Agios Pharmaceuticals, Inc. (NASDAQ: AGIO)

Sector: Healthcare Industry: Biotechnology CIK: 0001439222
Market Cap 1.62 Bn
P/B 1.26
P/E -4.03
P/S 36.14
ROIC (Qtr) -34.62
Div Yield % 0.00
Rev 1y % (Qtr) 43.69
Total Debt (Qtr) 44.52 Mn
Debt/Equity (Qtr) 0.03

About

Agios Pharmaceuticals, Inc. (AGIO), a company operating in the biopharmaceutical industry, specializes in the development of innovative treatments for rare diseases. Its primary focus is classical hematology, which entails the study and treatment of blood disorders that are non-cancerous. The company's pipeline includes several promising product candidates, such as PYRUKYND, which has been approved by the US Food and Drug Administration (FDA) for the treatment of hemolytic anemia in adults with pyruvate kinase (PK) deficiency. Agios' business is...

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Price action

Investment thesis

Bull case

  • Healthy cash reserves of 92.71M provide 5.15x coverage of short-term debt 17.99M, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 1.39B provides 31.13x coverage of total debt 44.52M, indicating robust asset backing and low credit risk.
  • Short-term investments of 860.15M provide solid 23.11x coverage of other current liabilities 37.22M, indicating strong liquidity.
  • Long-term investments of 304.34M provide solid 11.47x coverage of long-term debt 26.53M, indicating strategic financial planning.
  • Tangible assets of 1.39B provide robust 37.23x coverage of other current liabilities 37.22M, indicating strong asset backing.

Bear case

  • Operating cash flow of (409.93M) barely covers its investment activities of 237.95M, with a coverage ratio of -1.72, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of 237.95M provide weak support for R&D spending of 334.29M, which is 0.71x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Short-term investments of 860.15M significantly exceed cash reserves of 92.71M, which is 9.28x, indicating potentially excessive yield-seeking behavior at the expense of liquidity.
  • The company's operating cash flow of (409.93M) shows concerning coverage of stock compensation expenses of 49.33M, with a -8.31 ratio indicating potential earnings quality issues.
  • Free cash flow of (414.09M) provides weak coverage of capital expenditures of 4.16M, with a -99.47 ratio suggesting additional external financing needs for growth initiatives.

Product and Service Breakdown of Revenue (2024)

Segments 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 1.15 12.96
EV to Cash from Ops. EV/CFO -3.87 23.73
EV to Debt EV to Debt 35.65 772.65
EV to EBIT EV/EBIT -3.87 -11.30
EV to EBITDA EV/EBITDA -3.46 7.11
EV to Free Cash Flow [EV/FCF] EV/FCF -3.83 22.12
EV to Market Cap EV to Market Cap 0.98 68.89
EV to Revenue EV/Rev 35.43 199.70
Price to Book Value [P/B] P/B 1.26 22.62
Price to Earnings [P/E] P/E -4.03 -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) 0.00 857.11
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -356.47 -27.24
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -63.46 747.06
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 0.01
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -159.51 -48.21
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -191.78 -2.09
EBIT Growth (1y) % EBIT 1y % (Qtr) -156.38 -57.79
EBT Growth (1y) % EBT 1y % (Qtr) -156.38 -14.35
EPS Growth (1y) % EPS 1y % (Qtr) -159.20 -30.88
FCF Growth (1y) % FCF 1y % (Qtr) -25.45 -32.51
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 32.96 227.96
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.03 0.14
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.00
Cash Ratio Cash Ratio (Qtr) 1.24 3.79
Current Ratio Curr Ratio (Qtr) 13.82 7.23
Debt to Equity Ratio Debt/Equity (Qtr) 0.03 0.42
Interest Cover Ratio Int Coverage (Qtr) 0.00 857.11
Times Interest Earned Times Interest Earned (Qtr) 0.00 857.11
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) -876.70 -18,509.94
EBIT Margin % EBIT Margin % (Qtr) -915.68 -18,862.18
EBT Margin % EBT Margin % (Qtr) -915.68 -19,783.19
Gross Margin % Gross Margin % (Qtr) 87.20 -8.62
Net Profit Margin % Net Margin % (Qtr) -895.90 -19,732.60