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Newron Pharmaceuticals SpA has a Cash Ratio of 0.58. It indicates that there are more current liabilities than Cash, Cash Equivalents, Marketable Securities, and the company does not have sufficient cash on hand to pay off its short-term debt.
The historical rank and industry rank for Newron Pharmaceuticals SpA's Cash Ratio or its related term are showing as below:
FRA:NP5'
s Cash Ratio Range Over the Past 10 Years
Min: 0.42 Med: 5.76 Max: 12.71
Current: 0.58
During the past 13 years, Newron Pharmaceuticals SpA's highest Cash Ratio was 12.71. The lowest was 0.42. And the median was 5.76.
FRA:NP5's Cash Ratio is ranked worse than 81.34% of 1383
companies
in the Biotechnology industry
Industry Median: 2.93
vs FRA:NP5: 0.58
Newron Pharmaceuticals SpA (FRA:NP5) Cash Ratio Explanation
The cash ratio is more conservative than other liquidity ratios, such as Quick Ratio and Current Ratio, because it only considers a company's most liquid resources. The numerator of cash ratio only considers Cash, Cash Equivalents and marketable securities. Other current assets, such as accounts receivable and inventories, are not included. The rationale is that these assets may require time to be transformed into cash, and the amount of money received is also uncertain.
The cash ratio shows a company’s ability to pay all current liabilities immediately without selling or liquidating other assets. Generally speaking, a higher cash ratio suggests the company has a stronger ability to cover its short-term debt. However, a high cash ratio could also indicate inefficient management: the company is inefficient in making full utilization of cash to invest protential profitable project. It may also suggest that the company is not confident about future profitability.
In general, the higher the cash ratio, the better the company's liquidity position.
Newron Pharmaceuticals SpA Cash Ratio Related Terms
Newron Pharmaceuticals SpA Cash Ratio Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
FRA:NP5 vs VRTX, REGN, RVMD: Cash Ratio Comparison
For the Biotechnology subindustry, Newron Pharmaceuticals SpA's Cash Ratio, along with its competitors' market caps and Cash Ratio data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Newron Pharmaceuticals SpA Cash Ratio vs Biotechnology Industry
For the Biotechnology industry and Healthcare sector, Newron Pharmaceuticals SpA's Cash Ratio distribution charts can be found below:
* The bar in red indicates where Newron Pharmaceuticals SpA's Cash Ratio falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Newron Pharmaceuticals SpA (FRA:NP5) has a Cash Ratio of 0.58 as of Dec. 2025. Cashflow ratio is the ratio of Cash, Cash Equivalents, Marketable Securities to current liabilities. View historical data on Newron Pharmaceuticals SpA and its competitors. This is 90% below median its historical median of 5.76. Over the past decade, Newron Pharmaceuticals SpA's Cash Ratio has ranged from 0.42 to 12.71. According to the industry distribution chart, Newron Pharmaceuticals SpA ranks #1125 out of 1383 companies in the Biotechnology industry, placing it in the top 81.3%.
Is Newron Pharmaceuticals SpA's Cash Ratio too high?
Newron Pharmaceuticals SpA's current Cash Ratio of 0.58 is 90% below median its 10-year median of 5.76. Over the past 10 years, this metric has ranged from a low of 0.42 to a high of 12.71. The Biotechnology industry median Cash Ratio is 2.93. Newron Pharmaceuticals SpA's value of 0.58 is 80.2% below this industry median. Based on the distribution chart, Newron Pharmaceuticals SpA ranks #1125 out of 1383 companies in the Biotechnology industry, which is in the bottom quartile relative to peers. Overall, Newron Pharmaceuticals SpA has a GF Score™ of 76/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Newron Pharmaceuticals SpA's Cash Ratio compare to VRTX and REGN?
According to the Biotechnology industry distribution chart, Newron Pharmaceuticals SpA ranks #1125 out of 1383 companies for Cash Ratio. This places Newron Pharmaceuticals SpA in the lower half of its industry. The industry median Cash Ratio is 2.93. Newron Pharmaceuticals SpA's value of 0.58 is 80.2% below this benchmark. Historically, Newron Pharmaceuticals SpA's own Cash Ratio has ranged from 0.42 to 12.71 over the past decade. While the company's 10-year median is 5.76 vs. the industry median of 2.93, Newron Pharmaceuticals SpA has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Cash Ratio for a Biotechnology company?
The median Cash Ratio among Biotechnology companies is 2.93, based on 1,383 companies in the industry. Companies in the top quartile (top 25%) have a Cash Ratio significantly above this median, while those in the bottom quartile fall well below. However, Cash Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Newron Pharmaceuticals SpA's current Cash Ratio of 0.58 is 80.2% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Cash Ratio mean?
A high Cash Ratio can signal that a stock is expensive relative to its fundamentals. Cashflow ratio is the ratio of Cash, Cash Equivalents, Marketable Securities to current liabilities. View historical data on Newron Pharmaceuticals SpA and its competitors. For the Biotechnology industry, the median Cash Ratio is 2.93 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Newron Pharmaceuticals SpA's current Cash Ratio is 0.58, which is 90% below median its own 10-year median of 5.76. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Newron Pharmaceuticals SpA stock overvalued right now?
Based on GuruFocus' analysis, Newron Pharmaceuticals SpA (FRA:NP5) is currently considered Fairly Valued. The stock's GF Value™ is €13.90, compared to a current price of €12.75 — trading 8.3% below its estimated fair value. The current Cash Ratio is 0.58, which is 90% below median its 10-year median of 5.76 and 80.2% below the Biotechnology industry median of 2.93. Newron Pharmaceuticals SpA's overall GF Score™ is 76/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Cash Ratio calculated?
Cash Ratio is calculated from a company's financial statements. For Newron Pharmaceuticals SpA (FRA:NP5), the current Cash Ratio is 0.58 as of Dec. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Newron Pharmaceuticals SpA (FRA:NP5) Overvalued in 2026?
Based on GuruFocus' analysis, Newron Pharmaceuticals SpA stock appears to be undervalued.
The current stock price of €12.75 is trading 8.3% below its estimated GF Value™ of €13.90.
GuruFocus considers Newron Pharmaceuticals SpA to be Fairly Valued.
Key valuation signals for FRA:NP5:
Cash Ratio: 0.58 (90% below median its 10-year median of 5.76)
GF Value™: €13.90 vs. price of €12.75 (8.3% below fair value)
Industry Position: 80.2% below the Biotechnology median (#1125 of 1383)
No single metric tells the full story. See the FRA:NP5 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Newron Pharmaceuticals SpA is a Italy-based clinical-stage biopharmaceutical company. It focuses on the discovery and development of pharmaceutical products. The Company is engaged in discovering and developing new therapies for diseases of the Central Nervous System (CNS) and pain. The Company undertakes phase III trials with safinamide molecule for the treatment of patients with Parkinson's disease. Newron Pharmaceuticals SpA develops ralfinamide, a molecule for the treatment of neuropathic pain. Geographically the research and development activities are performed in Italy and the United States.
76GF Score
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