Ardelyx, Inc. (NASDAQ: ARDX)

Sector: Healthcare Industry: Biotechnology CIK: 0001437402
Market Cap 1.72 Bn
P/B 11.16
P/E -30.43
P/S 4.32
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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Price action

Investment thesis

Bull case

  • 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.

Bear case

  • 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.

Product and Service Breakdown of Revenue (2024)

Geographical Breakdown of Revenue (2024)

Peer comparison

Companies in the Biotechnology
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 SMMT Summit Therapeutics Inc. 1,446.17 Bn -1,569.17 0.00 0.01 Bn
2 ONC BeOne Medicines Ltd. 439.23 Bn 6,407.40 88.33 1.90 Bn
3 VRTX Vertex Pharmaceuticals Inc / Ma 120.62 Bn 32.82 10.29 1.83 Bn
4 REGN Regeneron Pharmaceuticals, Inc. 84.40 Bn 18.44 5.92 2.71 Bn
5 ALNY Alnylam Pharmaceuticals, Inc. 56.13 Bn 1,288.39 17.49 3.21 Bn
6 ARGX Argenx Se 47.89 Bn 31.79 24,973.95 -
7 BNTC Benitec Biopharma Inc. 42.45 Bn -1,015.00 0.00 0.00 Bn
8 INSM INSMED Inc 32.67 Bn -27.60 73.08 0.74 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 3.78 12.96
EV to Cash from Ops. EV/CFO -34.27 23.73
EV to Debt EV to Debt 8.85 772.65
EV to EBIT EV/EBIT -49.34 -11.30
EV to EBITDA EV/EBITDA -56.24 7.11
EV to Free Cash Flow [EV/FCF] EV/FCF -33.20 22.12
EV to Market Cap EV to Market Cap 1.07 68.89
EV to Revenue EV/Rev 4.61 199.70
Price to Book Value [P/B] P/B 11.16 22.62
Price to Earnings [P/E] P/E -30.43 -12.30
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 -12.02
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 -0.15
Interest Coverage Int. cover (Qtr) -2.03 857.11
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -273.97 -27.24
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -9.94 747.06
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 0.01
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 38.58 -48.21
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 43.90 -2.09
EBIT Growth (1y) % EBIT 1y % (Qtr) 39.19 -57.79
EBT Growth (1y) % EBT 1y % (Qtr) 22.87 -14.35
EPS Growth (1y) % EPS 1y % (Qtr) 25.81 -30.88
FCF Growth (1y) % FCF 1y % (Qtr) 13.24 -32.51
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 63.78 227.96
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.82 0.14
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.00
Cash Ratio Cash Ratio (Qtr) 0.51 3.79
Current Ratio Curr Ratio (Qtr) 4.41 7.23
Debt to Equity Ratio Debt/Equity (Qtr) 1.35 0.42
Interest Cover Ratio Int Coverage (Qtr) -2.03 857.11
Times Interest Earned Times Interest Earned (Qtr) -2.03 857.11
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) -8.00 -18,509.94
EBIT Margin % EBIT Margin % (Qtr) -9.35 -18,862.18
EBT Margin % EBT Margin % (Qtr) -13.95 -19,783.19
Gross Margin % Gross Margin % (Qtr) 88.20 -8.62
Net Profit Margin % Net Margin % (Qtr) -14.20 -19,732.60