Bright Minds Biosciences Inc. (NASDAQ: DRUG)

Sector: Healthcare Industry: Biotechnology CIK: 0001827401
Market Cap 614.44 Mn
P/B 9.43
P/E -42.42
P/S 0.00
ROIC (Qtr) -30.83
Div Yield % 0.00
Rev 1y % (Qtr) 0.00
Total Debt (Qtr) 12,221.90
Debt/Equity (Qtr) 0.00
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About

Bright Minds Biosciences Inc., often referred to as BRIGHT MINDS BIOSCIENCES INC., operates in the biotechnology industry, with a focus on developing therapeutics to enhance the lives of patients with severe and life-altering diseases. The company was established on May 31, 2

Investment thesis

Bull case

  • Strong tangible asset base of 66.34M provides 5427.61x coverage of total debt 12221.90, indicating robust asset backing and low credit risk.
  • Tangible assets of 66.34M provide robust 1030.90x coverage of other current liabilities 64347.45, indicating strong asset backing.
  • Strong cash position of 65M provides 1010.12x coverage of other current liabilities 64347.45, indicating excellent liquidity.
  • Cash reserves of 65M provide robust 56.27x coverage of current liabilities 1.16M, indicating strong short-term solvency.
  • Robust R&D investment of 11.46M at 6.20x of SG&A 1.85M demonstrates strong commitment to innovation and future growth.

Bear case

  • Investment activities of 0 provide weak support for R&D spending of 11.46M, which is 0x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • The company's operating cash flow of (9.50M) shows concerning coverage of stock compensation expenses of 3.13M, with a -3.03 ratio indicating potential earnings quality issues.
  • Operating earnings of (14.48M) show weak coverage of depreciation charges of 54835.04, with a -264.15 ratio indicating high capital intensity and potential reinvestment needs.
  • Operating cash flow of (9.50M) barely covers operating expenses of 719080.29 with a -13.21 ratio, suggesting thin operational efficiency margins and limited flexibility.
  • Operating cash flow of (9.50M) is outpaced by equity issuance of 34.91M (-0.27 ratio), indicating concerning reliance on equity markets for funding operations.

Peer comparison

Companies in the Biotechnology
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 SMMT Summit Therapeutics Inc. 1,204.25 Bn -1,306.67 0.00 0.01 Bn
2 ONC BeOne Medicines Ltd. 486.51 Bn 7,097.20 97.84 1.90 Bn
3 VRTX Vertex Pharmaceuticals Inc / Ma 122.05 Bn 30.87 10.17 1.85 Bn
4 REGN Regeneron Pharmaceuticals, Inc. 83.00 Bn 18.42 5.79 2.71 Bn
5 ARGX Argenx Se 50.78 Bn 33.71 26,480.10 -
6 ALNY Alnylam Pharmaceuticals, Inc. 43.66 Bn 139.17 11.76 2.97 Bn
7 BNTC Benitec Biopharma Inc. 43.61 Bn -941.82 0.00 0.00 Bn
8 INSM INSMED Inc 28.88 Bn -24.40 64.61 0.74 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 6.18 11.06
EV to Cash from Ops. EV/CFO -43.13 26.32
EV to Debt EV to Debt 33,519.62 762.61
EV to EBIT EV/EBIT -28.28 -13.49
EV to EBITDA EV/EBITDA -29.32 8.61
EV to Free Cash Flow [EV/FCF] EV/FCF -43.13 25.66
EV to Market Cap EV to Market Cap 0.67 203.37
EV to Revenue EV to Revenue 0.00 156.31
Price to Book Value [P/B] P/B 9.43 20.59
Price to Earnings [P/E] P/E -42.42 -0.88
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 -12.64
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 Interest Coverage 0.00 956.66
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex Growth (1y) % 0.00 7.87
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 61.66 753.48
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 0.01
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -1,852.89 -57.63
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -655.68 8.83
EBIT Growth (1y) % EBIT 1y % (Qtr) -1,852.89 -67.21
EBT Growth (1y) % EBT 1y % (Qtr) -1,852.89 -23.74
EPS Growth (1y) % EPS 1y % (Qtr) -1,086.86 -7.02
FCF Growth (1y) % FCF 1y % (Qtr) -442.24 -40.48
Gross Profit Growth (1y) % Gross Profit Growth (1y) % 0.00 264.51
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.00 0.14
Cash Payout Ratio Cash Payout Ratio 0.00 0.00
Cash Ratio Cash Ratio (Qtr) 56.27 3.92
Current Ratio Curr Ratio (Qtr) 57.37 7.33
Debt to Equity Ratio Debt/Equity (Qtr) 0.00 0.48
Interest Cover Ratio Interest Cover Ratio 0.00 956.66
Times Interest Earned Times Interest Earned 0.00 956.66
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % 0.00 -17,888.70
EBIT Margin % EBIT Margin % 0.00 -18,246.34
EBT Margin % EBT Margin % 0.00 -19,108.08
Gross Margin % Gross Margin % 0.00 -10.30
Net Profit Margin % Net Profit Margin % 0.00 -19,056.96