment of our rating. The moat trend is stable, which suggests the competitive landscape is stable for now.
Eledon Pharmaceuticals, 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 32.0/100 places it at rank #4377 in our full 7,333-stock universe. At $155M in market capitalization, Eledon Pharmaceuticals, Inc. is a small-cap player in the Manufacturing space, which limits certain scale advantages but may allow for more agile strategic execution.
Momentum indicators (28th percentile) suggest caution regarding the near-term price trend. Revenue growth data is unavailable, limiting our ability to confirm whether momentum is fundamentally supported.
Margin data is not available for Eledon Pharmaceuticals, Inc., which limits our assessment of the company's cost structure and operating efficiency. We rely on factor-based signals to infer business quality in the absence of detailed margin data.
At a current price of $2.46, Eledon Pharmaceuticals, Inc. is trading at a premium to fundamental value. Our value factor score of 23/100 reflects a composite assessment across multiple valuation metrics including price-to-earnings, price-to-book, EV/EBITDA, and price-to-sales ratios relative to both sector peers and the broader market. The premium valuation implies the market is pricing in significant future growth or quality improvements that are not yet fully reflected in current fundamentals.
The stock currently trades at a P/E of 4.2x (a 81% discount to the sector median of 22.3x), P/B of 4.9x. The below-sector P/E suggests possible undervaluation or the market pricing in near-term headwinds.
Returns on equity of 118.2% exceed the cost of equity for most companies, indicating genuine shareholder value creation and a reinvestment engine that compounds wealth over time.
Return on assets of 32.2% indicates efficient deployment of the full asset base, not just equity capital.
The Avoid rating (composite 32.0/100) reflects multi-factor weakness, and historically, stocks in this scoring range have underperformed the market by a meaningful margin.
Elevated leverage (110% D/E) amplifies downside risk and limits management's financial flexibility in adverse scenarios.
Weak momentum (28th percentile) suggests institutional selling pressure and unfavorable technical dynamics that may persist.
Below-average quality (26th percentile) raises durability concerns about the fundamental profile and increases the risk of negative earnings surprises.
We assign a High uncertainty rating to Eledon Pharmaceuticals, Inc.. Key risk factors include elevated market sensitivity (beta of 1.43), significant leverage (110% debt-to-equity), below-average price stability (33th percentile). The wide range of potential outcomes widens our fair value estimate and increases the possibility of permanent capital impairment. Investors considering this name should size positions accordingly and demand a meaningful margin of safety before initiating.
Specific risk factors that inform our assessment include: elevated market sensitivity (beta of 1.43); significant leverage (110% debt-to-equity); below-average price stability (33th percentile); weak quality scores (26th percentile). Each of these factors independently widens the distribution of potential outcomes, and in combination they create a risk profile that demands careful position sizing. The stability factor at the 33th percentile and quality factor at the 26th percentile provide a quantitative summary of the overall risk landscape.
We identify limited risk mitigants at this time, which contributes to our high uncertainty assessment. Investors should monitor for improvement in balance sheet metrics, margin stability, and business predictability that could warrant a downgrade in our risk assessment over time.
We rate Eledon Pharmaceuticals, Inc.'s capital allocation as Standard. Management has shown adequate — though not exceptional — stewardship of shareholder capital. Returns on equity stand at 118.2%, and the balance sheet is managed within acceptable parameters (D/E: 110%). Exemplary allocators typically sustain ROE above 20% and D/E below 50%; Eledon Pharmaceuticals, Inc. falls short on at least one dimension.
There is room for improvement in optimizing the capital structure or enhancing shareholder returns. Absent a dividend, the overall capital allocation framework would benefit from either higher reinvestment returns, improved balance sheet efficiency, or increased shareholder distributions. We will monitor for signs of strategic improvement that could warrant an upgrade.
In summary, Eledon Pharmaceuticals, Inc. receives a Avoid rating with a composite score of 32.0/100 (rank #4377 of 7,333). Our quantitative framework assigns a No Moat (28/100, trend: stable), High uncertainty, and Standard capital allocation. The average factor score across quality, value, momentum, stability, and investment is 27/100.
Our analysis does not support a constructive view on Eledon Pharmaceuticals, Inc. at this time. The combination of limited competitive advantages, high uncertainty, and standard capital allocation suggests unfavorable risk-reward at current levels. We recommend investors avoid new positions and existing holders consider reducing exposure.
Analysis derived from Blank Capital Research quantitative terminal. For informational purposes only. No trade solicitation. Past performance not indicative of future results. Consult a qualified advisor.
We do not assign Eledon Pharmaceuticals, Inc. a meaningful economic moat, scoring 28/100 on our composite assessment. Current fundamentals do not demonstrate the kind of durable competitive advantages — such as superior returns on invested capital, margin superiority, or reinvestment efficiency — that would protect the company from competitive erosion over the long term. The highest-scoring pillar, economic value creation, reached only 15/20.
The strongest moat sources are economic value creation (15/20) and margin superiority (10/20). ROE proxy 118.2% (sector -2.5%). GM N/A vs sector 43%, OM N/A vs sector 1%. These pillars form the core of Eledon Pharmaceuticals, Inc.'s competitive identity and are the primary drivers of excess returns in our framework.
Areas of relative weakness include reinvestment efficiency (0/20) and growth durability (0/20). Capital turnover N/A. Improvement in these areas could meaningfully widen the moat over time, while deterioration would be an early warning of competitive erosion.
Our moat trend assessment is Stable. Multi-year ROIC and operating margin trajectories show neither meaningful improvement nor deterioration, suggesting the competitive position is steady. We expect Eledon Pharmaceuticals, Inc.'s moat profile to remain largely unchanged absent a material shift in return on capital or industry dynamics.
Key profit drivers include returns on equity of 118.2% driving shareholder value creation. Our analysis indicates that profit quality raises some durability concerns, with the quality factor at the 26th percentile.
Return metrics include ROE of 118.2% and ROA of 32.2%. Relative to the Manufacturing sector, sector comparison data is limited, and ROE of 118.2% compares to a sector median of -2.5%.
The balance sheet reflects above-average leverage with D/E of 110%. The sector median D/E is 0%, putting Eledon Pharmaceuticals, Inc. at higher leverage than the typical peer. Overall balance sheet health is adequate for the current business environment.
High beta of 1.43 means amplified losses in market selloffs — in a broad market correction, this stock would likely decline more than the index.
Above 50MA
37.18%
Net New Highs
+51081
Eledon Pharmaceuticals (NASDAQ:ELDN) executives discussed recent clinical results and upcoming regulatory plans for its investigational immunosuppressive therapy, referred to in the discussion as “tego,” highlighting data from the company’s Phase II BESTOW kidney transplant study, longer-term follow
IRVINE, Calif., Feb. 05, 2026 (GLOBE NEWSWIRE) -- Eledon Pharmaceuticals, Inc. (“Eledon”) (Nasdaq: ELDN) today announced that Steven Perrin, Ph.D., President and Chief Scientific Officer will participate in a fireside chat at the upcoming Guggenheim Emerging Outlook: Biotech Summit 2026 on Thursday, February 12, 2026, at 10:00 a.m. ET (7:00 a.m. PT). To register in advance for the fireside chat webcast, sign up here. A webcast replay will be accessible following the live session on the Company’s
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