PainReform (PRFX) AI Stock Analysis

• Market Cap: $3.42M
• Dividend Yield: N/A
• Average Volume (3M): 145.39K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.22
• Revenue Growth: N/A
• EPS Growth: 9.41%
• Country: US
• Employees: 2
• Sector: Healthcare
• Sector Strength: 46
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): N/A
• Shares Outstanding: 2,013,141
• 10 Day Avg. Volume: 34,012
• 30 Day Avg. Volume: 145,392
• PEG Ratio: -1.02
• Price to Book (P/B): 9.58
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -16.33
• Enterprise Value/Market Cap: 29.66
• Enterprise Value/Revenue: 1.18K
• Enterprise Value/Gross Profit: -10.15K
• Enterprise Value/Ebitda: -2.06
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 34 Underperform
• Price Target: ―

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

Financial Needs

PainReform may need additional capital to complete necessary studies, but there are concerns about the ability to raise capital given current market conditions.

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., a clinical stage specialty pharmaceutical company, engages in the development of therapeutics that provides an extended period of post-surgical pain relief in Israel. It engages in developing PRF-110, a viscous clear oil-based solution that is instilled directly into the surgical wound to provide localized and extended post-operative analgesia. The company is currently conducting two Phase 3 clinical trials of PRF-110 for the treatment of patients undergoing bunionectomy surgery and hernia repair. PainReform Ltd. was incorporated in 2007 and is based in Tel Aviv, Israel.

How the Company Makes Money

PainReform generates revenue primarily through the development and potential commercialization of its proprietary drug formulations. The company's revenue model is centered around advancing its flagship product, PRF-110, through clinical trials and securing regulatory approval for market entry. Once approved, PainReform aims to license its formulations to larger pharmaceutical companies or engage in direct sales, thereby earning licensing fees, milestone payments, and royalties. The company may also explore partnerships or collaborations to enhance its research capabilities and expand its market reach.

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 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
0.00	0.00	0.00	86.00K	0.00	0.00
	Gross Profit
-10.00K	-16.00K	-15.00K	71.00K	―	0.00
	EBIT
-17.83M	-14.67M	-9.58M	-8.87M	-7.21M	-1.67M
	EBITDA
-17.81M	-14.55M	-9.57M	-8.85M	-7.20M	-1.67M
	Net Income Common Stockholders
-17.67M	-14.59M	-9.34M	-8.79M	-7.25M	-4.05M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
2.78M	4.26M	8.03M	4.10M	16.54M	15.68M
	Total Assets
3.11M	4.53M	9.93M	12.33M	19.07M	17.80M
	Total Debt
59.00K	45.00K	86.00K	0.00	0.00	0.00
	Net Debt
-2.72M	-4.22M	-7.94M	-4.10M	-16.54M	-15.68M
	Total Liabilities
5.15M	2.70M	2.69M	1.31M	991.00K	1.18M
	Stockholders Equity
-2.04M	1.82M	7.24M	11.02M	18.08M	16.62M
Cash Flow		Free Cash Flow
-6.13M	-12.63M	-6.69M	-6.46M	-6.60M	-2.57M
	Operating Cash Flow
-11.30M	-12.62M	-6.68M	-6.46M	-6.55M	-2.56M
	Investing Cash Flow
933.15K	-13.00K	5.99M	-6.01M	-50.00K	-10.00K
	Financing Cash Flow
7.98M	8.86M	4.62M	0.00	7.48M	17.31M

PainReform Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.70
• 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 1.7 is below the 20-day moving average (MA) of 1.93, below the 50-day MA of 2.03, and below the 200-day MA of 2.82, indicating a bearish trend. The MACD of -0.07 indicates Positive momentum. The RSI at 35.14 is Neutral, neither overbought nor oversold. The STOCH value of 2.44 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
Sector *	54 Neutral	$5.24B	3.26	-44.35%	6.48%	16.78%	-0.10%
SNOA	49 Neutral	$4.68M	―	-65.55%	―	13.51%	78.93%
EVOK	46 Neutral	$4.07M	―	-108.77%	―	97.84%	82.99%
CPHI	44 Neutral	$5.81M	―	-59.14%	―	-33.10%	71.37%
SBFM	42 Neutral	$6.72M	―	-21.17%	―	35.51%	95.44%
RDHL	41 Neutral	$4.22M	―	1155.92%	―	―	―
PRFX	34 Underperform	$3.42M	―	-129.08%	―	―	9.41%