Arcturus Therapeutics Holdings Inc. (NASDAQ: ARCT)

Sector: Healthcare Industry: Biotechnology CIK: 0001768224
P/B 0.90
P/E -3.03
P/S 2.07
Market Cap 202.30 Mn
ROIC (Qtr) -31.31
Div Yield % 0.00
Rev 1y % (Qtr) -58.84
Total Debt (Qtr) 21.87 Mn
Debt/Equity (Qtr) 0.10

About

Arcturus Therapeutics Holdings Inc., often referred to as Arcturus, operates in the biotechnology industry, specifically in the mRNA therapeutics and vaccines segment. The company's primary focus is on the development of infectious disease vaccines and therapeutics for liver and respiratory rare diseases. Its full name is Arcturus Therapeutics Holdings Inc., and its stock symbol is ARCT. Arcturus' main business activities revolve around the development of mRNA-based vaccines and therapeutics. These products are designed to treat and prevent various...

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Analysis

Pros

  • Strong tangible asset base of 282.34M provides 12.91x coverage of total debt 21.86M, indicating robust asset backing and low credit risk.
  • Tangible assets of 282.34M provide exceptional 25.56x coverage of deferred revenue 11.05M, showing strong service capability backing.
  • Operating cash flow of (58.33M) fully covers other non-current liabilities (6.83M) by 8.54x, showing strong long-term stability.
  • Tangible assets of 282.34M provide robust 10.77x coverage of other current liabilities 26.21M, indicating strong asset backing.
  • R&D investment of 131.52M represents healthy 11.91x of deferred revenue 11.05M, indicating strong future innovation pipeline.

Cons

  • Investment activities of (318000) provide weak support for R&D spending of 131.52M, which is -0x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Operating cash flow of (58.33M) provides insufficient coverage of deferred revenue obligations of 11.05M, which is -5.28x, raising concerns about future service delivery capabilities.
  • The company's operating cash flow of (58.33M) shows concerning coverage of stock compensation expenses of 27.57M, with a -2.12 ratio indicating potential earnings quality issues.
  • Free cash flow of (58.65M) provides weak coverage of capital expenditures of 318000, with a -184.42 ratio suggesting additional external financing needs for growth initiatives.
  • Operating earnings of (81.90M) show weak coverage of depreciation charges of 3.16M, with a -25.90 ratio indicating high capital intensity and potential reinvestment needs.

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 -0.09 12.31
EV to Cash from Ops. 0.45 23.25
EV to Debt -1.20 738.44
EV to EBIT 0.32 -9.16
EV to EBITDA 0.35 6.95
EV to Free Cash Flow [EV/FCF] 0.45 21.90
EV to Market Cap -0.13 65.67
EV to Revenue -0.27 227.32
Price to Book Value [P/B] 0.90 22.34
Price to Earnings [P/E] -3.03 -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 5.39 841.00

Growth Metrics

Metric Value Industry Percentile
Capex Growth (1y) % 79.12 -27.13
Cash and Equivalents Growth (1y) % -19.45 734.65
Dividend Growth (1y) % 0.00 0.01
EBIAT Growth (1y) % -3.28 -46.93
EBITDA Growth (1y) % 2.36 -1.68
EBIT Growth (1y) % -3.71 -56.45
EBT Growth (1y) % -6.94 -12.70
EPS Growth (1y) % -5.13 -28.31
FCF Growth (1y) % 4.82 -31.90
Gross Profit Growth (1y) % -39.15 226.84

Liquidity Ratios

Metric Value Industry Percentile
Asset Utilization Ratio 0.35 0.14
Cash Payout Ratio 0.00 0.00
Cash Ratio 7.42 3.85
Current Ratio 7.86 7.27
Debt to Equity Ratio 0.10 0.40
Interest Cover Ratio 5.39 841.00
Times Interest Earned 5.39 841.00

Profitability

Metric Value Industry Percentile
EBITDA Margin % -80.70 -18,234.31
EBIT Margin % -83.92 -18,580.80
EBT Margin % -68.35 -19,488.74
Gross Margin % 100.00 -7.59
Net Profit Margin % -68.30 -19,439.22