CNS Pharmaceuticals (CNSP) AI Stock Analysis

• Market Cap: $5.35M
• Dividend Yield: N/A
• Average Volume (3M): 3.30M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.11
• Revenue Growth: N/A
• EPS Growth: 90.33%
• Country: US
• Employees: 4
• Sector: Healthcare
• Sector Strength: 55
• Industry: Biotechnology
• EPS (TTM): -1.58
• Shares Outstanding: 5,461,951
• 10 Day Avg. Volume: 235,591
• 30 Day Avg. Volume: 3,302,822
• PEG Ratio: 312.58
• Price to Book (P/B): 20.09K
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -15.47K
• Enterprise Value/Market Cap: 30.53K
• Enterprise Value/Revenue: 8.60M
• Enterprise Value/Gross Profit: 199.76M
• Enterprise Value/Ebitda: -2.57K
• 1Y Price Target: $7.00
• Price Target Upside: 652.69% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 32 Underperform
• Price Target: ―

CNS Pharmaceuticals faces significant challenges in achieving profitability and financial stability, as evidenced by its financial performance. Technical indicators suggest the stock is oversold, offering potential for stabilization or recovery. However, the absence of revenue and earnings complicates valuation, highlighting the high-risk, high-reward scenario typical of early-stage biotech firms. Investors should weigh the potential scientific breakthroughs against the financial risks.

Positive Factors

Financial Stability

CNS Pharmaceuticals has been able to raise approximately $15M, providing sufficient cash runway into the first half of 2025.

Management Performance

Management, over the past few years, has done a remarkable job, in our view, navigating the company through its most challenging period, which was compounded by both challenging biotech markets and a difficult financing environment in general.

Negative Factors

Clinical Trial Results

Berubicin, a brain penetrating anthracycline, failed on the primary of overall survival vs. lomustine in the P2 second line glioblastoma study.

Stock Performance

Shares are down ~60% on the news.

CNS Pharmaceuticals Business Overview & Revenue Model

Company Description

CNS Pharmaceuticals, Inc., a clinical pharmaceutical company, engages in the development of anti-cancer drug candidates for the treatment of brain and central nervous system tumors. The company's lead drug candidate is Berubicin, an anthracycline that is in Phase I and II clinical trials that is used for the treatment of glioblastoma multiforme. It has license agreements with Houston Pharmaceuticals, Inc. and The University of Texas M.D. Anderson Cancer Center, as well as Animal Life Sciences, LLC; and a development agreement with WPD Pharmaceuticals Inc., as well as a collaboration agreement with Reata Pharmaceuticals, Inc. The company was incorporated in 2017 and is based in Houston, Texas.

How the Company Makes Money

CNS Pharmaceuticals primarily generates revenue through licensing agreements, research grants, and potential future sales of its drug candidates upon successful clinical trials and regulatory approval. The company may enter into strategic partnerships or collaborations with larger pharmaceutical companies to co-develop and commercialize its products, which can provide upfront payments, milestone payments, and royalties. Additionally, CNS Pharmaceuticals may raise capital through equity offerings to fund its research and development activities, which is a common practice in the biotechnology industry given the long development timelines and high costs associated with bringing new drugs to market.

CNS Pharmaceuticals Financial Statement Overview

Summary

CNS Pharmaceuticals is in the early development stage, reflected by its lack of revenue and consistent net losses. While the company has maintained liquidity through financing activities, its financial statements reveal challenges in achieving profitability and stability. Investors should be aware of the high-risk, high-reward nature typical of biotechnology firms at this stage.

Income Statement

CNS Pharmaceuticals has consistently reported zero revenue over the years, which is common in the biotechnology industry during the development phase. However, this results in negative profitability metrics, including net profit margins and EBIT/EBITDA margins, as the company incurs expenses without generating revenue. The lack of revenue growth highlights ongoing challenges in achieving commercial success.

Balance Sheet

The balance sheet shows a high level of cash and short-term investments relative to total assets, reflecting a strong liquidity position. However, the company has experienced a decline in stockholders' equity over the years, with negative equity in 2023. The debt-to-equity ratio is unstable due to negative equity, and the equity ratio has deteriorated, indicating potential financial instability.

