Liquidia Stock To $24?

Liquidia (LQDA) stock has jumped 8.2% during the past day, and is currently trading at $34.38. Our multi-factor assessment suggests that it may be time to sell LQDA stock. We have, overall, a pessimistic view of the stock, and a price of $24 may not be out of reach. We believe there are only a couple of things to fear in LQDA stock given its overall Moderate operating performance and financial condition. But keeping in mind its Very High valuation, we think that the stock is Unattractive.

Below is our assessment:

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Let’s get into details of each of the assessed factors but before that, for quick background: With $3.0 Bil in market cap, Liquidia provides inhaled dry powder therapies, including treprostinil for pulmonary arterial hypertension, focusing on innovative respiratory treatments since 2004.

[1] Valuation Looks Very High

This table highlights how LQDA is valued vs broader market. For more details see: LQDA Valuation Ratios

[2] Growth Is Very Strong

• Liquidia has seen its top line grow at an average rate of 120.5% over the last 3 years
• Its revenues have grown 343% from $16 Mil to $69 Mil in the last 12 months
• Also, its quarterly revenues grew 1121.7% to $54 Mil in the most recent quarter from $4.4 Mil a year ago.

This table highlights how LQDA is growing vs broader market. For more details see: LQDA Revenue Comparison

[3] Profitability Appears Very Weak

• LQDA last 12 month operating income was $-107 Mil representing operating margin of -155.0%
• With cash flow margin of -145.5%, it generated nearly $-101 Mil in operating cash flow over this period
• For the same period, LQDA generated nearly $-124 Mil in net income, suggesting net margin of about -179.3%

This table highlights how LQDA profitability vs broader market. For more details see: LQDA Operating Income Comparison

[4] Financial Stability Looks Very Strong

• LQDA Debt was $199 Mil at the end of the most recent quarter, while its current Market Cap is $3.0 Bil. This implies Debt-to-Equity Ratio of 6.7%
• LQDA Cash (including cash equivalents) makes up $157 Mil of $276 Mil in total Assets. This yields a Cash-to-Assets Ratio of 57.1%

[5] Downturn Resilience Is Weak

LQDA has fared worse than the S&P 500 index during various economic downturns. We assess this based on both (a) how much the stock fell and, (b) how quickly it recovered.

2022 Inflation Shock

• LQDA stock fell 55.4% from a high of $7.55 on 6 April 2022 to $3.37 on 24 May 2022 vs. a peak-to-trough decline of 25.4% for the S&P 500.
• However, the stock fully recovered to its pre-Crisis peak by 15 August 2022
• Since then, the stock increased to a high of $46.63 on 3 February 2026 , and currently trades at $34.38

 
2020 Covid Pandemic

• LQDA stock fell 77.3% from a high of $11.44 on 25 June 2020 to $2.60 on 28 December 2020 vs. a peak-to-trough decline of 33.9% for the S&P 500.
• However, the stock fully recovered to its pre-Crisis peak by 22 December 2023

But the risk is not limited to major market crashes. Stocks fall even when markets are good – think events like earnings, business updates, outlook changes. Read LQDA Dip Buyer Analyses to see how the stock has recovered from sharp dips in the past.

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