Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.
Vanda Pharmaceuticals has the Financial Strength Rank of 6.
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.
GuruFocus does not calculate Vanda Pharmaceuticals's interest coverage with the available data.
Vanda Pharmaceuticals's debt to revenue ratio for the quarter that ended in Jun. 2026 was 0.11.
As of today, Vanda Pharmaceuticals's Altman Z-Score is -1.29.
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.
Vanda Pharmaceuticals has the Financial Strength Rank of 6.
Vanda Pharmaceuticals Financial Strength Related Terms
LTS:0LKB vs IMRX, PRQR, NWBO: Financial Strength Comparison
For the Biotechnology subindustry, Vanda Pharmaceuticals'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.
Vanda Pharmaceuticals Financial Strength vs Biotechnology Industry
For the Biotechnology industry and Healthcare sector, Vanda Pharmaceuticals's Financial Strength distribution charts can be found below:
* The bar in red indicates where Vanda Pharmaceuticals'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:
GuruFocus does not calculate Vanda Pharmaceuticals's interest coverage with the available data.
The higher the ratio, the stronger the company's financial strength is.
Good Sign:
Ben Graham prefers companies' interest coverage to be at least 5. Vanda Pharmaceuticals Inc has enough cash to cover all of its debt. Its financial situation is stable.
2. Debt to revenue ratio. The lower, the better.
Vanda Pharmaceuticals's Debt to Revenue Ratio for the quarter that ended in Jun. 2026 is
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.
Vanda Pharmaceuticals has a Z-score of -1.29, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.
Warning Sign:
Altman Z-score of -1.29 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.
Vanda Pharmaceuticals (LTS:0LKB) has a Financial Strength of 6 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 Vanda Pharmaceuticals and its competitors. This is 25% below median its historical median of 8.00. Over the past decade, Vanda Pharmaceuticals' Financial Strength has ranged from 6.00 to 10.00.
Is Vanda Pharmaceuticals' Financial Strength too high?
Vanda Pharmaceuticals' current Financial Strength of 6 is 25% below median its 10-year median of 8.00. Over the past 10 years, this metric has ranged from a low of 6.00 to a high of 10.00. Overall, Vanda Pharmaceuticals has a GF Score™ of 63/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Vanda Pharmaceuticals' Financial Strength compare to IMRX and PRQR?
Vanda Pharmaceuticals' Financial Strength of 6 can be compared against companies in the Biotechnology industry. Historically, Vanda Pharmaceuticals' own Financial Strength has ranged from 6.00 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 Vanda Pharmaceuticals and its competitors. Vanda Pharmaceuticals's current Financial Strength is 6, which is 25% below 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 Vanda Pharmaceuticals stock overvalued right now?
Based on GuruFocus' analysis, Vanda Pharmaceuticals (LTS:0LKB) is currently considered Fairly Valued. The stock's GF Value™ is $5.40, compared to a current price of $5.36 — trading 0.8% below its estimated fair value. The current Financial Strength is 6, which is 25% below median its 10-year median of 8.00. Vanda Pharmaceuticals' overall GF Score™ is 63/100 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 Vanda Pharmaceuticals (LTS:0LKB), the current Financial Strength is 6 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 Vanda Pharmaceuticals (LTS:0LKB) Overvalued in 2026?
Based on GuruFocus' analysis, Vanda Pharmaceuticals stock appears to be undervalued.
The current stock price of $5.36 is trading 0.8% below its estimated GF Value™ of $5.40.
GuruFocus considers Vanda Pharmaceuticals to be Fairly Valued.
Key valuation signals for LTS:0LKB:
Financial Strength: 6 (25% below median its 10-year median of 8.00)
GF Value™: $5.40 vs. price of $5.36 (0.8% below fair value)
No single metric tells the full story. See the LTS:0LKB stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Vanda Pharmaceuticals Inc is a biopharmaceutical company engaged in the development and commercialization of therapies to address high unmet medical needs and improve the lives of patients. Its commercial portfolio comprises three products; HETLIOZ for the treatment of Non-24-Hour Sleep-Wake Disorder (Non-24) & nighttime sleep disturbances in Smith-Magenis Syndrome (SMS); Fanapt for the treatment of schizophrenia; and PONVORY. Its other products include ASO Molecules, VQW-765, Tradipitant, and VTR-297. The maximum of revenue is derived from the Fanapt product sales. Geographically, the company sells its product predominantly in the United States, and also in Israel, Europe, and Canada.
63GF Score
Get the complete analysis for LTS:0LKB
Financial Strength is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
LTS:0LKB has been successfully added to your 