Cash Flow

The company consistently reports negative operating and free cash flows, which is typical for a biotech firm in the R&D phase. Despite significant financing inflows, cash flow metrics such as the operating cash flow to net income and free cash flow to net income ratios remain negative, indicating ongoing cash burn and reliance on external financing.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
3.14K	0.00	0.00	0.00	0.00	0.00
	Gross Profit
818.00	-3.31K	-4.13K	-11.76K	-13.07K	-11.10K
	EBIT
-15.69M	-14.90M	-18.87M	-15.27M	-14.03M	-9.45M
	EBITDA
-15.64M	-14.90M	-18.86M	-15.26M	-14.47M	-9.44M
	Net Income Common Stockholders
-15.61M	-14.86M	-18.85M	-15.27M	-14.50M	-9.46M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
13.05M	6.46M	548.72K	10.06M	5.00M	14.04M
	Total Assets
13.75M	8.70M	1.70M	13.05M	8.76M	15.85M
	Total Debt
210.67K	326.07K	300.81K	409.97K	387.79K	439.29K
	Net Debt
-12.84M	-6.14M	-247.91K	-9.65M	-4.62M	-13.60M
	Total Liabilities
2.78M	2.52M	6.13M	4.92M	2.14M	1.91M
	Stockholders Equity
10.97M	6.18M	-4.43M	8.13M	6.62M	13.95M
Cash Flow		Free Cash Flow
-17.17M	-17.12M	-14.14M	-10.56M	-13.54M	-7.34M
	Operating Cash Flow
-17.16M	-17.11M	-14.14M	-10.56M	-13.54M	-7.32M
	Investing Cash Flow
-4.19K	-4.19K	-3.90K	-4.42K	-5.75K	-17.95K
	Financing Cash Flow
29.40M	23.03M	4.64M	15.61M	4.51M	14.13M

CNS Pharmaceuticals Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.93
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CNSP, the sentiment is Negative. The current price of 0.93 is below the 20-day moving average (MA) of 1.09, below the 50-day MA of 1.09, and below the 200-day MA of 4.33, indicating a bearish trend. The MACD of -0.08 indicates Positive momentum. The RSI at 33.84 is Neutral, neither overbought nor oversold. The STOCH value of 18.28 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CNSP.

CNS Pharmaceuticals Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	54 Neutral	$5.38B	3.31	-45.11%	3.29%	16.82%	0.04%
APVO	38 Underperform	$3.25M	―	-1023.93%	―	―	83.04%
CNSP	32 Underperform	$5.35M	―	-477.53%	―	―	90.33%
QLGN	31 Underperform	$2.80M	―	367.65%	―	-100.00%	69.07%
ENTO		$2.81M	―	-33.24%	―	―	―
NCNA	28 Underperform	$869.17K	―	-205.04%	―	―	35.70%
NLSP		$9.17M	―		―	―	―

CNS Pharmaceuticals Corporate Events

CNS Pharmaceuticals Advances TPI 287 for Glioblastoma

On April 9, 2025, CNS Pharmaceuticals announced its ongoing efforts to advance its lead product candidate, TPI 287, for the treatment of Glioblastoma Multiforme (GBM). The company has reported the primary analysis of Berubicin monotherapy in second-line GBM, which did not show a statistically significant difference in overall survival compared to the standard of care. CNS Pharmaceuticals is engaging with regulators to design a potential registration study for TPI 287 in 2025, highlighting its strong financial position and established global clinical trial network.

Spark’s Take on CNSP Stock

According to Spark, TipRanks’ AI Analyst, CNSP is a Neutral.

CNS Pharmaceuticals’ overall score reflects its challenging financial performance characterized by ongoing net losses and lack of revenue. However, positive developments in pivotal clinical trials and regulatory designations for key projects provide some optimism. Technical analysis indicates bearish momentum, while valuation metrics remain unfavorable due to the absence of earnings.

To see Spark’s full report on CNSP stock, click here.