Atara Biotherapeutics, Inc. (NASDAQ: ATRA)

Sector: Healthcare Industry: Biotechnology CIK: 0001604464
Market Cap 31.46 Mn
P/B -0.86
P/E 1.34
P/S 0.21
ROIC (Qtr) 129.94
Div Yield % 0.00
Rev 1y % (Qtr) -91.41
Total Debt (Qtr) 56.65 Mn
Debt/Equity (Qtr) -1.55
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About

Atara Biotherapeutics, Inc., also known as ATRA, is a company specializing in the development of T-cell immunotherapies for the treatment of cancer and autoimmune diseases. The company's platform is based on the use of allogeneic T-cells, which are cells derived from a donor rather than the patient. This approach allows for the rapid delivery of a T-cell immunotherapy product, which is manufactured in advance and stored in inventory for numerous potential patients. Atara's main business activities involve the development of T-cell immunotherapies...

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Investment thesis

Bull case

  • Robust free cash flow of (69.41M) exceeds capital expenditure of (303000) by 229.08x, indicating strong organic growth funding capability.
  • Tangible assets of 30.17M provide exceptional 29.84x coverage of deferred revenue 1.01M, showing strong service capability backing.
  • Robust tangible asset base of 30.17M provides 80.45x coverage of working capital 375000, indicating strong operational backing.
  • Retained earnings of (2.02B) represent substantial 55.10x of equity (36.63M), indicating strong internal capital generation.
  • R&D investment of 66.39M represents healthy 65.67x of deferred revenue 1.01M, indicating strong future innovation pipeline.

Bear case

  • Operating cash flow of (69.71M) barely covers its investment activities of 13.08M, with a coverage ratio of -5.33, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of 13.08M provide weak support for R&D spending of 66.39M, which is 0.20x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Operating cash flow of (69.71M) provides insufficient coverage of deferred revenue obligations of 1.01M, which is -68.96x, raising concerns about future service delivery capabilities.
  • The company's operating cash flow of (69.71M) shows concerning coverage of stock compensation expenses of 14.08M, with a -4.95 ratio indicating potential earnings quality issues.
  • Operating cash flow of (69.71M) provides minimal -5809.50x coverage of tax expenses of 12000, suggesting potential tax planning inefficiencies or unsustainable tax positions.

Peer comparison

Companies in the Biotechnology
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 SMMT Summit Therapeutics Inc. 1,204.25 Bn -1,306.67 0.00 0.01 Bn
2 ONC BeOne Medicines Ltd. 486.51 Bn 7,097.20 97.84 1.90 Bn
3 VRTX Vertex Pharmaceuticals Inc / Ma 122.05 Bn 30.87 10.17 1.85 Bn
4 REGN Regeneron Pharmaceuticals, Inc. 83.00 Bn 18.42 5.79 2.71 Bn
5 ARGX Argenx Se 50.78 Bn 33.71 26,480.10 -
6 ALNY Alnylam Pharmaceuticals, Inc. 43.66 Bn 139.17 11.76 2.97 Bn
7 BNTC Benitec Biopharma Inc. 43.61 Bn -941.82 0.00 0.00 Bn
8 INSM INSMED Inc 28.88 Bn -24.40 64.61 0.74 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 2.33 11.06
EV to Cash from Ops. EV/CFO -1.01 26.32
EV to Debt EV to Debt 1.24 762.61
EV to EBIT EV/EBIT 2.57 -13.49
EV to EBITDA EV/EBITDA 1.89 8.61
EV to Free Cash Flow [EV/FCF] EV/FCF -1.01 25.66
EV to Market Cap EV to Market Cap 2.23 203.37
EV to Revenue EV/Rev 0.46 156.31
Price to Book Value [P/B] P/B -0.86 20.59
Price to Earnings [P/E] P/E 1.34 -0.88
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 -12.64
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 -0.14
Interest Coverage Int. cover (Qtr) 6.98 956.66
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 251.50 7.87
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -87.68 753.48
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 0.01
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 121.28 -57.63
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 132.59 8.83
EBIT Growth (1y) % EBIT 1y % (Qtr) 121.29 -67.21
EBT Growth (1y) % EBT 1y % (Qtr) 117.58 -23.74
EPS Growth (1y) % EPS 1y % (Qtr) 113.05 -7.02
FCF Growth (1y) % FCF 1y % (Qtr) 26.82 -40.48
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 49.31 264.51
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 5.04 0.14
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.00
Cash Ratio Cash Ratio (Qtr) 0.32 3.92
Current Ratio Curr Ratio (Qtr) 1.02 7.33
Debt to Equity Ratio Debt/Equity (Qtr) -1.55 0.48
Interest Cover Ratio Int Coverage (Qtr) 6.98 956.66
Times Interest Earned Times Interest Earned (Qtr) 6.98 956.66
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 25.20 -17,888.70
EBIT Margin % EBIT Margin % (Qtr) 17.99 -18,246.34
EBT Margin % EBT Margin % (Qtr) 15.41 -19,108.08
Gross Margin % Gross Margin % (Qtr) 81.60 -10.30
Net Profit Margin % Net Margin % (Qtr) 15.40 -19,056.96