PRAXPraxis Precision Medicines, Inc.

$377.25

Is the business good?

How good a business is PRAX?

Praxis Precision Medicines, Inc. earns −51% on the capital it employs against a 9.0% cost of capital, so growth costs more than it returns.

−51%

Return on invested capital · cost of capital 9.0% · 60 points below what the capital costs: growth destroys value

Share count, year on year
+36%

Share count, year on year · shareholders own a smaller slice than a year ago

Details
Free cash flow, trailing twelve months
−$305M
Net income, trailing twelve months
−$339M
Return on invested capitaloperating profit after tax ÷ debt + equity − cash
−51%

Margins, capital and share counts from the statements as filed with the SEC; cash conversion from the cash flow statement.