Contineum Therapeutics, Inc. (NASDAQ: CTNM)

Sector: Healthcare Industry: Biotechnology CIK: 0001855175
Market Cap 394.16 Mn
P/B 2.18
P/E -6.64
P/S 0.00
ROIC (Qtr) -37.45
Div Yield % 0.00
Rev 1y % (Qtr) 0.00
Total Debt (Qtr) 5.49 Mn
Debt/Equity (Qtr) 0.03

About

Price action

Investment thesis

Bull case

  • Healthy cash reserves of 42.63M provide 28.86x coverage of short-term debt 1.48M, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 190.85M provides 34.74x coverage of total debt 5.49M, indicating robust asset backing and low credit risk.
  • Short-term investments of 139.77M provide solid 34.11x coverage of other current liabilities 4.10M, indicating strong liquidity.
  • Tangible assets of 190.85M provide robust 46.57x coverage of other current liabilities 4.10M, indicating strong asset backing.
  • Strong cash position of 42.63M provides 10.40x coverage of other current liabilities 4.10M, indicating excellent liquidity.

Bear case

  • Operating cash flow of (52.47M) barely covers its investment activities of 34.35M, with a coverage ratio of -1.53, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of 34.35M provide weak support for R&D spending of 51.78M, which is 0.66x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Short-term investments of 139.77M significantly exceed cash reserves of 42.63M, which is 3.28x, indicating potentially excessive yield-seeking behavior at the expense of liquidity.
  • The company's operating cash flow of (52.47M) shows concerning coverage of stock compensation expenses of 9.81M, with a -5.35 ratio indicating potential earnings quality issues.
  • Free cash flow of (52.83M) provides weak coverage of capital expenditures of 355000, with a -148.81 ratio suggesting additional external financing needs for growth initiatives.

Peer comparison

Companies in the Biotechnology
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 SMMT Summit Therapeutics Inc. 1,151.25 Bn -1,249.17 0.00 0.01 Bn
2 ONC BeOne Medicines Ltd. 485.22 Bn 7,078.40 97.58 1.90 Bn
3 VRTX Vertex Pharmaceuticals Inc / Ma 122.74 Bn 33.40 10.47 1.83 Bn
4 REGN Regeneron Pharmaceuticals, Inc. 82.16 Bn 18.24 5.73 2.71 Bn
5 ARGX Argenx Se 48.85 Bn 32.43 25,472.44 -
6 ALNY Alnylam Pharmaceuticals, Inc. 46.12 Bn 1,058.58 14.37 3.21 Bn
7 BNTC Benitec Biopharma Inc. 42.24 Bn -1,010.00 0.00 0.00 Bn
8 INSM INSMED Inc 28.75 Bn -24.29 64.32 0.74 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 1.99 11.11
EV to Cash from Ops. EV/CFO -7.23 26.32
EV to Debt EV to Debt 69.02 688.48
EV to EBIT EV/EBIT -6.38 -10.97
EV to EBITDA EV/EBITDA -5.67 8.32
EV to Free Cash Flow [EV/FCF] EV/FCF -7.18 25.03
EV to Market Cap EV to Market Cap 0.96 163.46
EV to Revenue EV to Revenue 0.00 148.57
Price to Book Value [P/B] P/B 2.18 20.73
Price to Earnings [P/E] P/E -6.64 -0.34
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 -12.47
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) 0.00 860.86
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 44.27 -26.99
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 4.26 756.75
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 0.01
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -105.58 -53.03
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -57.92 -4.42
EBIT Growth (1y) % EBIT 1y % (Qtr) -104.44 -62.56
EBT Growth (1y) % EBT 1y % (Qtr) -104.44 -19.19
EPS Growth (1y) % EPS 1y % (Qtr) 53.59 -4.07
FCF Growth (1y) % FCF 1y % (Qtr) -55.45 -33.40
Gross Profit Growth (1y) % Gross Profit Growth (1y) % 0.00 264.38
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) 6.70 3.81
Current Ratio Curr Ratio (Qtr) 29.07 7.25
Debt to Equity Ratio Debt/Equity (Qtr) 0.03 0.43
Interest Cover Ratio Int Coverage (Qtr) 0.00 860.86
Times Interest Earned Times Interest Earned (Qtr) 0.00 860.86
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 0.00 -17,746.13
EBIT Margin % EBIT Margin % (Qtr) 0.00 -18,101.92
EBT Margin % EBT Margin % (Qtr) 0.00 -18,961.86
Gross Margin % Gross Margin % (Qtr) 0.00 -9.24
Net Profit Margin % Net Margin % (Qtr) 0.00 -18,911.61