Liquidia Corporation (LQDA): a likely value trap?

Avoid — a court just ruled its only real product infringes a rival's patent, threatening the revenue that produced all those "great" numbers.

⚠ TRAP Fundamentals83/100

Fell 59% in 3 trading day(s) — now $30.26

Why LQDA dropped

A Delaware federal court ruled on Sept 30, 2026 that Liquidia's flagship drug Yutrepia infringes a United Therapeutics patent, and the parties must now propose remedies — potentially including an injunction forcing Yutrepia off the market, which is why the stock crashed 57% that day on massive volume.

Fwd P/E 7.2Op margin 49.8%Rev growth 1842.7%Debt/equity 93.7%Analyst upside 170.5%

How this scored 83/100

✅ Passes all 4 hard checks — profitable, cash-generative, and financially survivable.

✅ Makes money Net profit margin 30.7%

✅ Generates cash Free cash flow $74M

✅ Not drowning in debt Debt/equity 93.7% (limit 200%)

✅ Can pay its bills Current ratio 2.3 (needs 1+)

Bar length shows how much each metric is worth — a 10-point metric is twice as wide as a 5-point one. Hover any row for what it means.

Profitability Does it actually make money? 25/25

Operating margin 49.8% 9/9

Net profit margin 30.7% 8/8

Return on equity 131.8% 8/8

Growth Is it getting bigger, or dying? 19/25

Revenue growth 1842.7% 9/9

Earnings growth unknown 2/8

Expected profit change 201.0% 8/8

Value Is it cheap right now? 19/25

Forward P/E 7.2 10/10

PEG ratio unknown 2/8

Analyst target upside 170.5% 7/7

Balance sheet Will it survive? 20/25

Debt / equity 93.7% 6/10

Current ratio 2.3 7/8

Free cash flow $74M 7/7

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Analysis generated by SmartStonks's AI from public fundamentals and news, first flagged 2026-10-01. Research only — not financial advice.