Anavex Life Sciences Corp. (NASDAQ: AVXL)

Sector: Healthcare Industry: Biotechnology CIK: 0001314052
Market Cap 366.72 Mn
P/B 3.87
P/E -7.91
P/S 0.00
ROIC (Qtr) -55.33
Div Yield % 0.00
Rev 1y % (Qtr) 0.00
Total Debt (Qtr) 0.00
Debt/Equity (Qtr) 0.00

About

Anavex Life Sciences Corp., often recognized by its stock symbol AVXL, operates in the biopharmaceutical industry with a focus on developing differentiated therapeutics for central nervous system (CNS) diseases through precision medicine. The company's primary product candidate is ANAVEX2-73 (blarcamesine), which is being developed to treat Alzheimer's disease, Parkinson's disease, and other CNS disorders, including rare diseases like Rett syndrome. Anavex Life Sciences Corp.'s main business activities involve the creation of innovative therapeutics...

Read more

Price action

Investment thesis

Bull case

  • Tangible assets of 103.81M provide exceptional 128.96x coverage of deferred revenue 805000, showing strong service capability backing.
  • Operating cash flow of (39.04M) fully covers other non-current liabilities (805000) by 48.50x, showing strong long-term stability.
  • Tangible assets of 103.81M provide robust 22.10x coverage of other current liabilities 4.70M, indicating strong asset backing.
  • R&D investment of 37.59M represents healthy 46.70x of deferred revenue 805000, indicating strong future innovation pipeline.
  • Cash reserves of 102.58M provide robust 11.47x coverage of current liabilities 8.95M, indicating strong short-term solvency.

Bear case

  • Investment activities of 0 provide weak support for R&D spending of 37.59M, which is 0x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Operating cash flow of (39.04M) provides insufficient coverage of deferred revenue obligations of 805000, which is -48.50x, raising concerns about future service delivery capabilities.
  • The company's operating cash flow of (39.04M) shows concerning coverage of stock compensation expenses of 11.55M, with a -3.38 ratio indicating potential earnings quality issues.
  • Operating cash flow of (39.04M) is outpaced by equity issuance of 12.14M (-3.22 ratio), indicating concerning reliance on equity markets for funding operations.
  • Tangible assets of 103.81M provide limited backing for working capital of 94.87M, which is 1.09x, suggesting increased operational risk in market downturns.

Peer comparison

Companies in the Biotechnology
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 SMMT Summit Therapeutics Inc. 1,446.17 Bn -1,569.17 0.00 0.01 Bn
2 ONC BeOne Medicines Ltd. 439.23 Bn 6,407.40 88.33 1.90 Bn
3 VRTX Vertex Pharmaceuticals Inc / Ma 120.62 Bn 32.82 10.29 1.83 Bn
4 REGN Regeneron Pharmaceuticals, Inc. 84.40 Bn 18.44 5.92 2.71 Bn
5 ALNY Alnylam Pharmaceuticals, Inc. 56.13 Bn 1,288.39 17.49 3.21 Bn
6 ARGX Argenx Se 47.89 Bn 31.79 24,973.95 -
7 BNTC Benitec Biopharma Inc. 42.45 Bn -1,015.00 0.00 0.00 Bn
8 INSM INSMED Inc 32.67 Bn -27.60 73.08 0.74 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 2.56 12.96
EV to Cash from Ops. EV/CFO -6.80 23.73
EV to Debt EV to Debt 0.00 772.65
EV to EBIT EV/EBIT -5.73 -11.30
EV to EBITDA EV/EBITDA -5.17 7.11
EV to Free Cash Flow [EV/FCF] EV/FCF -6.80 22.12
EV to Market Cap EV to Market Cap 0.72 68.89
EV to Revenue EV to Revenue 0.00 199.70
Price to Book Value [P/B] P/B 3.87 22.62
Price to Earnings [P/E] P/E -7.91 -12.30
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) 0.00 857.11
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex Growth (1y) % 0.00 -27.24
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -22.40 747.06
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 0.01
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -7.85 -48.21
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 2.78 -2.09
EBIT Growth (1y) % EBIT 1y % (Qtr) -7.85 -57.79
EBT Growth (1y) % EBT 1y % (Qtr) -7.85 -14.35
EPS Growth (1y) % EPS 1y % (Qtr) -3.85 -30.88
FCF Growth (1y) % FCF 1y % (Qtr) -26.72 -32.51
Gross Profit Growth (1y) % Gross Profit Growth (1y) % 0.00 227.96
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.00 0.14
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.00
Cash Ratio Cash Ratio (Qtr) 11.47 3.79
Current Ratio Curr Ratio (Qtr) 11.61 7.23
Debt to Equity Ratio Debt/Equity (Qtr) 0.00 0.42
Interest Cover Ratio Int Coverage (Qtr) 0.00 857.11
Times Interest Earned Times Interest Earned (Qtr) 0.00 857.11
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % 0.00 -18,509.94
EBIT Margin % EBIT Margin % 0.00 -18,862.18
EBT Margin % EBT Margin % 0.00 -19,783.19
Gross Margin % Gross Margin % 0.00 -8.62
Net Profit Margin % Net Profit Margin % 0.00 -19,732.60