Aptevo Therapeutics Inc. (NASDAQ: APVO)

Sector: Healthcare Industry: Biotechnology CIK: 0001671584
Market Cap 1.61 Mn
P/B 0.09
P/E -0.06
P/S 0.00
ROIC (Qtr) -166.26
Div Yield % 0.00
Rev 1y % (Qtr) 0.00
Total Debt (Qtr) 3.99 Mn
Debt/Equity (Qtr) 0.23
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About

Aptevo Therapeutics Inc. (APVO) is a clinical-stage biotechnology company operating in the healthcare industry, specifically focused on developing novel immunotherapy candidates for the treatment of various forms of cancer. The company's main business activities revolve around the development of immunotherapy candidates using its proprietary ADAPTIR and ADAPTIR-FLEX platform technologies. These platforms are designed to generate monospecific, bispecific, and multi-specific immunotherapeutic proteins, providing a unique signaling response and engaging...

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Investment thesis

Bull case

  • Strong tangible asset base of 27M provides 6.77x coverage of total debt 3.99M, indicating robust asset backing and low credit risk.
  • Strong cash position of 21.06M provides 6.20x coverage of other current liabilities 3.40M, indicating excellent liquidity.
  • Cash reserves of 21.06M provide robust 3.75x coverage of current liabilities 5.61M, indicating strong short-term solvency.
  • Tangible assets of 27M provide robust 7.95x coverage of other current liabilities 3.40M, indicating strong asset backing.
  • Robust R&D investment of 14.88M at 1.26x of SG&A 11.81M demonstrates strong commitment to innovation and future growth.

Bear case

  • Investment activities of 0 provide weak support for R&D spending of 14.88M, which is 0x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • The company's operating cash flow of (26.11M) shows concerning coverage of stock compensation expenses of 22000, with a -1187.05 ratio indicating potential earnings quality issues.
  • Operating earnings of (26.47M) show weak coverage of depreciation charges of 230000, with a -115.10 ratio indicating high capital intensity and potential reinvestment needs.
  • High financing cash flow of 39.42M relative to working capital of 17.04M, which is 2.31x suggests concerning dependence on external funding for operational needs.
  • Operating cash flow of (26.11M) is outpaced by equity issuance of 39.42M (-0.66 ratio), indicating concerning reliance on equity markets for funding operations.

Peer comparison

Companies in the Biotechnology
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 SMMT Summit Therapeutics Inc. 1,204.25 Bn -1,306.67 0.00 0.01 Bn
2 ONC BeOne Medicines Ltd. 486.51 Bn 7,097.20 97.84 1.90 Bn
3 VRTX Vertex Pharmaceuticals Inc / Ma 122.05 Bn 30.87 10.17 1.85 Bn
4 REGN Regeneron Pharmaceuticals, Inc. 83.00 Bn 18.42 5.79 2.71 Bn
5 ARGX Argenx Se 50.78 Bn 33.71 26,480.10 -
6 ALNY Alnylam Pharmaceuticals, Inc. 43.66 Bn 139.17 11.76 2.97 Bn
7 BNTC Benitec Biopharma Inc. 43.61 Bn -941.82 0.00 0.00 Bn
8 INSM INSMED Inc 28.88 Bn -24.40 64.61 0.74 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets -0.13 11.06
EV to Cash from Ops. EV/CFO 0.14 26.32
EV to Debt EV to Debt -0.90 762.61
EV to EBIT EV/EBIT 0.14 -13.49
EV to EBITDA EV/EBITDA 0.14 8.61
EV to Free Cash Flow [EV/FCF] EV/FCF 0.14 25.66
EV to Market Cap EV to Market Cap -2.23 203.37
EV to Revenue EV/Rev 0.00 156.31
Price to Book Value [P/B] P/B 0.09 20.59
Price to Earnings [P/E] P/E -0.06 -0.88
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) -18.90 -12.64
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 -0.14
Interest Coverage Interest Coverage 0.00 956.66
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 0.00 7.87
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 171.65 753.48
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 0.01
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -11.60 -57.63
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -9.34 8.83
EBIT Growth (1y) % EBIT 1y % (Qtr) -11.60 -67.21
EBT Growth (1y) % EBT 1y % (Qtr) -11.60 -23.74
EPS Growth (1y) % EPS 1y % (Qtr) 113.59 -7.02
FCF Growth (1y) % FCF 1y % (Qtr) -12.18 -40.48
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 0.00 264.51
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.00 0.14
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.00
Cash Ratio Cash Ratio (Qtr) 3.75 3.92
Current Ratio Curr Ratio (Qtr) 4.03 7.33
Debt to Equity Ratio Debt/Equity (Qtr) 0.23 0.48
Interest Cover Ratio Interest Cover Ratio 0.00 956.66
Times Interest Earned Times Interest Earned 0.00 956.66
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 0.00 -17,888.70
EBIT Margin % EBIT Margin % (Qtr) 0.00 -18,246.34
EBT Margin % EBT Margin % (Qtr) 0.00 -19,108.08
Gross Margin % Gross Margin % (Qtr) 0.00 -10.30
Net Profit Margin % Net Margin % (Qtr) 0.00 -19,056.96