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Lipocine has the Financial Strength Rank of 8. It shows strong financial strength and is unlikely to fall into distressed situations.
Good Sign:
Lipocine Inc shows strong financial strength.
GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is rated on a scale of 1 to 10 and is based on these factors:
1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.
4. Other debt related ratios.
A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.
Lipocine has no long-term debt (1).
Lipocine's debt to revenue ratio for the quarter that ended in Jun. 2026 was 0.00.
As of today, Lipocine's Altman Z-Score is -8.25.
(1) Note: An indication of "no long-term debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
The rank is rated on a scale of 1 to 10. A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.
Lipocine has the Financial Strength Rank of 8. It shows strong financial strength and is unlikely to fall into distressed situations.
Lipocine Financial Strength Related Terms
LPCN vs NXTC, VYNE, QNCX: Financial Strength Comparison
For the Biotechnology subindustry, Lipocine's Financial Strength, along with its competitors' market caps and Financial Strength data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Lipocine Financial Strength vs Biotechnology Industry
For the Biotechnology industry and Healthcare sector, Lipocine's Financial Strength distribution charts can be found below:
* The bar in red indicates where Lipocine's Financial Strength falls into.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.
The zones of discrimination were as such:
When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.
Lipocine has a Z-score of -8.25, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.
Warning Sign:
Altman Z-score of -8.25 is in distress zone. This implies bankruptcy possibility in the next two years.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Lipocine (LPCN) has a Financial Strength of 8 as of Jun. 2026. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on Lipocine and its competitors. This is near median its historical median of 8.00. Over the past decade, Lipocine's Financial Strength has ranged from 1.00 to 10.00.
Is Lipocine's Financial Strength too high?
Lipocine's current Financial Strength of 8 is near median its 10-year median of 8.00. Over the past 10 years, this metric has ranged from a low of 1.00 to a high of 10.00. Overall, Lipocine has a GF Score™ of 46/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Lipocine's Financial Strength compare to NXTC and VYNE?
Lipocine's Financial Strength of 8 can be compared against companies in the Biotechnology industry. Historically, Lipocine's own Financial Strength has ranged from 1.00 to 10.00 over the past decade. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Financial Strength for a Biotechnology company?
A good Financial Strength depends on the Biotechnology industry context. However, Financial Strength should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Financial Strength mean?
A high Financial Strength can signal that a stock is expensive relative to its fundamentals. The financial strength rank measures the strength of a company's balance sheet based on revenue and debt. View historical data on Lipocine and its competitors. Lipocine's current Financial Strength is 8, which is near median its own 10-year median of 8.00. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Lipocine stock overvalued right now?
Based on GuruFocus' analysis, Lipocine (LPCN) is currently considered Significantly Overvalued. The stock's GF Value™ is $1.31, compared to a current price of $2.11 — trading 61.1% above its estimated fair value. The current Financial Strength is 8, which is near median its 10-year median of 8.00. Lipocine's overall GF Score™ is 46/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Financial Strength calculated?
Financial Strength is calculated from a company's financial statements. For Lipocine (LPCN), the current Financial Strength is 8 as of Jun. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Lipocine (LPCN) Overvalued in 2026?
Based on GuruFocus' analysis, Lipocine stock appears to be overvalued.
The current stock price of $2.11 is trading 61.1% above its estimated GF Value™ of $1.31.
GuruFocus considers Lipocine to be Significantly Overvalued.
Key valuation signals for LPCN:
Financial Strength: 8 (near median its 10-year median of 8.00)
GF Value™: $1.31 vs. price of $2.11 (61.1% above fair value)
No single metric tells the full story. See the LPCN stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Lipocine Inc is a clinical-stage biopharmaceutical company that is engaged in research and development for the delivery of drugs using its proprietary delivery technology. Its principal operation is to provide oral delivery solutions for existing drugs. Lipocine develops its drug candidates, or it develops drug candidates on behalf of or in collaboration with corporate partners. The company's product TLANDO is an oral testosterone replacement therapy (TRT). It also has other products in the pipeline, such as LPCN 1144, TLANDO, TLANDO XR, LPCN 1148, LPCN 1107, LPCN 1154, and LIP RAL7 Technology. The Company has a single reportable segment, research, and development for the delivery of drugs using its proprietary delivery technology.
46GF Score
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