Atai Beckley N.V. (ATAI) Stock Analysis and Metrics

Sector: Healthcare Industry: Biotechnology CIK: 0001840904

P/B 5.11

P/E -5.30

P/S 270.59

Market Cap 816.65 Mn

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,...

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, including depression, anxiety, opioid use disorders, and cognitive impairment associated with schizophrenia. The company's robust portfolio of drug development programs has been strategically acquired through investments or created de novo through its drug discovery platform.

Revenue for ATAI is generated through its drug development programs, which primarily focus on innovative therapeutics for mental health disorders. The company's product pipeline includes COMP360, a proprietary psilocybin formulation being developed by COMPASS Pathways plc, a company in which ATAI has a strategic investment. COMP360 is being evaluated in a Phase 3 program for treatment-resistant depression, with top-line data expected in the fourth quarter of 2024 and mid-2025. Another key product is BPL-003, a dry powder, intranasal formulation of the benzoate salt form of 5-MeO-DMT, being developed by Beckley Psytech. BPL-003 is being investigated in Phase 2a and 2b studies for treatment-resistant depression and alcohol use disorder.

ATAI's position within the industry is strengthened by its strategic investments in COMPASS Pathways plc and Beckley Psytech, providing access to a robust pipeline of psychedelic compounds and expertise in their development. The company's modular approach to capturing value, including pursuing commercialization of products independently and establishing collaborations or divesting companies, is a key advantage.

The company's customers include COMPASS Pathways plc and Beckley Psytech, both of which are developing psychedelic compounds for mental health disorders. ATAI's products are still in development, and it is expected that they will be commercialized through partnerships with pharmaceutical companies or other organizations.

ATAI's brand names and trade names include COMP360, BPL-003, VLS-01, and IBX-210. These products represent the company's commitment to developing innovative therapeutics for mental health disorders.

Stock Price Chart

Analysis

Pros

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.

Cons

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.	1,349.40 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	3.19	12.31
EV to Cash from Ops.	-9.61	23.25
EV to Debt	258.26	738.44
EV to EBIT	-5.03	-9.16
EV to EBITDA	-7.33	6.95
EV to Free Cash Flow [EV/FCF]	-9.51	21.90
EV to Market Cap	0.94	65.67
EV to Revenue	253.12	227.32
Price to Book Value [P/B]	5.11	22.34
Price to Earnings [P/E]	-5.30	-11.77

Dividend Metrics

Metric	Value	Industry
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	-71.78	841.00

Growth Metrics

Metric	Value	Industry
Capex Growth (1y) %	-3,365.22	-27.13
Cash and Equivalents Growth (1y) %	1.47	734.65
Dividend Growth (1y) %	0.00	0.01
EBIAT Growth (1y) %	-20.95	-46.93
EBITDA Growth (1y) %	3.55	-1.68
EBIT Growth (1y) %	-21.05	-56.45
EBT Growth (1y) %	-20.00	-12.70
EPS Growth (1y) %	-1.25	-28.31
FCF Growth (1y) %	-0.20	-31.90
Gross Profit Growth (1y) %	811.78	226.84

Liquidity Ratios

Metric	Value	Industry
Asset Utilization Ratio	0.01	0.14
Cash Payout Ratio	0.00	0.00
Cash Ratio	1.84	3.85
Current Ratio	7.90	7.27
Debt to Equity Ratio	0.02	0.40
Interest Cover Ratio	-71.78	841.00
Times Interest Earned	-71.78	841.00

Profitability

Metric	Value	Industry
EBITDA Margin %	-4,983.20	-18,234.31
EBIT Margin %	-5,032.77	-18,580.80
EBT Margin %	-5,102.88	-19,488.74
Gross Margin %	100.00	-7.59
Net Profit Margin %	-5,109.10	-19,439.22

Atai Beckley N.V. (NASDAQ: ATAI)