Assembly Biosciences, Inc. (ASMB) Stock Analysis and Metrics

Sector: Healthcare Industry: Biotechnology CIK: 0001426800

P/B 1.59

P/E -7.54

P/S 0.00

Market Cap 290.51 Mn

ROIC (Qtr) -78.13

Div Yield % 0.00

Rev 1y % (Qtr) 0.00

Total Debt (Qtr) 2.76 Mn

Debt/Equity (Qtr) 0.02

About

Assembly Biosciences, Inc. (ASMB) is a biotechnology company that operates in the healthcare industry, with a focus on developing innovative therapeutics targeting serious viral diseases. The company's pipeline includes various products, such as helicase-primase inhibitors (HPIs), capsid assembly modulators (CAMs), non-nucleoside polymerase inhibitors (NNPIs), and small molecule interferon-Î± (IFN-Î±) receptor (IFNAR) agonists. These products are designed to target a range of viral diseases, including recurrent genital herpes, hepatitis B virus...

Assembly Biosciences, Inc. (ASMB) is a biotechnology company that operates in the healthcare industry, with a focus on developing innovative therapeutics targeting serious viral diseases. The company's pipeline includes various products, such as helicase-primase inhibitors (HPIs), capsid assembly modulators (CAMs), non-nucleoside polymerase inhibitors (NNPIs), and small molecule interferon-Î± (IFN-Î±) receptor (IFNAR) agonists. These products are designed to target a range of viral diseases, including recurrent genital herpes, hepatitis B virus (HBV), hepatitis delta virus (HDV), and transplant-related herpesviruses.

The company's main business activities involve the discovery, development, and commercialization of these innovative therapeutics. Assembly Biosciences operates in the United States, with research programs focused on the discovery of therapeutics to treat devastating viral diseases. The company's expertise in virology allows it to develop novel compounds that target unique viral enzymes and mechanisms, providing a competitive advantage in the industry.

Assembly Biosciences generates revenue through the development and commercialization of its therapeutics. The company's primary products include HPIs, HDV entry inhibitors, CAMs, NNPIs, and IFNAR agonists. The HPI candidates, 5366 and 1179, have demonstrated strong nonclinical profiles, with low nanomolar potency in vitro against both HSV-1 and HSV-2 clinical isolates. The HDV entry inhibitor, 6250, has demonstrated low nanomolar potency against all HBV/HDV genotypes, favorable selectivity for NTCP versus other bile acid transporters, good oral bioavailability, and a PK profile in nonclinical species projected to support once-daily oral dosing. The CAM, 4334, has demonstrated nonclinical proof of principle, reducing production of viral HBV DNA levels and the surrogate markers for cccDNA establishment.

Assembly Biosciences' customers include patients suffering from recurrent genital herpes, HBV, and HDV, as well as transplant patients who are at high risk of developing herpesvirus infections. The company's products are designed to target these patient populations, and its research programs are focused on developing novel compounds that can effectively treat these diseases.

In the biotechnology industry, Assembly Biosciences competes with established players such as Gilead Sciences, Inc., Merck & Co., Inc., Bristol-Myers Squibb Company, and Johnson & Johnson. The company's competitive advantages include its expertise in virology and its ability to develop novel compounds that target unique viral enzymes and mechanisms.

Stock Price Chart

Analysis

Pros

Healthy cash reserves of 22.53M provide 41.12x coverage of short-term debt 548000, demonstrating strong liquidity position and minimal refinancing risk.
Strong tangible asset base of 240M provides 87.11x coverage of total debt 2.75M, indicating robust asset backing and low credit risk.
Operating cash flow of (55.74M) fully covers other non-current liabilities (42.36M) by 1.32x, showing strong long-term stability.
Tangible assets of 240M provide exceptional 5.44x coverage of deferred revenue 44.08M, showing strong service capability backing.
Short-term investments of 210.02M provide solid 4.11x coverage of other current liabilities 51.15M, indicating strong liquidity.

Cons

Operating cash flow of (55.74M) barely covers its investment activities of (141.39M), with a coverage ratio of 0.39, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
Investment activities of (141.39M) provide weak support for R&D spending of 61.84M, which is -2.29x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
Operating cash flow of (55.74M) provides insufficient coverage of deferred revenue obligations of 44.08M, which is -1.26x, raising concerns about future service delivery capabilities.
Short-term investments of 210.02M significantly exceed cash reserves of 22.53M, which is 9.32x, indicating potentially excessive yield-seeking behavior at the expense of liquidity.
The company's operating cash flow of (55.74M) shows concerning coverage of stock compensation expenses of 3.97M, with a -14.05 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	1.12	12.31
EV to Cash from Ops.	-4.83	23.25
EV to Debt	97.78	738.44
EV to EBIT	-6.97	-9.16
EV to EBITDA	-3.35	6.95
EV to Free Cash Flow [EV/FCF]	-4.83	21.90
EV to Market Cap	0.93	65.67
EV to Revenue	0.00	227.32
Price to Book Value [P/B]	1.59	22.34
Price to Earnings [P/E]	-7.54	-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) %	44.00	-27.13
Cash and Equivalents Growth (1y) %	-20.80	734.65
Dividend Growth (1y) %	0.00	0.01
EBIAT Growth (1y) %	5.53	-46.93
EBITDA Growth (1y) %	-7.95	-1.68
EBIT Growth (1y) %	4.32	-56.45
EBT Growth (1y) %	4.32	-12.70
EPS Growth (1y) %	30.78	-28.31
FCF Growth (1y) %	-343.98	-31.90
Gross Profit Growth (1y) %	0.00	226.84

Liquidity Ratios

Metric	Value	Industry
Asset Utilization Ratio	0.00	0.14
Cash Payout Ratio	0.00	0.00
Cash Ratio	0.42	3.85
Current Ratio	4.44	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	Percentile
EBITDA Margin %	0.00	-18,234.31
EBIT Margin %	0.00	-18,580.80
EBT Margin %	0.00	-19,488.74
Gross Margin %	0.00	-7.59
Net Profit Margin %	0.00	-19,439.22

Assembly Biosciences, Inc. (NASDAQ: ASMB)