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PBYI, Puma Biotechnology Inc

Pharmaceuticals consumer brand Cyclical

We are a biopharmaceutical company that develops and commercializes innovative products to enhance cancer care and improve treatment outcomes for patients.

We currently market NERLYNX in the United States using our direct specialty sales force consisting of approxima tely 35 sales specialists as of December 31, 2025.

Our sales specialists are supported by an experienced sales leadership team consisting of regional managers and directors, as well as a commercial team of experienced professionals in marketing, access and reimbursement, managed markets, marketing research, commercial operations and sales force planning and management.

Latest annual: FY2025 10-K

PBYI · Puma Biotechnology Inc

The business

What it sells, where the money comes from, the kind of company it is.

Revenue · FY2025

$228M

−0.9% YoY · 0% 5-yr CAGR

Vital signs · TTM, with 5-yr average

Revenue $227M 5-yr avg $235M

Gross margin 74% 5-yr avg 74%

Operating margin 13.0% 5-yr avg 10.9%

ROIC 24% 5-yr avg 35%

Owner-earnings margin 24% 5-yr avg 10%

Free cash flow margin 24% 5-yr avg 10%

The business in brief

read the 10-K →

What this business is and what moves its needle, from its own SEC filings.

Situation: Cyclical. Margins collapse and recover repeatedly across the record; a single year, good or bad, misstates the through-cycle earning power.
What moves the needle: Gross margin has run about 76% and operating margin about 0.5% through the cycle, a wide spread between price and the cost of what it sells — whether that advantage is durable pricing power or a margin that can erode is the question the record is for. The operating margin has swung widely — from −1056% to 16% — on a steadier 76% gross margin, so what moves it sits below the gross line, in operating spend and one-off charges more than in the cost of the product itself. Stock-based pay runs about 13% of sales, a real and recurring claim on owners that the GAAP margin understates. Read this kind of business on the pipeline against the patent cliff, and pricing. On its own account, the filing leans hardest on pricing power & competition, set against the numbers in what the filing emphasizes, below.
Is it a good business?: Return on capital has rarely cleared the cost of capital (median −59%, above 15% in 3 of 7 years). By owner earnings: roughly 8% of revenue reaches owners as cash, though it swings. The cycle and the balance sheet decide this one; the worst year tells more than the median, and the rest is in the 10-K.

Every line is arithmetic on the company's filings, shown in full in the sections below.

The record

Ten years of arithmetic, read across the cycle.

