Cytokinetics Inc (NASDAQ: CYTK)

Sector: Healthcare Industry: Biotechnology CIK: 0001061983
Market Cap 7.57 Bn
P/B -14.53
P/E -10.07
P/S 86.80
ROIC (Qtr) -98.35
Div Yield % 0.00
Rev 1y % (Qtr) 318.14
Total Debt (Qtr) 1.20 Bn
Debt/Equity (Qtr) -2.30

About

Price action

Investment thesis

Bull case

  • Healthy cash reserves of 225.47M provide 5.94x coverage of short-term debt 37.93M, demonstrating strong liquidity position and minimal refinancing risk.
  • Tangible assets of 1.44B provide exceptional 891.16x coverage of deferred revenue 1.61M, showing strong service capability backing.
  • Short-term investments of 737.07M provide solid 8.97x coverage of other current liabilities 82.13M, indicating strong liquidity.
  • Cash reserves of 225.47M provide robust 1.59x coverage of current liabilities 142.14M, indicating strong short-term solvency.
  • R&D investment of 405.26M represents healthy 251.40x of deferred revenue 1.61M, indicating strong future innovation pipeline.

Bear case

  • Operating cash flow of (432.93M) barely covers its investment activities of 198.72M, with a coverage ratio of -2.18, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of 198.72M provide weak support for R&D spending of 405.26M, which is 0.49x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Operating cash flow of (432.93M) provides insufficient coverage of deferred revenue obligations of 1.61M, which is -268.57x, raising concerns about future service delivery capabilities.
  • Short-term investments of 737.07M significantly exceed cash reserves of 225.47M, which is 3.27x, indicating potentially excessive yield-seeking behavior at the expense of liquidity.
  • The company's operating cash flow of (432.93M) shows concerning coverage of stock compensation expenses of 108.03M, with a -4.01 ratio indicating potential earnings quality issues.

Product and Service Breakdown of Revenue (2024)

Product and Service Breakdown of Revenue (2024)

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 5.81 12.96
EV to Cash from Ops. EV/CFO -19.29 23.73
EV to Debt EV to Debt 6.98 772.65
EV to EBIT EV/EBIT -11.74 -11.30
EV to EBITDA EV/EBITDA -14.83 7.11
EV to Free Cash Flow [EV/FCF] EV/FCF -18.42 22.12
EV to Market Cap EV to Market Cap 1.10 68.89
EV to Revenue EV/Rev 95.78 199.70
Price to Book Value [P/B] P/B -14.53 22.62
Price to Earnings [P/E] P/E -10.07 -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) -17.69 857.11
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -659.49 -27.24
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 380.86 747.06
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 0.01
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -31.68 -48.21
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -10.20 -2.09
EBIT Growth (1y) % EBIT 1y % (Qtr) -31.68 -57.79
EBT Growth (1y) % EBT 1y % (Qtr) -30.45 -14.35
EPS Growth (1y) % EPS 1y % (Qtr) -16.91 -30.88
FCF Growth (1y) % FCF 1y % (Qtr) -11.38 -32.51
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 2,609.26 227.96
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.06 0.14
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.00
Cash Ratio Cash Ratio (Qtr) 1.59 3.79
Current Ratio Curr Ratio (Qtr) 6.88 7.23
Debt to Equity Ratio Debt/Equity (Qtr) -2.30 0.42
Interest Cover Ratio Int Coverage (Qtr) -17.69 857.11
Times Interest Earned Times Interest Earned (Qtr) -17.69 857.11
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) -805.00 -18,509.94
EBIT Margin % EBIT Margin % (Qtr) -816.07 -18,862.18
EBT Margin % EBT Margin % (Qtr) -862.21 -19,783.19
Gross Margin % Gross Margin % (Qtr) 100.00 -8.62
Net Profit Margin % Net Margin % (Qtr) -862.20 -19,732.60