Artelo Biosciences, Inc. (NASDAQ: ARTL)

Sector: Healthcare Industry: Biotechnology CIK: 0001621221
Market Cap 675,351.28
P/B -1.07
P/E -0.05
P/S 0.00
ROIC (Qtr) 12,009.66
Div Yield % 0.00
Rev 1y % (Qtr) 0.00
Total Debt (Qtr) 954,000.00
Debt/Equity (Qtr) -1.51
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About

Artelo Biosciences, Inc. (ARTL) is a clinical-stage biopharmaceutical company that operates in the highly competitive pharmaceutical and biotechnology industry. The company's primary focus is on developing therapeutics that target lipid-signaling pathways, including the endocannabinoid system (ECS). Artelo Biosciences is committed to creating products that improve the lives of patients with various diseases and conditions, including cancer, chemotherapy-induced peripheral neuropathy, diabetic neuropathy, prostate cancer, breast cancer, anxiety disorders,...

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Investment thesis

Bull case

  • Long-term investments of 325000 provide solid 8.12x coverage of long-term debt 40000, indicating strategic financial planning.
  • Retained earnings of (58.85M) represent substantial 92.97x of equity (633000), indicating strong internal capital generation.
  • Tangible assets of 2.23M provide robust 48.43x coverage of other current liabilities 46000, indicating strong asset backing.
  • Strong cash position of 1.72M provides 37.39x coverage of other current liabilities 46000, indicating excellent liquidity.
  • Robust R&D investment of 7.01M at 1.29x of SG&A 5.42M demonstrates strong commitment to innovation and future growth.

Bear case

  • Operating cash flow of (8.18M) barely covers its investment activities of 250000, with a coverage ratio of -32.70, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of 250000 provide weak support for R&D spending of 7.01M, which is 0.04x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • The company's operating cash flow of (8.18M) shows concerning coverage of stock compensation expenses of 975000, with a -8.39 ratio indicating potential earnings quality issues.
  • Operating earnings of (12.31M) show weak coverage of depreciation charges of 35000, with a -351.66 ratio indicating high capital intensity and potential reinvestment needs.
  • Free cash flow of (8.18M) represents just -11.09x of debt issuance 737000, 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. 1,204.25 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 -0.12 11.06
EV to Cash from Ops. EV/CFO 0.06 26.32
EV to Debt EV to Debt -0.54 762.61
EV to EBIT EV/EBIT 0.04 -13.49
EV to EBITDA EV/EBITDA 0.04 8.61
EV to Free Cash Flow [EV/FCF] EV/FCF 0.06 25.66
EV to Market Cap EV to Market Cap -0.76 203.37
EV to Revenue EV to Revenue 0.00 156.31
Price to Book Value [P/B] P/B -1.07 20.59
Price to Earnings [P/E] P/E -0.05 -0.88
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 -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 Int. cover (Qtr) -67.26 956.66
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex Growth (1y) % 0.00 7.87
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -60.52 753.48
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 0.01
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -34.94 -57.63
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -30.45 8.83
EBIT Growth (1y) % EBIT 1y % (Qtr) -34.94 -67.21
EBT Growth (1y) % EBT 1y % (Qtr) -36.95 -23.74
EPS Growth (1y) % EPS 1y % (Qtr) -21.51 -7.02
FCF Growth (1y) % FCF 1y % (Qtr) 2.42 -40.48
Gross Profit Growth (1y) % Gross Profit Growth (1y) % 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) 0.35 3.92
Current Ratio Curr Ratio (Qtr) 0.38 7.33
Debt to Equity Ratio Debt/Equity (Qtr) -1.51 0.48
Interest Cover Ratio Int Coverage (Qtr) -67.26 956.66
Times Interest Earned Times Interest Earned (Qtr) -67.26 956.66
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % 0.00 -17,888.70
EBIT Margin % EBIT Margin % 0.00 -18,246.34
EBT Margin % EBT Margin % 0.00 -19,108.08
Gross Margin % Gross Margin % 0.00 -10.30
Net Profit Margin % Net Profit Margin % 0.00 -19,056.96