The record, 2017–2025

realized figures from each filing · older years to the left

2017’17	2018’18	2019’19	2020’20	2021’21	2022’22	2023’23	2024’24	2025’25	TTMTTMMar 2026
										Income statement
$28M	$251M	$272M	$225M	$253M	$228M	$236M	$230M	$228M	$227M	RevenueRevenue
80%	86%	86%	83%	75%	76%	73%	72%	75%	74%	Gross marginGross mgn
385%	58%	52%	53%	46%	39%	38%	35%	31%	32%	SG&A / revenueSG&A/rev
751%	66%	49%	43%	28%	23%	21%	24%	27%	30%	R&D / revenueR&D/rev
($292M)	($95M)	($39M)	($30M)	$1M	$24M	$33M	$31M	$37M	$29M	Operating incomeOp. inc.
n/m	−37.7%	−14.3%	−13.5%	0.5%	10.4%	13.9%	13.4%	16.3%	13.0%	Operating marginOp. mgn
($292M)	($114M)	($76M)	($60M)	($29M)	$2K	$22M	$30M	$31M	$24M	Net incomeNet inc.
—	—	—	—	—	—	5%	—	13%	16%	Effective tax rateTax rate
										Cash flow & returns
($172M)	($24M)	$22M	$773K	$21M	($16M)	$27M	$39M	$42M	$54M	Operating cash flowOp. cash
$3M	$7M	$8M	$10M	$11M	$10M	$12M	$12M	$11M	$11M	DepreciationDeprec.
$8M	($5M)	$33M	$14M	$6M	($37M)	($16M)	($11M)	($7M)	$12M	Working capital & otherWC & other
$431K	$439K	$306K	$46K	$0	$0	$140K	$56K	$71K	$10K	CapexCapex
1.6%	0.2%	0.1%	0.0%	0.0%	0.0%	0.1%	0.0%	0.0%	0.0%	Capex / revenueCapex/rev
($173M)	($25M)	$22M	$727K	$21M	($16M)	$27M	$39M	$42M	$54M	Owner earningsOwner earn.
−624.5%	−9.8%	8.1%	0.3%	8.2%	−6.9%	11.4%	16.9%	18.3%	23.6%	Owner earnings marginOE mgn
($173M)	($25M)	$22M	$727K	$21M	($16M)	$27M	$39M	$42M	$54M	Free cash flowFCF
−624.5%	−9.8%	8.1%	0.3%	8.2%	−6.9%	11.4%	16.9%	18.3%	23.6%	Free cash flow marginFCF mgn
-1150%	-96%	-59%	-340%	—	—	45%	34%	26%	24%	ROICROIC
-548%	-331%	-433%	—	—	0%	40%	33%	24%	19%	Return on equityROE
−548%	−331%	−433%	—	—	0%	40%	33%	24%	19%	Retained to equityRetained/eq
										Balance sheet
$82M	$165M	$112M	$93M	$82M	$81M	$96M	$101M	$98M	$102M	Cash & investmentsCash+inv
$10M	$21M	$29M	$26M	$33M	$40M	$48M	$32M	$54M	$26M	ReceivablesReceiv.
$2M	$3M	$3M	$3M	$7M	$5M	$7M	$9M	$6M	$9M	InventoryInvent.
$28M	$21M	$19M	$12M	$11M	$6M	$7M	$6M	$5M	$8M	Accounts payablePayables
($16M)	$3M	$13M	$17M	$28M	$38M	$48M	$35M	$54M	$27M	Operating working capitalOper. WC
$106M	$203M	$166M	$146M	$140M	$134M	$156M	$148M	$163M	$142M	Current assetsCur. assets
$58M	$67M	$91M	$114M	$110M	$77M	$99M	$96M	$81M	$60M	Current liabilitiesCur. liab.
1.8×	3.0×	1.8×	1.3×	1.3×	1.7×	1.6×	1.5×	2.0×	2.4×	Current ratioCurr. ratio
$166M	$259M	$235M	$244M	$227M	$222M	$231M	$213M	$216M	$193M	Total assetsAssets
$48M	$152M	$95M	$98M	$97M	$98M	$100M	$67M	$23M	$11M	Total debtDebt
($33M)	($14M)	($17M)	$5M	$15M	$17M	$4M	($34M)	($75M)	($90M)	Net debt / (cash)Net debt
-406.1×	-8.6×	-2.6×	-2.2×	0.1×	2.0×	2.4×	2.5×	5.6×	5.7×	Interest coverageInt. cov.
$53M	$34M	$17M	($6M)	($2M)	$22M	$53M	$92M	$130M	$128M	Shareholders’ equityEquity
392.8%	34.6%	21.1%	16.2%	12.9%	5.2%	4.3%	3.6%	3.0%	3.0%	Stock comp / revenueSBC/rev
										Per share
37.2M	37.9M	38.8M	39.6M	40.6M	44.9M	47.6M	49.1M	50.7M	50.8M	Shares out (diluted)Shares
$0.74	$6.62	$7.02	$5.69	$6.23	$5.08	$4.96	$4.69	$4.51	$4.47	Revenue / shareRev/sh
$-7.85	$-2.99	$-1.95	$-1.52	$-0.72	$0.00	$0.45	$0.62	$0.61	$0.48	EPS (diluted)EPS
$-4.65	$-0.65	$0.57	$0.02	$0.51	$-0.35	$0.57	$0.79	$0.82	$1.05	Owner earnings / shareOE/sh
$-4.65	$-0.65	$0.57	$0.02	$0.51	$-0.35	$0.57	$0.79	$0.82	$1.05	Free cash flow / shareFCF/sh
$0.01	$0.01	$0.01	$0.00	$0.00	$0.00	$0.00	$0.00	$0.00	$0.00	Cap. spending / shareCapex/sh
$1.43	$0.90	$0.45	$-0.15	$-0.06	$0.48	$1.12	$1.88	$2.57	$2.53	Book value / shareBVPS

Per-share growththe realized rate an owner's share compounded

	8-yr	5-yr
Revenue / share	+25.2%/yr	−4.5%/yr
Owner earnings / share	—	+114.0%/yr
Capital spending / share	−23.2%/yr	+3.8%/yr
Book value / share	+7.6%/yr	—

The record, charted

FY2017–2025

Each measure over its full record; the current point and the worst year marked.

