Is Freenome, Inc. (FRNM) a good stock to buy?
Our tested checks disagree with each other, so the answer depends on something further down the page rather than on any one measure.
What each rating means, in numbers
How wild is the price? — Average. The share price swings about 39% in a typical year, which puts it in the middling. Out of every 100 companies that swung like this, about 1.5 went bankrupt within the year. Across the three periods we tested that ran from 0.2% to 3.0%.
What "tested" means here, and why there is no score out of 100
Tested means the read was measured against what actually happened afterwards, on a history that keeps the companies that were later delisted, using only figures that had been filed on the day they are used. Survival was ranked on companies that really did fail. What an owner keeps was tested across the universe from 2011 to 2025.
The full record of everything we have tested is on the research pages.
Which benchmark. Over the period we tested, the median listed company returned +5.8% a year while the S&P 500 returned about +13.9% — the index is weighted by size and was carried by a handful of enormous winners. So "beats the index" and "beats the other companies you could have bought" are different questions. Where a read says it picks better companies, it means the second one. None of these gets you an index fund's return, and we would rather say that than imply otherwise.
The quality read is the strongest thing we have tested: 131,000 company-quarters across 5,300 companies, where the weakest scorers went on to fail at 5.4% against 1.4% for the strongest, holding in every era and all twelve sectors. It still says less likely to break, not likely to beat the market — every band in that study lost to the index at the median, because the median listed company does.
Each read is shown on its own rather than merged into a single score, so you can see which part is strong and which is weak instead of taking an average on trust.
▾ What goes into the smart-money reading
Contributions (weight × component score) sum to the total. This near-term score now includes fundamental health (leverage, FCF trend). See the Financial Health section for the full balance-sheet read.
Chance the S&P 500 falls 10% or more in the next three months.
Counted from every day since 2006. Says nothing about FRNM — see the board for how it is measured.
📍 Where to start on this page, and what to look at first
How to read FRNM (pre-profit growth)
This company is reinvesting instead of generating profit, so a standard DCF cannot price it. The useful question is whether the growth the market is paying for is achievable — and whether the company can fund itself until then.
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1
Cash runway ↓
Can it reach profitability before it has to raise money and dilute shareholders?
FRNM's SEC filings give us limited machine-readable financials — common for some foreign or newly-listed filers that report under IFRS or file abbreviated statements. We can't run a full valuation on a partial dataset.
What to use instead: What we have parsed is shown below. As more complete filings arrive (or IFRS support lands), the valuation will populate.
How does FRNM stack up against its closest peers?
We take the 8 same- or closely-related-industry companies closest in size to FRNM and check what investors are paying for each dollar of their revenue (or profits). If FRNM is much more expensive on the same yardstick, that's a red flag — unless you have a specific reason it deserves a premium. For a leveraged business, EV/EBIT and FCF yield (both in the table) are usually more reliable than EV/Sales, because revenue multiples ignore differences in margins and debt.
▾ What's "EV / Sales" in plain English?
EV (Enterprise Value) = market cap + total debt − cash. It's "what you'd pay to buy the entire company outright" — you pay the market cap to shareholders and take over their debt, but you keep their cash. EV is fairer than market cap alone because it includes the debt the new owner inherits.
EV / Sales = EV ÷ annual revenue. So "2.5×" means investors pay $2.50 of enterprise value per $1 of yearly sales. Higher = market is paying more per dollar of sales (usually because they expect future growth or fat margins).
p25 / median / p75 are the 25th, 50th (middle), and 75th percentile of the peers' multiples. Half the peers fall between p25 and p75. The median (p50) is the typical peer — that's the benchmark we compare to.
