Bright Minds Biosciences Inc. (NASDAQ: DRUG)

Sector: Healthcare Industry: Biotechnology CIK: 0001827401
Market Cap 596.01 Mn
P/B 10.02
P/E -67.26
P/S 0.00
ROIC (Qtr) -30.56
Div Yield % 0.00
Rev 1y % (Qtr) 0.00
Total Debt (Qtr) 29,890.58
Debt/Equity (Qtr) 0.00

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

Price action

Investment thesis

Bull case

  • Strong tangible asset base of 61.18M provides 2046.63x coverage of total debt 29890.58, indicating robust asset backing and low credit risk.
  • Tangible assets of 61.18M provide robust 998.74x coverage of other current liabilities 61252.17, indicating strong asset backing.
  • Strong cash position of 60.08M provides 980.84x coverage of other current liabilities 61252.17, indicating excellent liquidity.
  • Cash reserves of 60.08M provide robust 35.50x coverage of current liabilities 1.69M, indicating strong short-term solvency.
  • Cash position of 60.08M represents healthy 1.01x of working capital 59.40M, demonstrating strong operational liquidity.

Bear case

  • Investment activities of 0 provide weak support for R&D spending of 8.03M, which is 0x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • The company's operating cash flow of (6.30M) shows concerning coverage of stock compensation expenses of 2.31M, with a -2.73 ratio indicating potential earnings quality issues.
  • Operating earnings of (8.86M) show weak coverage of depreciation charges of 55701.45, with a -159.10 ratio indicating high capital intensity and potential reinvestment needs.
  • Operating cash flow of (6.30M) barely covers operating expenses of 619120.29 with a -10.17 ratio, suggesting thin operational efficiency margins and limited flexibility.
  • High financing cash flow of 62.01M relative to working capital of 59.40M, which is 1.04x suggests concerning dependence on external funding for operational needs.

Peer comparison

Companies in the Biotechnology
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 SMMT Summit Therapeutics Inc. 1,511.45 Bn -1,640.00 0.00 0.01 Bn
2 ONC BeOne Medicines Ltd. 463.25 Bn 6,757.80 93.16 1.90 Bn
3 VRTX Vertex Pharmaceuticals Inc / Ma 119.13 Bn 32.42 10.16 1.83 Bn
4 REGN Regeneron Pharmaceuticals, Inc. 83.93 Bn 18.33 5.89 2.71 Bn
5 ALNY Alnylam Pharmaceuticals, Inc. 55.97 Bn 1,284.81 17.44 3.21 Bn
6 ARGX Argenx Se 47.47 Bn 31.51 24,751.70 -
7 BNTC Benitec Biopharma Inc. 41.27 Bn -986.67 0.00 0.00 Bn
8 INSM INSMED Inc 33.76 Bn -28.52 75.53 0.74 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 7.36 13.39
EV to Cash from Ops. EV/CFO -71.53 23.02
EV to Debt EV to Debt 15,072.42 789.59
EV to EBIT EV/EBIT -50.84 -11.14
EV to EBITDA EV/EBITDA -44.86 7.05
EV to Free Cash Flow [EV/FCF] EV/FCF -71.53 21.44
EV to Market Cap EV to Market Cap 0.76 72.36
EV to Revenue EV to Revenue 0.00 194.41
Price to Book Value [P/B] P/B 10.02 23.19
Price to Earnings [P/E] P/E -67.26 -11.47
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 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 Interest Coverage 0.00 856.48
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex Growth (1y) % 0.00 -27.12
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 1,328.42 747.06
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 0.01
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -330.13 -48.05
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -396.83 -1.94
EBIT Growth (1y) % EBIT 1y % (Qtr) -330.13 -57.64
EBT Growth (1y) % EBT 1y % (Qtr) -330.13 -14.19
EPS Growth (1y) % EPS 1y % (Qtr) -169.88 -30.71
FCF Growth (1y) % FCF 1y % (Qtr) -362.96 -32.52
Gross Profit Growth (1y) % Gross Profit Growth (1y) % 0.00 227.96
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) 35.50 3.79
Current Ratio Curr Ratio (Qtr) 36.10 7.23
Debt to Equity Ratio Debt/Equity (Qtr) 0.00 0.42
Interest Cover Ratio Interest Cover Ratio 0.00 856.48
Times Interest Earned Times Interest Earned 0.00 856.48
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % 0.00 -18,509.94
EBIT Margin % EBIT Margin % 0.00 -18,862.18
EBT Margin % EBT Margin % 0.00 -19,783.19
Gross Margin % Gross Margin % 0.00 -8.62
Net Profit Margin % Net Profit Margin % 0.00 -19,732.60