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Deep Value: cash covers more than 100% of the stock price

This company holds roughly $1M in cash and investments — more than its entire stock-market value, based on its latest quarterly filing. You're paying very little for the actual business. Sometimes that's a genuine bargain or a takeover target, sometimes it's cheap for a reason. Not a buy signal on its own — always ask why it's this cheap.

60 Degrees Pharmaceuticals logo

60 Degrees Pharmaceuticals

SXTP
21
Biotechnology · Healthcare
Price
$1.13
+0.00 (+0.00%)
Market Cap
$911,401
Exchange
NASDAQ Capital Market
Winston Score
21
Winston is worried
Weak fundamentals across most pillars.
Data as of Aug 23, 2026 · filings through Jun 30, 2026
How the score breaks down
Quality
Weak
Growth
Good
Cash Flow
Weak
Stability
Data not available
Valuation
Data not available

Share count rising — dilution

+2668.6% over 4y

The company has issued more shares over this period, which dilutes each existing shareholder’s stake.

Diluted shares outstanding: 24K (2021) → 670K (2025)

Winston Score History

The full picture

60 Degrees Pharmaceuticals is a small specialty pharmaceutical company focused on treatments for infectious diseases, particularly those affecting military personnel and travelers. Its main product is Arakoda (tafenoquine), a once-weekly malaria prevention pill approved by the FDA. The U.S. Department of Defense is a key customer, and the company also targets civilian travelers heading to malaria-prone regions.

The company earns revenue by selling its prescription drug directly to government agencies and through retail pharmacies, though sales volumes remain very small. It operates primarily in the United States but targets markets wherever malaria is a travel risk. With a gross margin around 21% and a deeply negative operating margin, the company is spending far more than it earns, which is common for early-stage drug companies. The main growth driver is expanding Arakoda's adoption beyond the military into the broader travel medicine market, while the biggest risk is its limited cash runway and dependence on a single approved product.

Growth Profile

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+106.0% YoY

YoY Growth Rate

Strong revenue growth

EPS Growth

+82.0% YoY

YoY Growth Rate

EPS growth accelerating

R&D Spend

$2M/ year

Declining (-58% vs prior year)

209.5% of revenue

11.6x the sector average (18%)

R&D spend declining — could signal cost-cutting or efficiency

Insider Activity

3.2%ownership

Flat

Insider ownership roughly steady over the past year

Cash Position

Cash flow positive

$1M cash & investments

Quarterly Free Cash Flow

↑ Burn rate improving

Company generates more cash than it spends — no dilution risk from fundraising

Strong grower

60 Degrees Pharmaceuticals is growing revenue at 106% year-over-year. The Winston Score penalises unprofitable companies, but revenue at this pace tells a different story — this is a company still in "build mode."

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

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Quality

Profit per sale
Gross Margin
27.3%
Modest — 27.3% gross margin
Profit after running costs
Operating Margin
-1092.4%
Losing money on operations — -1092.4%
Return on the money invested
ROCE
-340.5%
Weak — -340.5% return on capital

Negative ROIC means the business is losing money on every dollar invested in it.

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Growth

Sales growth
Sales YoY
+68.0%
Fast-growing sales (+68.0% YoY)
Profit growth
EPS YoY
N/A
Data not available
How steady the profit is
EPS Consistency
5/8 quarters
Mixed — about half the quarters showed growth

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Cash Flow

Profit that turns into cash
Cash Conversion
N/A
Data not available
Spare cash per sale
FCF Margin
-360.7%
Burning cash (-360.7%)

Free cash flow is negative. They are burning cash, not generating it.

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Stability

What it owes vs what it owns
Debt / Equity
N/A
Data not available
Covers its interest
Interest Cover
N/A
Data not available

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Valuation

Price vs profit
P/E Ratio (TTM)
N/M
Negative earnings — P/E not meaningful
Cheaper or dearer next year
P/E vs Forward
N/A
not available
Data not available

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Dividends

Not applicable for this business.
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