Apellis Pharmaceuticals, Inc. (NASDAQ: APLS)

Sector: Healthcare Industry: Biotechnology CIK: 0001492422
P/B 8.08
P/E 72.09
P/S 3.19
Market Cap 3.24 Bn
ROIC (Qtr) 10.67
Div Yield % 0.00
Rev 1y % (Qtr) 132.98
Total Debt (Qtr) 475.37 Mn
Debt/Equity (Qtr) 1.18

About

Apellis Pharmaceuticals, Inc., a commercial-stage biopharmaceutical company, operates in the healthcare industry, specifically in the discovery, development, and commercialization of novel therapeutic compounds to treat diseases with high unmet needs through the inhibition of the complement system at the level of C3, the central protein in the complement cascade. The company's main business activities revolve around the development and commercialization of its lead product, pegcetacoplan, which is formulated for both intravitreal and systemic administration. Apellis...

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Analysis

Pros

  • Healthy cash reserves of 480.60M provide 4.78x coverage of short-term debt 100.60M, demonstrating strong liquidity position and minimal refinancing risk.
  • Robust free cash flow of 78.64M exceeds capital expenditure of 225000 by 349.50x, indicating strong organic growth funding capability.
  • Operating cash flow of 78.86M fully covers other non-current liabilities 3.26M by 24.21x, showing strong long-term stability.
  • Cash reserves of 480.60M provide robust 1.72x coverage of current liabilities 279.53M, indicating strong short-term solvency.
  • Strong cash position of 480.60M provides 3.42x coverage of other current liabilities 140.32M, indicating excellent liquidity.

Cons

  • Operating cash flow of 78.86M barely covers its investment activities of (225000), with a coverage ratio of -350.50, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of (225000) provide weak support for R&D spending of 297.98M, which is -0x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • High receivables of 345.54M relative to inventory of 163.73M (2.11 ratio) suggests aggressive credit terms or collection difficulties, potentially masking revenue quality issues.
  • The company's operating cash flow of 78.86M shows concerning coverage of stock compensation expenses of 109.07M, with a 0.72 ratio indicating potential earnings quality issues.
  • Free cash flow of 78.64M represents just -13.98x of debt issuance (5.62M), suggesting concerning reliance on leverage rather than internal cash generation for growth.

Peer Comparison

Companies in the Biotechnology
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 SMMT Summit Therapeutics Inc. 1,349.40 Bn -1,464.17 0.00 0.01 Bn
2 ONC BeOne Medicines Ltd. 437.43 Bn 6,381.20 87.97 1.90 Bn
3 VRTX Vertex Pharmaceuticals Inc / Ma 116.09 Bn 31.59 9.90 1.83 Bn
4 REGN Regeneron Pharmaceuticals, Inc. 78.10 Bn 17.06 5.48 2.71 Bn
5 ALNY Alnylam Pharmaceuticals, Inc. 55.87 Bn 1,282.42 17.40 3.21 Bn
6 ARGX Argenx Se 52.85 Bn 35.08 27,559.65 -
7 BNTC Benitec Biopharma Inc. 41.75 Bn -998.33 0.00 0.00 Bn
8 INSM INSMED Inc 37.80 Bn -31.93 84.56 0.74 Bn

Industry Comparisons

Current Valuation

Metric Value Industry Percentile
EV to Assets 3.16 12.31
EV to Cash from Ops. 42.37 23.25
EV to Debt 7.03 738.44
EV to EBIT 36.44 -9.16
EV to EBITDA 40.70 6.95
EV to Free Cash Flow [EV/FCF] 42.49 21.90
EV to Market Cap 1.03 65.67
EV to Revenue 3.29 227.32
Price to Book Value [P/B] 8.08 22.34
Price to Earnings [P/E] 72.09 -11.77

Dividend Metrics

Metric Value Industry Percentile
Dividend Coverage Ratio 0.00 -11.94
Dividend Payout Ratio % 0.00 0.16
Dividend per Basic Share 0.00 0.01
FCF Dividend Payout Ratio % 0.00 -0.14
Interest Coverage 2.04 841.00

Growth Metrics

Metric Value Industry Percentile
Capex Growth (1y) % 40.63 -27.13
Cash and Equivalents Growth (1y) % 20.68 734.65
Dividend Growth (1y) % 0.00 0.01
EBIAT Growth (1y) % 141.39 -46.93
EBITDA Growth (1y) % 137.06 -1.68
EBIT Growth (1y) % 143.35 -56.45
EBT Growth (1y) % 118.84 -12.70
EPS Growth (1y) % 117.33 -28.31
FCF Growth (1y) % 138.27 -31.90
Gross Profit Growth (1y) % 46.02 226.84

Liquidity Ratios

Metric Value Industry Percentile
Asset Utilization Ratio 0.96 0.14
Cash Payout Ratio 0.00 0.00
Cash Ratio 1.72 3.85
Current Ratio 3.54 7.27
Debt to Equity Ratio 1.18 0.40
Interest Cover Ratio 2.04 841.00
Times Interest Earned 2.04 841.00

Profitability

Metric Value Industry Percentile
EBITDA Margin % 9.20 -18,234.31
EBIT Margin % 9.02 -18,580.80
EBT Margin % 4.59 -19,488.74
Gross Margin % 88.80 -7.59
Net Profit Margin % 4.40 -19,439.22