Arbutus Biopharma Corp (NASDAQ: ABUS)

Sector: Healthcare Industry: Biotechnology CIK: 0001447028
P/B 11.19
P/E -20.48
P/S 59.27
Market Cap 865.76 Mn
ROIC (Qtr) -51.87
Div Yield % 0.00
Rev 1y % (Qtr) -60.49
Total Debt (Qtr) 4.61 Mn
Debt/Equity (Qtr) 0.06

About

Arbutus Biopharma Corp (ABUS) is a clinical-stage biopharmaceutical company operating in the biotechnology industry. The company's primary business activities involve the development of RNAi therapeutic, imdusiran (AB-729), and an oral PD-L1 inhibitor, AB-101, designed to target different steps in the HBV viral lifecycle. Arbutus's pipeline includes two product candidates that target HBV, with imdusiran being a subcutaneously-delivered RNAi therapeutic that reduces all HBV antigens and inhibits viral replication. The company generates revenue through...

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Analysis

Pros

  • Healthy cash reserves of 22.41M provide 42.20x coverage of short-term debt 531000, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 97.71M provides 21.21x coverage of total debt 4.61M, indicating robust asset backing and low credit risk.
  • Cash reserves of 22.41M provide solid 2.03x coverage of other non-current liabilities 11.05M, indicating strong liquidity.
  • Cash reserves of 22.41M provide robust 4.32x coverage of current liabilities 5.18M, indicating strong short-term solvency.
  • Short-term investments of 71.29M provide 134.26x coverage of short-term debt 531000, showing strong liquidity management.

Cons

  • Operating cash flow of (45.27M) barely covers its investment activities of 30.35M, with a coverage ratio of -1.49, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of 30.35M provide weak support for R&D spending of 29.05M, which is 1.04x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Short-term investments of 71.29M significantly exceed cash reserves of 22.41M, which is 3.18x, indicating potentially excessive yield-seeking behavior at the expense of liquidity.
  • The company's operating cash flow of (45.27M) shows concerning coverage of stock compensation expenses of 7.32M, with a -6.18 ratio indicating potential earnings quality issues.
  • Free cash flow of (45.35M) provides weak coverage of capital expenditures of 77000, with a -588.95 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 Percentile
EV to Assets 8.53 12.31
EV to Cash from Ops. -18.41 23.25
EV to Debt 180.93 738.44
EV to EBIT -19.76 -9.16
EV to EBITDA -19.20 6.95
EV to Free Cash Flow [EV/FCF] -18.38 21.90
EV to Market Cap 0.96 65.67
EV to Revenue 57.06 227.32
Price to Book Value [P/B] 11.19 22.34
Price to Earnings [P/E] -20.48 -11.77

Dividend Metrics

Metric Value Industry Percentile
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 -386.86 841.00

Growth Metrics

Metric Value Industry Percentile
Capex Growth (1y) % 19.79 -27.13
Cash and Equivalents Growth (1y) % -29.64 734.65
Dividend Growth (1y) % 0.00 0.01
EBIAT Growth (1y) % 44.91 -46.93
EBITDA Growth (1y) % 46.26 -1.68
EBIT Growth (1y) % 44.91 -56.45
EBT Growth (1y) % 44.88 -12.70
EPS Growth (1y) % 46.51 -28.31
FCF Growth (1y) % 36.95 -31.90
Gross Profit Growth (1y) % 116.64 226.84

Liquidity Ratios

Metric Value Industry Percentile
Asset Utilization Ratio 0.15 0.14
Cash Payout Ratio 0.00 0.00
Cash Ratio 4.32 3.85
Current Ratio 18.80 7.27
Debt to Equity Ratio 0.06 0.40
Interest Cover Ratio -386.86 841.00
Times Interest Earned -386.86 841.00

Profitability

Metric Value Industry Percentile
EBITDA Margin % -284.00 -18,234.31
EBIT Margin % -288.70 -18,580.80
EBT Margin % -289.45 -19,488.74
Gross Margin % 100.00 -7.59
Net Profit Margin % -289.40 -19,439.22