Editas Medicine, Inc. (EDIT) Stock Analysis and Metrics

Sector: Healthcare Industry: Biotechnology CIK: 0001650664

P/B 15.79

P/E -1.06

P/S 4.58

Market Cap 212.43 Mn

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...

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 beta thalassemia (TDT), and the development of next-generation in vivo medicines through the editing of hematopoietic stem cells (HSCs) and other organs and tissues.

The company generates revenue through its proprietary gene editing platform, which includes different natural and engineered variants of Cas9 and Cas12a enzymes. Editas Medicine's platform is designed to target diseases where gene editing can be used to enable or enhance therapeutic outcomes for patients, maximizing the probability of technical, clinical, regulatory, and commercial success. The company's most advanced program, reni-cel, is an experimental ex vivo gene editing medicine designed to treat SCD and TDT. Reni-cel employs the CRISPR/Cas12a gene editing nuclease to target the HBG1/2 promoter in human CD34+ cells and disrupt the binding site of the BCL11A gene, in line with naturally occurring human mutations associated with hereditary persistence of fetal hemoglobin (HPFH) and high levels of HbF in red blood cells.

Within the industry, Editas Medicine holds a competitive position, thanks to its unique editing approach, including the use of the AsCas12a enzyme. This proprietary gene editing platform has been designed to target diseases where gene editing can be used to enable or enhance therapeutic outcomes for patients while maximizing the probability of technical, clinical, regulatory, and commercial success. The company's strong intellectual property portfolio, which includes patents and patent applications related to its gene editing technology and methods, further strengthens its competitive edge. Editas Medicine has established partnerships with other companies, such as Vertex Pharmaceuticals Incorporated and Vor Biopharma Inc., to develop and commercialize its gene editing medicines.

The gene editing medicines developed by Editas Medicine have the potential to make a significant impact on the treatment of serious diseases and improve the lives of patients worldwide. Some of the brand names and/or trade names of its products and services include reni-cel, an experimental ex vivo gene editing medicine designed to treat SCD and TDT, and the company's proprietary gene editing platform, which encompasses different natural and engineered variants of Cas9 and Cas12a enzymes. These innovative solutions showcase Editas Medicine's commitment to transforming genomic medicine and addressing unmet medical needs in the field of serious diseases.

Stock Price Chart

Analysis

Pros

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.

Cons

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.

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
EV to Assets	0.75	12.31
EV to Cash from Ops.	-0.84	23.25
EV to Debt	1.93	738.44
EV to EBIT	-0.75	-9.16
EV to EBITDA	-0.79	6.95
EV to Free Cash Flow [EV/FCF]	-0.84	21.90
EV to Market Cap	0.71	65.67
EV to Revenue	3.27	227.32
Price to Book Value [P/B]	15.79	22.34
Price to Earnings [P/E]	-1.06	-11.77

Dividend Metrics

Metric	Value	Industry
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	167.53	841.00

Growth Metrics

Metric	Value	Industry
Capex Growth (1y) %	90.24	-27.13
Cash and Equivalents Growth (1y) %	72.85	734.65
Dividend Growth (1y) %	0.00	0.01
EBIAT Growth (1y) %	12.03	-46.93
EBITDA Growth (1y) %	13.31	-1.68
EBIT Growth (1y) %	12.03	-56.45
EBT Growth (1y) %	5.10	-12.70
EPS Growth (1y) %	6.30	-28.31
FCF Growth (1y) %	5.65	-31.90
Gross Profit Growth (1y) %	-24.90	226.84

Liquidity Ratios

Metric	Value	Industry
Asset Utilization Ratio	0.23	0.14
Cash Payout Ratio	0.00	0.00
Cash Ratio	2.68	3.85
Current Ratio	2.86	7.27
Debt to Equity Ratio	5.85	0.40
Interest Cover Ratio	167.53	841.00
Times Interest Earned	167.53	841.00

Profitability

Metric	Value	Industry
EBITDA Margin %	-420.80	-18,234.31
EBIT Margin %	-433.42	-18,580.80
EBT Margin %	-430.84	-19,488.74
Gross Margin %	100.00	-7.59
Net Profit Margin %	-430.80	-19,439.22

Editas Medicine, Inc. (NASDAQ: EDIT)