Cogent Biosciences, Inc. (NASDAQ: COGT)

Sector: Healthcare Industry: Biotechnology CIK: 0001622229
Market Cap 6.38 Bn
P/B 21.11
P/E -21.69
P/S 0.00
ROIC (Qtr) -106.31
Div Yield % 0.00
Rev 1y % (Qtr) 0.00
Total Debt (Qtr) 60.56 Mn
Debt/Equity (Qtr) 0.20

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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Price action

Investment thesis

Bull case

  • Healthy cash reserves of 125.63M provide 73.64x coverage of short-term debt 1.71M, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 425.93M provides 7.03x coverage of total debt 60.56M, indicating robust asset backing and low credit risk.
  • Short-term investments of 265.59M provide solid 5.97x coverage of other current liabilities 44.51M, indicating strong liquidity.
  • Tangible assets of 425.93M provide robust 9.57x coverage of other current liabilities 44.51M, indicating strong asset backing.
  • Strong cash position of 125.63M provides 2.82x coverage of other current liabilities 44.51M, indicating excellent liquidity.

Bear case

  • Investment activities of (15.09M) provide weak support for R&D spending of 256.27M, which is -0.06x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • The company's operating cash flow of (245.92M) shows concerning coverage of stock compensation expenses of 40.30M, with a -6.10 ratio indicating potential earnings quality issues.
  • Free cash flow of (246.73M) provides weak coverage of capital expenditures of 818000, with a -301.63 ratio suggesting additional external financing needs for growth initiatives.
  • Operating earnings of (292.60M) show weak coverage of depreciation charges of 4.55M, with a -64.31 ratio indicating high capital intensity and potential reinvestment needs.
  • Free cash flow of (246.73M) represents just -5.25x of debt issuance 46.99M, suggesting concerning reliance on leverage rather than internal cash generation for growth.

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 14.83 12.96
EV to Cash from Ops. EV/CFO -25.69 23.73
EV to Debt EV to Debt 104.32 772.65
EV to EBIT EV/EBIT -21.59 -11.30
EV to EBITDA EV/EBITDA -20.85 7.11
EV to Free Cash Flow [EV/FCF] EV/FCF -25.61 22.12
EV to Market Cap EV to Market Cap 0.99 68.89
EV to Revenue EV/Rev 0.00 199.70
Price to Book Value [P/B] P/B 21.11 22.62
Price to Earnings [P/E] P/E -21.69 -12.30
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 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) -165.03 857.11
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -0.62 -27.24
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 29.46 747.06
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 0.01
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -20.76 -48.21
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -18.20 -2.09
EBIT Growth (1y) % EBIT 1y % (Qtr) -20.76 -57.79
EBT Growth (1y) % EBT 1y % (Qtr) -21.49 -14.35
EPS Growth (1y) % EPS 1y % (Qtr) -3.14 -30.88
FCF Growth (1y) % FCF 1y % (Qtr) -28.44 -32.51
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 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) 2.02 3.79
Current Ratio Curr Ratio (Qtr) 6.38 7.23
Debt to Equity Ratio Debt/Equity (Qtr) 0.20 0.42
Interest Cover Ratio Int Coverage (Qtr) -165.03 857.11
Times Interest Earned Times Interest Earned (Qtr) -165.03 857.11
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