Centessa Pharmaceuticals plc (NASDAQ: CNTA)

Sector: Healthcare Industry: Biotechnology CIK: 0001847903
Market Cap 2.82 Bn
P/B 9.34
P/E -11.61
P/S 187.77
ROIC (Qtr) -49.17
Div Yield % 0.00
Rev 1y % (Qtr) 0.00
Total Debt (Qtr) 117.58 Mn
Debt/Equity (Qtr) 0.39

About

Centessa Pharmaceuticals plc, listed on the NASDAQ stock exchange under the ticker symbol CNTA, is a clinical-stage pharmaceutical company dedicated to discovering, developing, and delivering medicines that are transformational for patients. The company operates in the pharmaceutical industry and has a strong focus on therapeutic areas of unmet need. Its operations span across various countries, with its registered office located in Altrincham, Cheshire, United Kingdom. Centessa Pharmaceuticals plc's main business activities revolve around the...

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Price action

Investment thesis

Bull case

  • Strong tangible asset base of 448.30M provides 3.81x coverage of total debt 117.58M, indicating robust asset backing and low credit risk.
  • Long-term investments of 102.83M provide solid 0.87x coverage of long-term debt 117.58M, indicating strategic financial planning.
  • Short-term investments of 195.40M provide solid 9.56x coverage of other current liabilities 20.44M, indicating strong liquidity.
  • Tangible assets of 448.30M provide robust 21.93x coverage of other current liabilities 20.44M, indicating strong asset backing.
  • Cash reserves of 50.81M provide solid 1752.10x coverage of other non-current liabilities 29000, indicating strong liquidity.

Bear case

  • Investment activities of (175.40M) provide weak support for R&D spending of 178.62M, which is -0.98x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Short-term investments of 195.40M significantly exceed cash reserves of 50.81M, which is 3.85x, indicating potentially excessive yield-seeking behavior at the expense of liquidity.
  • The company's operating cash flow of (180.81M) shows concerning coverage of stock compensation expenses of 31.35M, with a -5.77 ratio indicating potential earnings quality issues.
  • Free cash flow of (181.17M) provides weak coverage of capital expenditures of 360000, with a -503.25 ratio suggesting additional external financing needs for growth initiatives.
  • Operating earnings of (228.18M) show weak coverage of depreciation charges of 910000, with a -250.74 ratio indicating high capital intensity and potential reinvestment needs.

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 6.45 12.96
EV to Cash from Ops. EV/CFO -15.98 23.73
EV to Debt EV to Debt 24.58 772.65
EV to EBIT EV/EBIT -12.66 -11.30
EV to EBITDA EV/EBITDA -13.43 7.11
EV to Free Cash Flow [EV/FCF] EV/FCF -15.95 22.12
EV to Market Cap EV to Market Cap 1.03 68.89
EV to Revenue EV/Rev 192.65 199.70
Price to Book Value [P/B] P/B 9.34 22.62
Price to Earnings [P/E] P/E -11.61 -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) -20.50 857.11
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -480.65 -27.24
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -87.14 747.06
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 0.01
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -53.36 -48.21
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -37.80 -2.09
EBIT Growth (1y) % EBIT 1y % (Qtr) -54.02 -57.79
EBT Growth (1y) % EBT 1y % (Qtr) -51.15 -14.35
EPS Growth (1y) % EPS 1y % (Qtr) -25.00 -30.88
FCF Growth (1y) % FCF 1y % (Qtr) -38.97 -32.51
Gross Profit Growth (1y) % Gross Profit Growth (1y) % 118.88 227.96
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.03 0.14
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.00
Cash Ratio Cash Ratio (Qtr) 1.74 3.79
Current Ratio Curr Ratio (Qtr) 10.57 7.23
Debt to Equity Ratio Debt/Equity (Qtr) 0.39 0.42
Interest Cover Ratio Int Coverage (Qtr) -20.50 857.11
Times Interest Earned Times Interest Earned (Qtr) -20.50 857.11
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) -1,515.10 -18,509.94
EBIT Margin % EBIT Margin % (Qtr) -1,521.18 -18,862.18
EBT Margin % EBT Margin % (Qtr) -1,595.38 -19,783.19
Gross Margin % Gross Margin % (Qtr) 100.00 -8.62
Net Profit Margin % Net Margin % (Qtr) -1,618.00 -19,732.60