Day One Biopharmaceuticals, Inc. (NASDAQ: DAWN)

Sector: Healthcare Industry: Biotechnology CIK: 0001845337
P/B 1.85
P/E -5.50
P/S 6.24
Market Cap 834.67 Mn
ROIC (Qtr) -36.10
Div Yield % 0.00
Rev 1y % (Qtr) -57.56
Total Debt (Qtr) 2.89 Mn
Debt/Equity (Qtr) 0.01

About

Day One Biopharmaceuticals, Inc. (DAWN), a clinical-stage biopharmaceutical company, is dedicated to developing and commercializing targeted therapies for patients of all ages with life-threatening diseases. The company's lead product candidate, tovorafenib, is an oral, brain-penetrant, highly selective type II RAF kinase inhibitor that inhibits both monomeric and dimeric RAF kinase. Tovorafenib has been studied in over 450 patients and has been shown to be generally well-tolerated as a monotherapy. DAWN's main business activities revolve around...

Read more

Stock Price Chart

Analysis

Pros

  • Healthy cash reserves of 43.28M provide 268.80x coverage of short-term debt 161000, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 494.96M provides 171.09x coverage of total debt 2.89M, indicating robust asset backing and low credit risk.
  • Tangible assets of 494.96M provide exceptional 93.92x coverage of deferred revenue 5.27M, showing strong service capability backing.
  • Operating cash flow of (119.62M) fully covers other non-current liabilities (1.56M) by 76.87x, showing strong long-term stability.
  • Short-term investments of 408.30M provide solid 8.08x coverage of other current liabilities 50.53M, indicating strong liquidity.

Cons

  • Operating cash flow of (119.62M) barely covers its investment activities of (262.47M), with a coverage ratio of 0.46, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of (262.47M) provide weak support for R&D spending of 169.01M, which is -1.55x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Operating cash flow of (119.62M) provides insufficient coverage of deferred revenue obligations of 5.27M, which is -22.70x, raising concerns about future service delivery capabilities.
  • Short-term investments of 408.30M significantly exceed cash reserves of 43.28M, which is 9.43x, indicating potentially excessive yield-seeking behavior at the expense of liquidity.
  • The company's operating cash flow of (119.62M) shows concerning coverage of stock compensation expenses of 44.35M, with a -2.70 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 Percentile
EV to Assets 1.56 12.31
EV to Cash from Ops. -6.71 23.25
EV to Debt 277.24 738.44
EV to EBIT -5.52 -9.16
EV to EBITDA -4.95 6.95
EV to Free Cash Flow [EV/FCF] -6.61 21.90
EV to Market Cap 0.96 65.67
EV to Revenue 6.00 227.32
Price to Book Value [P/B] 1.85 22.34
Price to Earnings [P/E] -5.50 -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 Percentile
Capex Growth (1y) % -101.59 -27.13
Cash and Equivalents Growth (1y) % -89.76 734.65
Dividend Growth (1y) % 0.00 0.01
EBIAT Growth (1y) % -80.04 -46.93
EBITDA Growth (1y) % 22.85 -1.68
EBIT Growth (1y) % -73.74 -56.45
EBT Growth (1y) % -73.74 -12.70
EPS Growth (1y) % -47.57 -28.31
FCF Growth (1y) % -782.93 -31.90
Gross Profit Growth (1y) % 19.97 226.84

Liquidity Ratios

Metric Value Industry Percentile
Asset Utilization Ratio 0.26 0.14
Cash Payout Ratio 0.00 0.00
Cash Ratio 0.77 3.85
Current Ratio 8.68 7.27
Debt to Equity Ratio 0.01 0.40
Interest Cover Ratio 0.00 841.00
Times Interest Earned 0.00 841.00

Profitability

Metric Value Industry Percentile
EBITDA Margin % -106.00 -18,234.31
EBIT Margin % -108.69 -18,580.80
EBT Margin % -108.69 -19,488.74
Gross Margin % 89.40 -7.59
Net Profit Margin % -113.50 -19,439.22