Psychemedics Corporation (PMDI) Fair Value & Analysis

Healthcare · US · Market cap $13.4M

A solid business, but screening 77% overvalued on our models.

What matters now

• The price sits above even our optimistic bull case ($0.6800). The favourable scenario is already priced in.
• Solid but not exceptional quality (55/100) and above fair value, neither a clear bargain nor a standout compounder.

Price vs Fair Value (5 years)

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 18, 2026.

How to read this chart

60‑month range $1.38 – $8.25 · fair‑value band $0.4800 – $0.6800 · the $2.49 price screens above the $0.5800 fair value. Dashed = 300-day average. As of Jul 18, 2026.

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Analysis

Psychemedics Corporation (PMDI) currently trades at $2.49, while our model-based Fair Value estimate is $0.5800, implying the stock looks roughly 76.7% overvalued today. The Quality Score stands at 55/100 (solid quality), in the Healthcare sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: medium).

Over the trailing twelve months, Psychemedics Corporation generated revenue of $19.7M at a net margin of -9.5%. Revenue declined 11.5% year over year. It earns a return on equity of -31.5%. Fundamentals as of Jul 18, 2026

Our scenario range runs from $0.4800 (bear case) to $0.6800 (bull case); at $2.49, the current price sits above that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades near its 52-week high and 87% above its 52-week low, currently above its 200-day average. For context, the median of 10 Healthcare peers we cover trades at -48% fair-value upside, at -77%, PMDI screens richer than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Widest divergence: Growth DCF ($1.45) versus Asset-Based ($0.5600). Highest evidence: Growth DCF (80).

Key figures & financial health

Quality Score breakdown

About the company

Psychemedics Corporation, together with its subsidiaries, engages in the provision of testing services for the detection of drugs of abuse and other health markers through the analysis of hair samples in the United States and internationally.

Full company description

Psychemedics Corporation, together with its subsidiaries, engages in the provision of testing services for the detection of drugs of abuse and other health markers through the analysis of hair samples in the United States and internationally. The company provides screening and confirmation by mass spectrometry using industry-accepted practices for cocaine, marijuana, and PCP; amphetamines, including ecstasy, eve, and Adderall; opioids, such as heroin metabolite, morphine, hydrocodone, hydromorphone, oxycodone, oxymorphone, and codeine; synthetic cannabinoids comprising aka K2, Spice, and Blaze; benzodiazepines consisting of Xanax, Valium, and Ativan; and nicotine, fentanyl and fentanyl analogs, and alcohol. Its testing results provide quantitative information that could indicate the approximate amount of drug ingested, as well as historical data that could show a pattern of individual drug use over a longer period-of-time. The company offers its services to employers for job applicant and employee testing; and treatment professionals, law enforcement agencies, school administrators, and parents concerned about their children's drug use. Psychemedics Corporation was incorporated in 1986 and is headquartered in Dallas, Texas.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2020 – FY2024 · reported fiscal years

Psychemedics Corporation reported revenue of $19.7M in FY2024 versus $21.4M in FY2020, a compound −2.0%/yr. Reported net income was −$1.9M in FY2024.

PMDI screens 77% overvalued. Compare with Thermo Fisher Scientific Inc →

Peer Group

Diagnostics & Research · 135 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Valuation Multiples vs Diagnostics & Research median · lower = cheaper

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 0: the price sits above our fair-value range.

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

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Frequently asked questions

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.