Abeona Therapeutics Inc. (NASDAQ: ABEO)

Sector: Healthcare Industry: Biotechnology CIK: 0000318306
Market Cap 261.03 Mn
P/B 1.52
P/E 3.17
P/S 652.58
ROIC (Qtr) -11.00
Div Yield % 0.00
Rev 1y % (Qtr) 0.00
Total Debt (Qtr) 24.11 Mn
Debt/Equity (Qtr) 0.14
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About

Abeona Therapeutics Inc., often recognized by its stock symbol ABEO, is a company specializing in the development of cell and gene therapies for life-threatening diseases. Operating within the biopharmaceutical industry, the company's operations span across various countries, with a significant presence in the United States. Abeona's primary business activities revolve around the creation and development of cell and gene therapies for a range of diseases. These include recessive dystrophic epidermolysis bullosa (RDEB), CLN1 disease (infantile Batten...

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Investment thesis

Bull case

  • Healthy cash reserves of 83.22M provide 9.26x coverage of short-term debt 8.99M, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 231.09M provides 9.59x coverage of total debt 24.11M, indicating robust asset backing and low credit risk.
  • Short-term investments of 124.23M provide solid 17.11x coverage of other current liabilities 7.26M, indicating strong liquidity.
  • Tangible assets of 231.09M provide robust 31.82x coverage of other current liabilities 7.26M, indicating strong asset backing.
  • Cash reserves of 83.22M provide robust 3.75x coverage of current liabilities 22.18M, indicating strong short-term solvency.

Bear case

  • Operating cash flow of (74.93M) barely covers its investment activities of 114.35M, with a coverage ratio of -0.66, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Cash reserves of 83.22M provide limited coverage of acquisition spending of 152.37M, which is 0.55x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • The company's operating cash flow of (74.93M) shows concerning coverage of stock compensation expenses of 10.18M, with a -7.36 ratio indicating potential earnings quality issues.
  • Operating cash flow of (74.93M) provides minimal -237.88x coverage of tax expenses of 315000, suggesting potential tax planning inefficiencies or unsustainable tax positions.
  • Free cash flow of (82.36M) provides weak coverage of capital expenditures of 7.43M, with a -11.09 ratio suggesting additional external financing needs for growth initiatives.

Product and Service Breakdown of Revenue (2023)

Product and Service Breakdown of Revenue (2023)

Peer comparison

Companies in the Biotechnology
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 SMMT Summit Therapeutics Inc. 1,204.25 Bn -1,306.67 0.00 0.01 Bn
2 ONC BeOne Medicines Ltd. 486.51 Bn 7,097.20 97.84 1.90 Bn
3 VRTX Vertex Pharmaceuticals Inc / Ma 122.05 Bn 30.87 10.17 1.85 Bn
4 REGN Regeneron Pharmaceuticals, Inc. 83.00 Bn 18.42 5.79 2.71 Bn
5 ARGX Argenx Se 50.78 Bn 33.71 26,480.10 -
6 ALNY Alnylam Pharmaceuticals, Inc. 43.66 Bn 139.17 11.76 2.97 Bn
7 BNTC Benitec Biopharma Inc. 43.61 Bn -941.82 0.00 0.00 Bn
8 INSM INSMED Inc 28.88 Bn -24.40 64.61 0.74 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.52 11.06
EV to Cash from Ops. EV/CFO -1.62 26.32
EV to Debt EV to Debt 5.03 762.61
EV to EBIT EV/EBIT 1.40 -13.49
EV to EBITDA EV/EBITDA -1.52 8.61
EV to Free Cash Flow [EV/FCF] EV/FCF -1.47 25.66
EV to Market Cap EV to Market Cap 0.46 203.37
EV to Revenue EV/Rev 303.09 156.31
Price to Book Value [P/B] P/B 1.52 20.59
Price to Earnings [P/E] P/E 3.17 -0.88
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 0.00 -12.64
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 0.17
Dividend per Basic Share Div per Share (Qtr) 0.00 0.01
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 -0.14
Interest Coverage Int. cover (Qtr) 21.99 956.66
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -303.26 7.87
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 418.07 753.48
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 0.01
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 227.25 -57.63
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -37.94 8.83
EBIT Growth (1y) % EBIT 1y % (Qtr) 227.74 -67.21
EBT Growth (1y) % EBT 1y % (Qtr) 216.38 -23.74
EPS Growth (1y) % EPS 1y % (Qtr) 170.98 -7.02
FCF Growth (1y) % FCF 1y % (Qtr) -62.98 -40.48
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 0.00 264.51
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.00 0.14
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.00
Cash Ratio Cash Ratio (Qtr) 3.75 3.92
Current Ratio Curr Ratio (Qtr) 9.74 7.33
Debt to Equity Ratio Debt/Equity (Qtr) 0.14 0.48
Interest Cover Ratio Int Coverage (Qtr) 21.99 956.66
Times Interest Earned Times Interest Earned (Qtr) 21.99 956.66
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 22,462.50 -17,888.70
EBIT Margin % EBIT Margin % (Qtr) 21,650.75 -18,246.34
EBT Margin % EBT Margin % (Qtr) 20,666.25 -19,108.08
Gross Margin % Gross Margin % (Qtr) -22.00 -10.30
Net Profit Margin % Net Margin % (Qtr) 20,587.50 -19,056.96