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Verdict
Quantitative factor alignment verified for current market regime.
Quant Score
Rank
#2266
Positioning
Market Dominance
Manufacturing
Medical Equipment
$3.6B
Anish Bhatnagar
Soleno Therapeutics is a clinical-stage biopharmaceutical company. Its lead candidate is Diazoxide Choline Controlled-Release, a once-daily oral tablet for the treatment of Prader-Willi Syndrome. The company was formerly known as Capnia, Inc. and changed its name in May 2017.
Headcount
30
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X-AXIS: EV/EBITDA (LOWER = CHEAPER) | Y-AXIS: ROE (HIGHER = ELITE) | RED CIRCLE = SLNO ANALYSIS TARGET
| 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 | |
$SLNO SOLENO THERAPEUTICS INC | 48 | 70 | 61 | 25 | 80.9x | 23.4x | -20.0% | -16.5% | 98.1% | 6.8% | 12.5% | - | 0.0% | 21.0x | $3.6B | ||
| SECTOR BENCH | - | - | - | - | - | 22.3x | 11.5x | -2.5% | -0.1% | 42.5% | 1.3% | -0.2% | 5.9% | 0.0% | 0.2x | - | REF |
SOLENO THERAPEUTICS INC (SLNO) receives a "Reduce" rating with a composite score of 48.4/100. It ranks #2266 out of 7,333 stocks in our coverage universe and carries a 2-star rating. Ratings are driven by a 6-factor quantitative model measuring quality, value, momentum, investment, stability, and short interest.
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Core pricing power
Operating efficiency
Bottom-line conversion
Equity capital efficiency
Asset base utilization
Financial leverage load
Direct cash return
Anish Bhatnagar
Chief Executive Officer
Labor Force
30
70
41
52
Audit Verdict: Average governance indicators based on financial metrics.
No recent insider transactions available for SLNO
HQ Base
Palo Alto, California
Lagging peers — losers tend to keep underperforming
Trading at a discount to fundamentals — favorable entry valuation
High profitability & efficiency — strong quality floor supports entry
Average volatility — neutral timing signal
Moderate investment profile
Mid-range overall rating
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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 SLNO.
View All RatingsNet income exceeding cash flow (Accrual bloat detected)
Improving capital utilization rates confirmed
High margin volatility — erratic forensic earnings quality
| Factor | Global | Sector | Tilt |
|---|---|---|---|
| PROFITABILITY | 70 | 77 | -7DRAG |
| MOMENTUM | 25 | 5 | +20ALPHA |
| VALUATION | 61 | 44 | +17ALPHA |
| INVESTMENT | 41 | 75 | -34DRAG |
| STABILITY | 52 | 38 | +14ALPHA |
| SHORT INT | 43 | 37 | +6ALPHA |
Global = full universe. Sector = relative to industry peers. Positive tilt indicates idiosyncratic strength.
ROE proxy -20.0% (sector -2.5%)
GM 98% vs sector 43%, OM 7% vs sector 1%
Capital turnover N/A, R&D intensity 31.5%
Rev growth N/A, 10yr history
Interest coverage 15.9x, Net debt/EBITDA -8.7x
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.
SOLENO THERAPEUTICS INC receives a Reduce rating from our analysis, with a composite score of 48.4/100 and 2 out of 5 stars, ranking #2266 out of 7,333 stocks. SLNO's factor profile shows weakness across multiple dimensions, suggesting the stock may underperform going forward. Existing holders may want to consider trimming positions or tightening stop-losses.
SLNO earns a quality score of 70/100, indicating above-average business quality. The company reports a return on equity of -20.0% (sector avg: -2.5%), gross margins of 98.1% (sector avg: 42.5%), net margins of 12.5% (sector avg: -0.2%). Companies in this tier generally demonstrate consistent profitability and efficient capital deployment, though they may face some competitive pressure.
SLNO's value score of 61/100 indicates the stock is fairly valued based on its current fundamentals. Key valuation metrics include a P/E ratio of 80.92x, an EV/EBITDA of 23.38x, a P/B ratio of 4.27x. At this level, neither a clear bargain nor overpriced, the stock's attractiveness depends more on forward growth expectations and qualitative factors.
With an investment score of 41/100, SLNO exhibits moderate growth-oriented spending. Key growth metrics include a return on assets of -16.5% (sector: -0.1%). The company appears to be balancing growth investments with capital returns, though the pace of investment may not be enough to accelerate top-line growth meaningfully.
