Arvinas, Inc. (NASDAQ: ARVN)

Sector: Healthcare Industry: Biotechnology CIK: 0001655759
Market Cap 879.67 Mn
P/B 1.56
P/E -15.04
P/S 2.82
ROIC (Qtr) -17.27
Div Yield % 0.00
Rev 1y % (Qtr) -59.08
Total Debt (Qtr) 9.30 Mn
Debt/Equity (Qtr) 0.02

About

Arvinas, Inc., a clinical-stage biotechnology company (NASDAQ: ARVN), operates in the biotechnology industry, specializing in the discovery, development, and commercialization of therapies that degrade disease-causing proteins. The company's primary focus is to engineer PROTAC (Proteolysis Targeting Chimeras) targeted protein degraders that harness the body's natural protein disposal system to selectively and efficiently remove disease-causing proteins. Arvinas' main business activities revolve around developing a robust pipeline of product candidates...

Read more

Price action

Investment thesis

Bull case

  • Healthy cash reserves of 101.50M provide 59.71x coverage of short-term debt 1.70M, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 844.30M provides 90.78x coverage of total debt 9.30M, indicating robust asset backing and low credit risk.
  • Operating cash flow of (327.50M) fully covers other non-current liabilities (87.70M) by 3.73x, showing strong long-term stability.
  • Short-term investments of 686.10M provide solid 7.82x coverage of other current liabilities 87.70M, indicating strong liquidity.
  • Tangible assets of 844.30M provide robust 9.63x coverage of other current liabilities 87.70M, indicating strong asset backing.

Bear case

  • Operating cash flow of (327.50M) barely covers its investment activities of 360.70M, with a coverage ratio of -0.91, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of 360.70M provide weak support for R&D spending of 307.40M, which is 1.17x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Operating cash flow of (327.50M) provides insufficient coverage of deferred revenue obligations of 215.10M, which is -1.52x, raising concerns about future service delivery capabilities.
  • Short-term investments of 686.10M significantly exceed cash reserves of 101.50M, which is 6.76x, indicating potentially excessive yield-seeking behavior at the expense of liquidity.
  • The company's operating cash flow of (327.50M) shows concerning coverage of stock compensation expenses of 58.80M, with a -5.57 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. 1,446.17 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 0.92 12.96
EV to Cash from Ops. EV/CFO -2.37 23.73
EV to Debt EV to Debt 83.30 772.65
EV to EBIT EV/EBIT -13.20 -11.30
EV to EBITDA EV/EBITDA -8.03 7.11
EV to Free Cash Flow [EV/FCF] EV/FCF -2.35 22.12
EV to Market Cap EV to Market Cap 0.88 68.89
EV to Revenue EV/Rev 2.48 199.70
Price to Book Value [P/B] P/B 1.56 22.62
Price to Earnings [P/E] P/E -15.04 -12.30
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 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) 0.00 857.11
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -33.33 -27.24
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 19.13 747.06
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 0.01
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 81.04 -48.21
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 72.48 -2.09
EBIT Growth (1y) % EBIT 1y % (Qtr) 80.82 -57.79
EBT Growth (1y) % EBT 1y % (Qtr) 80.82 -14.35
EPS Growth (1y) % EPS 1y % (Qtr) 83.09 -30.88
FCF Growth (1y) % FCF 1y % (Qtr) -26.83 -32.51
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 93.85 227.96
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.37 0.14
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.00
Cash Ratio Cash Ratio (Qtr) 0.70 3.79
Current Ratio Curr Ratio (Qtr) 5.70 7.23
Debt to Equity Ratio Debt/Equity (Qtr) 0.02 0.42
Interest Cover Ratio Int Coverage (Qtr) 0.00 857.11
Times Interest Earned Times Interest Earned (Qtr) 0.00 857.11
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) -17.00 -18,509.94
EBIT Margin % EBIT Margin % (Qtr) -18.80 -18,862.18
EBT Margin % EBT Margin % (Qtr) -18.80 -19,783.19
Gross Margin % Gross Margin % (Qtr) 100.00 -8.62
Net Profit Margin % Net Margin % (Qtr) -18.70 -19,732.60