Cogent Biosciences, Inc. (NASDAQ: COGT)

Sector: Healthcare Industry: Biotechnology CIK: 0001622229
Market Cap 5.73 Bn
P/B 9.00
P/E -17.42
P/S 0.00
ROIC (Qtr) -53.85
Div Yield % 0.00
Rev 1y % (Qtr) 0.00
Total Debt (Qtr) 238.80 Mn
Debt/Equity (Qtr) 0.38
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About

Cogent Biosciences, Inc., a biotechnology company (NASDAQ: COGT), is dedicated to developing precision therapies for genetically defined diseases. The company's operations revolve around the development of small molecule inhibitors that target specific mutations in proteins associated with various diseases. Cogent's primary products include bezuclastinib, a highly selective tyrosine kinase inhibitor designed to potently inhibit the KIT D816V mutation, and CGT4859, a reversible, selective FGFR2 inhibitor with coverage of activating and emerging resistance...

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Investment thesis

Bull case

  • Healthy cash reserves of 312.43M provide 201.96x coverage of short-term debt 1.55M, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 937.61M provides 3.93x coverage of total debt 238.80M, indicating robust asset backing and low credit risk.
  • Short-term investments of 588.75M provide solid 11.13x coverage of other current liabilities 52.90M, indicating strong liquidity.
  • Tangible assets of 937.61M provide robust 17.72x coverage of other current liabilities 52.90M, indicating strong asset backing.
  • Cash reserves of 312.43M provide solid 9467.52x coverage of other non-current liabilities 33000, indicating strong liquidity.

Bear case

  • Operating cash flow of (264.44M) barely covers its investment activities of (399.53M), with a coverage ratio of 0.66, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of (399.53M) provide weak support for R&D spending of 269.78M, which is -1.48x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • The company's operating cash flow of (264.44M) shows concerning coverage of stock compensation expenses of 46.08M, with a -5.74 ratio indicating potential earnings quality issues.
  • Free cash flow of (266M) provides weak coverage of capital expenditures of 1.55M, with a -171.17 ratio suggesting additional external financing needs for growth initiatives.
  • Operating earnings of (325.88M) show weak coverage of depreciation charges of 4.58M, with a -71.11 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. 1,204.25 Bn -1,306.67 0.00 0.01 Bn
2 ONC BeOne Medicines Ltd. 486.51 Bn 7,097.20 97.84 1.90 Bn
3 VRTX Vertex Pharmaceuticals Inc / Ma 122.05 Bn 30.87 10.17 1.85 Bn
4 REGN Regeneron Pharmaceuticals, Inc. 83.00 Bn 18.42 5.79 2.71 Bn
5 ARGX Argenx Se 50.78 Bn 33.71 26,480.10 -
6 ALNY Alnylam Pharmaceuticals, Inc. 43.66 Bn 139.17 11.76 2.97 Bn
7 BNTC Benitec Biopharma Inc. 43.61 Bn -941.82 0.00 0.00 Bn
8 INSM INSMED Inc 28.88 Bn -24.40 64.61 0.74 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 6.04 11.06
EV to Cash from Ops. EV/CFO -21.42 26.32
EV to Debt EV to Debt 23.72 762.61
EV to EBIT EV/EBIT -17.38 -13.49
EV to EBITDA EV/EBITDA -17.23 8.61
EV to Free Cash Flow [EV/FCF] EV/FCF -21.29 25.66
EV to Market Cap EV to Market Cap 0.99 203.37
EV to Revenue EV/Rev 0.00 156.31
Price to Book Value [P/B] P/B 9.00 20.59
Price to Earnings [P/E] P/E -17.42 -0.88
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 0.00 -12.64
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 -0.14
Interest Coverage Int. cover (Qtr) -106.43 956.66
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -171.20 7.87
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 218.27 753.48
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 0.01
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -27.37 -57.63
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -21.06 8.83
EBIT Growth (1y) % EBIT 1y % (Qtr) -27.37 -67.21
EBT Growth (1y) % EBT 1y % (Qtr) -28.56 -23.74
EPS Growth (1y) % EPS 1y % (Qtr) -11.34 -7.02
FCF Growth (1y) % FCF 1y % (Qtr) -27.66 -40.48
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 0.00 264.51
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) 4.89 3.92
Current Ratio Curr Ratio (Qtr) 14.24 7.33
Debt to Equity Ratio Debt/Equity (Qtr) 0.38 0.48
Interest Cover Ratio Int Coverage (Qtr) -106.43 956.66
Times Interest Earned Times Interest Earned (Qtr) -106.43 956.66
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 0.00 -17,888.70
EBIT Margin % EBIT Margin % (Qtr) 0.00 -18,246.34
EBT Margin % EBT Margin % (Qtr) 0.00 -19,108.08
Gross Margin % Gross Margin % (Qtr) 0.00 -10.30
Net Profit Margin % Net Margin % (Qtr) 0.00 -19,056.96