PAVM

We rate PAVmed Inc. (PAVM) as a Reduce with a composite score of 43.6/100 at a current price of $9.83. The quantitative profile shows weakness across multiple dimensions, suggesting limited upside potential and elevated risk of underperformance relative to peers over the next 12 months.

The rating is primarily driven by strength in momentum (99th percentile) and investment (36th percentile), which together account for the majority of the composite score. Offsetting weakness in stability (7th percentile) and value (9th percentile) tempers our overall conviction. We assign a No Moat rating (17/100), Very High uncertainty, and Standard capital allocation.

Key items to watch: whether strong momentum is fundamentally supported by revenue trends; the path to profitability; 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.

PAVmed 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 43.6/100 places it at rank #3040 in our full 7,333-stock universe. At $9M in market capitalization, PAVmed Inc. is a small-cap player in the Manufacturing space, which limits certain scale advantages but may allow for more agile strategic execution.

Despite positive momentum (99th percentile), revenue contraction of -100% creates a divergence between price action and fundamental trajectory. This divergence suggests either that the market is looking through near-term weakness or that technical factors are temporarily inflating the stock. Investors should assess whether the revenue decline reflects cyclical weakness or structural challenges.

The margin cascade tells an important story: gross margins of -493% (-535.4pp vs sector) narrow to operating margins of -61174% (-61175.3pp vs sector) and net margins of -21690.4%, yielding a gross-to-net conversion rate of N/A%. The significant margin erosion from gross to net suggests elevated operating expenses, high interest costs, or other structural drags that warrant monitoring.

At a current price of $9.83, PAVmed Inc. is trading at a premium to fundamental value. Our value factor score of 9/100 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 0.1x (a 99% discount to the sector median of 22.3x), P/B of 0.4x, P/S of 8.6x. The below-sector P/E suggests possible undervaluation or the market pricing in near-term headwinds.

We assign a Very High uncertainty rating to PAVmed Inc.. The stock exhibits multiple compounding risk factors: elevated market sensitivity (beta of 2.65), current negative profitability (net margin -21690.4%), below-average price stability (7th percentile). The extreme uncertainty around future cash flows makes precise valuation difficult, and the range of outcomes is exceptionally wide. Only investors with high risk tolerance and extended time horizons should consider this name.

Specific risk factors that inform our assessment include: elevated market sensitivity (beta of 2.65); current negative profitability (net margin -21690.4%); below-average price stability (7th percentile); weak quality scores (24th 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 7th percentile and quality factor at the 24th percentile provide a quantitative summary of the overall risk landscape.

We identify limited risk mitigants at this time, which contributes to our very 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 PAVmed Inc.'s capital allocation as Standard. Management has shown adequate — though not exceptional — stewardship of shareholder capital. Returns on equity stand at 270.8%, and the balance sheet is managed within acceptable parameters (D/E: 55%). Exemplary allocators typically sustain ROE above 20% and D/E below 50%; PAVmed 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, PAVmed Inc. receives a Reduce rating with a composite score of 43.6/100 (rank #3040 of 7,333). Our quantitative framework assigns a No Moat (17/100, trend: stable), Very High uncertainty, and Standard capital allocation. The average factor score across quality, value, momentum, stability, and investment is 35/100.

Our analysis does not support a constructive view on PAVmed Inc. at this time. The combination of limited competitive advantages, very 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.