Compass Therapeutics, Inc. (NASDAQ: CMPX)

Sector: Healthcare Industry: Biotechnology CIK: 0001738021
Market Cap 756.04 Mn
P/B 3.61
P/E -11.49
P/S 0.00
ROIC (Qtr) -44.28
Div Yield % 0.00
Rev 1y % (Qtr) 0.00
Total Debt (Qtr) 9.87 Mn
Debt/Equity (Qtr) 0.05

About

Compass Therapeutics, Inc. (CMPX) is a clinical-stage biopharmaceutical company operating within the oncology sector. It is dedicated to developing proprietary antibody-based therapeutics that can treat various human diseases. The company's scientific focus lies in the relationship between angiogenesis, the immune system, and tumor growth, and its pipeline of novel product candidates aims to target multiple critical biological pathways required for an effective anti-tumor response. The company's main business activities revolve around the development...

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Price action

Investment thesis

Bull case

  • Healthy cash reserves of 46.78M provide 73.90x coverage of short-term debt 633000, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 231.26M provides 23.44x coverage of total debt 9.87M, indicating robust asset backing and low credit risk.
  • Tangible assets of 231.26M provide robust 26.63x coverage of other current liabilities 8.68M, indicating strong asset backing.
  • Short-term investments of 173.68M provide solid 20x coverage of other current liabilities 8.68M, indicating strong liquidity.
  • Cash reserves of 46.78M provide robust 3.77x coverage of current liabilities 12.41M, indicating strong short-term solvency.

Bear case

  • Operating cash flow of (45.05M) barely covers its investment activities of (74.56M), with a coverage ratio of 0.60, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of (74.56M) provide weak support for R&D spending of 55.33M, which is -1.35x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Short-term investments of 173.68M significantly exceed cash reserves of 46.78M, which is 3.71x, indicating potentially excessive yield-seeking behavior at the expense of liquidity.
  • The company's operating cash flow of (45.05M) shows concerning coverage of stock compensation expenses of 8.78M, with a -5.13 ratio indicating potential earnings quality issues.
  • Free cash flow of (45.08M) provides weak coverage of capital expenditures of 25000, with a -1803.04 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. 1,446.17 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 3.21 12.96
EV to Cash from Ops. EV/CFO -16.48 23.73
EV to Debt EV to Debt 75.25 772.65
EV to EBIT EV/EBIT -11.28 -11.30
EV to EBITDA EV/EBITDA -10.61 7.11
EV to Free Cash Flow [EV/FCF] EV/FCF -16.47 22.12
EV to Market Cap EV to Market Cap 0.98 68.89
EV to Revenue EV/Rev 0.00 199.70
Price to Book Value [P/B] P/B 3.61 22.62
Price to Earnings [P/E] P/E -11.49 -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) 52.83 -27.24
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 27.12 747.06
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 0.01
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -37.79 -48.21
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -30.56 -2.09
EBIT Growth (1y) % EBIT 1y % (Qtr) -37.79 -57.79
EBT Growth (1y) % EBT 1y % (Qtr) -37.79 -14.35
EPS Growth (1y) % EPS 1y % (Qtr) -25.00 -30.88
FCF Growth (1y) % FCF 1y % (Qtr) 6.29 -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) 3.77 3.79
Current Ratio Curr Ratio (Qtr) 17.82 7.23
Debt to Equity Ratio Debt/Equity (Qtr) 0.05 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) 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