Adaptive Biotechnologies Corp (NASDAQ: ADPT)

Sector: Healthcare Industry: Biotechnology CIK: 0001478320
Market Cap 2.40 Bn
P/B 11.73
P/E -30.11
P/S 9.49
ROIC (Qtr) -19.17
Div Yield % 0.00
Rev 1y % (Qtr) 102.38
Total Debt (Qtr) 213.64 Mn
Debt/Equity (Qtr) 1.05

About

Adaptive Biotechnologies Corp (ADPT) is a biotechnology company that operates in the development of immune medicine products and services. The company's headquarters is located in San Diego, California, and it has a global reach with operations in the United States, Europe, and Asia. Adaptive Biotech specializes in the development of immune medicine products and services that leverage its proprietary immunosequencing technology to read the genetic code of a patient's immune system and understand how it detects and treats disease. Adaptive Biotech's...

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Price action

Investment thesis

Bull case

  • Healthy cash reserves of 57.72M provide 4.86x coverage of short-term debt 11.87M, demonstrating strong liquidity position and minimal refinancing risk.
  • Tangible assets of 369.48M provide exceptional 8.68x coverage of deferred revenue 42.54M, showing strong service capability backing.
  • Operating cash flow of (60.53M) fully covers other non-current liabilities (41.32M) by 1.47x, showing strong long-term stability.
  • Short-term investments of 157.74M provide solid 2.58x coverage of other current liabilities 61.22M, indicating strong liquidity.
  • Cash position of 57.72M provides exceptional 3395.47x coverage of minority interest expenses 17000, indicating strong liquidity.

Bear case

  • Operating cash flow of (60.53M) barely covers its investment activities of 68.32M, with a coverage ratio of -0.89, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of 68.32M provide weak support for R&D spending of 95.20M, which is 0.72x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Operating cash flow of (60.53M) provides insufficient coverage of deferred revenue obligations of 42.54M, which is -1.42x, raising concerns about future service delivery capabilities.
  • The company's operating cash flow of (60.53M) shows concerning coverage of stock compensation expenses of 51.59M, with a -1.17 ratio indicating potential earnings quality issues.
  • High receivables of 44.82M relative to inventory of 9.93M (4.51 ratio) suggests aggressive credit terms or collection difficulties, potentially masking revenue quality issues.

Product and Service Breakdown of Revenue (2024)

Collaborative Arrangement and Arrangement Other than Collaborative 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 5.24 12.96
EV to Cash from Ops. EV/CFO -42.45 23.73
EV to Debt EV to Debt 12.03 772.65
EV to EBIT EV/EBIT -37.88 -11.30
EV to EBITDA EV/EBITDA -46.87 7.11
EV to Free Cash Flow [EV/FCF] EV/FCF -40.83 22.12
EV to Market Cap EV to Market Cap 1.07 68.89
EV to Revenue EV/Rev 10.17 199.70
Price to Book Value [P/B] P/B 11.73 22.62
Price to Earnings [P/E] P/E -30.11 -12.30
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 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) -5.76 857.11
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 50.78 -27.24
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 40.58 747.06
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 0.01
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 63.05 -48.21
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 68.53 -2.09
EBIT Growth (1y) % EBIT 1y % (Qtr) 63.05 -57.79
EBT Growth (1y) % EBT 1y % (Qtr) 59.22 -14.35
EPS Growth (1y) % EPS 1y % (Qtr) 60.45 -30.88
FCF Growth (1y) % FCF 1y % (Qtr) 45.05 -32.51
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 75.21 227.96
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.52 0.14
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.00
Cash Ratio Cash Ratio (Qtr) 0.69 3.79
Current Ratio Curr Ratio (Qtr) 3.38 7.23
Debt to Equity Ratio Debt/Equity (Qtr) 1.05 0.42
Interest Cover Ratio Int Coverage (Qtr) -5.76 857.11
Times Interest Earned Times Interest Earned (Qtr) -5.76 857.11
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) -17.60 -18,509.94
EBIT Margin % EBIT Margin % (Qtr) -26.84 -18,862.18
EBT Margin % EBT Margin % (Qtr) -31.50 -19,783.19
Gross Margin % Gross Margin % (Qtr) 71.80 -8.62
Net Profit Margin % Net Margin % (Qtr) -31.50 -19,732.60