Share count

51Mpeak FY2025

ROIC

26%low FY2017

Gross margin

75%low FY2024

Owner earnings vs. net income

Owner earningsNet income

The accountant's number, and the cash an owner can take; the gap is the tell.

$42Mowner earningsvs.$31Mnet incomelow FY2017

Where the cash went

ReinvestBuybacksDividendsAcquisitionsRetained

Each year's operating cash, by what management did with it: the mix, and how it drifts.

FY2019FY2025

Owner-earnings bridge

FY2021–FY2025cash-flow statement, SEC EDGAR →

Net income is the accountant's number; owner earnings is the cash an owner could take out. The walk between them, off the cash-flow statement, and whether the gap is widening or holding.

In fiscal 2025 the business turned $31M of profit into $42M of owner earnings: more cash than the profit line showed, after the non-cash charges and the capital it put back in.

Reported net income$31M

Owner earnings$42M · 18% of revenue

	FY2025	FY2024	FY2023	FY2022	FY2021
Reported net income	$31M	$30M	$22M	$2K	($29M)
Depreciation & amortizationnon-cash charge added back	+$11M	+$12M	+$12M	+$10M	+$11M
Stock-based compensationreal costnon-cash, but a real cost	+$7M	+$8M	+$10M	+$12M	+$33M
Working capital & othertiming of cash in and out, other non-cash items	−$7M	−$11M	−$16M	−$37M	+$6M
Cash from operations	$42M	$39M	$27M	($16M)	$21M
Capital expenditurecash put back in to keep running and to grow	−$71K	−$56K	−$140K	—	—
Owner earnings	$42M	$39M	$27M	($16M)	$21M
Owner-earnings marginowner earnings ÷ revenue	18%	17%	11%	-7%	8%

Owner earnings is the cash an owner could pull out without starving the business: operating cash less the capital it must spend to hold its position . The cash-flow statement also adds stock comp back as non-cash, but it is a real cost paid in shares; counted as the expense it is (less $7M), owner earnings is nearer $35M.

Maintenance capex is estimated as depreciation where a growing business invests above it; free cash flow is the figure the scorecard's free-cash margin reads.

III

Quality & stewardship

Returns, the balance sheet, capital allocation, and pay.

Owner’s Scorecard

FY2025 10-K · source on SEC EDGAR →

Will it survive?

Can it pay its interest? 5.6×

Comfortable

Operating income $37M ÷ interest expense $7M

What this means
Operating profit covers interest with the kind of margin Graham wanted for a defensive holding. Necessary, not sufficient, it says solvent, not cheap.
How heavy is the debt, net of cash? +$75M

Net cash

Cash $30M + ST investments $68M − debt $23M

What this means
Cash and short-term investments exceed every dollar of debt by $75M, on net the company owes nothing, and can act from strength when others can't. Net debt is the leverage figure that matters: the cash is already set against the debt. Strategic or illiquid investments aren't counted here.
How long is cash tied up? 89d

Long (60+ days)

DSO 86 + DIO 35 − DPO 32 days

What this means
Days cash is tied up between paying suppliers and collecting from customers. Lower is better; a long cycle means growth itself eats cash.

Is it a good business?

