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INSMInsmed Incorporated
$112.84$24.5B
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  4. Financial Ratios

Insmed Incorporated (INSM) Financial Ratios

Latest Ratios: P/E Ratio -17.6x · EV/EBITDA N/A · ROE -249.3%. (1999–2025 historical series)

Income StatementBalance SheetCash FlowRatios
AnnualQuarterly

INSM Valuation Multiples

Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Market Cap$24.5B$37.2B$11.3B$4.4B$2.5B$3.1B$3.2B$2.0B$1.0B$2.1B$819M
Enterprise Value$24.7B$37.4B$12.1B$5.1B$2.6B$2.9B$3.1B$1.9B$830M$1.8B$711M
P/E Ratio →-17.60——————————
P/S Ratio40.3361.3131.1414.2610.0216.2019.7614.80102.57——
P/B Ratio32.6250.3139.69—27.957.4411.787.724.845.755.30
P/FCF———————————
P/OCF———————————

P/E links to full P/E history page with 30-year chart

INSM EV Ratios

Enterprise-value multiples — capital-structure-neutral measures of total business value

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
EV / Revenue—61.7433.2316.6210.4415.6518.9814.1384.42——
EV / EBITDA———————————
EV / EBIT———————————
EV / FCF———————————

INSM Profitability

Margins and return-on-capital ratios measuring operating efficiency

Margins

Full margin charts and quarterly trend are on the Earnings History page

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Gross Margin79.4%79.4%76.4%78.5%77.5%76.6%75.7%82.3%75.4%——
Operating Margin-194.0%-194.0%-241.5%-232.5%-186.4%-199.0%-161.3%-172.4%-3124.9%——
Net Profit Margin-210.5%-210.5%-251.2%-245.6%-196.3%-230.6%-178.9%-186.4%-3297.2%——

Return on Capital

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
ROE-249.3%-249.3%-320.2%—-193.2%-126.7%-109.4%-108.2%-113.9%-74.7%-75.6%
ROA-59.5%-59.5%-54.5%-50.2%-33.2%-42.6%-38.2%-37.8%-60.8%-55.0%-59.3%
ROIC-86.5%-86.5%-91.9%-183.1%-137.8%-124.0%-124.6%-175.5%-706.9%-345.0%-258.4%
ROCE-66.8%-66.8%-62.0%-55.2%-35.5%-42.0%-39.8%-39.8%-65.2%-60.2%-63.7%

INSM Leverage & Debt

Solvency and debt-coverage ratios — lower is generally safer

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Debt / Equity1.041.044.60—13.391.491.471.521.520.150.35
Debt / EBITDA———————————
Net Debt / Equity—0.352.66—1.18-0.25-0.46-0.35-0.86-0.90-0.70
Net Debt / EBITDA———————————
Debt / FCF———————————
Interest Coverage-14.18-14.18-9.77-8.21-17.31-9.83-8.95-8.20-11.78-31.56-49.36

INSM Liquidity & Efficiency

Short-term solvency ratios and asset-utilisation metrics

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Current Ratio3.833.835.454.126.696.195.246.516.518.726.02
Quick Ratio3.543.545.123.756.335.704.836.186.428.726.02
Cash Ratio3.053.054.823.466.045.304.485.726.218.545.81
Asset Turnover—0.270.180.230.150.150.210.180.02——
Inventory Turnover0.950.950.870.790.790.660.800.860.34——
Days Sales Outstanding—84.7852.2049.2644.2047.1636.7751.44204.67——

INSM Shareholder Yields

Earnings, FCF, buyback, and dividend yields — total returns to shareholders

Dividends

Full dividend history and growth charts are on the Dividend History page

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Dividend Yield———————————
Payout Ratio———————————

Total Shareholder Return Metrics

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Earnings Yield———————————
FCF Yield———————————
Buyback Yield0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%
Total Shareholder Yield0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%
Shares Outstanding—$214M$164M$140M$123M$112M$98M$85M$77M$67M$62M

Key Metrics

Growth RegimeAccelerating
ProfitabilityNegative
Balance SheetVulnerable
Cash FlowBurning
Top Statement Risk

High Clinical Pipeline Dependency

Verified Source

Metrics are mathematically derived from official filings.