| EV / SalesEV / Sales — For every $1 of yearly revenue, this is how many dollars investors pay to own the whole business (including debt). Why it matters: Works for pre-profit growth companies where P/E and FCF don't apply. The most apples-to-apples cross-company multiple because it ignores accounting choices. Reference: 1–3x for mature companies · 4–10x for software/SaaS · 10–20x for hypergrowth · >20x is rare and demanding Full explanation → |
1.7x / 3.9x / 8.7x |
| EV / Gross ProfitEV / Gross Profit — Enterprise value divided by gross profit — the multiple paid for what each dollar of sales contributes after direct costs. Why it matters: More refined than EV/Sales for high-margin businesses (software, marketplaces) where gross margin is the real economic engine. Reference: 8–15x for SaaS · 15–25x for hypergrowth software · >30x demanding Full explanation → |
4.3x / 9.7x / 22.5x |
Bold middle number = median peer. Half the peers trade above it, half below. Computed over 8 same-industry peers; implausible multiples excluded.
⚠️ Important caveat: peer multiples only work if the peers are genuinely comparable. Always check the peer list below — if the auto-picker grabbed micro-caps or unrelated businesses, the comparison is noise. A medical-device giant priced against tiny biotech startups won't produce a useful signal.
▾ View peer list (8)
| Ticker | Company | Industry | Mcap | EV/Sales | EV/GP | EV/EBIT | FCF Yield |
|---|---|---|---|---|---|---|---|
| CSTL | CASTLE BIOSCIENCES INC | Medical Labs | $1.0B | 2.9x | n/r | loss | 19.6% |
| PSNL | Personalis, Inc. | Medical Labs | $1.7B | n/m | n/r | loss | 0.0% |
| FTRE | Fortrea Holdings Inc. | Medical Labs | $2.3B | 1.2x | n/r | loss | 9.5% |
| FLGT | Fulgent Genetics, Inc. | Medical Labs | $559M | 1.7x | 4.3x | loss | 2.8% |
| CDNA | CareDx, Inc. | Medical Labs | $3.3B | 8.7x | n/r | loss | 2.2% |
| VCYT | VERACYTE, INC. | Medical Labs | $3.5B | 6.8x | 9.7x | n/m | 2.4% |
| BLLN | BillionToOne, Inc. | Medical Labs | $4.6B | 15.4x | 22.5x | n/m | 4.4% |
| BDSX | BIODESIX INC | Medical Labs | $297M | 3.9x | n/r | loss | 4.5% |
loss = the company lost money on that line, so the multiple has no meaning · neg. cash = free cash flow was below zero · n/r = not reported separately in its SEC filings · n/m or struck through = implausible, left out. None of these enter the medians above.
Quality & solvency checks
Cheap stocks can be cheap for a reason. These screens warn when a low valuation comes paired with structural fragility.
Why it matters: Cheap-looking stocks (low P/E or P/B) often have low Z-scores because the market knows the company is dying. Z-score warns you before you fall into a value trap.
Reference: > 3.0 = safe zone · 1.81–3.0 = grey zone · < 1.81 = distress zone
Full explanation →
The Z-score needs working capital, retained earnings, EBIT, sales and total assets from the latest balance sheet, and at least one of those isn't reported in machine-readable form here — common for foreign private issuers. We leave it blank rather than compute a distress verdict from an estimated input. It doesn't affect the reported figures in the financial tables below.
Why it matters: High score = fundamentals improving. Low score = deteriorating. Especially powerful for filtering cheap stocks: cheap + high F-score historically outperforms; cheap + low F-score is often a value trap.
Reference: 7–9 = strong · 4–6 = mediocre · 0–3 = weak
Full explanation →
The F-score compares two consecutive years of income, cash-flow and balance-sheet data. This filer has only 1 usable year, so there is no prior period to compare against. We show nothing rather than score a partial year against itself. The reported figures in the financial tables below are unaffected.
A standard discounted cash flowDCF — Discounted Cash Flow — sums up all future cash a business will produce, adjusted for the fact that future dollars are worth less than dollars today.
Why it matters: It is the most fundamentally honest valuation method when applicable — but only works for companies with predictable, positive cash flow.
Reference: Best for: mature, profitable businesses. Fails for: pre-profit growth, banks, REITs.
