C4 Therapeutics, Inc. (NASDAQ: CCCC)

Sector: Healthcare Industry: Biotechnology CIK: 0001662579
Market Cap 155.45 Mn
P/B 1.01
P/E -1.31
P/S 5.16
ROIC (Qtr) -57.32
Div Yield % 0.00
Rev 1y % (Qtr) -26.90
Total Debt (Qtr) 61.46 Mn
Debt/Equity (Qtr) 0.40

About

C4 Therapeutics, Inc., a clinical-stage biopharmaceutical company, operates under the ticker symbol CCCC and is at the forefront of delivering targeted protein degradation (TPD) science to create a new generation of small-molecule medicines that can transform patients' lives. The company's primary business activities revolve around the discovery, development, and commercialization of novel therapies that destroy disease-causing proteins. C4 Therapeutics has developed proprietary technology, the TORPEDO platform, which facilitates the design and...

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Price action

Investment thesis

Bull case

  • Healthy cash reserves of 62.25M provide 10.01x coverage of short-term debt 6.22M, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 265.49M provides 4.32x coverage of total debt 61.46M, indicating robust asset backing and low credit risk.
  • Tangible assets of 265.49M provide exceptional 7.17x coverage of deferred revenue 37.01M, showing strong service capability backing.
  • Operating cash flow of (94.48M) fully covers other non-current liabilities (17.13M) by 5.52x, showing strong long-term stability.
  • Short-term investments of 133.07M provide solid 4.69x coverage of other current liabilities 28.40M, indicating strong liquidity.

Bear case

  • Operating cash flow of (94.48M) barely covers its investment activities of 85.80M, with a coverage ratio of -1.10, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of 85.80M provide weak support for R&D spending of 111.77M, which is 0.77x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Operating cash flow of (94.48M) provides insufficient coverage of deferred revenue obligations of 37.01M, which is -2.55x, raising concerns about future service delivery capabilities.
  • The company's operating cash flow of (94.48M) shows concerning coverage of stock compensation expenses of 23.33M, with a -4.05 ratio indicating potential earnings quality issues.
  • Free cash flow of (95.07M) provides weak coverage of capital expenditures of 592000, with a -160.60 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. 1,233.43 Bn -1,338.33 0.00 0.01 Bn
2 ONC BeOne Medicines Ltd. 458.30 Bn 6,685.60 92.16 1.90 Bn
3 VRTX Vertex Pharmaceuticals Inc / Ma 113.54 Bn 30.89 9.68 1.83 Bn
4 REGN Regeneron Pharmaceuticals, Inc. 66.44 Bn -363.26 145.55 2.71 Bn
5 ALNY Alnylam Pharmaceuticals, Inc. 49.96 Bn 1,146.87 15.56 3.21 Bn
6 ARGX Argenx Se 48.74 Bn 32.36 25,415.62 -
7 BNTC Benitec Biopharma Inc. 40.53 Bn -969.17 0.00 0.00 Bn
8 INSM INSMED Inc 31.37 Bn -26.50 70.18 0.74 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.52 11.64
EV to Cash from Ops. EV/CFO -1.45 22.98
EV to Debt EV to Debt 2.23 714.06
EV to EBIT EV/EBIT -1.15 -12.88
EV to EBITDA EV/EBITDA -1.13 6.99
EV to Free Cash Flow [EV/FCF] EV/FCF -1.44 21.89
EV to Market Cap EV to Market Cap 0.88 103.76
EV to Revenue EV/Rev 4.54 196.10
Price to Book Value [P/B] P/B 1.01 21.83
Price to Earnings [P/E] P/E -1.31 -13.53
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 0.00 -12.07
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) 0.00 859.48
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -73.61 -27.11
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -1.33 749.91
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 0.01
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -12.88 -51.60
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -8.93 -4.49
EBIT Growth (1y) % EBIT 1y % (Qtr) -13.05 -61.23
EBT Growth (1y) % EBT 1y % (Qtr) -13.05 -18.17
EPS Growth (1y) % EPS 1y % (Qtr) 1.76 -3.33
FCF Growth (1y) % FCF 1y % (Qtr) -32.83 -32.98
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -10.57 228.66
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.11 0.14
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.00
Cash Ratio Cash Ratio (Qtr) 1.73 3.79
Current Ratio Curr Ratio (Qtr) 5.76 7.24
Debt to Equity Ratio Debt/Equity (Qtr) 0.40 0.42
Interest Cover Ratio Int Coverage (Qtr) 0.00 859.48
Times Interest Earned Times Interest Earned (Qtr) 0.00 859.48
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) -366.40 -17,651.95
EBIT Margin % EBIT Margin % (Qtr) -395.08 -18,005.40
EBT Margin % EBT Margin % (Qtr) -395.08 -18,859.43
Gross Margin % Gross Margin % (Qtr) 100.00 -8.65
Net Profit Margin % Net Margin % (Qtr) -395.50 -18,808.76