Compass Therapeutics, Inc. (CMPX) Stock Analysis and Metrics

Sector: Healthcare Industry: Biotechnology CIK: 0001738021

P/B 3.60

P/E -11.47

P/S 0.00

Market Cap 754.58 Mn

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...

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 of its pipeline of product candidates, which includes CTX-009, CTX-471, and CTX-8371, currently in various stages of clinical development. CTX-009 is a bispecific antibody targeting DLL4 and VEGF-A, undergoing clinical studies as a monotherapy and in combination with chemotherapy in the United States. CTX-471 is a CD137 agonistic antibody being evaluated in a Phase 1 clinical trial as a monotherapy and in combination with pembrolizumab. CTX-8371 is a PD-1 x PD-L1 bispecific antibody in preclinical development.

Compass Therapeutics' competitive advantages include its proprietary platform, which enables the identification and development of novel antibody-based therapeutics. This platform combines phage display and transgenic mouse technologies to identify antibodies that bind to specific targets. The company has developed proprietary technologies, such as its StitchMabsTM technology, which allows for the rapid evaluation of bispecific antibody candidates.

The company's management team has a successful track record of building and growing biotechnology companies, particularly in the oncology and immuno-oncology space. The board of directors also boasts a diverse range of expertise, including biotechnology, pharmaceuticals, and finance.

Compass Therapeutics has a strong pipeline of product candidates, with a focus on immunotherapy treatments for cancer. The company's customers include ABL Bio, Inc. and Handok Pharmaceuticals, Inc., both South Korea-based companies focused on developing antibody therapeutics. Compass Therapeutics has licensed exclusive global rights to CTX-009, outside of South Korea, to ABL Bio, and has out-licensed China rights to Elpiscience Biopharmaceuticals Co., Limited.

In terms of its pipeline, Compass Therapeutics is currently conducting a Phase 2 clinical trial of CTX-009 in patients with biliary tract cancer (BTC) who have received one prior systemic chemotherapy regimen. The company is also conducting a Phase 1 clinical trial of CTX-471 in patients with advanced solid tumors who have progressed after treatment with a PD-1 or PD-L1 checkpoint inhibitor.

The company's intellectual property strategy seeks to protect its proprietary technologies and product candidates through a combination of patent, trademark, and trade secret protection. Compass Therapeutics has filed for and obtained trademark protection in multiple jurisdictions for the COMPASS THERAPEUTICS word mark and logo for goods and services. The company also seeks to protect its trade secrets through confidentiality agreements with its employees, consultants, scientific advisors, and contractors.

Stock Price Chart

Analysis

Pros

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.

Cons

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.	1,349.40 Bn	-1,464.17	0.00	0.01 Bn
2	ONC	BeOne Medicines Ltd.	437.43 Bn	6,381.20	87.97	1.90 Bn
3	VRTX	Vertex Pharmaceuticals Inc / Ma	116.09 Bn	31.59	9.90	1.83 Bn
4	REGN	Regeneron Pharmaceuticals, Inc.	78.10 Bn	17.06	5.48	2.71 Bn
5	ALNY	Alnylam Pharmaceuticals, Inc.	55.87 Bn	1,282.42	17.40	3.21 Bn
6	ARGX	Argenx Se	52.85 Bn	35.08	27,559.65	-
7	BNTC	Benitec Biopharma Inc.	41.75 Bn	-998.33	0.00	0.00 Bn
8	INSM	INSMED Inc	37.80 Bn	-31.93	84.56	0.74 Bn

Industry Comparisons

Current Valuation

Metric	Value	Industry
EV to Assets	3.20	12.31
EV to Cash from Ops.	-16.45	23.25
EV to Debt	75.10	738.44
EV to EBIT	-11.26	-9.16
EV to EBITDA	-10.59	6.95
EV to Free Cash Flow [EV/FCF]	-16.44	21.90
EV to Market Cap	0.98	65.67
EV to Revenue	0.00	227.32
Price to Book Value [P/B]	3.60	22.34
Price to Earnings [P/E]	-11.47	-11.77

Dividend Metrics

Metric	Value	Industry	Percentile
Dividend Coverage Ratio	0.00	-11.94
Dividend Payout Ratio %	0.00	0.16
Dividend per Basic Share	0.00	0.01
FCF Dividend Payout Ratio %	0.00	-0.14
Interest Coverage	0.00	841.00

Growth Metrics

Metric	Value	Industry
Capex Growth (1y) %	52.83	-27.13
Cash and Equivalents Growth (1y) %	27.12	734.65
Dividend Growth (1y) %	0.00	0.01
EBIAT Growth (1y) %	-37.79	-46.93
EBITDA Growth (1y) %	-30.56	-1.68
EBIT Growth (1y) %	-37.79	-56.45
EBT Growth (1y) %	-37.79	-12.70
EPS Growth (1y) %	-25.00	-28.31
FCF Growth (1y) %	6.29	-31.90
Gross Profit Growth (1y) %	0.00	226.84

Liquidity Ratios

Metric	Value	Industry
Asset Utilization Ratio	0.00	0.14
Cash Payout Ratio	0.00	0.00
Cash Ratio	3.77	3.85
Current Ratio	17.82	7.27
Debt to Equity Ratio	0.05	0.40
Interest Cover Ratio	0.00	841.00
Times Interest Earned	0.00	841.00

Profitability

Metric	Value	Industry	Percentile
EBITDA Margin %	0.00	-18,234.31
EBIT Margin %	0.00	-18,580.80
EBT Margin %	0.00	-19,488.74
Gross Margin %	0.00	-7.59
Net Profit Margin %	0.00	-19,439.22

Compass Therapeutics, Inc. (NASDAQ: CMPX)