Full explanation → (DCF) valuation is not meaningful for Freenome, Inc. because its operating cash flow is negative, indicating a cash-burning growth stage. The model projects future cash flows from revenue trajectory, but currently implies no positive equity value, suggesting a speculative and low-confidence valuation. Investors are likely betting on the successful development and commercialization of its diagnostic pipeline, which is not captured by backward-looking cash flow models. The biggest risk to our assumptions is the company's current ratio of 0.4, which is below 1, indicating current liabilities exceed liquid assets, posing a significant liquidity risk.
As of 10 days ago
Anatomy of a share
What you're buying per share. Bars are at the same scale so you can see the relative size of revenue, costs, cash flow, and debt — not just read them in a table.
What's free cash flow / what do these mean?
Revenue per share — how much the business earns from customers, divided by the number of shares outstanding. Top of the income statement.
Earnings per share — profit left after operating costs, interest, and taxes, per share. Two versions appear on this page and are not interchangeable: GAAP diluted EPS uses the company's weighted-average diluted share count during the reporting period (this is the "earnings" in "price-to-earnings"); net income per current share divides annual net income by today's share count. They differ whenever the share count has changed.
Owner-earnings free cash flow per share — the cash the business produces for shareholders. Savng's owner-earnings FCF subtracts capital expenditures and stock-based compensation from operating cash flow (SBC is a real cost to shareholders even though no cash leaves the company). This is deliberately more conservative than "standard" FCF, which subtracts only capital expenditures — so our figure is lower than the headline FCF you'll see elsewhere. FCF funds dividends, buybacks, debt repayment, and acquisitions; a company can report positive earnings yet negative FCF.
Debt per share — total interest-bearing borrowings divided by shares. High debt-per-share next to thin FCF-per-share is a fragility signal.
What you actually need to decide
Every stock price is a disagreement. Here's the single thing that must go right for the bulls, the single thing that breaks the thesis, and the concrete signposts to watch so you can update your view as real results arrive.
- Progress and results from ongoing clinical trials
- Regulatory approvals for diagnostic tests
- New partnerships or commercialization agreements
Management & Leadership
Adam Stone serves as the Chief Executive Officer, and Sam Cohn is the Chief Financial Officer. Riley Charles Ennis is the Chief Product Officer, and Cheng-Ho Jimmy Lin is the Chief Scientific Officer. The company's leadership is focused on advancing its diagnostic technologies.
What They Make
Freenome, Inc. develops blood tests for the early detection of cancer. The company's primary customers are healthcare providers and potentially insurance companies, who would pay for these diagnostic services.
End Markets
Revenue Drivers
Why Is It Priced Like This?
Why Customers Pay
What we use instead: revenue growth and gross profit (EV/Sales, EV/Gross profit), cash runway and dilution — computed from the figures this company does report, shown on this page.
The market is pricing Freenome, Inc. based on expectations of future revenue growth and the potential success of its diagnostic pipeline, rather than current cash flow, which is negative. The market may be assigning value to the potential for regulatory approval and widespread adoption of its cancer early detection tests, which is not in the model. The company's low current ratio of 0.4 highlights the importance of future capital raises or significant revenue generation to sustain operations.
Business Model & Valuation
How They Make Money
The company funds itself primarily through equity raises, as indicated by its negative operating cash flow and the model's projection of future cash flows from revenue trajectory.
Growth / Revenue DCF
This is the model the pipeline would normally apply to a company like this. Its output failed our checks here, so no intrinsic value is published; the notes below are context, not a valuation.
Show advanced inputs
| Revenue Growth | 15.0% |
What this model does NOT do: this is a consolidated owner-earnings cash-flow model. Standalone segment assumptions: none. It does not project its revenue segments independently; their combined effect is embedded in the historical revenue and cash-flow trend the model extrapolates. The calculator above can only approximate a segment's impact through the single consolidated growth rate — it cannot model any one line separately. For a true segment-level view, build a separate model from the company's segment disclosures.
