Arvinas, Inc. (ARVN) Stock Analysis and Metrics

Sector: Healthcare Industry: Biotechnology CIK: 0001655759

P/B 1.61

P/E -15.53

P/S 2.91

Market Cap 908.56 Mn

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...

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 that target a range of diseases, including oncology, neuroscience, and hematology. The company's lead programs are focused on estrogen receptor (ER) and androgen receptor (AR) targets, which are well-understood oncology targets with established biology and disease models. Arvinas' ER program, led by vepdegestrant (ARV-471), is in Phase 3 clinical development for the treatment of locally advanced or metastatic ER-positive breast cancer. Vepdegestrant has demonstrated promising activity in preclinical studies and has shown a favorable safety profile in clinical trials. Arvinas is also developing ARV-766, a PROTAC degrader targeting AR, which has shown potent and selective activity in preclinical studies and is in Phase 2 clinical development for the treatment of metastatic castration-resistant prostate cancer.

Arvinas generates revenue by developing new PROTAC targeted protein degraders against targets for which protein degradation offers advantages to existing therapeutic modalities. For instance, the company is developing new PROTAC targeted protein degraders against targets such as KRAS G12D, a target for which inhibition has been challenging. Arvinas' primary customers are leading pharmaceutical companies, including Pfizer, Genentech, and Bayer, with whom the company has established collaborations to develop and commercialize its product candidates.

Arvinas' competitive advantage lies in its proprietary PROTAC technology and its ability to engineer PROTAC targeted protein degraders that degrade disease-causing proteins with high potency and selectivity. The company's position within the industry is strong, with a robust pipeline of product candidates and collaborations with leading pharmaceutical companies.

Arvinas' product portfolio includes vepdegestrant (ARV-471), an orally bioavailable ER degrading PROTAC targeted protein degrader, and ARV-766, a PROTAC degrader targeting AR. The company's customers are primarily pharmaceutical companies interested in developing and commercializing new therapies for various diseases, including oncology, neuroscience, and hematology.

Stock Price Chart

Analysis

Pros

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.

Cons

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.	1,349.40 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
EV to Assets	0.95	12.31
EV to Cash from Ops.	-2.45	23.25
EV to Debt	86.40	738.44
EV to EBIT	-13.69	-9.16
EV to EBITDA	-8.33	6.95
EV to Free Cash Flow [EV/FCF]	-2.44	21.90
EV to Market Cap	0.88	65.67
EV to Revenue	2.57	227.32
Price to Book Value [P/B]	1.61	22.34
Price to Earnings [P/E]	-15.53	-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	0.00	841.00

Growth Metrics

Metric	Value	Industry
Capex Growth (1y) %	-33.33	-27.13
Cash and Equivalents Growth (1y) %	19.13	734.65
Dividend Growth (1y) %	0.00	0.01
EBIAT Growth (1y) %	81.04	-46.93
EBITDA Growth (1y) %	72.48	-1.68
EBIT Growth (1y) %	80.82	-56.45
EBT Growth (1y) %	80.82	-12.70
EPS Growth (1y) %	83.09	-28.31
FCF Growth (1y) %	-26.83	-31.90
Gross Profit Growth (1y) %	93.85	226.84

Liquidity Ratios

Metric	Value	Industry
Asset Utilization Ratio	0.37	0.14
Cash Payout Ratio	0.00	0.00
Cash Ratio	0.70	3.85
Current Ratio	5.70	7.27
Debt to Equity Ratio	0.02	0.40
Interest Cover Ratio	0.00	841.00
Times Interest Earned	0.00	841.00

Profitability

Metric	Value	Industry
EBITDA Margin %	-17.00	-18,234.31
EBIT Margin %	-18.80	-18,580.80
EBT Margin %	-18.80	-19,488.74
Gross Margin %	100.00	-7.59
Net Profit Margin %	-18.70	-19,439.22

Arvinas, Inc. (NASDAQ: ARVN)