Biohaven Ltd. (NYSE: BHVN)

Sector: Healthcare Industry: Biotechnology CIK: 0001935979
Market Cap 1.18 Bn
P/B -68.58
P/E -1.51
P/S 0.00
ROIC (Qtr) -222.62
Div Yield % 0.00
Rev 1y % (Qtr) 0.00
Total Debt (Qtr) 308.66 Mn
Debt/Equity (Qtr) -17.99

About

Biohaven Ltd., a prominent player in the biopharmaceutical industry, is dedicated to the discovery, development, and commercialization of groundbreaking treatments in crucial therapeutic areas such as immunology, neuroscience, and oncology. The company's innovative portfolio of therapeutics is backed by its proven drug development experience and multiple proprietary drug development platforms. Biohaven's operations span across various therapeutic areas, with a primary focus on neurological and neuropsychiatric illnesses. The company's geographical...

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Price action

Investment thesis

Bull case

  • Tangible assets of 389.33M provide robust 4.08x coverage of other current liabilities 95.53M, indicating strong asset backing.
  • Cash reserves of 184.85M provide robust 1.64x coverage of current liabilities 113.02M, indicating strong short-term solvency.
  • Retained earnings of (1.94B) represent substantial 112.99x of equity (17.16M), indicating strong internal capital generation.
  • Strong cash position of 184.85M provides 1.93x coverage of other current liabilities 95.53M, indicating excellent liquidity.
  • Cash reserves of 184.85M provide solid 40.22x coverage of other non-current liabilities 4.60M, indicating strong liquidity.

Bear case

  • Operating cash flow of (649.52M) barely covers its investment activities of 226.62M, with a coverage ratio of -2.87, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of 226.62M provide weak support for R&D spending of 680.59M, which is 0.33x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • The company's operating cash flow of (649.52M) shows concerning coverage of stock compensation expenses of 108.10M, with a -6.01 ratio indicating potential earnings quality issues.
  • Free cash flow of (650.27M) provides weak coverage of capital expenditures of 756000, with a -860.15 ratio suggesting additional external financing needs for growth initiatives.
  • Operating cash flow of (649.52M) provides minimal -570.25x coverage of tax expenses of 1.14M, 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. 1,446.17 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 3.17 12.96
EV to Cash from Ops. EV/CFO -2.00 23.73
EV to Debt EV to Debt 4.21 772.65
EV to EBIT EV/EBIT -1.67 -11.30
EV to EBITDA EV/EBITDA -1.66 7.11
EV to Free Cash Flow [EV/FCF] EV/FCF -2.00 22.12
EV to Market Cap EV to Market Cap 1.10 68.89
EV to Revenue EV to Revenue 0.00 199.70
Price to Book Value [P/B] P/B -68.58 22.62
Price to Earnings [P/E] P/E -1.51 -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 Interest Coverage 0.00 857.11
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 83.09 -27.24
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 119.04 747.06
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 0.01
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 3.01 -48.21
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 6.99 -2.09
EBIT Growth (1y) % EBIT 1y % (Qtr) 3.22 -57.79
EBT Growth (1y) % EBT 1y % (Qtr) 3.22 -14.35
EPS Growth (1y) % EPS 1y % (Qtr) 19.98 -30.88
FCF Growth (1y) % FCF 1y % (Qtr) -22.45 -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) 1.64 3.79
Current Ratio Curr Ratio (Qtr) 2.86 7.23
Debt to Equity Ratio Debt/Equity (Qtr) -17.99 0.42
Interest Cover Ratio Interest Cover Ratio 0.00 857.11
Times Interest Earned Times Interest Earned 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