Arcellx, Inc. (NASDAQ: ACLX)

Sector: Healthcare Industry: Biotechnology CIK: 0001786205
P/B 9.04
P/E -18.28
P/S 110.99
Market Cap 3.98 Bn
ROIC (Qtr) -51.76
Div Yield % 0.00
Rev 1y % (Qtr) -80.99
Total Debt (Qtr) 51.79 Mn
Debt/Equity (Qtr) 0.12

About

Arcellx, Inc., a clinical-stage biotechnology company, is at the forefront of reimagining cell therapy through the development of innovative immunotherapies for patients with cancer and other incurable diseases. The company's proprietary technology, the D-Domain, is designed to overcome the limitations of traditional Chimeric Antigen Receptor T-cells (CAR-Ts) and enable the development of a new class of cell therapies. Arcellx is committed to advancing humanity by engineering safer, more effective, and more broadly accessible cell therapies. Arcellx's...

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Stock Price Chart

Analysis

Pros

  • Healthy cash reserves of 79M provide 10.57x coverage of short-term debt 7.47M, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 655.92M provides 12.66x coverage of total debt 51.79M, indicating robust asset backing and low credit risk.
  • Tangible assets of 655.92M provide exceptional 5.85x coverage of deferred revenue 112.18M, showing strong service capability backing.
  • Operating cash flow of (198.11M) fully covers other non-current liabilities (59.75M) by 3.32x, showing strong long-term stability.
  • Short-term investments of 382.38M provide solid 3.58x coverage of other current liabilities 106.72M, indicating strong liquidity.

Cons

  • Operating cash flow of (198.11M) barely covers its investment activities of 24.38M, with a coverage ratio of -8.13, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of 24.38M provide weak support for R&D spending of 168.16M, which is 0.14x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Operating cash flow of (198.11M) provides insufficient coverage of deferred revenue obligations of 112.18M, which is -1.77x, raising concerns about future service delivery capabilities.
  • The company's operating cash flow of (198.11M) shows concerning coverage of stock compensation expenses of 75.59M, with a -2.62 ratio indicating potential earnings quality issues.
  • Short-term investments of 382.38M significantly exceed cash reserves of 79M, which is 4.84x, indicating potentially excessive yield-seeking behavior at the expense of liquidity.

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 6.06 12.31
EV to Cash from Ops. -20.06 23.25
EV to Debt 76.74 738.44
EV to EBIT -15.92 -9.16
EV to EBITDA -16.90 6.95
EV to Free Cash Flow [EV/FCF] -19.76 21.90
EV to Market Cap 1.00 65.67
EV to Revenue 110.72 227.32
Price to Book Value [P/B] 9.04 22.34
Price to Earnings [P/E] -18.28 -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 7.50 841.00

Growth Metrics

Metric Value Industry Percentile
Capex Growth (1y) % 82.23 -27.13
Cash and Equivalents Growth (1y) % -51.25 734.65
Dividend Growth (1y) % 0.00 0.01
EBIAT Growth (1y) % -300.55 -46.93
EBITDA Growth (1y) % -289.10 -1.68
EBIT Growth (1y) % -309.76 -56.45
EBT Growth (1y) % -451.44 -12.70
EPS Growth (1y) % -453.52 -28.31
FCF Growth (1y) % -5,714.71 -31.90
Gross Profit Growth (1y) % -76.96 226.84

Liquidity Ratios

Metric Value Industry Percentile
Asset Utilization Ratio 0.05 0.14
Cash Payout Ratio 0.00 0.00
Cash Ratio 0.67 3.85
Current Ratio 3.99 7.27
Debt to Equity Ratio 0.12 0.40
Interest Cover Ratio 7.50 841.00
Times Interest Earned 7.50 841.00

Profitability

Metric Value Industry Percentile
EBITDA Margin % -674.80 -18,234.31
EBIT Margin % -695.50 -18,580.80
EBT Margin % -602.73 -19,488.74
Gross Margin % 100.00 -7.59
Net Profit Margin % -607.00 -19,439.22