Abeona Therapeutics Inc. (ABEO) Stock Analysis and Metrics

Sector: Healthcare Industry: Biotechnology CIK: 0000318306

P/B 1.62

P/E 3.37

P/S 694.02

Market Cap 277.61 Mn

ROIC (Qtr) -11.00

Div Yield % 0.00

Rev 1y % (Qtr) 0.00

Total Debt (Qtr) 24.11 Mn

Debt/Equity (Qtr) 0.14

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...

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 disease), and Rett Syndrome, among others. The company's main products are its investigational autologous, COL7A1 gene-corrected epidermal sheets, known as prademagene zamikeracel (pz-cel), and its AIM capsid technology, a platform of AAV capsids capable of widespread central nervous system gene transfer.

The company's revenue is generated primarily from its development of these novel therapies. Pz-cel is a significant product in development, while the AIM capsid technology serves as a platform for the creation of various therapeutic indications. Abeona's competitive advantage lies in its leadership position in commercial-scale cell and gene therapy manufacturing, its strong intellectual property protection strategy, and its ability to develop novel in-vivo gene therapies using its AIM capsid technology.

In terms of its position within the industry, Abeona is a leader in the development of cell and gene therapies for life-threatening diseases. The company's AIM capsid technology is a proprietary platform that has been licensed from the University of North Carolina at Chapel Hill. This technology, combined with Abeona's comprehensive manufacturing process, enables the company to enhance supply chain control, establish tighter quality control testing, increase supply capacity, reduce production costs, and gain manufacturing efficiency for clinical trials.

Abeona's customers include Taysha Gene Therapies, Inc., which has exclusively sublicensed the company's CLN1 disease and Rett Syndrome patent families. The company has also licensed its patent families to other institutions, including Stanford University and the University of Edinburgh.

The brand names and trade names of Abeona's products and services include prademagene zamikeracel (pz-cel) and the AIM capsid technology. These products and technologies are at the forefront of Abeona's mission to create, develop, manufacture, and deliver cell and gene therapies to transform the lives of people impacted by life-threatening diseases.

Stock Price Chart

Analysis

Pros

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.

Cons

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.

Peer Comparison

Companies in the Biotechnology

S.No.	Ticker	Company	Market Cap	P/E	P/S	Total Debt (Qtr)
1	SMMT	Summit Therapeutics Inc.	1,349.40 Bn	-1,464.17	0.00	0.01 Bn
2	ONC	BeOne Medicines Ltd.	437.43 Bn	6,381.20	87.97	1.90 Bn
3	VRTX	Vertex Pharmaceuticals Inc / Ma	116.09 Bn	31.59	9.90	1.83 Bn
4	REGN	Regeneron Pharmaceuticals, Inc.	78.10 Bn	17.06	5.48	2.71 Bn
5	ALNY	Alnylam Pharmaceuticals, Inc.	55.87 Bn	1,282.42	17.40	3.21 Bn
6	ARGX	Argenx Se	52.85 Bn	35.08	27,559.65	-
7	BNTC	Benitec Biopharma Inc.	41.75 Bn	-998.33	0.00	0.00 Bn
8	INSM	INSMED Inc	37.80 Bn	-31.93	84.56	0.74 Bn

Industry Comparisons

Current Valuation

Metric	Value	Industry
EV to Assets	0.60	12.31
EV to Cash from Ops.	-1.84	23.25
EV to Debt	5.72	738.44
EV to EBIT	1.59	-9.16
EV to EBITDA	-1.73	6.95
EV to Free Cash Flow [EV/FCF]	-1.67	21.90
EV to Market Cap	0.50	65.67
EV to Revenue	344.53	227.32
Price to Book Value [P/B]	1.62	22.34
Price to Earnings [P/E]	3.37	-11.77

Dividend Metrics

Metric	Value	Industry
Dividend Coverage Ratio	0.00	-11.94
Dividend Payout Ratio %	0.00	0.16
Dividend per Basic Share	0.00	0.01
FCF Dividend Payout Ratio %	0.00	-0.14
Interest Coverage	21.99	841.00

Growth Metrics

Metric	Value	Industry
Capex Growth (1y) %	-303.26	-27.13
Cash and Equivalents Growth (1y) %	418.07	734.65
Dividend Growth (1y) %	0.00	0.01
EBIAT Growth (1y) %	227.25	-46.93
EBITDA Growth (1y) %	-37.94	-1.68
EBIT Growth (1y) %	227.74	-56.45
EBT Growth (1y) %	216.38	-12.70
EPS Growth (1y) %	170.98	-28.31
FCF Growth (1y) %	-62.98	-31.90
Gross Profit Growth (1y) %	0.00	226.84

Liquidity Ratios

Metric	Value	Industry
Asset Utilization Ratio	0.00	0.14
Cash Payout Ratio	0.00	0.00
Cash Ratio	3.75	3.85
Current Ratio	9.74	7.27
Debt to Equity Ratio	0.14	0.40
Interest Cover Ratio	21.99	841.00
Times Interest Earned	21.99	841.00

Profitability

Metric	Value	Industry
EBITDA Margin %	22,462.50	-18,234.31
EBIT Margin %	21,650.75	-18,580.80
EBT Margin %	20,666.25	-19,488.74
Gross Margin %	-22.00	-7.59
Net Profit Margin %	20,587.50	-19,439.22

Abeona Therapeutics Inc. (NASDAQ: ABEO)