Arbutus Biopharma Corp (NASDAQ: ABUS)

Sector: Healthcare Industry: Biotechnology CIK: 0001447028
Market Cap 854.73 Mn
P/B 11.04
P/E -20.22
P/S 58.52
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...

Read more

Price action

Investment thesis

Bull case

  • 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.

Bear case

  • 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.

Product and Service Breakdown of Revenue (2024)

Product and Service Breakdown of Revenue (2024)

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 8.42 12.96
EV to Cash from Ops. EV/CFO -18.16 23.73
EV to Debt EV to Debt 178.53 772.65
EV to EBIT EV/EBIT -19.50 -11.30
EV to EBITDA EV/EBITDA -18.95 7.11
EV to Free Cash Flow [EV/FCF] EV/FCF -18.13 22.12
EV to Market Cap EV to Market Cap 0.96 68.89
EV to Revenue EV/Rev 56.30 199.70
Price to Book Value [P/B] P/B 11.04 22.62
Price to Earnings [P/E] P/E -20.22 -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) -386.86 857.11
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 19.79 -27.24
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -29.64 747.06
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 0.01
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 44.91 -48.21
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 46.26 -2.09
EBIT Growth (1y) % EBIT 1y % (Qtr) 44.91 -57.79
EBT Growth (1y) % EBT 1y % (Qtr) 44.88 -14.35
EPS Growth (1y) % EPS 1y % (Qtr) 46.51 -30.88
FCF Growth (1y) % FCF 1y % (Qtr) 36.95 -32.51
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 116.64 227.96
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.15 0.14
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.00
Cash Ratio Cash Ratio (Qtr) 4.32 3.79
Current Ratio Curr Ratio (Qtr) 18.80 7.23
Debt to Equity Ratio Debt/Equity (Qtr) 0.06 0.42
Interest Cover Ratio Int Coverage (Qtr) -386.86 857.11
Times Interest Earned Times Interest Earned (Qtr) -386.86 857.11
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) -284.00 -18,509.94
EBIT Margin % EBIT Margin % (Qtr) -288.70 -18,862.18
EBT Margin % EBT Margin % (Qtr) -289.45 -19,783.19
Gross Margin % Gross Margin % (Qtr) 100.00 -8.62
Net Profit Margin % Net Margin % (Qtr) -289.40 -19,732.60