Return on invested capital -59%

Below average through the cycle

7-yr median, range -1150%–45%; 26% latest = NOPAT $32M ÷ invested capital $123M

Industry peers: median -25%

What this means
The rate the business earns on the money tied up in it, Buffett's north star, because over time a stock tracks the ROIC beneath it. Above ~15% sustained hints at a moat; a return below the cost of capital (~8%) erodes value as a business grows rather than building it — the test Buffett weighs most. The headline is the median of the last 7 years (it ran 26% most recently), so one peak or trough year doesn't set the verdict. Asset-light businesses (R&D expensed, little capital) read artificially high, pair this with Owner Earnings.
Owner-earnings margin 8%

Solid through the cycle

9-yr median margin, range -625%–18%; latest $42M = operating cash $42M − maintenance capex $71K

Industry peers: median -53%

What this means
What an owner could take out without starving the business: operating cash less the maintenance capital it must spend to hold its position — Buffett's owner earnings. That's 18% of revenue this year, a 8% median across 9 years. Treating stock comp as the real expense it is (less $7M of SBC) leaves $35M.
Are earnings backed by cash? 1.34×

Cash-backed

Cash from ops $42M ÷ net income $31M

What this means
How much of reported profit showed up as operating cash. Above 1× is reassuring; well below suggests earnings lean on accruals. One year is noisy, growth and working-capital swings distort it, and this is operating cash, not free cash. Watch the multi-year trend.

How is the cash used?

Where do the earnings go? —

Not enough data

What this means
The filing data didn't include the inputs for this check.
Investing or harvesting? 0.01×

Harvesting

Capex $71K ÷ depreciation $11M

What this means
Descriptive, not a grade. Above ~1× means investing faster than assets wear out (growth, or, sustained for years, today's earnings carrying less depreciation than tomorrow's will). Below means spending less than it's wearing out (efficiency, or a melting asset base). The ratio won't tell you which; the filings will.

Graham’s defensive tests · 2 of 5 met

Graham’s numerical criteria for the defensive investor (The Intelligent Investor, ch. 14), run on the filings. A floor of safety, not a buy signal; many fine modern businesses fail his strictest liquidity rules by design.

Adequate size Miss

Revenue ≥ $2B · $228M

What this means
Big enough to weather a storm. Graham's 1972 floor was ~$100M of sales (≈ $700M today); we use a $2B revenue line as a conservative modern stand-in.
Strong liquidity Pass

Current ratio ≥ 2× · 2.00×

What this means
Current assets at least twice current liabilities, near-term bills covered without touching the business. Strict by design: many cash-rich modern firms run leaner and miss it, holding their cushion in longer-dated securities.
Conservative debt Pass

Debt ≤ working capital · $23M vs $81M WC

What this means
Graham's rule that borrowings not exceed net current assets. Capital-heavy and buyback-heavy firms routinely fail it, read it next to interest coverage, not alone.
Earnings stability Miss

A profit every year (9-yr record) · 5 loss years

What this means
Graham wanted earnings in each of the past ten years, the stability a defensive owner leans on.
Dividend record Miss

Uninterrupted dividends · none paid

What this means
An unbroken dividend was Graham's mark of durability. He wanted twenty years; the filings show about ten, and a single suspension breaks the streak. Non-payers, many fine modern compounders, fall outside his defensive net by design.
Earnings growth —

Earnings +33% over the record · —

What this means
Earnings were negative early in the record, a growth rate isn't meaningful.
Moderate price —

P/E ≤ 15 and P/E × P/B ≤ 22.5 · decided by the price

What this means
Graham's valuation gate, the wall he kept between a sound business and a sound investment. Three-year average earnings are $0.54/share (latest year $0.61), the averaged base the calculator's gate runs on, and book value is $2.56/share. Enter a price in “What the price implies” just below for the P/E, P/B, and whether it clears. But this is the rule Buffett outgrew: there's no hard P/E law, and a wonderful business can deserve a far richer multiple if the thesis holds, treat it as the bargain-hunter's floor, not a verdict on the price.

Durability & moat, 2017–2025

Whether the record’s returns held, and what the capital reinvested earned.

Profitable years 4 of 9

What this means
Lost money in 5 year(s), look at what happened there before trusting the average.
Return on capital ≥ 15% 4 of 9 yrs

What this means
A moat shows up as a high return on invested capital that holds year after year, not one good vintage.
Operating margin −369% → 15% (3-yr avg ends)

In the filing’s words The filing ties gains to its own pricing, but names price competition too — pricing power that is real yet contested, not unopposed. The margin shows who is winning.

