NasdaqGM:AXSM

Stock Analysis Report

Executive Summary

Axsome Therapeutics, Inc., a clinical stage biopharmaceutical company, engages in developing novel therapies for central nervous system (CNS) disorders in the United States.

Risk Analysis

Has less than 1 year of cash runway

Currently unprofitable and not forecast to become profitable over the next 3 years

Highly volatile share price over past 3 months

Shareholders have been diluted in the past year



Snowflake Analysis

Adequate balance sheet with weak fundamentals.

Share Price & News

How has Axsome Therapeutics's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: AXSM's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-2.5%

AXSM

-2.0%

US Pharmaceuticals

0.9%

US Market


1 Year Return

953.2%

AXSM

6.8%

US Pharmaceuticals

20.0%

US Market

Return vs Industry: AXSM exceeded the US Pharmaceuticals industry which returned 6.7% over the past year.

Return vs Market: AXSM exceeded the US Market which returned 20.1% over the past year.


Shareholder returns

AXSMIndustryMarket
7 Day-2.5%-2.0%0.9%
30 Day0.1%-2.8%1.4%
90 Day176.6%7.9%8.8%
1 Year953.2%953.2%9.5%6.8%22.5%20.0%
3 Year1979.8%1979.8%28.5%19.3%49.9%40.3%
5 Yearn/a23.9%11.2%73.2%54.1%

Price Volatility Vs. Market

How volatile is Axsome Therapeutics's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Axsome Therapeutics undervalued compared to its fair value and its price relative to the market?

457.44x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate AXSM's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate AXSM's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: AXSM is unprofitable, so we can't compare its PE Ratio to the Pharmaceuticals industry average.

PE vs Market: AXSM is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate AXSM's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: AXSM is overvalued based on its PB Ratio (457.4x) compared to the US Pharmaceuticals industry average (3x).


Next Steps

Future Growth

How is Axsome Therapeutics forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

54.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AXSM is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: AXSM is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: AXSM is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: Insufficient data to determine if AXSM's revenue is forecast to grow faster than the US market.

High Growth Revenue: Insufficient data to determine if AXSM's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if AXSM's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Axsome Therapeutics performed over the past 5 years?

-31.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AXSM is currently unprofitable.

Growing Profit Margin: AXSM is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: AXSM is unprofitable, and losses have increased over the past 5 years at a rate of -31.9% per year.

Accelerating Growth: Unable to compare AXSM's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: AXSM is unprofitable, making it difficult to compare its past year earnings growth to the Pharmaceuticals industry (2.4%).


Return on Equity

High ROE: AXSM has a negative Return on Equity (-778.81%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Axsome Therapeutics's financial position?


Financial Position Analysis

Short Term Liabilities: AXSM's short term assets ($44.2M) exceed its short term liabilities ($18.5M).

Long Term Liabilities: AXSM's short term assets ($44.2M) exceed its long term liabilities ($19.1M).


Debt to Equity History and Analysis

Debt Level: AXSM's debt to equity ratio (289.6%) is considered high.

Reducing Debt: AXSM had negative shareholder equity 5 years ago, but is now positive and has therefore improved.


Balance Sheet

Inventory Level: AXSM has a low level of unsold assets or inventory.

Debt Coverage by Assets: AXSM's debt is covered by short term assets (assets are 2.2x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: AXSM has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: AXSM has less than a year of cash runway if free cash flow continues to reduce at historical rates of -34.4% each year


Next Steps

Dividend

What is Axsome Therapeutics's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage2.7%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate AXSM's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate AXSM's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if AXSM's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if AXSM's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of AXSM's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.4yrs

Average management tenure


CEO

Herriot Tabuteau (51yo)

8.1yrs

Tenure

US$1,057,425

Compensation

Dr. Herriot Tabuteau, MD founded Axsome Therapeutics, Inc. in January 2012 and has been its Chief Executive Officer and Chairman since January 2012. Dr. Tabuteau serves as President at Axsome Therapeutics, ...


CEO Compensation Analysis

Compensation vs Market: Herriot's total compensation ($USD1.06M) is below average for companies of similar size in the US market ($USD4.89M).

Compensation vs Earnings: Herriot's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Herriot Tabuteau
Founder8.1yrsUS$1.06m0.020% $654.0k
Nick Pizzie
CFO & Principal Accounting Officer1.8yrsUS$687.98k0.11% $3.7m
Mark Jacobson
Senior Vice President of Operations & Secretary4.3yrsno datano data
Cedric O'Gorman
Senior Vice President of Clinical Development & Medical Affairs2.4yrsno datano data
David Marek
Chief Commercial Officer0.5yrsno datano data
Joseph Debrah-Afful
Director of Finance0yrsno datano data

2.4yrs

Average Tenure

44yo

Average Age

Experienced Management: AXSM's management team is considered experienced (2.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Herriot Tabuteau
Founder8.1yrsUS$1.06m0.020% $654.0k
Roger Jeffs
Lead Director0yrsUS$99.38k0.44% $14.8m
Myrtle Potter
Independent Director2.7yrsUS$94.56kno data
Mark Saad
Independent Director5.2yrsUS$88.38k0.019% $633.4k
Mark Coleman
Independent Director5.2yrsUS$80.88k1.83% $61.0m

5.2yrs

Average Tenure

51yo

Average Age

Experienced Board: AXSM's board of directors are considered experienced (5.2 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 28.8%.


Top Shareholders

Company Information

Axsome Therapeutics, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Axsome Therapeutics, Inc.
  • Ticker: AXSM
  • Exchange: NasdaqGM
  • Founded: 2012
  • Industry: Pharmaceuticals
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: US$3.330b
  • Shares outstanding: 36.81m
  • Website: https://www.axsome.com

Number of Employees


Location

  • Axsome Therapeutics, Inc.
  • 200 Broadway
  • 3rd Floor
  • New York
  • New York
  • 10038
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
AXSMNasdaqGM (Nasdaq Global Market)YesCommon StockUSUSDNov 2015
19XDB (Deutsche Boerse AG)YesCommon StockDEEURNov 2015
0HKFLSE (London Stock Exchange)YesCommon StockGBUSDNov 2015

Biography

Axsome Therapeutics, Inc., a clinical stage biopharmaceutical company, engages in developing novel therapies for central nervous system (CNS) disorders in the United States. Its product pipeline includes AXS-05, which is in the Phase III clinical trial for the treatment resistant depression; Phase II/III clinical trials in agitation associated with Alzheimer's disease; and Phase II clinical trial for the treatment of smoking cessation, as well as for major depressive disorder. The company is also developing AXS-07, which is in Phase III clinical trial for the treatment of migraine; AXS-12 that is in Phase II clinical trial for the treatment of in narcolepsy; AXS-09, which has completed Phase I clinical trial for the treatment of various CNS disorders; and AXS-02, which is in Phase III clinical trial for the treatment of the pain of knee osteoarthritis associated with bone marrow lesions, and for the treatment of chronic low back pain associated with Modic changes. In addition, it is developing AXS-06 that has completed Phase I clinical trial for the treatment of osteoarthritis and rheumatoid arthritis and for the reduction of the risk of nonsteroidal anti-inflammatory drug associated gastrointestinal ulcers. The company has a research collaboration agreement with Duke University for evaluating AXS-05 in a Phase II trial in smoking cessation. The company was founded in 2012 and is based in New York, New York. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/18 01:03
End of Day Share Price2020/02/14 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.