Dyadic International Inc (NASDAQ: DYAI)

Sector: Healthcare Industry: Biotechnology CIK: 0001213809
Market Cap 24.49 Mn
P/B 9.39
P/E -3.33
P/S 7.33
ROIC (Qtr) -117.05
Div Yield % 0.00
Rev 1y % (Qtr) -40.50
Total Debt (Qtr) 5.06 Mn
Debt/Equity (Qtr) 1.94
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About

Dyadic International Inc., or DYAI, is a biotechnology company that operates on a global scale, with its headquarters in Jupiter, Florida, and a satellite office in the Netherlands. The company specializes in developing a gene expression platform for the production of industrial enzymes and other proteins. Over the past two decades, Dyadic has developed a thermophilic filamentous fungal expression system, known as C1, which is used to produce biologic products for various industries, including pharmaceuticals, food, nutrition, and wellness. Dyadic's...

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Investment thesis

Bull case

  • Healthy cash reserves of 7.16M provide 146.25x coverage of short-term debt 48927, demonstrating strong liquidity position and minimal refinancing risk.
  • Tangible assets of 11.67M provide exceptional 8.73x coverage of deferred revenue 1.34M, showing strong service capability backing.
  • Operating cash flow of (4.63M) fully covers other non-current liabilities (1.34M) by 3.46x, showing strong long-term stability.
  • Tangible assets of 11.67M provide robust 4.18x coverage of other current liabilities 2.79M, indicating strong asset backing.
  • Cash reserves of 7.16M provide robust 1.77x coverage of current liabilities 4.05M, indicating strong short-term solvency.

Bear case

  • Operating cash flow of (4.63M) barely covers its investment activities of 877201, with a coverage ratio of -5.28, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of 877201 provide weak support for R&D spending of 2.24M, which is 0.39x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Operating cash flow of (4.63M) provides insufficient coverage of deferred revenue obligations of 1.34M, which is -3.46x, raising concerns about future service delivery capabilities.
  • The company's operating cash flow of (4.63M) shows concerning coverage of stock compensation expenses of 1.01M, with a -4.57 ratio indicating potential earnings quality issues.
  • Long-term investments of 64561 represent a high 1.23x of fixed assets 52401, indicating potential overexposure to financial assets versus operational capabilities.

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 2.19 11.06
EV to Cash from Ops. EV/CFO -5.53 26.32
EV to Debt EV to Debt 5.05 762.61
EV to EBIT EV/EBIT -3.72 -13.49
EV to EBITDA EV/EBITDA -3.58 8.61
EV to Free Cash Flow [EV/FCF] EV/FCF -5.53 25.66
EV to Market Cap EV to Market Cap 1.04 203.37
EV to Revenue EV/Rev 7.65 156.31
Price to Book Value [P/B] P/B 9.39 20.59
Price to Earnings [P/E] P/E -3.33 -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 Int. cover (Qtr) -14.71 956.66
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) 20.84 753.48
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 0.01
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -14.14 -57.63
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -9.46 8.83
EBIT Growth (1y) % EBIT 1y % (Qtr) -14.14 -67.21
EBT Growth (1y) % EBT 1y % (Qtr) -16.08 -23.74
EPS Growth (1y) % EPS 1y % (Qtr) -4.35 -7.02
FCF Growth (1y) % FCF 1y % (Qtr) -10.16 -40.48
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -51.48 264.51
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.29 0.14
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.00
Cash Ratio Cash Ratio (Qtr) 1.77 3.92
Current Ratio Curr Ratio (Qtr) 2.85 7.33
Debt to Equity Ratio Debt/Equity (Qtr) 1.94 0.48
Interest Cover Ratio Int Coverage (Qtr) -14.71 956.66
Times Interest Earned Times Interest Earned (Qtr) -14.71 956.66
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) -205.90 -17,888.70
EBIT Margin % EBIT Margin % (Qtr) -205.87 -18,246.34
EBT Margin % EBT Margin % (Qtr) -219.86 -19,108.08
Gross Margin % Gross Margin % (Qtr) 31.50 -10.30
Net Profit Margin % Net Margin % (Qtr) -219.90 -19,056.96