Maturity & Competitive Position
Moat Signals
Operating cash flow has been negative in the latest period, with positive operating cash flow in 0 out of the last 2 years.
Geography & Markets
Geographic Risks
Market Signals
These are timing signals, not value signals — they describe the stock's recent price behavior, not what the business is worth. Use them for the "the thesis looks good, but is now the moment?" question. Each tile below explains what it's saying.
Why it matters: Short-term contrarian indicator. Extreme readings often precede mean reversion, though not always.
Reference: 30–70 normal · >70 overbought · <30 oversold
Full explanation → (14)34.1NeutralMomentum is balanced — neither overbought nor oversold.
Why it matters: When the fast line crosses above the slow line, short-term momentum is turning up; below, turning down. A timing cue, not a value signal.
Reference: Line above signal = bullish momentum · below = bearish
Full explanation →BearishLine below signalThe fast trend is below the slow trend — short-term momentum is currently downward.
Technicals describe price, not the business. A great company can have a "bearish" tape (a buying chance) and a weak one a "bullish" tape (a trap). Pair these with the valuation and health sections above.
QUALITY
Data Quality & Risk Flags (5 notes — click to expand/collapse)
Guardrail Notes (5)
- FCF negative: revenue/margin growth model projects future cash flows from revenue trajectory.
- INVARIANT: weighted IV is non-positive. Model may not be appropriate.
- Model implies no positive equity value under these assumptions. Valuation is speculative/low-confidence.
- Illiquidity discount 7% applied (small/micro-cap — harder to exit, demand a margin).
- Extreme valuation gap (P/IV withheld — see the note above): result may be dominated by model assumptions, share count issues, or sector-specific dynamics. Treat as low confidence.
FINANCIALS
Financial Statements (5-year tables — click to expand)
From Freenome, Inc.'s SEC filings (EDGAR).
Income (5yr)
| Year | Revenue | Net Income | Diluted EPS |
|---|---|---|---|
| 2025 | — | 837,468 | $0.01 |
Cash Flow (5yr)
Capital expenditure isn't tagged in this filer's machine-readable data (the CapEx column shows "—"). The free-cash-flow column is therefore operating cash flow less stock-based compensation only — an upper bound on true owner earnings, not the real figure. Companies that report capex under a custom label (some large IFRS filers do) look better here than they are.
| Year | Operating CF | CapEx | − SBC | Free Cash Flow |
|---|---|---|---|---|
| 2025 | -864,653 | not reported | not reported | -864,653capital spending not reported |
| 2024 | N/A | N/A | N/A | N/A |
How we define FCF: operating cash flow − capital expenditure − stock-based compensation (owner-earnings basis — SBC is a real cost to shareholders even though it's non-cash). This is the same owner-earnings FCF definition the valuation model uses, though the DCF starts from the projected from revenue × terminal margin, not this single year.
Balance Sheet
| Total Assets | 92.8M |
| Total Liabilities | 5.70M |
| Equity | -4.80M |
Similar companies worth a look
Same sector and industry, similar fundamentals shape. Verify everything yourself — this list is computed mechanically and does not reflect our judgment about whether any of these are a good investment.
The questions people ask about FRNM
Is Freenome, Inc. (FRNM) a good stock to buy?
We do not publish a single fair value for Freenome, Inc., because one number would not be reliable for this business (the page explains why). Judge it on its financial-health checks, its record and what insiders are doing, all shown here from SEC filings. This is educational research from SEC filings, not investment advice.
Is Freenome, Inc. (FRNM) overvalued?
A single fair-value number is not reliable for Freenome, Inc., so we do not call it overvalued or undervalued. The page shows how the company's finances look and what insiders are doing instead. This is educational research from SEC filings, not investment advice.
Where do these numbers come from?
From Freenome, Inc.'s own SEC filings (10-K and 10-Q), Form 4 insider filings and daily market prices. Every figure on the page links to how it was calculated, and the model's weak spots are listed next to its results.