Black Diamond Therapeutics, Inc. (NASDAQ: BDTX)

Sector: Healthcare Industry: Biotechnology CIK: 0001701541
Market Cap 157.27 Mn
P/B 1.25
P/E 7.32
P/S 2.25
ROIC (Qtr) 8.13
Div Yield % 0.00
Rev 1y % (Qtr) 0.00
Total Debt (Qtr) 16.04 Mn
Debt/Equity (Qtr) 0.13

About

Black Diamond Therapeutics, Inc. (BDTX) is a clinical-stage oncology company operating in the biotechnology industry. The company is dedicated to developing MasterKey therapies, which are orally available, potent, and selective small molecule inhibitors that target families of oncogenic mutations in individual oncogenes for the treatment of cancer and genetic diseases. The company's main business activities revolve around the discovery, development, and commercialization of these targeted oncology therapies. Black Diamond Therapeutics operates...

Read more

Price action

Investment thesis

Bull case

  • Strong operating cash flow of 21.35M provides robust 1.33x coverage of total debt 16.04M, indicating excellent debt servicing capability and financial flexibility.
  • Strong tangible asset base of 157.73M provides 9.84x coverage of total debt 16.04M, indicating robust asset backing and low credit risk.
  • Short-term investments of 104.64M provide solid 7.18x coverage of other current liabilities 14.57M, indicating strong liquidity.
  • Tangible assets of 157.73M provide robust 10.83x coverage of other current liabilities 14.57M, indicating strong asset backing.
  • Operating cash flow of 21.35M provides solid 1.37x coverage of current liabilities 15.54M, showing strong operational health.

Bear case

  • Operating cash flow of 21.35M barely covers its investment activities of (14.25M), with a coverage ratio of -1.50, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of (14.25M) provide weak support for R&D spending of 39.56M, which is -0.36x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Short-term investments of 104.64M significantly exceed cash reserves of 31.69M, which is 3.30x, indicating potentially excessive yield-seeking behavior at the expense of liquidity.
  • Free cash flow of 21.38M provides weak coverage of capital expenditures of (32000), with a -668.06 ratio suggesting additional external financing needs for growth initiatives.
  • The company's operating cash flow of 21.35M shows concerning coverage of stock compensation expenses of 6.85M, with a 3.12 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. 1,446.17 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 0.91 12.96
EV to Cash from Ops. EV/CFO 6.72 23.73
EV to Debt EV to Debt 8.94 772.65
EV to EBIT EV/EBIT 6.67 -11.30
EV to EBITDA EV/EBITDA 11.76 7.11
EV to Free Cash Flow [EV/FCF] EV/FCF 6.71 22.12
EV to Market Cap EV to Market Cap 0.91 68.89
EV to Revenue EV/Rev 2.05 199.70
Price to Book Value [P/B] P/B 1.25 22.62
Price to Earnings [P/E] P/E 7.32 -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 1y % (Qtr) -62.79 -27.24
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 30.68 747.06
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 0.01
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 129.41 -48.21
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 115.06 -2.09
EBIT Growth (1y) % EBIT 1y % (Qtr) 129.41 -57.79
EBT Growth (1y) % EBT 1y % (Qtr) 129.41 -14.35
EPS Growth (1y) % EPS 1y % (Qtr) 128.57 -30.88
FCF Growth (1y) % FCF 1y % (Qtr) 134.98 -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) 0.44 0.14
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.00
Cash Ratio Cash Ratio (Qtr) 2.04 3.79
Current Ratio Curr Ratio (Qtr) 8.94 7.23
Debt to Equity Ratio Debt/Equity (Qtr) 0.13 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 % (Qtr) 31.20 -18,509.94
EBIT Margin % EBIT Margin % (Qtr) 30.71 -18,862.18
EBT Margin % EBT Margin % (Qtr) 30.71 -19,783.19
Gross Margin % Gross Margin % (Qtr) 100.00 -8.62
Net Profit Margin % Net Margin % (Qtr) 30.70 -19,732.60