Processa Pharmaceuticals Inc. Common Stock (PCSA)

FairStock Score: 28/100 — RISKY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I begin with a simple question: does this business earn money, and can I see a durable competitive advantage? Processa fails the first test. In the filed figures, revenue is not available in any period, and losses are persistent: net income was -$11.1 million in fiscal 2023, the year ended 2023-12-31; -$11.9 million in fiscal 2024, the year ended 2024-12-31; and -$13.6 million in fiscal 2025, the year ended 2025-12-31. In fiscal Q1 2026, the quarter ended 2026-03-31, net income was -$3.4 million; in fiscal Q2 2026, the quarter ended 2026-06-30, it was -$3.3 million. Trailing free cash flow is -$13.3 million, a FairStock calculation, against a market capitalization of only $4.9 million. That means the company consumes cash far in excess of its entire market value, so financing risk is central. The pipeline—NGC-Cap (PCS6422) plus capecitabine and other modified oncology drugs—may have scientific promise, but I see no economic moat. There are 12 employees, no approved product, no revenue, and no evidence of pricing power or repeat customers. FairStock data underscore fragility: Piotroski F-Score 0/9, Altman Z-Score -71.61, ROE -464.20%, ROCE -156.78%, and a FairStock Score of 28/100. The P/E is -0.41 and P/B is 3.12, both FairStock calculations; with negative earnings, a P/E offers no useful valuation anchor. At the close on 2026-10-13, the price was $1.77, within a 52-week range of $1.04 to $10.85. The Lynch category is none because it lost money in each of the last four years. Growth is not commercial growth; it is hope for clinical trial progress. Graham would demand a margin of safety. Here the asset is cash and a pipeline, and the liability is the uncertain cost and time to approval. I would call it a speculative venture, not a value investment.

In plain English: Processa Pharmaceuticals is a very small drug-development company with 12 employees trying to create modified cancer treatments; it has no reported revenue. The business looks weak by the numbers: it lost $13.6 million in fiscal 2025 and has lost money every year shown, while burning cash. At $1.77 a share, the price looks speculative and is not supported by current profits or a proven commercial business.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer