Based on the analysis of Praxis Precision's profitability, liquidity, and operating efficiency, Praxis Precision Medicines is not in a good financial situation at this time. It has a very high odds of going through financial crisis in April. At this time, Praxis Precision's Other Stockholder Equity is fairly stable compared to the past year. Net Invested Capital is likely to rise to about 103 M in 2025, whereas Other Current Liabilities is likely to drop slightly above 13.3 M in 2025. Key indicators impacting Praxis Precision's financial strength include:
The essential information of the day-to-day investment outlook for Praxis Precision includes many different criteria found on its balance sheet. An individual investor should monitor Praxis Precision's cash flow, debt, and profitability to accurately make informed decisions on whether to invest in Praxis Precision.
Please note, the imprecision that can be found in Praxis Precision's accounting process means that the reasonable investor should take a skeptical approach toward the financial statement analysis of Praxis Precision Medicines. Check Praxis Precision's Beneish M Score to see the likelihood of Praxis Precision's management manipulating its earnings.
Praxis Precision Stock Summary
Praxis Precision competes with Molecular Partners, Mineralys Therapeutics,, AN2 Therapeutics, Pharvaris, and PepGen. Praxis Precision Medicines, Inc., a clinical-stage biopharmaceutical company, develops therapies for central nervous system disorders characterized by neuronal imbalance. The company was incorporated in 2015 and is based in Boston, Massachusetts. Praxis Precision operates under Biotechnology classification in the United States and is traded on NASDAQ Exchange. It employs 1 people.
Specialization
Health Care, Pharmaceuticals, Biotechnology & Life Sciences
An income statement is very similar to a cash flow statement, but instead of showing net revenue minus expenses, it only includes earnings before interest and taxes (EBIT). This number does not have all of the same line items that are on a cash flow statement, but it leaves out non-cash expenses like depreciation and amortization. For example, if you bought $100 worth of goods from Walmart (WMT) using your debit card that has an interest rate of 20%, then paid off the balance at the end of the month with a credit card that charges 30% interest, you would have an income statement showing EBIT of $80 because your expenses are lower than the amount that went into your pocket.
Comparative valuation techniques use various fundamental indicators to help in determining Praxis Precision's current stock value. Our valuation model uses many indicators to compare Praxis Precision value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Praxis Precision competition to find correlations between indicators driving Praxis Precision's intrinsic value. More Info.
Praxis Precision Medicines is rated below average in return on equity category among its peers. It also is rated below average in return on asset category among its peers . At this time, Praxis Precision's Return On Equity is fairly stable compared to the past year. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Praxis Precision's earnings, one of the primary drivers of an investment's value.
Praxis Precision Med Systematic Risk
Praxis Precision's systematic risk plays a vital role in portfolio allocation when considering its stock to be added to a well-diversified portfolio. Praxis Precision volatility which cannot be eliminated through diversification, requires returns over the risk-free rate. Over the long run, a well-diversified portfolio provides returns that match its exposure to systematic risk. In this case, investors face a trade-off between expected returns and systematic risk and, therefore, can only reduce a portfolio's exposure to systematic risk by sacrificing expected returns on the portfolio.
The output start index for this execution was thirty with a total number of output elements of thirty-one. The Beta measures systematic risk based on how returns on Praxis Precision Med correlated with the market. If Beta is less than 0 Praxis Precision generally moves in the opposite direction as compared to the market. If Praxis Precision Beta is about zero movement of price series is uncorrelated with the movement of the benchmark. if Beta is between zero and one Praxis Precision Med is generally moves in the same direction as, but less than the movement of the market. For Beta = 1 movement of Praxis Precision is generally in the same direction as the market. If Beta > 1 Praxis Precision moves generally in the same direction as, but more than the movement of the benchmark.
Today, most investors in Praxis Precision Stock are looking for potential investment opportunities by analyzing not only static indicators but also various Praxis Precision's growth ratios. Consistent increases or decreases in fundamental ratios usually indicate a possible pattern that can be successfully translated into profits. However, when comparing two companies, knowing each company's growth growth rates may not be enough to decide which company is a better investment. That's why investors frequently use static breakdown of Praxis Precision growth as a starting point in their analysis.
Along with financial statement analysis, the daily predictive indicators of Praxis Precision help investors to analyze its daily demand and supply, volume, patterns, and price swings to determine the real value of Praxis Precision Medicines. We use our internally-developed statistical techniques to arrive at the intrinsic value of Praxis Precision Medicines based on widely used predictive technical indicators. In general, we focus on analyzing Praxis Stock price patterns and their correlations with different microeconomic environment and drivers. We also apply predictive analytics to build Praxis Precision's daily price indicators and compare them against related drivers.
When running Praxis Precision's price analysis, check to measure Praxis Precision's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Praxis Precision is operating at the current time. Most of Praxis Precision's value examination focuses on studying past and present price action to predict the probability of Praxis Precision's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Praxis Precision's price. Additionally, you may evaluate how the addition of Praxis Precision to your portfolios can decrease your overall portfolio volatility.