Acrivon Therapeutics, Inc. (NASDAQ: ACRV)

Sector: Healthcare Industry: Biotechnology CIK: 0001781174
Market Cap 61.70 Mn
P/B 0.48
P/E -0.75
P/S 0.00
ROIC (Qtr) -64.02
Div Yield % 0.00
Rev 1y % (Qtr) 0.00
Total Debt (Qtr) 2.99 Mn
Debt/Equity (Qtr) 0.02
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About

Acrivon Therapeutics, Inc. (ACRV), a clinical-stage biopharmaceutical company, is at the forefront of developing precision oncology medicines. The company's proprietary proteomics-based patient responder identification platform, AP3, is designed to match patients to medicines that are predicted to be effective for their specific tumors. This platform measures compound-specific effects on the entire tumor cell protein signaling network and drug-induced resistance mechanisms in an unbiased manner, enabling the creation of drug-specific proprietary...

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Investment thesis

Bull case

  • Healthy cash reserves of 35.61M provide 30.07x coverage of short-term debt 1.18M, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 145.30M provides 48.61x coverage of total debt 2.99M, indicating robust asset backing and low credit risk.
  • Tangible assets of 145.30M provide robust 11.43x coverage of other current liabilities 12.71M, indicating strong asset backing.
  • Short-term investments of 93.85M provide solid 7.38x coverage of other current liabilities 12.71M, indicating strong liquidity.
  • Long-term investments of 5.11M provide solid 2.83x coverage of long-term debt 1.80M, indicating strategic financial planning.

Bear case

  • Operating cash flow of (65.79M) barely covers its investment activities of 58.99M, with a coverage ratio of -1.12, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of 58.99M provide weak support for R&D spending of 63.87M, which is 0.92x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • The company's operating cash flow of (65.79M) shows concerning coverage of stock compensation expenses of 15.34M, with a -4.29 ratio indicating potential earnings quality issues.
  • Free cash flow of (68.06M) provides weak coverage of capital expenditures of 2.28M, with a -29.89 ratio suggesting additional external financing needs for growth initiatives.
  • Operating earnings of (81.75M) show weak coverage of depreciation charges of 2.30M, with a -35.50 ratio indicating high capital intensity and potential reinvestment needs.

Peer comparison

Companies in the Biotechnology
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 SMMT Summit Therapeutics Inc. 1,204.25 Bn -1,306.67 0.00 0.01 Bn
2 ONC BeOne Medicines Ltd. 486.51 Bn 7,097.20 97.84 1.90 Bn
3 VRTX Vertex Pharmaceuticals Inc / Ma 122.05 Bn 30.87 10.17 1.85 Bn
4 REGN Regeneron Pharmaceuticals, Inc. 83.00 Bn 18.42 5.79 2.71 Bn
5 ARGX Argenx Se 50.78 Bn 33.71 26,480.10 -
6 ALNY Alnylam Pharmaceuticals, Inc. 43.66 Bn 139.17 11.76 2.97 Bn
7 BNTC Benitec Biopharma Inc. 43.61 Bn -941.82 0.00 0.00 Bn
8 INSM INSMED Inc 28.88 Bn -24.40 64.61 0.74 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.16 11.06
EV to Cash from Ops. EV/CFO -0.35 26.32
EV to Debt EV to Debt 7.65 762.61
EV to EBIT EV/EBIT -0.28 -13.49
EV to EBITDA EV/EBITDA -0.26 8.61
EV to Free Cash Flow [EV/FCF] EV/FCF -0.34 25.66
EV to Market Cap EV to Market Cap 0.37 203.37
EV to Revenue EV to Revenue 0.00 156.31
Price to Book Value [P/B] P/B 0.48 20.59
Price to Earnings [P/E] P/E -0.75 -0.88
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 -12.64
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 -0.14
Interest Coverage Interest Coverage 0.00 956.66
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 26.36 7.87
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -18.35 753.48
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 0.01
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -6.20 -57.63
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -3.69 8.83
EBIT Growth (1y) % EBIT 1y % (Qtr) -6.20 -67.21
EBT Growth (1y) % EBT 1y % (Qtr) -6.20 -23.74
EPS Growth (1y) % EPS 1y % (Qtr) 21.77 -7.02
FCF Growth (1y) % FCF 1y % (Qtr) -6.74 -40.48
Gross Profit Growth (1y) % Gross Profit Growth (1y) % 0.00 264.51
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.00 0.14
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.00
Cash Ratio Cash Ratio (Qtr) 2.39 3.92
Current Ratio Curr Ratio (Qtr) 8.75 7.33
Debt to Equity Ratio Debt/Equity (Qtr) 0.02 0.48
Interest Cover Ratio Interest Cover Ratio 0.00 956.66
Times Interest Earned Times Interest Earned 0.00 956.66
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % 0.00 -17,888.70
EBIT Margin % EBIT Margin % 0.00 -18,246.34
EBT Margin % EBT Margin % 0.00 -19,108.08
Gross Margin % Gross Margin % 0.00 -10.30
Net Profit Margin % Net Profit Margin % 0.00 -19,056.96