SEC 10-K (2026Q1)

Platform Premium Drives Elevated Multiples

Based on current market data, Insmed trades at a price-to-sales ratio of 36.95, a valuation that appears to reflect significant investor expectations for future pipeline success rather than the current, loss-making commercial reality of the ARIKAYCE franchise when compared to broader biotechnology sector benchmarks.

The absence of a positive P/E or EV/EBITDA multiple highlights that the market is pricing the company as a high-growth platform rather than a mature commercial entity. Investors should monitor whether this premium remains sustainable if clinical milestones for Brensocatib face delays or if the commercial rollout in bronchiectasis proves more capital-intensive than anticipated.

Negative Returns Reflect R&D Intensity

According to historical financial data, Insmed's ROIC has remained consistently negative, reaching -16.1% in 2026Q1, which underscores the company's ongoing struggle to generate positive returns on invested capital while it continues to aggressively fund long-term clinical development programs at the expense of near-term profitability.

The persistent negative ROIC suggests that the capital deployed into the business is currently destroying value rather than compounding it, a common characteristic of pre-profitability biotech firms. This trend warrants further investigation into whether the upcoming commercial expansion can eventually drive returns above the company's cost of capital.

Working Capital Cycles Remain Stretched

As reported in recent quarterly filings, the company's cash conversion cycle remains elevated at 149 days, driven largely by high inventory days on hand, which suggests that the specialized nature of liposomal manufacturing creates significant friction in the company's ability to efficiently convert assets into cash.

The high DIO relative to peers indicates that the company must maintain substantial inventory levels, likely to ensure supply chain stability for its complex drug delivery systems. This inefficiency ties up significant liquidity and highlights the operational challenges inherent in scaling a niche, high-tech pharmaceutical manufacturing process.

Liquidity Buffers Mask Operational Burn

Based on the most recent quarterly figures, the company maintains a current ratio of 4.47, which appears superficially robust, yet this liquidity buffer is rapidly being depleted by heavy operating losses and the high capital requirements necessary to sustain late-stage clinical trial execution and commercial infrastructure.

While the current ratio suggests an ability to meet short-term obligations, the underlying cash burn rate indicates that this liquidity is not a permanent state but rather a temporary cushion provided by previous capital raises. Investors should monitor the cash runway closely, as the company remains structurally dependent on external financing.

Misapplication of P/S Valuation Multiples

The price-to-sales ratio is frequently misapplied to Insmed, as it obscures the significant impact of gross-to-net adjustments and the heavy R&D reinvestment that characterizes the company's current business model, leading to an incomplete assessment of the firm's true underlying commercial strength and long-term earnings potential.

Analysts should instead focus on adjusted revenue metrics that account for actual patient demand and the potential lifetime value of patients on therapy. Relying solely on P/S ignores the massive disconnect between top-line growth and the bottom-line losses required to build the company's future commercial pipeline.

Download Financial Ratios Data

Includes 30+ ratios · 27 years · Updated daily

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INSM — Frequently Asked Questions

Quick answers to the most common questions about buying INSM stock.

What is Insmed Incorporated's P/E ratio?

Insmed Incorporated's current P/E ratio is -17.6x. The historical average is 0.8x.

What is Insmed Incorporated's ROE?

Insmed Incorporated's return on equity (ROE) is -249.3%. The historical average is -134.5%.

Is INSM stock overvalued?

Based on historical data, Insmed Incorporated is trading at a P/E of -17.6x. Compare with industry peers and growth rates for a complete picture.

What are Insmed Incorporated's profit margins?

Insmed Incorporated has 79.4% gross margin and -194.0% operating margin.