Crinetics Pharmaceuticals, Inc. (CRNX) Stock Analysis and Metrics

Sector: Healthcare Industry: Biotechnology CIK: 0001658247

P/B 4.41

P/E -11.17

P/S 3,078.92

Market Cap 4.73 Bn

ROIC (Qtr) -40.79

Div Yield % 0.00

Rev 1y % (Qtr) 0.00

Total Debt (Qtr) 49.14 Mn

Debt/Equity (Qtr) 0.05

About

Crinetics Pharmaceuticals, Inc. (CRNX) operates in the pharmaceutical industry, specifically focused on the discovery, development, and commercialization of novel therapeutics for endocrine diseases and endocrine-related tumors. The company's primary products include paltusotine, CRN04894, and CRN01941, which are in various stages of development to treat different endocrine-related diseases and conditions. Crinetics Pharmaceuticals' main business activities involve the research and development of orally available therapies for endocrine diseases...

Crinetics Pharmaceuticals, Inc. (CRNX) operates in the pharmaceutical industry, specifically focused on the discovery, development, and commercialization of novel therapeutics for endocrine diseases and endocrine-related tumors. The company's primary products include paltusotine, CRN04894, and CRN01941, which are in various stages of development to treat different endocrine-related diseases and conditions.

Crinetics Pharmaceuticals' main business activities involve the research and development of orally available therapies for endocrine diseases and endocrine-related tumors. These activities are carried out in the United States. The company's operations are primarily focused on targeting validated biomarkers as clinical endpoints, which allows for rapid advancement of multiple product candidates in parallel. Crinetics' proprietary methods, techniques, and tools enable efficient and reliable evaluation of newly synthesized molecules.

The company generates revenue through the development and commercialization of its novel therapeutics. Its primary products include paltusotine, an oral selective nonpeptide somatostatin receptor type 2 (SST2) agonist being developed for the treatment of acromegaly and carcinoid syndrome associated with neuroendocrine tumors (NETs). CRN04894, an oral, nonpeptide ACTH antagonist, is being developed for the treatment of congenital adrenal hyperplasia (CAH) and Cushing's disease. Lastly, CRN01941, a selective nonpeptide SST2 agonist, is being developed for the treatment of autosomal dominant polycystic kidney disease (ADPKD).

Crinetics Pharmaceuticals' competitive advantage lies in its expertise in the discovery and development of orally available therapies for endocrine diseases and endocrine-related tumors. The company's focus on targeting specific biomarkers and developing products that are optimized for their interaction with specific G-protein coupled receptors (GPCRs) sets it apart from its competitors.

Crinetics Pharmaceuticals' customers are primarily patients with endocrine-related diseases and conditions, including acromegaly, carcinoid syndrome, CAH, Cushing's disease, and ADPKD. The company's products are designed to provide improved therapeutic options for these patients, who often have limited treatment options with significant drawbacks.

In terms of its position within the industry, Crinetics Pharmaceuticals is a relatively new player but has made significant progress in developing its pipeline of product candidates. The company's focus on endocrine diseases and endocrine-related tumors sets it apart from other pharmaceutical companies, which often focus on more general therapeutic areas.

Crinetics Pharmaceuticals' product portfolio includes several brand names and trade names for its products and services. Its primary products include paltusotine, CRN04894, and CRN01941. Additionally, the company is developing a thyroid-stimulating hormone receptor antagonist for the treatment of Graves' disease and thyroid eye disease (TED), and is exploring the development of radiopharmaceuticals for the treatment of various oncology indications through its partnership with Radionetics Oncology, Inc.

Stock Price Chart

Analysis

Pros

Healthy cash reserves of 111.40M provide 17.30x coverage of short-term debt 6.44M, demonstrating strong liquidity position and minimal refinancing risk.
Strong tangible asset base of 1.20B provides 24.34x coverage of total debt 49.14M, indicating robust asset backing and low credit risk.
Tangible assets of 1.20B provide exceptional 207.93x coverage of deferred revenue 5.75M, showing strong service capability backing.
Short-term investments of 981.39M provide solid 28.83x coverage of other current liabilities 34.04M, indicating strong liquidity.
Tangible assets of 1.20B provide robust 35.14x coverage of other current liabilities 34.04M, indicating strong asset backing.

Cons

Operating cash flow of (349.69M) barely covers its investment activities of (425.29M), with a coverage ratio of 0.82, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
Investment activities of (425.29M) provide weak support for R&D spending of 313.57M, which is -1.36x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
Operating cash flow of (349.69M) provides insufficient coverage of deferred revenue obligations of 5.75M, which is -60.80x, raising concerns about future service delivery capabilities.
Short-term investments of 981.39M significantly exceed cash reserves of 111.40M, which is 8.81x, indicating potentially excessive yield-seeking behavior at the expense of liquidity.
The company's operating cash flow of (349.69M) shows concerning coverage of stock compensation expenses of 88.15M, with a -3.97 ratio indicating potential earnings quality issues.

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	3.95	12.31
EV to Cash from Ops.	-13.50	23.25
EV to Debt	96.08	738.44
EV to EBIT	-11.16	-9.16
EV to EBITDA	-10.02	6.95
EV to Free Cash Flow [EV/FCF]	-13.26	21.90
EV to Market Cap	1.00	65.67
EV to Revenue	3,076.13	227.32
Price to Book Value [P/B]	4.41	22.34
Price to Earnings [P/E]	-11.17	-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) %	-68.88	-27.13
Cash and Equivalents Growth (1y) %	-65.03	734.65
Dividend Growth (1y) %	0.00	0.01
EBIAT Growth (1y) %	-52.24	-46.93
EBITDA Growth (1y) %	-56.26	-1.68
EBIT Growth (1y) %	-52.24	-56.45
EBT Growth (1y) %	-52.24	-12.70
EPS Growth (1y) %	-21.83	-28.31
FCF Growth (1y) %	-73.18	-31.90
Gross Profit Growth (1y) %	47.74	226.84

Liquidity Ratios

Metric	Value	Industry
Asset Utilization Ratio	0.00	0.14
Cash Payout Ratio	0.00	0.00
Cash Ratio	1.50	3.85
Current Ratio	15.12	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
EBITDA Margin %	-27,120.10	-18,234.31
EBIT Margin %	-27,563.32	-18,580.80
EBT Margin %	-27,563.32	-19,488.74
Gross Margin %	100.00	-7.59
Net Profit Margin %	-27,563.30	-19,439.22

Crinetics Pharmaceuticals, Inc. (NASDAQ: CRNX)