Axsome Therapeutics, Inc. (NASDAQ: AXSM)

Sector: Healthcare Industry: Biotechnology CIK: 0001579428
Market Cap 8.23 Bn
P/B 111.70
P/E -35.88
P/S 14.67
ROIC (Qtr) -73.48
Div Yield % 0.00
Rev 1y % (Qtr) 63.22
Total Debt (Qtr) 216.10 Mn
Debt/Equity (Qtr) 2.93

About

Axsome Therapeutics, Inc. (AXSM) is a commercial-stage biopharmaceutical company that operates in the rapidly growing biotechnology industry. The company is dedicated to developing and delivering novel therapies for central nervous system (CNS) conditions. Axsome Therapeutics' primary business activities involve the development and commercialization of novel therapies for CNS disorders, including major depressive disorder, narcolepsy, and fibromyalgia. The company's operations span across various countries and regions, with a focus on the United...

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Price action

Investment thesis

Bull case

  • Healthy cash reserves of 325.27M provide 4.60x coverage of short-term debt 70.74M, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 615.08M provides 2.85x coverage of total debt 216.10M, indicating robust asset backing and low credit risk.
  • Cash reserves of 325.27M provide robust 0.90x coverage of current liabilities 360.29M, indicating strong short-term solvency.
  • Cash reserves of 325.27M provide solid 3.62x coverage of other non-current liabilities 89.87M, indicating strong liquidity.
  • Cash reserves of 325.27M exceed inventory value of 23.77M by 13.68x, indicating strong liquidity and inventory management.

Bear case

  • Investment activities of (439000) provide weak support for R&D spending of 189.49M, which is -0x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • The company's operating cash flow of (100.95M) shows concerning coverage of stock compensation expenses of 93.01M, with a -1.09 ratio indicating potential earnings quality issues.
  • High receivables of 196.51M relative to inventory of 23.77M (8.27 ratio) suggests aggressive credit terms or collection difficulties, potentially masking revenue quality issues.
  • Free cash flow of (101.39M) provides weak coverage of capital expenditures of 439000, with a -230.96 ratio suggesting additional external financing needs for growth initiatives.
  • Operating earnings of (222.81M) show weak coverage of depreciation charges of 11.46M, with a -19.45 ratio indicating high capital intensity and potential reinvestment needs.

Counterparty Name Breakdown of Revenue (2024)

Counterparty Name Breakdown of Revenue (2024)

Peer comparison

Companies in the Biotechnology
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 SMMT Summit Therapeutics Inc. 1,446.17 Bn -1,569.17 0.00 0.01 Bn
2 ONC BeOne Medicines Ltd. 439.23 Bn 6,407.40 88.33 1.90 Bn
3 VRTX Vertex Pharmaceuticals Inc / Ma 120.62 Bn 32.82 10.29 1.83 Bn
4 REGN Regeneron Pharmaceuticals, Inc. 84.40 Bn 18.44 5.92 2.71 Bn
5 ALNY Alnylam Pharmaceuticals, Inc. 56.13 Bn 1,288.39 17.49 3.21 Bn
6 ARGX Argenx Se 47.89 Bn 31.79 24,973.95 -
7 BNTC Benitec Biopharma Inc. 42.45 Bn -1,015.00 0.00 0.00 Bn
8 INSM INSMED Inc 32.67 Bn -27.60 73.08 0.74 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 12.17 12.96
EV to Cash from Ops. EV/CFO -80.70 23.73
EV to Debt EV to Debt 37.70 772.65
EV to EBIT EV/EBIT -36.57 -11.30
EV to EBITDA EV/EBITDA -40.54 7.11
EV to Free Cash Flow [EV/FCF] EV/FCF -80.35 22.12
EV to Market Cap EV to Market Cap 0.99 68.89
EV to Revenue EV/Rev 14.52 199.70
Price to Book Value [P/B] P/B 111.70 22.62
Price to Earnings [P/E] P/E -35.88 -12.30
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 -12.02
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 0.17
Dividend per Basic Share Div per Share (Qtr) 0.00 0.01
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 -0.15
Interest Coverage Int. cover (Qtr) -29.34 857.11
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -77.73 -27.24
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -0.63 747.06
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 0.01
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 27.44 -48.21
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 32.38 -2.09
EBIT Growth (1y) % EBIT 1y % (Qtr) 27.24 -57.79
EBT Growth (1y) % EBT 1y % (Qtr) 25.98 -14.35
EPS Growth (1y) % EPS 1y % (Qtr) 29.03 -30.88
FCF Growth (1y) % FCF 1y % (Qtr) 23.66 -32.51
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 67.25 227.96
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.84 0.14
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.00
Cash Ratio Cash Ratio (Qtr) 0.90 3.79
Current Ratio Curr Ratio (Qtr) 1.57 7.23
Debt to Equity Ratio Debt/Equity (Qtr) 2.93 0.42
Interest Cover Ratio Int Coverage (Qtr) -29.34 857.11
Times Interest Earned Times Interest Earned (Qtr) -29.34 857.11
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) -37.70 -18,509.94
EBIT Margin % EBIT Margin % (Qtr) -39.70 -18,862.18
EBT Margin % EBT Margin % (Qtr) -41.05 -19,783.19
Gross Margin % Gross Margin % (Qtr) 91.90 -8.62
Net Profit Margin % Net Margin % (Qtr) -40.90 -19,732.60