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Verdict
Quantitative factor alignment verified for current market regime.
Quant Score
Rank
#3971
Positioning
Market Dominance
Manufacturing
Pharmaceutical Products
$193M
Barry D. Quart
Heron Therapeutics, Inc. engages in developing treatments to address unmet patient needs. The company's product candidates utilize its proprietary Biochronomer, a drug delivery technology. It offers SUSTOL (granisetron), an extended-release injection for the prevention of acute and delayed nausea and vomiting associated with moderately emetogenic chemotherapy.
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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 | |
$HRTX HERON THERAPEUTICS, INC. /DE/ | 36 | 40 | 35 | 36 | - | - | -148.4% | -8.9% | 72.9% | -5.1% | -15.0% | 6.1% | 0.0% | 1572.0x | $193M | ||
| SECTOR BENCH | - | - | - | - | - | 22.3x | 11.5x | -1.9% | 0.9% | 44.1% | 2.5% | 1.0% | 6.7% | 0.0% | 0.2x | - | REF |
HERON THERAPEUTICS, INC. /DE/ (HRTX) receives a "Avoid" rating with a composite score of 36.4/100. It ranks #3971 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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Lagging peers — losers tend to keep underperforming
Fair valuation relative to peers
Average quality profile
Average volatility — neutral timing signal
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 HRTX.
View All RatingsROIC -3.3% vs WACC 8.4% (spread -11.8%)
GM 73% vs sector 44%, OM -5% vs sector 3%
Capital turnover 0.40x, R&D intensity 7.6%
Rev growth 6%, 10yr history
Interest coverage -0.4x
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 HERON THERAPEUTICS, INC. /DE/ (HRTX) as Avoid with a composite score of 36.4/100 at a current price of $1.10. The stock falls in the bottom quintile, and the multi-factor weakness suggests a high probability of continued underperformance.
HERON THERAPEUTICS, INC. /DE/ 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 36.4/100 places it at rank #3971 in our full universe.
No Moat
High
Poor
Fair Value
Gross margins of 73% signal strong pricing power.
Stable competitive position in a defensive sector.
Leverage of 1572% D/E amplifies downside risk.
Vulnerability to macroeconomic shocks and interest rate volatility.
HERON THERAPEUTICS, INC. /DE/ represents a avoid based on multi-factor quantitative performance.
Our quantitative model flags HERON THERAPEUTICS, INC. /DE/ with an Avoid rating, assigning a composite score of 36.4/100 and 1 out of 5 stars. Ranked #3971 of 7,333 stocks, HRTX falls in the bottom tier across key factors. Historically, stocks with this profile have faced elevated risk of underperformance and capital loss.
HRTX's quality score of 40/100 is below average, suggesting challenges with profitability or capital efficiency. The company reports a return on equity of -148.4% (sector avg: -1.9%), gross margins of 72.9% (sector avg: 44.1%), net margins of -15.0% (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 35/100, HRTX appears somewhat expensive relative to its fundamentals. Key valuation metrics include a P/B ratio of 14.54x. Investors paying a premium here are likely betting on above-average growth or margin expansion to justify current prices.
HERON THERAPEUTICS, INC. /DE/'s investment score of 27/100 suggests limited reinvestment activity. Key growth metrics include revenue growth of 6.1% vs. a sector average of 6.7% and a return on assets of -8.9% (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.
HRTX is currently showing below-average momentum at 36/100, which may indicate weakening institutional interest or negative sentiment shifts. Revenue growth stands at 6.1% year-over-year, while a beta of 0.94 reflects its sensitivity to broader market moves. Investors should note that declining momentum can precede further price weakness, though contrarian opportunities sometimes emerge at these levels.
With a stability score of 51/100, HRTX exhibits average financial resilience. Key stability metrics include a beta of 0.94 and a debt-to-equity ratio of 1572.00x (sector avg: 0.2x). While the balance sheet is not a major concern, the stock is subject to typical market volatility and may experience sharper drawdowns during risk-off episodes.
HERON THERAPEUTICS, INC. /DE/'s short interest score of 22/100 reveals significant bearish positioning, suggesting institutional investors are actively betting against the stock. Specific risk factors include elevated leverage (D/E: 1572.00x), micro-cap liquidity risk. At $193M (micro-cap), HRTX carries meaningful risk and is best suited for investors with high risk tolerance who have thoroughly evaluated the bear thesis.
HERON THERAPEUTICS, INC. /DE/ is a micro-cap company in the Manufacturing sector, ranked #0 of 50 in its sector (100th percentile) and #3971 of 7,333 overall (46th percentile). Key comparisons include ROE of -148.4% trailing the -1.9% sector median and operating margins of -5.1% below the 2.5% sector average. This top-quartile standing reflects exceptional competitive strength relative to Manufacturing peers.
While HRTX 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 Short Int. (22) would have the largest impact on the composite score.
ROE 7711% ABOVE SECTOR MEDIAN (FAVORABLE)
Gross Margin 66% ABOVE SECTOR MEDIAN (FAVORABLE)
Op. Margin 305% BELOW SECTOR MEDIAN
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CARY, N.C., Feb. 17, 2026 (GLOBE NEWSWIRE) -- Heron Therapeutics, Inc. (Nasdaq: HRTX) (“Heron” or the “Company”), a commercial-stage biotechnology company, today announced that the Company will host a conference call and live webcast on Thursday, February 26, 2026, at 8:30 a.m. ET to report fourth quarter and full year 2025 financial results and discuss recent business highlights. The conference call can be accessed by phone by utilizing the following registration link which will provide partici
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Above 50MA
37.18%
Net New Highs
+51081