3-Year Return on Invested Incremental Capital (3-Year ROIIC %) measures the change in earnings as a percentage of change in investment over 3-year.
Praxis Precision Medicines's 3-Year ROIIC % for the quarter that ended in Dec. 2025 was -33.21%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
The industry rank for Praxis Precision Medicines's 3-Year ROIIC % or its related term are showing as below:
PRAX's 3-Year ROIIC % is ranked worse than 61.54% of 1321
companies
in the Biotechnology industry
Industry Median: -4.44
vs PRAX: -33.21
Return on Incremental Invested Capital (ROIIC) is an extension of Return on Investment Capital (ROIC). ROIC % tells investors how efficiently that profitability is earned per dollar of company capital. ROIIC narrows the focus even further and shows how profitable each additional unit of capital investment could be. ROIIC % is a more powerful metric than ROIC because it measures how much money the company can generate going forward on future capital investments.
High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
Be Aware
It's important to keep in mind that when tracking ROIIC, the metric is better suited to forecasting the trend of future returns rather than measuring current return on investment.
Praxis Precision Medicines 3-Year ROIIC % Related Terms
Praxis Precision Medicines 3-Year ROIIC % 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.
PRAX vs IBRX, CORT, KYMR: 3-Year ROIIC % Comparison
For the Biotechnology subindustry, Praxis Precision Medicines's 3-Year ROIIC %, along with its competitors' market caps and 3-Year ROIIC % 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.
Praxis Precision Medicines 3-Year ROIIC % vs Biotechnology Industry
For the Biotechnology industry and Healthcare sector, Praxis Precision Medicines's 3-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where Praxis Precision Medicines's 3-Year ROIIC % falls into.
3-Year Incremental Net Operating Profit After Taxes (NOPAT)**
/
3-Year Incremental Invested Capital**
=
( -326.198 (Dec. 2025) - -214.986 (Dec. 2022) )
/
( 345.819 (Dec. 2025) - 10.914 (Dec. 2022) )
=
-111.212
/
334.905
=
-33.21%***
* 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.
** Annual data of NOPAT and Invested Capital was used to calculate 3-Year ROIIC %.
*** Please be aware that the ROIIC (Return on Invested Capital) calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.
Praxis Precision Medicines (PRAX) has a 3-Year ROIIC % of -33.21 as of Dec. 2025. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on Praxis Precision Medicines and its competitors. According to the industry distribution chart, Praxis Precision Medicines ranks #813 out of 1321 companies in the Biotechnology industry, placing it in the top 61.5%.
Is Praxis Precision Medicines' 3-Year ROIIC % too high?
Praxis Precision Medicines' current 3-Year ROIIC % is -33.21. Based on the distribution chart, Praxis Precision Medicines ranks #813 out of 1321 companies in the Biotechnology industry, which is below the industry midpoint. Overall, Praxis Precision Medicines has a GF Score™ of 38/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Praxis Precision Medicines' 3-Year ROIIC % compare to IBRX and CORT?
According to the Biotechnology industry distribution chart, Praxis Precision Medicines ranks #813 out of 1321 companies for 3-Year ROIIC %. This places Praxis Precision Medicines in the lower half of its industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 3-Year ROIIC % for a Biotechnology company?
A good 3-Year ROIIC % depends on the Biotechnology industry context. However, 3-Year ROIIC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high 3-Year ROIIC % mean?
A high 3-Year ROIIC % can signal that a stock is expensive relative to its fundamentals. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on Praxis Precision Medicines and its competitors. Praxis Precision Medicines's current 3-Year ROIIC % is -33.21. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Praxis Precision Medicines stock overvalued right now?
Based on GuruFocus' analysis, Praxis Precision Medicines (PRAX) is currently considered Significantly Overvalued. The stock's GF Value™ is $27.08, compared to a current price of $323.81 — trading 1095.8% above its estimated fair value. The current 3-Year ROIIC % is -33.21. Praxis Precision Medicines' overall GF Score™ is 38/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 3-Year ROIIC % calculated?
3-Year ROIIC % is calculated from a company's financial statements. For Praxis Precision Medicines (PRAX), the current 3-Year ROIIC % is -33.21 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 Praxis Precision Medicines (PRAX) Overvalued in 2026?
Based on GuruFocus' analysis, Praxis Precision Medicines stock appears to be overvalued.
The current stock price of $323.81 is trading 1095.8% above its estimated GF Value™ of $27.08.
GuruFocus considers Praxis Precision Medicines to be Significantly Overvalued.
Key valuation signals for PRAX:
3-Year ROIIC %: -33.21
GF Value™: $27.08 vs. price of $323.81 (1095.8% above fair value)
No single metric tells the full story. See the PRAX stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Praxis Precision Medicines Inc is a clinical-stage biopharmaceutical company. It is engaged in translating genetic insights into the development of therapies for patients affected by central nervous system disorders characterized by a neuronal excitation-inhibition imbalance. The company applies genetic insights to the discovery and development of therapies for neurological disorders through two proprietary platforms: Cerebrum and Solidus. It has established a diversified, multimodal CNS portfolio with four clinical-stage product candidates across movement disorders and epilepsy, which include Ulixacaltamide, Relutrigine, Vormatrigine, and Elsunersen. The firm operates in only one segment and is focused on discovering and developing therapies for CNS disorders.
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