Atai Beckley N.V. (NASDAQ: ATAI)

Sector: Healthcare Industry: Biotechnology CIK: 0001840904
Market Cap 713.85 Mn
P/B 4.47
P/E -4.63
P/S 236.53
ROIC (Qtr) -67.14
Div Yield % 0.00
Rev 1y % (Qtr) 1,772.50
Total Debt (Qtr) 2.96 Mn
Debt/Equity (Qtr) 0.02

About

ATAI Life Sciences N.V., a clinical-stage biopharmaceutical company (NASDAQ: ATAI), is dedicated to transforming the treatment of mental health disorders. The company, established in 2018, focuses on efficiently developing and investing in innovative therapeutics for depression, anxiety, addiction, and other mental health disorders. ATAI's vision is to heal mental health disorders, enabling everyone to live a more fulfilled life. ATAI's main business activities involve the development of therapeutic candidates across multiple neuropsychiatric indications,...

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Price action

Investment thesis

Bull case

  • Healthy cash reserves of 30.40M provide 57.15x coverage of short-term debt 532000, demonstrating strong liquidity position and minimal refinancing risk.
  • Operating cash flow of (79.49M) provides exceptional 736.03x coverage of minority interest expenses (108000), showing strong core operations.
  • Strong tangible asset base of 236.46M provides 79.94x coverage of total debt 2.96M, indicating robust asset backing and low credit risk.
  • Strong free cash flow of (80.29M) provides 6.35x coverage of acquisition spending (12.64M), indicating disciplined M&A strategy.
  • Long-term investments of 99.74M provide solid 41.11x coverage of long-term debt 2.43M, indicating strategic financial planning.

Bear case

  • Investment activities of (62.22M) provide weak support for R&D spending of 56.04M, which is -1.11x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Cash reserves of 30.40M provide limited coverage of acquisition spending of (12.64M), which is -2.41x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • Short-term investments of 94.37M significantly exceed cash reserves of 30.40M, which is 3.10x, indicating potentially excessive yield-seeking behavior at the expense of liquidity.
  • The company's operating cash flow of (79.49M) shows concerning coverage of stock compensation expenses of 17.74M, with a -4.48 ratio indicating potential earnings quality issues.
  • Free cash flow of (80.29M) provides weak coverage of capital expenditures of 797000, with a -100.74 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. 1,511.45 Bn -1,640.00 0.00 0.01 Bn
2 ONC BeOne Medicines Ltd. 463.25 Bn 6,757.80 93.16 1.90 Bn
3 VRTX Vertex Pharmaceuticals Inc / Ma 119.13 Bn 32.42 10.16 1.83 Bn
4 REGN Regeneron Pharmaceuticals, Inc. 83.93 Bn 18.33 5.89 2.71 Bn
5 ALNY Alnylam Pharmaceuticals, Inc. 55.97 Bn 1,284.81 17.44 3.21 Bn
6 ARGX Argenx Se 47.47 Bn 31.51 24,751.70 -
7 BNTC Benitec Biopharma Inc. 41.27 Bn -986.67 0.00 0.00 Bn
8 INSM INSMED Inc 33.76 Bn -28.52 75.53 0.74 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 2.76 13.39
EV to Cash from Ops. EV/CFO -8.32 23.02
EV to Debt EV to Debt 223.51 789.59
EV to EBIT EV/EBIT -4.35 -11.14
EV to EBITDA EV/EBITDA -6.34 7.05
EV to Free Cash Flow [EV/FCF] EV/FCF -8.23 21.44
EV to Market Cap EV to Market Cap 0.93 72.36
EV to Revenue EV/Rev 219.06 194.41
Price to Book Value [P/B] P/B 4.47 23.19
Price to Earnings [P/E] P/E -4.63 -11.47
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 Int. cover (Qtr) -71.78 856.48
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -3,365.22 -27.12
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 1.47 747.06
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 0.01
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -20.95 -48.05
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 3.55 -1.94
EBIT Growth (1y) % EBIT 1y % (Qtr) -21.05 -57.64
EBT Growth (1y) % EBT 1y % (Qtr) -20.00 -14.19
EPS Growth (1y) % EPS 1y % (Qtr) -1.25 -30.71
FCF Growth (1y) % FCF 1y % (Qtr) -0.20 -32.52
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 811.78 227.96
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.01 0.14
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.00
Cash Ratio Cash Ratio (Qtr) 1.84 3.79
Current Ratio Curr Ratio (Qtr) 7.90 7.23
Debt to Equity Ratio Debt/Equity (Qtr) 0.02 0.42
Interest Cover Ratio Int Coverage (Qtr) -71.78 856.48
Times Interest Earned Times Interest Earned (Qtr) -71.78 856.48
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) -4,983.20 -18,509.94
EBIT Margin % EBIT Margin % (Qtr) -5,032.77 -18,862.18
EBT Margin % EBT Margin % (Qtr) -5,102.88 -19,783.19
Gross Margin % Gross Margin % (Qtr) 100.00 -8.62
Net Profit Margin % Net Margin % (Qtr) -5,109.10 -19,732.60