MeritValue

Praxis Precision Medicines, Inc.

PRAXdata completeness 88%7 fiscal years on file

Data notes: no data for concept 'totalDebt'; no data for concept 'interestExpense'

The thesis, from the filings

Praxis Precision Medicines, Inc. earns about -75% on invested capital, and has bought back 47% of its shares over 5 years. The cash-flow models don't apply cleanly here — the ledger says why below.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.

i. The business — what you’d actually own
FigureFY 2021FY 2022FY 2023FY 2024FY 2025
Revenue—$01$2.45M2$8.55M2$02
Net income−$167.1M3−$214M4−$123.3M5−$182.8M5−$303.3M5
Operating cash flow−$124.6M6−$185M7−$111.1M8−$131.8M8−$249.1M8
Capital expenditure$1.05M9$444,00010$50,00011$011$56,00011
Free cash flow (derived)−$125.6M6−$185.5M7−$111.2M8−$131.8M8−$249.1M8
Total debt—————
Cash & equivalents$138.7M12$61.6M13$81.3M14$215.4M14$357.3M14
Diluted shares42.5M3.1M6.6M17.9M22.5M

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).

ii. Your slice — ownership made literal
If you owned
shares
Net assets behind them
$390.2
your share of equity
Profit it earned you last year
−$134.76
Free cash flow it threw off
−$110.7
Debt you’d be carrying
—

10 shares is a claim on $390.2 of net worth that earned you −$134.76 and generated −$110.7 of cash last year.

iii. Is this a good business?
Moat signal · return on invested capital
-75% avg · 5y
FY21 -118%FY22 —FY23 —FY24 -63%FY25 -46%

It earned an average -75% on invested capital over 5 years. Compare that to what it costs to fund the business.

seeing a moat in the numbers →
Management signal · capital allocation
−47% shares · 5y

Share count is down 47% over 5 years — management has been buying back stock, quietly handing owners a bigger slice.

reading capital allocation →

Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.

iv. What it’s worth — engine v0.1.0
DCF · Growth Exit 10Y
not applicable
3y-median FCF non-positive — growth-exit DCF not applicable (see EPV)
DCF · Growth Exit 5Y
not applicable
3y-median FCF non-positive — growth-exit DCF not applicable (see EPV)
Earnings Power Value
not applicable
normalized (5y-median) earnings non-positive — EPV undefined
Graham Number
not applicable
diluted EPS missing or non-positive — Graham Number undefined

Different models answer different questions — which to trust when →

Sources — the receipts
  1. 10-K · period ending 2022-12-31 · accession 0001689548-24-000034 (Revenues)
  2. 10-K · period ending 2023-12-31 · accession 0001689548-26-000029 (Revenues)
  3. 10-K · period ending 2021-12-31 · accession 0001689548-23-000044 (NetIncomeLoss)
  4. 10-K · period ending 2022-12-31 · accession 0001689548-24-000034 (NetIncomeLoss)
  5. 10-K · period ending 2023-12-31 · accession 0001689548-26-000029 (NetIncomeLoss)
  6. 10-K · period ending 2021-12-31 · accession 0001689548-23-000044 (NetCashProvidedByUsedInOperatingActivities)
  7. 10-K · period ending 2022-12-31 · accession 0001689548-24-000034 (NetCashProvidedByUsedInOperatingActivities)
  8. 10-K · period ending 2023-12-31 · accession 0001689548-26-000029 (NetCashProvidedByUsedInOperatingActivities)
  9. 10-K · period ending 2021-12-31 · accession 0001689548-23-000044 (PaymentsToAcquirePropertyPlantAndEquipment)
  10. 10-K · period ending 2022-12-31 · accession 0001689548-24-000034 (PaymentsToAcquirePropertyPlantAndEquipment)
  11. 10-K · period ending 2023-12-31 · accession 0001689548-26-000029 (PaymentsToAcquirePropertyPlantAndEquipment)
  12. 10-K · period ending 2021-12-31 · accession 0001689548-23-000044 (CashAndCashEquivalentsAtCarryingValue)
  13. 10-K · period ending 2022-12-31 · accession 0001689548-24-000034 (CashAndCashEquivalentsAtCarryingValue)
  14. 10-K · period ending 2023-12-31 · accession 0001689548-26-000029 (CashAndCashEquivalentsAtCarryingValue)