Praxis Precision Medicines, Inc.
PRAXHealthcareNASDAQBiotechnology
Scan Results
Daily timeframePraxis Precision Medicines, Inc., a clinical-stage biopharmaceutical company, engages in the development of therapies for central nervous system (CNS) disorders characterized by neuronal. With a market capitalization of $9.34B, it sits in mid-cap territory. The company's platforms include Cerebrum, a small molecule platform for CNS small molecule therapies to develop orally available precision therapies; and Solidus to discover and develop antisense oligonucleotide.
Market Cap
$9.34B
Beta
2.78
P/E (TTM)
—
P/E (Fwd)
-34.02
EPS (TTM)
$-13.40
EPS (Fwd)
$-9.85
ROE
-35.3%
ROA
-23.0%
Cash
$786.9M
Total Debt
$1.4M
Free CF
-$176.0M
52W Change
713.5%
Annual Financials
Cash vs Debt
With $786.9M in cash and $1.4M in debt, PRAX maintains more liquidity than leverage. This favorable balance sheet position can be an asset when capital markets become less accommodating. The company is burning cash, with free cash flow at -$176.0M. This typically occurs when a company is investing aggressively in growth, but sustained cash burn can strain the balance sheet. ROE of -35.3% points to negative capital efficiency, indicating how much profit the company produces per dollar of shareholder equity.
Praxis Precision Medicines, Inc.'s elevated beta suggests the stock experiences more pronounced price movements than the overall market, which increases both upside potential and downside risk. The strong cash position relative to debt provides a financial cushion that reduces balance sheet risk. Negative free cash flow means the company is currently spending more than it generates, which may require future fundraising or debt if the trend continues. It is important to consider these factors alongside broader market conditions and individual financial goals when reviewing PRAX.