Ardelyx, Inc. (NASDAQ: ARDX)

Sector: Healthcare Industry: Biotechnology CIK: 0001437402
P/B 9.90
P/E -27.00
P/S 3.83
Market Cap 1.53 Bn
ROIC (Qtr) -11.98
Div Yield % 0.00
Rev 1y % (Qtr) 12.30
Total Debt (Qtr) 207.61 Mn
Debt/Equity (Qtr) 1.35

About

Ardeleyx, Inc., a biopharmaceutical company with the ticker symbol ARDX, operates in the healthcare industry. The company is renowned for its development of innovative first-in-class medicines that cater to significant unmet medical needs. Ardeleyx's primary business activities revolve around the discovery, development, and commercialization of therapeutic products. These activities span across various therapeutic areas, including gastrointestinal and cardiorenal diseases. The company operates in the United States and has also established a presence...

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Analysis

Pros

  • Healthy cash reserves of 42.72M provide 29.77x coverage of short-term debt 1.44M, demonstrating strong liquidity position and minimal refinancing risk.
  • Tangible assets of 486.17M provide exceptional 23.97x coverage of deferred revenue 20.28M, showing strong service capability backing.
  • Short-term investments of 199.99M provide solid 3.15x coverage of other current liabilities 63.56M, indicating strong liquidity.
  • Tangible assets of 486.17M provide robust 7.65x coverage of other current liabilities 63.56M, indicating strong asset backing.
  • R&D investment of 62.34M represents healthy 3.07x of deferred revenue 20.28M, indicating strong future innovation pipeline.

Cons

  • Operating cash flow of (53.62M) barely covers its investment activities of (54.35M), with a coverage ratio of 0.99, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of (54.35M) provide weak support for R&D spending of 62.34M, which is -0.87x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Operating cash flow of (53.62M) provides insufficient coverage of deferred revenue obligations of 20.28M, which is -2.64x, raising concerns about future service delivery capabilities.
  • Short-term investments of 199.99M significantly exceed cash reserves of 42.72M, which is 4.68x, indicating potentially excessive yield-seeking behavior at the expense of liquidity.
  • The company's operating cash flow of (53.62M) shows concerning coverage of stock compensation expenses of 46.38M, with a -1.16 ratio indicating potential earnings quality issues.

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 3.38 12.31
EV to Cash from Ops. -30.65 23.25
EV to Debt 7.92 738.44
EV to EBIT -44.13 -9.16
EV to EBITDA -50.30 6.95
EV to Free Cash Flow [EV/FCF] -29.69 21.90
EV to Market Cap 1.08 65.67
EV to Revenue 4.13 227.32
Price to Book Value [P/B] 9.90 22.34
Price to Earnings [P/E] -27.00 -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 -2.03 841.00

Growth Metrics

Metric Value Industry Percentile
Capex Growth (1y) % -273.97 -27.13
Cash and Equivalents Growth (1y) % -9.94 734.65
Dividend Growth (1y) % 0.00 0.01
EBIAT Growth (1y) % 38.58 -46.93
EBITDA Growth (1y) % 43.90 -1.68
EBIT Growth (1y) % 39.19 -56.45
EBT Growth (1y) % 22.87 -12.70
EPS Growth (1y) % 25.81 -28.31
FCF Growth (1y) % 13.24 -31.90
Gross Profit Growth (1y) % 63.78 226.84

Liquidity Ratios

Metric Value Industry Percentile
Asset Utilization Ratio 0.82 0.14
Cash Payout Ratio 0.00 0.00
Cash Ratio 0.51 3.85
Current Ratio 4.41 7.27
Debt to Equity Ratio 1.35 0.40
Interest Cover Ratio -2.03 841.00
Times Interest Earned -2.03 841.00

Profitability

Metric Value Industry Percentile
EBITDA Margin % -8.00 -18,234.31
EBIT Margin % -9.35 -18,580.80
EBT Margin % -13.95 -19,488.74
Gross Margin % 88.20 -7.59
Net Profit Margin % -14.20 -19,439.22