Latest Ratios: P/E Ratio -3.5x · EV/EBITDA N/A · ROE -140.9%. (1996–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $67M | $217M | $233M | $235M | $272M | $899M | $1.9B | $1.9B | $1.9B | $978M | $497M |
| Enterprise Value | $179M | $329M | $385M | $386M | $415M | $968M | $1.8B | $1.9B | $1.9B | $862M | $536M |
| P/E Ratio → | -3.55 | — | — | — | — | — | — | — | — | — | — |
| P/S Ratio | 0.43 | 1.40 | 1.62 | 1.85 | 2.53 | 10.41 | 21.68 | 13.17 | 24.51 | 31.79 | 388.44 |
| P/B Ratio | 4.95 | 15.12 | — | — | 20.08 | 11.59 | 8.12 | 4.76 | 5.13 | 7.46 | — |
| P/FCF | — | — | — | — | — | — | — | — | — | — | — |
| P/OCF | — | — | — | — | — | — | — | — | — | — | — |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 2.12 | 2.67 | 3.04 | 3.85 | 11.21 | 20.77 | 12.81 | 24.15 | 28.02 | 419.32 |
| EV / EBITDA | — | — | — | — | — | — | — | — | — | — | — |
| EV / EBIT | — | — | — | — | — | — | — | — | — | — | — |
| EV / FCF | — | — | — | — | — | — | — | — | — | — | — |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 73.3% | 73.3% | 73.2% | 48.8% | 49.0% | 46.7% | 59.2% | 57.8% | 64.5% | 85.1% | 97.3% |
| Operating Margin | -1.6% | -1.6% | -8.0% | -87.1% | -162.2% | -252.3% | -257.4% | -144.3% | -237.4% | -632.4% | -13363.2% |
| Net Profit Margin | -13.0% | -13.0% | -9.4% | -87.0% | -169.1% | -255.6% | -256.4% | -140.3% | -230.8% | -641.9% | -13537.4% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | -140.9% | -140.9% | — | — | -399.4% | -140.5% | -71.0% | -52.9% | -71.4% | -359.4% | -357.5% |
| ROA | -8.3% | -8.3% | -6.0% | -46.7% | -65.4% | -66.9% | -52.5% | -42.0% | -51.4% | -130.9% | -168.7% |
| ROIC | -1.6% | -1.6% | -7.3% | -60.9% | -86.7% | -108.0% | -67.4% | -45.5% | -77.0% | -871.6% | -404.4% |
| ROCE | -1.7% | -1.7% | -8.1% | -71.0% | -86.6% | -89.7% | -68.4% | -53.6% | -73.4% | -243.4% | -232.8% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 9.81 | 9.81 | — | — | 11.60 | 2.06 | 0.10 | 0.05 | 0.01 | 0.22 | — |
| Debt / EBITDA | — | — | — | — | — | — | — | — | — | — | — |
| Net Debt / Equity | — | 7.81 | — | — | 10.47 | 0.89 | -0.34 | -0.13 | -0.07 | -0.88 | — |
| Net Debt / EBITDA | — | — | — | — | — | — | — | — | — | — | — |
| Debt / FCF | — | — | — | — | — | — | — | — | — | — | — |
| Interest Coverage | — | — | -1.25 | -27.58 | -72.57 | -90.57 | -118.56 | -138.10 | -65.93 | -49.16 | -63.99 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 2.48 | 2.48 | 2.29 | 2.37 | 2.49 | 3.58 | 3.07 | 4.95 | 4.86 | 2.21 | 1.60 |
| Quick Ratio | 1.51 | 1.51 | 1.70 | 1.84 | 1.83 | 2.90 | 2.66 | 4.70 | 4.44 | 2.11 | 1.47 |
| Cash Ratio | 0.49 | 0.49 | 0.65 | 1.01 | 1.03 | 2.22 | 2.03 | 4.04 | 3.61 | 1.67 | 1.32 |
| Asset Turnover | — | 0.61 | 0.62 | 0.57 | 0.43 | 0.28 | 0.25 | 0.28 | 0.17 | 0.13 | 0.02 |
| Inventory Turnover | 0.45 | 0.45 | 0.73 | 1.55 | 1.01 | 0.95 | 0.86 | 2.47 | 0.70 | 0.45 | 0.01 |
| Days Sales Outstanding | — | 211.09 | 199.55 | 172.77 | 176.44 | 150.06 | 172.33 | 99.72 | 304.59 | 496.77 | 559.34 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | — | — | — | — | — | — | — | — | — | — | — |
| Payout Ratio | — | — | — | — | — | — | — | — | — | — | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | — | — | — | — | — | — | — | — | — | — | — |
| FCF Yield | — | — | — | — | — | — | — | — | — | — | — |
| Buyback Yield | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% |
| Total Shareholder Yield | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% |
| Shares Outstanding | — | $167M | $152M | $138M | $109M | $98M | $91M | $82M | $73M | $54M | $38M |
Liquidity and solvency pressure