What this means
Through the cycle the operating margin widened — about −369% early to 15% lately, median 1% — pricing power intact or improving.
Reinvestment, incremental ROIC —

What this means
The reinvested base moved too little against the change in profit to read a reliable return on it here — the figure would be a small-denominator artifact, not a moat. Judge this one on the owner-earnings record and the cash it returns instead.
Worst year 2017 · −1056.1% op. margin

What this means
Operations went underwater in 2017, understand why before trusting the good years.
Share count +3.9%/yr

What this means
The share count is rising, dilution works against you on a per-share basis.

Does AI threaten the moat?

Low contestability

The moat is physical, regulated or balance-sheet-funded, the kind AI cuts costs within but does not contest.

In its own filing Raised, but not as a competitor

The filing raises AI among its risks, but in other terms (security, regulation, energy or the like), not as a competitor to its product.

AI is unlikely to contest a moat that is physical, regulated or balance-sheet-funded; here it reads more as a cost tool than a threat.

Read from the filing's own risk factors, paired with the industry's structure under its SIC code; the durability is read above, the price below.

All figures as filed; the source filing is linked above.

Current Position

as of the latest quarter, Mar 31, 2026

Can the business pay what it owes this year, off the freshest balance sheet: the quality of the assets, the debt actually coming due, and what a low ratio means here.

Current assets$142M

Cash & short-term investments$102M
Receivables$26M
Inventory$9M
Other current assets$6M

Current liabilities$60M

Debt due within a year$11M
Accounts payable$8M
Other current liabilities$40M

Current ratio2.38×all current assets ÷ what's due · Graham looked for 2×

Quick ratio2.24×stricter: inventory excluded

Cash ratio1.70×strictest: cash alone against what's due

Working capital$83Mthe cushion left after near-term bills

Debt due this year vs. cash$11M due · $102M cash covered by cash on hand, no refinancing forced · both figures from the Mar 31, 2026 balance sheet

Revenue, latest quarter vs. a year ago−2.6%the freshest read on whether the business is still growing

Current ratio, recent quarters1.3× → 2.4×

Deeper floors

Tangible book value$87Mequity stripped of goodwill & intangibles

Net current asset value$78MGraham's net-net: current assets less all liabilities

Debt incl. operating leases$16M$5M of it operating leases

From the company's latest filing.

Management, ownership & pay

read the proxy →

From the proxy: how much of the business the people running it own, and how they are paid, beside what the business earned for its owners in the same years.

Fiscal year	Chief executive	Pay, as filed	“Actually paid”	Owner earnings
2021	Alan H. Auerbach	$18.5M	$14.7M	$21M
2022	Alan H. Auerbach	$2.5M	$3.2M	($16M)
2023	Alan H. Auerbach	$2.9M	$2.8M	$27M
2024	Alan H. Auerbach	$4.0M	$2.5M	$39M
2025	Alan H. Auerbach	$3.1M	$4.4M	$42M

Both pay figures are the company’s own, from the pay-versus-performance table its proxy statement files. “As filed” is the Summary Compensation Table total: salary, bonus, and equity awards at their value on the day of grant. “Actually paid” is the SEC’s prescribed recalculation, which re-marks those equity awards to what they became as they vested; it can swing far above or below the filed figure in either direction, and negative years occur. Owner earnings are the whole business's, from the record above, for the same fiscal years.

Insider ownership22.2%
The stake all directors and executive officers hold together, per the 2026 proxy: skin in the game, the first thing Munger reads.
Stock-based compensation$7M
The slice of the business handed to employees in shares this year, 3% of revenue, equal to 19% of operating profit. Buffett's oldest accounting fight: this is compensation, compensation is an expense, real whether or not the headline earnings admit it. One trap: the cash-flow statement adds SBC back, so the operating cash, and the owner earnings drawn from it, are flattered by exactly this amount; counted as the cost it is, what an owner keeps is lower.

Inverting the record

Invert: instead of why Puma Biotechnology Inc is a good business, the question is what would make owning it a mistake, and whether those marks are in the record. Disconfirming tests across 2017–2025.

None of the 4 tests turned up a mark; each came back clean. A clean panel says only that these particular ways of being wrong are not written into the record.

Each test came back clean

Is it less profitable than it was?
Did debt outgrow the business?
Did receivables and inventory outpace sales?
Are "one-time" charges a yearly habit?

Each test is read from the filings and is noisy alone; a flag can mark a cyclical trough or a year of heavy investment as easily as a problem. The filing says which.

What an owner would ask, FY2025

read the 10-K →

Which reported numbers are a judgment call?
Management names Revenue recognition, Income taxes as critical estimates
each rests partly on management's judgment; the filing's note sets out the assumptionsverify →

The questions the record and the charts do not answer on their own; each carries the figure and the place to look.

Peers, Pharmaceuticals

The same industry, side by side on owner economics. Each figure is a through-cycle median, so a peak or trough year can’t distort it; the group median at the foot is the line to read each against.

Company	Revenue	Gross margin	Op. margin	ROIC	Owner earn. margin
ARVNArvinas Inc.	$263M	—	-306.3%	-37%	-118%
SDGRSchrodinger Inc.	$256M	57%	-80.8%	-38%	-53%
AKBAAkebia Therapeutics Inc.	$236M	62%	-63.9%	-116%	-28%
ANABAnaptysBio Inc.	$235M	—	-206.9%	-25%	-172%
PBYIPuma Biotechnology Inc	$228M	76%	0.5%	-59%	8%
IDYAIDEAYA Biosciences Inc.	$219M	—	-180.4%	-22%	-191%
VNDAVanda Pharmaceuticals Inc.	$216M	89%	-2.4%	-0%	9%
AMRNAmarin Corporation plc	$214M	77%	-24.3%	-15%	-18%
Group median	—	76%	-72.3%	-31%	-41%

The price

What a price has to assume.

What the price implies

reverse-DCF

Type today's close and see the owner-earnings growth you'd have to believe to justify it, beside what Puma Biotechnology Inc has delivered.

Puma Biotechnology Inc’s latest year runs above its own through-cycle margin — the reported figure may flatter a peak. So the tool opens on the through-cycle base, Graham’s averaging cutting both ways; clear the toggle below to read the latest year exactly as reported.

Today’s price $

Through the cycle, Puma Biotechnology Inc earns about $19M on its 8.1% median owner-earnings margin. This year’s 18.3% margin runs above that; the reported figure may flatter a peak you'd be paying on. Normalize, below, values the price on that through-cycle figure rather than the latest year. It comes pre-checked here for that reason, the same rule that already normalizes a trough; clear it to price the year as filed.

Base Normalize · through-cycle ($19M) Net of stock comp (−$7M)

—

The assumptions Required return 9% Years of high growth 10 Terminal growth 2.5%

9.0% = the 4.55% 10-year Treasury (Jul 15, 2026) + 4.45 points of equity premium. The rate you require is yours to set.

Enter a price above to run it.

Implied by the price—

Owner-earnings growth · ’21→’25+102%/yr

Owner-earnings growth · since FY2023+25%/yr

Owner-earnings yield—

P/E (3-yr earnings ’23–’25)—

P/B—

Graham’s price gate—

Graham capped the multiple at 15×; Buffett and Munger let that rule go: a wonderful business can deserve 50× if the thesis holds. The gate marks the bargain-hunter's floor.

Against a high-grade bond: Graham’s yardstick bond yield%

Prefilled with the 10-year Treasury (4.55%, as of Jul 15, 2026). Edit it for today’s exact figure, or a AAA corporate yield.

Graham measured a stock against the bond you could own instead, the heart of his margin of safety. Enter a price above to weigh the owner-earnings yield against this bond.

Owner earnings $54M on 51M shares outstanding, per the 10-Q cover, as of 2026-05-04; net cash $90M. The base opens on the through-cycle figure (the latest year sits above the record’s own median, and Graham’s averaging cuts both ways); clear Normalize to use the year as filed. Net of stock comp treats option pay as the expense it is. The dials set the multiple a growth belief justifies; the price, and every dollar on this page, is yours.

Weigh PBYI against another business →

The owners of PBYI: the meeting and the votes →

Cite: Owner Scorecard, "Puma Biotechnology Inc (PBYI), the owner's record," https://ownerscorecard.com/c/PBYI, data as of 2026-07-09.

Manual order: ← PBI its page in the Manual PCAR →

Industry order: ← PBH the Pharmaceuticals chapter PCRX →