Akebia Therapeutics, Inc. (NASDAQ: AKBA)

Sector: Healthcare Industry: Drug Manufacturers - Specialty & Generic CIK: 0001517022
Market Cap 320.09 Mn
P/B 7.70
P/E -20.12
P/S 1.42
ROIC (Qtr) 11.94
Div Yield % 0.00
Rev 1y % (Qtr) 57.01
Total Debt (Qtr) 47.64 Mn
Debt/Equity (Qtr) 1.15

About

Akebia Therapeutics, Inc. (AKBA) is a biopharmaceutical company that operates in the kidney disease industry. The company is dedicated to developing and commercializing innovative therapeutics that address unmet needs in the kidney disease community. Akebia Therapeutics has established itself as a leader in the kidney community through its fully integrated business focused on developing and commercializing innovative therapeutics. The company's purpose is to better the life of each person impacted by kidney disease. Akebia Therapeutics has a presence...

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Price action

Investment thesis

Bull case

  • Strong operating cash flow of 32.40M provides robust 0.68x coverage of total debt 47.64M, indicating excellent debt servicing capability and financial flexibility.
  • Strong tangible asset base of 305.11M provides 6.40x coverage of total debt 47.64M, indicating robust asset backing and low credit risk.
  • Robust free cash flow of 32.35M exceeds capital expenditure of 51000 by 634.24x, indicating strong organic growth funding capability.
  • Tangible assets of 305.11M provide exceptional 78.62x coverage of deferred revenue 3.88M, showing strong service capability backing.
  • Operating cash flow of 32.40M provides strong 8.35x coverage of deferred revenue 3.88M, indicating service delivery capability.

Bear case

  • Operating cash flow of 32.40M barely covers its investment activities of (51000), with a coverage ratio of -635.24, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of (51000) provide weak support for R&D spending of 47.50M, which is -0x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • High receivables of 66.22M relative to inventory of 18.64M (3.55 ratio) suggests aggressive credit terms or collection difficulties, potentially masking revenue quality issues.
  • The company's operating cash flow of 32.40M shows concerning coverage of stock compensation expenses of 9.78M, with a 3.31 ratio indicating potential earnings quality issues.
  • Operating earnings of 10.94M show weak coverage of depreciation charges of 14.76M, with a 0.74 ratio indicating high capital intensity and potential reinvestment needs.

Peer comparison

Companies in the Drug Manufacturers - Specialty & Generic
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 ZTS Zoetis Inc. 56.15 Bn 21.18 5.98 7.27 Bn
2 TAK Takeda Pharmaceutical Co Ltd 48.92 Bn 221.13 1.66 36.24 Bn
3 HLN Haleon plc 46.13 Bn 25.59 3.29 -
4 TEVA Teva Pharmaceutical Industries Ltd 35.27 Bn 49.54 2.10 17.07 Bn
5 UTHR UNITED THERAPEUTICS Corp 21.76 Bn 17.11 6.95 0.00 Bn
6 VTRS Viatris Inc 14.87 Bn -4.03 1.05 14.44 Bn
7 NBIX Neurocrine Biosciences Inc 14.08 Bn 32.91 5.25 0.43 Bn
8 ELAN Elanco Animal Health Inc 11.64 Bn 323.29 2.54 4.32 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.63 24.98
EV to Cash from Ops. EV/CFO 7.12 -85.40
EV to Debt EV to Debt 4.84 265.88
EV to EBIT EV/EBIT 21.07 -32.65
EV to EBITDA EV/EBITDA 6.41 -29.50
EV to Free Cash Flow [EV/FCF] EV/FCF 7.13 -32.62
EV to Market Cap EV to Market Cap 0.72 -10.98
EV to Revenue EV/Rev 1.02 -700.14
Price to Book Value [P/B] P/B 7.70 27.22
Price to Earnings [P/E] P/E -20.12 -122.96
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 0.00 0.34
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 4.81
Dividend per Basic Share Div per Share (Qtr) 0.00 0.07
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 4.08
Interest Coverage Int. cover (Qtr) 0.42 -38.10
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -64.52 -157.22
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 389.27 44,776.25
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 2.81
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 134.21 24.45
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 149.37 18.14
EBIT Growth (1y) % EBIT 1y % (Qtr) 132.88 37.66
EBT Growth (1y) % EBT 1y % (Qtr) 66.76 108.18
EPS Growth (1y) % EPS 1y % (Qtr) 65.22 52.88
FCF Growth (1y) % FCF 1y % (Qtr) 183.95 -54.47
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 64.00 25.28
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.62 0.50
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.02
Cash Ratio Cash Ratio (Qtr) 1.25 2.10
Current Ratio Curr Ratio (Qtr) 1.94 3.92
Debt to Equity Ratio Debt/Equity (Qtr) 1.15 -1.11
Interest Cover Ratio Int Coverage (Qtr) 0.42 -38.10
Times Interest Earned Times Interest Earned (Qtr) 0.42 -38.10
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 11.40 -62,432.09
EBIT Margin % EBIT Margin % (Qtr) 4.86 -63,260.88
EBT Margin % EBT Margin % (Qtr) -6.79 -66,726.96
Gross Margin % Gross Margin % (Qtr) 79.00 8,332.72
Net Profit Margin % Net Margin % (Qtr) -7.10 -66,728.37