Artiva Biotherapeutics, Inc. (NASDAQ: ARTV)

Sector: Healthcare Industry: Biotechnology CIK: 0001817241
Market Cap 294.86 Mn
P/B 2.28
P/E -3.72
P/S 0.00
ROIC (Qtr) -56.83
Div Yield % 0.00
Rev 1y % (Qtr) 0.00
Total Debt (Qtr) 11.69 Mn
Debt/Equity (Qtr) 0.09

About

Price action

Investment thesis

Bull case

  • Healthy cash reserves of 25.97M provide 8.19x coverage of short-term debt 3.17M, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 148.86M provides 12.73x coverage of total debt 11.69M, indicating robust asset backing and low credit risk.
  • Short-term investments of 97.46M provide solid 13.73x coverage of other current liabilities 7.10M, indicating strong liquidity.
  • Tangible assets of 148.86M provide robust 20.97x coverage of other current liabilities 7.10M, indicating strong asset backing.
  • Cash reserves of 25.97M provide robust 2.34x coverage of current liabilities 11.12M, indicating strong short-term solvency.

Bear case

  • Operating cash flow of (76.67M) barely covers its investment activities of 46.41M, with a coverage ratio of -1.65, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of 46.41M provide weak support for R&D spending of 65.86M, which is 0.70x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Short-term investments of 97.46M significantly exceed cash reserves of 25.97M, which is 3.75x, indicating potentially excessive yield-seeking behavior at the expense of liquidity.
  • The company's operating cash flow of (76.67M) shows concerning coverage of stock compensation expenses of 7.42M, with a -10.34 ratio indicating potential earnings quality issues.
  • Free cash flow of (78.91M) provides weak coverage of capital expenditures of 2.23M, with a -35.38 ratio suggesting additional external financing needs for growth initiatives.

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 1.88 12.96
EV to Cash from Ops. EV/CFO -3.64 23.73
EV to Debt EV to Debt 23.88 772.65
EV to EBIT EV/EBIT -3.53 -11.30
EV to EBITDA EV/EBITDA -3.34 7.11
EV to Free Cash Flow [EV/FCF] EV/FCF -3.54 22.12
EV to Market Cap EV to Market Cap 0.95 68.89
EV to Revenue EV/Rev 0.00 199.70
Price to Book Value [P/B] P/B 2.28 22.62
Price to Earnings [P/E] P/E -3.72 -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 Interest Coverage 0.00 857.11
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -83.69 -27.24
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -53.74 747.06
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 0.01
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -29.23 -48.21
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -42.72 -2.09
EBIT Growth (1y) % EBIT 1y % (Qtr) -29.38 -57.79
EBT Growth (1y) % EBT 1y % (Qtr) -29.38 -14.35
EPS Growth (1y) % EPS 1y % (Qtr) 97.77 -30.88
FCF Growth (1y) % FCF 1y % (Qtr) -50.95 -32.51
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 0.00 227.96
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) 2.34 3.79
Current Ratio Curr Ratio (Qtr) 11.65 7.23
Debt to Equity Ratio Debt/Equity (Qtr) 0.09 0.42
Interest Cover Ratio Interest Cover Ratio 0.00 857.11
Times Interest Earned Times Interest Earned 0.00 857.11
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 0.00 -18,509.94
EBIT Margin % EBIT Margin % (Qtr) 0.00 -18,862.18
EBT Margin % EBT Margin % (Qtr) 0.00 -19,783.19
Gross Margin % Gross Margin % (Qtr) 0.00 -8.62
Net Profit Margin % Net Margin % (Qtr) 0.00 -19,732.60