According to current market data, Heron trades at a P/S multiple of 0.43, which suggests that investors are heavily discounting the company's future revenue potential compared to peers like Pacira BioSciences, likely due to persistent concerns regarding the firm's ability to achieve sustainable commercial scale.
The depressed valuation multiple indicates that the market is pricing in significant execution risk rather than growth, effectively treating the company as a distressed asset. This valuation gap warrants further investigation into whether the market is underestimating the potential impact of the NOPAIN Act or simply reacting to the company's history of dilutive financing.
As reported in financial statements, Heron's ROIC has remained consistently negative, reaching -2.8% in 2026Q1, which highlights the company's inability to generate returns on invested capital that exceed its cost of capital, a trend that has persisted throughout the last ten quarters.
The persistent negative ROIC suggests that the company's investments in commercial infrastructure and product development are not yet yielding the necessary economic returns. This decay in capital efficiency appears to be driven by high fixed costs that are not being adequately offset by the current volume of ZYNRELEF adoption.
Based on the provided quarterly data, Heron's cash conversion cycle reached an elevated 932 days in 2026Q1, a figure that reflects significant inefficiencies in managing inventory and collecting receivables compared to historical benchmarks within the specialty pharmaceutical sector.
The extremely long cash conversion cycle is primarily driven by high days inventory outstanding, which suggests that the company may be struggling to align its manufacturing output with actual hospital procurement demand. Investors should monitor whether this inefficiency is a temporary byproduct of product launches or a structural issue in the company's supply chain management.
According to recent SEC filings, Heron's debt-to-equity ratio surged to 15.50 in 2026Q1, a dramatic increase that underscores the company's growing reliance on debt to fund operations as its internal cash generation remains insufficient to cover ongoing commercialization expenses.
This high leverage profile significantly limits the company's financial flexibility and increases its sensitivity to interest rate fluctuations. The lack of a clear path to positive interest coverage suggests that the company may face increasing difficulty in refinancing its obligations without further diluting existing shareholders.
Based on an analysis of standard financial ratios, the P/E ratio is the most commonly misapplied metric for Heron, as it fails to account for the company's pre-profitability stage and the significant non-cash expenses that mask the true underlying cash burn of the business.
Using P/E to evaluate a company in this phase of its lifecycle is misleading because it ignores the massive R&D and commercialization investments that are currently suppressing earnings. Analysts should instead focus on cash burn rates and the runway provided by current liquidity to better assess the company's operational viability.
Includes 30+ ratios · 30 years · Updated daily
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Quick answers to the most common questions about buying HRTX stock.
Heron Therapeutics, Inc.'s current P/E ratio is -3.5x. The historical average is 20.2x.
Heron Therapeutics, Inc.'s return on equity (ROE) is -140.9%. The historical average is -107.7%.
Based on historical data, Heron Therapeutics, Inc. is trading at a P/E of -3.5x. Compare with industry peers and growth rates for a complete picture.
Heron Therapeutics, Inc. has 73.3% gross margin and -1.6% operating margin.