SOLENO THERAPEUTICS INC is experiencing notably weak momentum with a score of just 25/100. The stock has underperformed its peers and is trending below major moving averages. Revenue growth data is not currently available, while a beta of 0.69 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.
With a stability score of 52/100, SLNO exhibits average financial resilience. Key stability metrics include a beta of 0.69 and a debt-to-equity ratio of 21.00x (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.
The short interest score of 43/100 for SLNO suggests somewhat elevated bearish positioning by institutional traders. Specific risk factors include elevated leverage (D/E: 21.00x). With a $3.6B market cap (mid-cap), SOLENO THERAPEUTICS INC may experience above-average volatility. Investors should consider whether the short thesis has merit or if it creates a potential short-squeeze opportunity.
SOLENO THERAPEUTICS INC is a mid-cap company in the Manufacturing sector, ranked #0 of 50 in its sector (100th percentile) and #2266 of 7,333 overall (69th percentile). Key comparisons include ROE of -20.0% trailing the -2.5% sector median and operating margins of 6.8% above the 1.3% sector average. This top-quartile standing reflects exceptional competitive strength relative to Manufacturing peers.
While SLNO currently exhibits a REDUCE 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 Momentum (25) would have the largest impact on the composite score.
EV/EBITDA 104% ABOVE SECTOR MEDIAN
ROE 707% ABOVE SECTOR MEDIAN (FAVORABLE)
Gross Margin 131% ABOVE SECTOR MEDIAN (FAVORABLE)
AUDIT DATA AS OF SEP 30, 2025 (Q2 FY2025)
We rate SOLENO THERAPEUTICS INC (SLNO) as a Reduce with a composite score of 48.4/100 at a current price of $39.14. 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 quality (70th percentile) and value (61th percentile), which together account for the majority of the composite score. Offsetting weakness in momentum (25th percentile) and investment (41th percentile) tempers our overall conviction. We assign a No Moat rating (39/100), Low uncertainty, and Poor capital allocation.
Key items to watch: momentum to confirm whether the current price trend has legs. 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.
SOLENO THERAPEUTICS 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 48.4/100 places it at rank #2266 in our full 7,333-stock universe. At $3.6B in market capitalization, SOLENO THERAPEUTICS INC is a mid-cap player in the Manufacturing space, which limits certain scale advantages but may allow for more agile strategic execution.
Momentum indicators (25th percentile) suggest caution regarding the near-term price trend. Revenue growth data is unavailable, limiting our ability to confirm whether momentum is fundamentally supported.
The margin cascade tells an important story: gross margins of 98% (+55.6pp vs sector) narrow to operating margins of 7% (+5.5pp vs sector) and net margins of 12.5%, yielding a gross-to-net conversion rate of 13%. 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 $39.14, SOLENO THERAPEUTICS INC is trading near fair value based on current fundamentals. Our value factor score of 61/100 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. Valuation metrics are mixed, with no strong signal of mispricing in either direction.
The stock currently trades at a P/E of 80.9x (a 264% premium to the sector median of 22.3x), EV/EBITDA of 23.4x (at a premium), P/B of 4.3x, P/S of 21.4x. The above-sector P/E multiple suggests the market is pricing in superior growth or quality, which our analysis partially supports given strong quality metrics.
Gross margins of 98% signal strong pricing power and brand/IP advantages — businesses with margins above 40% have historically demonstrated more resilient earnings through economic cycles.
A conservative balance sheet (21% D/E) provides financial flexibility for acquisitions, buybacks, or weathering economic downturns without dilution.
The Reduce rating (composite 48.4/100) reflects multi-factor weakness, and historically, stocks in this scoring range have underperformed the market by a meaningful margin.
A P/E of 80.9x leaves little room for execution misses — any earnings disappointment could trigger a sharp multiple compression.
Weak momentum (25th percentile) suggests institutional selling pressure and unfavorable technical dynamics that may persist.
We assign a Low uncertainty rating to SOLENO THERAPEUTICS INC. The company exhibits strong financial stability with a beta of 0.69, conservative leverage (21% D/E), and a stability factor in the 52th percentile. The predictable nature of the business model and solid financial position reduce the range of potential outcomes, giving us confidence in our fair value estimate.
Specific risk factors that inform our assessment include: low beta of 0.69 — while defensive, this may indicate limited upside participation in bull markets; elevated valuation multiple (P/E 80.9x) that leaves limited margin for error. 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 52th percentile and quality factor at the 70th percentile provide a quantitative summary of the overall risk landscape.
