Corcept Therapeutics Inc (NASDAQ: CORT)

Sector: Healthcare Industry: Biotechnology CIK: 0001088856
Market Cap 3.82 Bn
P/B 6.05
P/E 36.53
P/S 5.16
ROIC (Qtr) 13.27
Div Yield % 0.00
Rev 1y % (Qtr) 13.75
Total Debt (Qtr) 6.36 Mn
Debt/Equity (Qtr) 0.01

About

Price action

Investment thesis

Bull case

  • Strong operating cash flow of 162.85M provides robust 25.61x coverage of total debt 6.36M, indicating excellent debt servicing capability and financial flexibility.
  • Healthy cash reserves of 125.14M provide 119.18x coverage of short-term debt 1.05M, demonstrating strong liquidity position and minimal refinancing risk.
  • Operating cash flow of 162.85M provides exceptional 111.31x coverage of minority interest expenses 1.46M, showing strong core operations.
  • Strong tangible asset base of 823.61M provides 129.54x coverage of total debt 6.36M, indicating robust asset backing and low credit risk.
  • Robust free cash flow of 162.57M exceeds capital expenditure of 282000 by 576.48x, indicating strong organic growth funding capability.

Bear case

  • Investment activities of 17.24M provide weak support for R&D spending of 260.35M, which is 0.07x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • High receivables of 69.63M relative to inventory of 24.35M (2.86 ratio) suggests aggressive credit terms or collection difficulties, potentially masking revenue quality issues.
  • The company's operating cash flow of 162.85M shows concerning coverage of stock compensation expenses of 80.53M, with a 2.02 ratio indicating potential earnings quality issues.
  • Operating cash flow of 162.85M provides minimal -9.25x coverage of tax expenses of (17.60M), suggesting potential tax planning inefficiencies or unsustainable tax positions.
  • Long-term investments of 102.56M represent a high 14.93x of fixed assets 6.87M, indicating potential overexposure to financial assets versus operational capabilities.

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 4.52 12.96
EV to Cash from Ops. EV/CFO 22.88 23.73
EV to Debt EV to Debt 586.13 772.65
EV to EBIT EV/EBIT 58.13 -11.30
EV to EBITDA EV/EBITDA 55.26 7.11
EV to Free Cash Flow [EV/FCF] EV/FCF 22.92 22.12
EV to Market Cap EV to Market Cap 0.97 68.89
EV to Revenue EV/Rev 5.03 199.70
Price to Book Value [P/B] P/B 6.05 22.62
Price to Earnings [P/E] P/E 36.53 -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) -2.79 857.11
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 86.25 -27.24
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -8.85 747.06
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 0.01
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -36.25 -48.21
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -53.33 -2.09
EBIT Growth (1y) % EBIT 1y % (Qtr) -54.86 -57.79
EBT Growth (1y) % EBT 1y % (Qtr) -47.24 -14.35
EPS Growth (1y) % EPS 1y % (Qtr) -26.47 -30.88
FCF Growth (1y) % FCF 1y % (Qtr) 14.42 -32.51
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 17.62 227.96
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.90 0.14
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.00
Cash Ratio Cash Ratio (Qtr) 0.73 3.79
Current Ratio Curr Ratio (Qtr) 3.14 7.23
Debt to Equity Ratio Debt/Equity (Qtr) 0.01 0.42
Interest Cover Ratio Int Coverage (Qtr) -2.79 857.11
Times Interest Earned Times Interest Earned (Qtr) -2.79 857.11
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 8.90 -18,509.94
EBIT Margin % EBIT Margin % (Qtr) 8.65 -18,862.18
EBT Margin % EBT Margin % (Qtr) 11.74 -19,783.19
Gross Margin % Gross Margin % (Qtr) 98.20 -8.62
Net Profit Margin % Net Margin % (Qtr) 14.10 -19,732.60