Anika Therapeutics, Inc. (NASDAQ: ANIK)

Sector: Healthcare Industry: Drug Manufacturers - Specialty & Generic CIK: 0000898437
Market Cap 139.86 Mn
P/B 0.95
P/E -4.23
P/S 1.73
ROIC (Qtr) 15.87
Div Yield % 0.00
Rev 1y % (Qtr) -5.89
Total Debt (Qtr) 22.78 Mn
Debt/Equity (Qtr) 0.16

About

Anika Therapeutics, Inc., a company listed on the NASDAQ stock exchange under the symbol ANIK, operates in the highly competitive and rapidly evolving orthopedic industry. The company specializes in the development, manufacturing, and commercialization of products that restore active living for people around the world, with a focus on addressing unmet needs in the treatment of osteoarthritis, sports medicine, and joint preservation. Anika Therapeutics generates revenue primarily through the sale of its products, which include hyaluronic acid-based...

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Price action

Investment thesis

Bull case

  • Strong tangible asset base of 179.74M provides 7.89x coverage of total debt 22.78M, indicating robust asset backing and low credit risk.
  • Tangible assets of 179.74M provide robust 12.52x coverage of other current liabilities 14.36M, indicating strong asset backing.
  • Retained earnings of 60.49M provide full 2.66x coverage of long-term debt 22.78M, indicating strong internal capital position.
  • Operating cash flow of 8.13M fully covers other non-current liabilities 761000 by 10.69x, showing strong long-term stability.
  • Cash reserves of 57.99M provide ample 12.90x coverage of acquisition spending 4.50M, enabling strategic growth opportunities.

Bear case

  • Operating cash flow of 8.13M barely covers its investment activities of (1.91M), with a coverage ratio of -4.27, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of (1.91M) provide weak support for R&D spending of 22.06M, which is -0.09x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • The company's operating cash flow of 8.13M shows concerning coverage of stock compensation expenses of 9.88M, with a 0.82 ratio indicating potential earnings quality issues.
  • Operating earnings of (31.21M) show weak coverage of depreciation charges of 8.37M, with a -3.73 ratio indicating high capital intensity and potential reinvestment needs.
  • Free cash flow of 48000 provides weak coverage of capital expenditures of 8.09M, with a 0.01 ratio suggesting additional external financing needs for growth initiatives.

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 0.58 24.98
EV to Cash from Ops. EV/CFO 13.51 -85.40
EV to Debt EV to Debt 4.82 265.88
EV to EBIT EV/EBIT -3.52 -32.65
EV to EBITDA EV/EBITDA 4.49 -29.50
EV to Free Cash Flow [EV/FCF] EV/FCF 2,288.91 -32.62
EV to Market Cap EV to Market Cap 0.79 -10.98
EV to Revenue EV/Rev 1.36 -700.14
Price to Book Value [P/B] P/B 0.95 27.22
Price to Earnings [P/E] P/E -4.23 -122.96
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 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) 11.34 -38.10
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 2.20 -157.22
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -7.02 44,776.25
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 2.81
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 64.08 24.45
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -24.28 18.14
EBIT Growth (1y) % EBIT 1y % (Qtr) 64.47 37.66
EBT Growth (1y) % EBT 1y % (Qtr) 66.49 108.18
EPS Growth (1y) % EPS 1y % (Qtr) 65.86 52.88
FCF Growth (1y) % FCF 1y % (Qtr) 105.94 -54.47
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 3.94 25.28
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.43 0.50
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.02
Cash Ratio Cash Ratio (Qtr) 3.04 2.10
Current Ratio Curr Ratio (Qtr) 5.32 3.92
Debt to Equity Ratio Debt/Equity (Qtr) 0.16 -1.11
Interest Cover Ratio Int Coverage (Qtr) 11.34 -38.10
Times Interest Earned Times Interest Earned (Qtr) 11.34 -38.10
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) -28.20 -62,432.09
EBIT Margin % EBIT Margin % (Qtr) -38.57 -63,260.88
EBT Margin % EBT Margin % (Qtr) -35.17 -66,726.96
Gross Margin % Gross Margin % (Qtr) 83.00 8,332.72
Net Profit Margin % Net Margin % (Qtr) -40.80 -66,728.37