Axsome Therapeutics, listed on the NASDAQ as AXSM, is a biopharmaceutical company focused on developing therapies for central nervous system disorders. The company is set to release its quarterly earnings on February 18, 2025. Analysts predict an earnings per share (EPS) of -$0.97 and revenue of around $117.8 million. Despite the revenue increase, earnings are expected to decline.
The anticipated decline in earnings for Axsome's (NASDAQ:AXSM) fourth quarter, despite higher revenues, reflects ongoing financial challenges. The company's negative price-to-earnings (P/E) ratio of -20.30 indicates it is not currently profitable. This negative ratio suggests that investors are cautious about the company's ability to generate earnings in the near term.
Axsome's price-to-sales ratio of 18.78 shows that investors are willing to pay nearly 19 times the company's sales over the past year. This high ratio suggests that investors have high expectations for future growth, despite current profitability issues. The enterprise value to sales ratio of 18.38 aligns closely with the price-to-sales ratio, indicating a similar valuation perspective.
The company's enterprise value to operating cash flow ratio is significantly negative at -46.92, highlighting difficulties in generating positive cash flow from operations. This negative cash flow situation is further emphasized by a negative earnings yield of -4.93%, underscoring the company's current lack of profitability.
Axsome's debt-to-equity ratio of 2.07 indicates a higher level of debt compared to equity, which could pose risks if earnings do not improve. However, the company maintains a healthy current ratio of 2.44, suggesting it has sufficient current assets to cover its current liabilities. This financial stability may provide some reassurance to investors amid the earnings decline.
