Company Overview
Applied Therapeutics, Inc. operates as a clinical-stage biopharmaceutical company focused on developing a pipeline of novel product candidates directed against validated molecular targets within indications characterized by high unmet medical need in the United States. The company functions within the healthcare sector and specifically the biotechnology industry, positioning itself to address significant therapeutic gaps through targeted molecular interventions. Currently, the organization employs 28 individuals and maintains a market capitalization of $14.86M alongside annual revenue of $1.00M. These financial metrics indicate that the company is a micro-cap entity with minimal revenue generation relative to its valuation, suggesting a business model that relies heavily on future clinical development milestones rather than current commercial sales to justify its market presence.
Financial Health
The company reported revenue of $1.00M for the trailing twelve months, yet recorded a net income of $-18,138,000 and an EBITDA of $-99,611,000. The substantial discrepancy between the nominal revenue figure and the negative net income reveals a cost structure dominated by high operational expenses typical of early-stage biotechnology firms, where research, development, and clinical trial costs far exceed current sales proceeds. Free cash flow stands at $-128,157,504, indicating that the company is consuming cash rapidly to fund its operations and development activities rather than generating surplus liquidity for distribution. The gross margin is reported at 0.0%, while the operating margin is -1796.7% and the profit margin is 0.0%; these negative and negligible figures reflect the pre-commercial nature of the business where costs have not yet been offset by profitable sales. In terms of balance sheet leverage, the company holds $11.95M in cash against $2.50M in debt, though a specific debt-to-equity ratio is not calculated due to financial constraints. The current ratio is 0.96, which indicates that current assets do not fully cover current liabilities, signaling potential short-term liquidity pressure given the negative free cash flow environment. Return on equity is -680.5% and return on assets is -88.3%, metrics that reveal management is currently utilizing shareholder and asset bases to generate losses rather than returns, a common characteristic for companies in the clinical-stage development phase.
Valuation Assessment
The trailing P/E ratio is listed as N/A due to the lack of positive earnings, while the forward P/E is -0.26, implying that expected future earnings remain negative or that the valuation model relies on non-earnings-based metrics for projection. The price-to-book ratio is -25.75, indicating that the market values the company at a significant negative premium relative to its book value, a valuation characteristic often seen in distressed or asset-light biotechnology firms with negative shareholder equity. Alternative valuation metrics show a price-to-sales ratio of 14.86 and an EV/EBITDA of -0.05; these figures suggest the market is pricing the company based on future potential and pipeline value rather than current profitability or enterprise earnings. The stock has experienced significant volatility, with a 52-week high of $1.50 and a 52-week low of $0.09, meaning the current price sits within a range that reflects high uncertainty and speculative sentiment regarding the asset's future commercialization. The beta value is 2.08, which means the stock price is expected to be twice as volatile as the broader market, highlighting the high risk profile associated with investing in small-cap biotechnology firms.
Growth & Income
Revenue growth year-over-year is reported at 719.7%, whereas earnings growth is N/A; this disparity implies that while top-line sales have expanded dramatically, the company has not yet achieved profitability, resulting in earnings that cannot sustain the current revenue expansion rate. The company does not pay dividends, evidenced by a dividend yield of N/A and a payout ratio of 0.0%, meaning the organization reinvests all available resources and potential earnings into research and development rather than distributing income to shareholders. Consequently, the overall growth and income profile is defined entirely by capital appreciation potential driven by clinical progress, as there is no current income stream or dividend yield to provide a return on investment.