Absci Corp (NASDAQ: ABSI)

Sector: Healthcare Industry: Biotechnology CIK: 0001672688
Market Cap 433.23 Mn
P/B 2.06
P/E -3.78
P/S 153.90
ROIC (Qtr) -60.14
Div Yield % 0.00
Rev 1y % (Qtr) -77.78
Total Debt (Qtr) 6.22 Mn
Debt/Equity (Qtr) 0.03

About

Absci Corp, also known by its stock symbol ABSI, operates in the biopharmaceutical industry, specifically as a data-first generative AI drug creation company. Absci is dedicated to combining AI with scalable wet lab technologies to develop better biologics for patients in a more efficient manner. The core of Absci's business activities revolves around its Integrated Drug Creation platform, which aims to enhance traditional biologic drug discovery by utilizing AI to optimize multiple drug characteristics crucial to development and therapeutic benefit....

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Price action

Investment thesis

Bull case

  • Healthy cash reserves of 25.82M provide 8.43x coverage of short-term debt 3.06M, demonstrating strong liquidity position and minimal refinancing risk.
  • Robust free cash flow of (80.06M) exceeds capital expenditure of (645000) by 124.13x, indicating strong organic growth funding capability.
  • Strong tangible asset base of 202.64M provides 32.58x coverage of total debt 6.22M, indicating robust asset backing and low credit risk.
  • Tangible assets of 202.64M provide exceptional 187.45x coverage of deferred revenue 1.08M, showing strong service capability backing.
  • Tangible assets of 202.64M provide robust 9.19x coverage of other current liabilities 22.06M, indicating strong asset backing.

Bear case

  • Investment activities of (50.66M) provide weak support for R&D spending of 74.45M, which is -0.68x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Operating cash flow of (80.71M) provides insufficient coverage of deferred revenue obligations of 1.08M, which is -74.66x, raising concerns about future service delivery capabilities.
  • The company's operating cash flow of (80.71M) shows concerning coverage of stock compensation expenses of 19.13M, with a -4.22 ratio indicating potential earnings quality issues.
  • Short-term investments of 143M significantly exceed cash reserves of 25.82M, which is 5.54x, indicating potentially excessive yield-seeking behavior at the expense of liquidity.
  • Operating cash flow of (80.71M) provides minimal -320.27x coverage of tax expenses of 252000, suggesting potential tax planning inefficiencies or unsustainable tax positions.

Peer comparison

Companies in the Biotechnology
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 SMMT Summit Therapeutics Inc. 1,446.17 Bn -1,569.17 0.00 0.01 Bn
2 ONC BeOne Medicines Ltd. 439.23 Bn 6,407.40 88.33 1.90 Bn
3 VRTX Vertex Pharmaceuticals Inc / Ma 120.62 Bn 32.82 10.29 1.83 Bn
4 REGN Regeneron Pharmaceuticals, Inc. 84.40 Bn 18.44 5.92 2.71 Bn
5 ALNY Alnylam Pharmaceuticals, Inc. 56.13 Bn 1,288.39 17.49 3.21 Bn
6 ARGX Argenx Se 47.89 Bn 31.79 24,973.95 -
7 BNTC Benitec Biopharma Inc. 42.45 Bn -1,015.00 0.00 0.00 Bn
8 INSM INSMED Inc 32.67 Bn -27.60 73.08 0.74 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 1.58 12.96
EV to Cash from Ops. EV/CFO -4.79 23.73
EV to Debt EV to Debt 62.12 772.65
EV to EBIT EV/EBIT -3.39 -11.30
EV to EBITDA EV/EBITDA -3.61 7.11
EV to Free Cash Flow [EV/FCF] EV/FCF -4.83 22.12
EV to Market Cap EV to Market Cap 0.89 68.89
EV to Revenue EV/Rev 137.27 199.70
Price to Book Value [P/B] P/B 2.06 22.62
Price to Earnings [P/E] P/E -3.78 -12.30
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 0.00 -12.02
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 -0.15
Interest Coverage Int. cover (Qtr) -394.68 857.11
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 2,403.57 -27.24
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -52.18 747.06
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 0.01
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -17.84 -48.21
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -18.50 -2.09
EBIT Growth (1y) % EBIT 1y % (Qtr) -17.70 -57.79
EBT Growth (1y) % EBT 1y % (Qtr) -17.20 -14.35
EPS Growth (1y) % EPS 1y % (Qtr) 2.15 -30.88
FCF Growth (1y) % FCF 1y % (Qtr) -13.74 -32.51
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -33.09 227.96
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.01 0.14
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.00
Cash Ratio Cash Ratio (Qtr) 0.87 3.79
Current Ratio Curr Ratio (Qtr) 5.89 7.23
Debt to Equity Ratio Debt/Equity (Qtr) 0.03 0.42
Interest Cover Ratio Int Coverage (Qtr) -394.68 857.11
Times Interest Earned Times Interest Earned (Qtr) -394.68 857.11
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) -3,620.40 -18,509.94
EBIT Margin % EBIT Margin % (Qtr) -4,051.97 -18,862.18
EBT Margin % EBT Margin % (Qtr) -4,062.24 -19,783.19
Gross Margin % Gross Margin % (Qtr) 100.00 -8.62
Net Profit Margin % Net Margin % (Qtr) -4,071.20 -19,732.60