Praxis Precision Medicines, Inc.
PRAX Healthcare Biotechnology
Praxis Precision Medicines, Inc.’s revenue for fiscal 2024 (year ended December 2024) was $8.6 million, up 249.5% from fiscal 2023. In the quarter to June 2026, revenue grew 1,349.1%, EPS grew 13.3% and free cash flow fell 43.5%, each against the same quarter a year earlier.
Follow PRAX
Praxis Precision Medicines, Inc. (PRAX) Altman Z-score
Praxis Precision Medicines, Inc.'s Altman Z-score for fiscal 2024 is 19.09, in the safe zone (above 2.99).
Altman Z-score, annual
Embed this chart
Annual newest first
| Period | Altman Z-score | Change (points) |
|---|---|---|
| FY2024 | 19.09 | 28.45 |
| FY2023 | −9.36 | — |
How fiscal 2024’s score is made up
| Component | This year | Year before | Result | Points |
|---|---|---|---|---|
| Working capital / total assets | 0.76 | — | 0.91 | |
| Retained earnings / total assets | (1.73) | — | −2.42 | |
| EBIT / total assets | (0.41) | — | −1.37 | |
| Market value of equity / total liabilities | 36.59 | — | 21.96 | |
| Sales / total assets | 0.02 | — | 0.02 | |
| Altman Z-score | Safe zone | 19.09 | ||
| Z″ Variant for non-manufacturing and asset-light companies (drops the sales/assets term, uses book equity) | Safe zone | 8.97 | ||
How the Altman Z-score works
Z = 1.2 × working capital ÷ total assets + 1.4 × retained earnings ÷ total assets + 3.3 × EBIT ÷ total assets + 0.6 × market value of equity ÷ total liabilities + 1.0 × revenue ÷ total assets (Altman, 1968). The market value of equity is the close on the last trading day of the fiscal year times weighted basic shares.
Z″ = 6.56 × working capital ÷ total assets + 3.26 × retained earnings ÷ total assets + 6.72 × EBIT ÷ total assets + 1.05 × book equity ÷ total liabilities (Altman, Hartzell and Peck, 1995), the variant for non-manufacturing and asset-light companies.
| Zone | Z | Z″ |
|---|---|---|
| Safe zone | above 2.99 | above 2.60 |
| Grey zone | 1.81–2.99 | 1.10–2.60 |
| Distress zone | below 1.81 | below 1.10 |
Not worked out for banks, insurers and REITs, whose balance sheets the model does not describe, nor when a figure is missing or there is no share price in the week to the fiscal year end.
Altman Z-score against peers
| Company | Altman Z-score |
|---|---|
| PRAX Praxis Precision Medicines, Inc. | 19.1× |
| RYTM Rhythm Pharmaceuticals, Inc. compare | 15.9× |
| LGND Ligand Pharmaceuticals Incorporated compare | 5.5× |
| ARWR Arrowhead Pharmaceuticals, Inc. compare | 3.0× |
| IONS Ionis Pharmaceuticals, Inc. compare | 2.1× |
| IOVA Iovance Biotherapeutics, Inc. compare | −2.3× |
| SYRE Spyre Therapeutics, Inc. compare | −3.8× |
| ABVX Abivax SA Sponsored ADR compare | — |
| BLTE Belite Bio, Inc. Sponsored ADR compare | — |
What Altman Z-score is
The Altman Z-Score weighs working capital, retained earnings, operating profit, market value and sales against assets and debts to gauge the risk of distress.
1.2 × working capital ÷ total assets + 1.4 × retained earnings ÷ total assets + 3.3 × EBIT ÷ total assets + 0.6 × market value of equity ÷ total liabilities + 1.0 × revenue ÷ total assets