PainReform (PRFX) AI Stock Analysis

• Market Cap: $3.57M
• Dividend Yield: N/A
• Average Volume (3M): 45.97K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.09
• Revenue Growth: N/A
• EPS Growth: 9.41%
• Country: US
• Employees: 7
• Sector: Healthcare
• Sector Strength: 77
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): -8.29
• Shares Outstanding: 1,706,232
• 10 Day Avg. Volume: 28,559
• 30 Day Avg. Volume: 45,965
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• Price to Cash Flow (P/CF): N/A
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0

PainReform faces substantial financial hurdles, primarily due to its lack of revenue and persistent losses, making its financial performance the most significant negative factor. Technical analysis reflects a neutral to slightly bearish outlook, while valuation metrics underscore the company's financial struggles with a negative P/E ratio. Overall, the stock presents high risks without notable strengths to offset these concerns.

Positive Factors

Product Efficacy

PRF-110 was found to statistically significantly reduce pain over the first 48-hours.

Negative Factors

Data Clarity

Management stated that the results are 'currently unclear due to incoherence of the data' at 72 hours.

Financial Health

PainReform will require additional capital for these studies and the share price is trading near 52-week lows.

Market Competition

The recent approval of a generic version of Exparel, the market leader, impacts the market opportunity for PainReform's PRF-110.

PainReform Business Overview & Revenue Model

Company Description

PainReform Ltd. (PRFX) is a pharmaceutical company specializing in the development and commercialization of innovative pain relief solutions. Operating within the biopharmaceutical sector, the company's core focus is on reformulating established analgesics to improve their clinical outcomes and patient experience. PainReform aims to address the significant needs in post-operative pain management through its proprietary formulations that enhance the therapeutic efficacy and safety profiles of existing drugs.

How the Company Makes Money

PainReform makes money primarily through the development, licensing, and commercialization of its proprietary pain relief formulations. The company generates revenue by partnering with pharmaceutical companies for the distribution and marketing of its products. These partnerships often involve licensing agreements where PainReform receives upfront payments, milestone payments based on the achievement of specific clinical or regulatory objectives, and royalties based on product sales. Additionally, PainReform may engage in direct sales of its reformulated analgesics, contributing to its revenue streams. The company's earnings are significantly influenced by the successful advancement of its drug candidates through clinical trials and obtaining regulatory approvals in various markets.

PainReform Financial Statement Overview

Summary

PainReform demonstrates significant financial challenges, with no revenue generation and ongoing losses impacting profitability and cash flow metrics. The balance sheet shows low leverage, but a declining equity position raises concerns about long-term sustainability without revenue growth. The cash flow analysis highlights the company's dependence on external financing to support operations, with negative free cash flow and operating cash flows.

Income Statement

The company has consistently reported zero revenue over the years, indicating a lack of commercialized products or sales. Net Profit Margin and other profitability metrics are negative due to ongoing losses, as seen in a negative Net Income. The EBIT and EBITDA margins are also negative, reflecting significant operational challenges and costs that exceed revenues.

Balance Sheet

The company maintains a relatively low level of debt, with the Debt-to-Equity Ratio being favorable. However, the equity base has significantly decreased over time, and the Return on Equity is negative due to persistent losses. The Equity Ratio remains solid, indicating reliance on equity financing rather than debt.

Cash Flow

Cash flow from operations is consistently negative, indicating ongoing cash burn from operations. The Free Cash Flow is also negative, with a declining trend, demonstrating the challenges in generating cash from business activities. While there is some cash inflow from financing activities, it primarily supports operational needs rather than growth.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
0.00	0.00	86.00K	0.00	0.00	0.00
	Gross Profit
-10.00K	-15.00K	71.00K	―	0.00	―
	EBIT
-17.83M	-9.58M	-8.87M	-7.21M	-1.67M	-689.00K
	EBITDA
-17.81M	-9.57M	-8.85M	-7.20M	-1.67M	-688.00K
	Net Income Common Stockholders
-17.67M	-9.34M	-8.79M	-7.25M	-4.05M	-1.82M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
187.00K	8.03M	4.10M	16.54M	15.68M	941.00K
	Total Assets
0.00	9.93M	12.33M	19.07M	17.80M	1.16M
	Total Debt
0.00	86.00K	0.00	0.00	0.00	6.17M
	Net Debt
187.00K	-7.94M	-4.10M	-16.54M	-15.68M	5.23M
	Total Liabilities
0.00	2.69M	1.31M	991.00K	1.18M	6.79M
	Stockholders Equity
-3.63M	7.24M	11.02M	18.08M	16.62M	-5.62M
Cash Flow		Free Cash Flow
-6.13M	-6.69M	-6.46M	-6.60M	-2.57M	-609.00K
	Operating Cash Flow
-11.30M	-6.68M	-6.46M	-6.55M	-2.56M	-609.00K
	Investing Cash Flow
933.15K	5.99M	-6.01M	-50.00K	-10.00K	0.00
	Financing Cash Flow
7.98M	4.62M	0.00	7.48M	17.31M	1.51M

PainReform Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.09
• 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 PRFX, the sentiment is Negative. The current price of 2.09 is below the 20-day moving average (MA) of 2.57, below the 50-day MA of 2.92, and below the 200-day MA of 4.76, indicating a bearish trend. The MACD of -0.22 indicates Positive momentum. The RSI at 33.54 is Neutral, neither overbought nor oversold. The STOCH value of 7.86 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PRFX.

PainReform Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EOLS	53 Neutral	$679.74M	―	-913.07%	―	31.76%	24.85%
Sector *	48 Neutral	$6.36B	1.14	-49.00%	2.63%	17.14%	1.39%
DRRX	48 Neutral	$24.30M	―	-145.04%	―	-25.39%	77.07%
AVTX	45 Neutral	$61.90M	―	-50.06%	―	-77.09%	63.49%
SCYX	42 Neutral	$32.74M	―	-33.25%	―	-97.33%	-136.16%
PRFX	34 Underperform	$3.57M	―	-129.08%	―	―	9.41%
CVM	32 Underperform	$18.18M	―	-227.76%	―	―	30.96%