Cullinan Therapeutics, Inc. (NASDAQ: CGEM)

Sector: Healthcare Industry: Biotechnology CIK: 0001789972
Market Cap 798.94 Mn
P/B 1.77
P/E -3.64
P/S 0.00
ROIC (Qtr) -51.03
Div Yield % 0.00
Rev 1y % (Qtr) 0.00
Total Debt (Qtr) 1.19 Mn
Debt/Equity (Qtr) 0.00

About

Cullinan Therapeutics, Inc., a clinical-stage biopharmaceutical company, operates in the biotechnology industry. Its primary business activities involve the development of modality-agnostic targeted oncology therapies. The company seeks to create new standards of care for patients by identifying high-impact cancer targets and selecting the optimal therapeutic modality for those targets. Cullinan Therapeutics operates in the United States and has a global presence through its clinical trials and partnerships. Cullinan Therapeutics generates revenue...

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Price action

Investment thesis

Bull case

  • Healthy cash reserves of 103.33M provide 86.98x coverage of short-term debt 1.19M, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 484.13M provides 407.51x coverage of total debt 1.19M, indicating robust asset backing and low credit risk.
  • Short-term investments of 229.26M provide solid 7.68x coverage of other current liabilities 29.85M, indicating strong liquidity.
  • Tangible assets of 484.13M provide robust 16.22x coverage of other current liabilities 29.85M, indicating strong asset backing.
  • Cash reserves of 103.33M provide robust 3.15x coverage of current liabilities 32.76M, indicating strong short-term solvency.

Bear case

  • Operating cash flow of (174.27M) barely covers its investment activities of 173.56M, with a coverage ratio of -1, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of 173.56M provide weak support for R&D spending of 184.95M, which is 0.94x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • The company's operating cash flow of (174.27M) shows concerning coverage of stock compensation expenses of 38.36M, with a -4.54 ratio indicating potential earnings quality issues.
  • Free cash flow of (174.31M) provides weak coverage of capital expenditures of 38000, with a -4586.97 ratio suggesting additional external financing needs for growth initiatives.
  • Operating cash flow of (174.27M) provides minimal -1489.46x coverage of tax expenses of 117000, 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 1.50 12.96
EV to Cash from Ops. EV/CFO -4.18 23.73
EV to Debt EV to Debt 612.49 772.65
EV to EBIT EV/EBIT -3.36 -11.30
EV to EBITDA EV/EBITDA -3.02 7.11
EV to Free Cash Flow [EV/FCF] EV/FCF -4.17 22.12
EV to Market Cap EV to Market Cap 0.91 68.89
EV to Revenue EV/Rev 0.00 199.70
Price to Book Value [P/B] P/B 1.77 22.62
Price to Earnings [P/E] P/E -3.64 -12.30
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) -82.95 -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) 0.00 -27.24
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 1.22 747.06
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 0.01
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -51.05 -48.21
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -28.91 -2.09
EBIT Growth (1y) % EBIT 1y % (Qtr) -37.44 -57.79
EBT Growth (1y) % EBT 1y % (Qtr) -37.44 -14.35
EPS Growth (1y) % EPS 1y % (Qtr) -44.34 -30.88
FCF Growth (1y) % FCF 1y % (Qtr) -37.46 -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) 3.15 3.79
Current Ratio Curr Ratio (Qtr) 10.45 7.23
Debt to Equity Ratio Debt/Equity (Qtr) 0.00 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 % (Qtr) 0.00 -18,509.94
EBIT Margin % EBIT Margin % (Qtr) 0.00 -18,862.18
EBT Margin % EBT Margin % (Qtr) 0.00 -19,783.19
Gross Margin % Gross Margin % (Qtr) 0.00 -8.62
Net Profit Margin % Net Margin % (Qtr) 0.00 -19,732.60