Editas Medicine, Inc. (NASDAQ: EDIT)

Sector: Healthcare Industry: Biotechnology CIK: 0001650664
Market Cap 179.68 Mn
P/B 13.36
P/E -0.90
P/S 3.87
ROIC (Qtr) -210.23
Div Yield % 0.00
Rev 1y % (Qtr) 12,265.57
Total Debt (Qtr) 78.72 Mn
Debt/Equity (Qtr) 5.85

About

Editas Medicine, Inc. (NASDAQ: EDIT), a clinical-stage genome editing company, operates in the biotechnology industry, specifically in the field of genomic medicines. The company's primary business activities revolve around developing potentially transformative genomic medicines to treat a wide range of serious diseases, utilizing the CRISPR technology for efficient and specific editing of DNA. Editas Medicine's operations span across various countries, with a strong focus on hemoglobinopathies, such as sickle cell disease (SCD) and transfusion-dependent...

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Price action

Investment thesis

Bull case

  • Healthy cash reserves of 165.65M provide 14.94x coverage of short-term debt 11.09M, demonstrating strong liquidity position and minimal refinancing risk.
  • Operating cash flow of (179.62M) provides exceptional 149.68x coverage of interest expenses (1.20M), showing strong debt service capability.
  • Strong tangible asset base of 201.75M provides 2.56x coverage of total debt 78.72M, indicating robust asset backing and low credit risk.
  • Free cash flow of (180.55M) provides exceptional 150.46x coverage of interest expense (1.20M), showing strong debt service ability.
  • Tangible assets of 201.75M provide robust 4.25x coverage of other current liabilities 47.52M, indicating strong asset backing.

Bear case

  • Operating cash flow of (179.62M) barely covers its investment activities of 169.57M, with a coverage ratio of -1.06, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Operating cash flow of (179.62M) provides insufficient coverage of deferred revenue obligations of 54.20M, which is -3.31x, raising concerns about future service delivery capabilities.
  • The company's operating cash flow of (179.62M) shows concerning coverage of stock compensation expenses of 11.89M, with a -15.11 ratio indicating potential earnings quality issues.
  • Free cash flow of (180.55M) provides weak coverage of capital expenditures of 936000, with a -192.90 ratio suggesting additional external financing needs for growth initiatives.
  • Operating earnings of (201.03M) show weak coverage of depreciation charges of 5.85M, with a -34.35 ratio indicating high capital intensity and potential reinvestment needs.

Segments 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 0.59 12.96
EV to Cash from Ops. EV/CFO -0.66 23.73
EV to Debt EV to Debt 1.51 772.65
EV to EBIT EV/EBIT -0.59 -11.30
EV to EBITDA EV/EBITDA -0.62 7.11
EV to Free Cash Flow [EV/FCF] EV/FCF -0.66 22.12
EV to Market Cap EV to Market Cap 0.66 68.89
EV to Revenue EV/Rev 2.56 199.70
Price to Book Value [P/B] P/B 13.36 22.62
Price to Earnings [P/E] P/E -0.90 -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) 167.53 857.11
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 90.24 -27.24
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 72.85 747.06
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 0.01
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 12.03 -48.21
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 13.31 -2.09
EBIT Growth (1y) % EBIT 1y % (Qtr) 12.03 -57.79
EBT Growth (1y) % EBT 1y % (Qtr) 5.10 -14.35
EPS Growth (1y) % EPS 1y % (Qtr) 6.30 -30.88
FCF Growth (1y) % FCF 1y % (Qtr) 5.65 -32.51
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -24.90 227.96
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.23 0.14
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.00
Cash Ratio Cash Ratio (Qtr) 2.68 3.79
Current Ratio Curr Ratio (Qtr) 2.86 7.23
Debt to Equity Ratio Debt/Equity (Qtr) 5.85 0.42
Interest Cover Ratio Int Coverage (Qtr) 167.53 857.11
Times Interest Earned Times Interest Earned (Qtr) 167.53 857.11
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) -420.80 -18,509.94
EBIT Margin % EBIT Margin % (Qtr) -433.42 -18,862.18
EBT Margin % EBT Margin % (Qtr) -430.84 -19,783.19
Gross Margin % Gross Margin % (Qtr) 100.00 -8.62
Net Profit Margin % Net Margin % (Qtr) -430.80 -19,732.60