Key risk mitigants include: healthy gross margins of 98% provide a buffer against cost pressures; conservative leverage (21% D/E) limits balance sheet risk. These factors partially offset the identified risks and provide downside protection in adverse scenarios. On balance, the risk-reward profile is favorable for long-term investors.
We rate SOLENO THERAPEUTICS INC's capital allocation as Poor. Key concerns include low returns on equity (-20.0%), weak asset returns (ROA -16.5%). Exemplary capital allocators generate ROE above 20% and maintain conservative leverage — SOLENO THERAPEUTICS INC significantly underperforms these benchmarks, raising questions about management's ability to create shareholder value.
Investors should scrutinize management's reinvestment decisions and balance sheet trajectory before committing capital. Poor capital allocation often compounds over time: overlevered balance sheets limit strategic flexibility, while low returns on capital destroy shareholder value. We would need to see sustained improvement in profitability metrics and balance sheet discipline before considering an upgrade.
In summary, SOLENO THERAPEUTICS INC receives a Reduce rating with a composite score of 48.4/100 (rank #2266 of 7,333). Our quantitative framework assigns a No Moat (39/100, trend: stable), Low uncertainty, and Poor capital allocation. The average factor score across quality, value, momentum, stability, and investment is 50/100.
Our analysis does not support a constructive view on SOLENO THERAPEUTICS INC at this time. The combination of limited competitive advantages, low uncertainty, and poor 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 SOLENO THERAPEUTICS INC a meaningful economic moat, scoring 39/100 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, financial resilience, reached only 15.8/20.
The strongest moat sources are financial resilience (15.8/20) and margin superiority (15.1/20). Interest coverage 15.9x, Net debt/EBITDA -8.7x. GM 98% vs sector 43%, OM 7% vs sector 1%. These pillars form the core of SOLENO THERAPEUTICS INC's competitive identity and are the primary drivers of excess returns in our framework.
Areas of relative weakness include economic value creation (0.5/20) and growth durability (0.7/20). ROE proxy -20.0% (sector -2.5%). 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 SOLENO THERAPEUTICS INC's moat profile to remain largely unchanged absent a material shift in return on capital or industry dynamics.
Key profit drivers include gross margins of 98% providing a solid profitability foundation. The margin cascade from 98% gross to 7% operating to 12.5% net reveals the company's cost structure and reinvestment intensity. Our analysis indicates that the profit engine is high-quality and likely sustainable, with the quality factor at the 70th percentile.
The margin profile shows gross margins of 98%, operating margins of 7%, net margins of 12.5%. Return metrics include ROE of -20.0% and ROA of -16.5%. Relative to the Manufacturing sector, gross margins are 55.6 percentage points above the sector median of 43%, and ROE of -20.0% compares to a sector median of -2.5%.
The balance sheet reflects a conservatively managed balance sheet with D/E of 21%. The sector median D/E is 0%, putting SOLENO THERAPEUTICS INC at higher leverage than the typical peer. The combination of low leverage and healthy profitability provides significant financial resilience and strategic optionality.
Above 50MA
37.18%
Net New Highs
+51081
Soleno Therapeutics (NASDAQ:SLNO) is one of the 17 biotechnology stocks with more than 50% upside. On January 20, the price target on Soleno Therapeutics (NASDAQ:SLNO) was increased from $110 to $120 by Ram Selvaraju from H.C. Wainwright. He also reaffirmed his Buy rating on the stock, which, as per his forecasts, offers an upside potential […]
Executives from Soleno Therapeutics (NASDAQ:SLNO) provided an update on the company’s commercial launch in Prader-Willi syndrome (PWS), reimbursement dynamics, and regulatory progress in Europe during Guggenheim’s 2026 Emerging Outlook Biotech Summit. Commercial launch focus remains on patient grow
Soleno Therapeutics achieved its first profitable quarter with $66 million in revenue, attracting a significant $86.7 million investment from Connecticut-based fund Braidwell, which acquired 1.3 million shares in the biotechnology company.
RBC launches Rhythm Pharma with Outperform, sees $2 billion Imcivree sales by 2030 after Phase 3 obesity data boost.
Soleno Therapeutics (SLNO) is back in focus after recent analyst reports pointed to stronger than expected early sales of its newly commercialized VYKAT XR, solid new patient starts, and interest in its Prader Willi Syndrome program. See our latest analysis for Soleno Therapeutics. Even with the recent analyst enthusiasm around VYKAT XR and the Prader Willi program, Soleno’s 30 day share price return of 9.37% and year to date share price return decline of 18.38%, alongside a 1 year total...