enGene Holdings Inc. (NASDAQ: ENGN)

Sector: Healthcare Industry: Biotechnology CIK: 0001980845
P/B 2.10
P/E -4.45
P/S 0.00
Market Cap 421.76 Mn
ROIC (Qtr) -42.08
Div Yield % 0.00
Rev 1y % (Qtr) 0.00
Total Debt (Qtr) 31.38 Mn
Debt/Equity (Qtr) 0.16

About

EnGene Holdings Inc., a clinical-stage biotechnology company, operates in the gene therapy industry with a focus on developing therapies to improve the lives of patients (EnGene Holdings Inc., n.d.). The company's main business activities involve the use of their proprietary DDX platform, a novel and proprietary gene delivery platform that allows for the localized delivery of multiple gene cargos directly to mucosal tissues and other organs. This platform has been demonstrated to be effective in preclinical models and is being developed as a treatment...

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Analysis

Pros

  • Healthy cash reserves of 32.62M provide 4.70x coverage of short-term debt 6.94M, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 245.55M provides 7.83x coverage of total debt 31.38M, indicating robust asset backing and low credit risk.
  • Short-term investments of 169.36M provide solid 15.23x coverage of other current liabilities 11.12M, indicating strong liquidity.
  • Long-term investments of 23.01M provide solid 0.94x coverage of long-term debt 24.44M, indicating strategic financial planning.
  • Tangible assets of 245.55M provide robust 22.09x coverage of other current liabilities 11.12M, indicating strong asset backing.

Cons

  • Operating cash flow of (93.84M) barely covers its investment activities of (190.90M), with a coverage ratio of 0.49, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of (190.90M) provide weak support for R&D spending of 74.03M, which is -2.58x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Short-term investments of 169.36M significantly exceed cash reserves of 32.62M, which is 5.19x, indicating potentially excessive yield-seeking behavior at the expense of liquidity.
  • The company's operating cash flow of (93.84M) shows concerning coverage of stock compensation expenses of 8.70M, with a -10.79 ratio indicating potential earnings quality issues.
  • Operating cash flow of (93.84M) provides minimal -181.87x coverage of tax expenses of 516000, suggesting potential tax planning inefficiencies or unsustainable tax positions.

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 Percentile
EV to Assets 1.59 12.31
EV to Cash from Ops. -4.15 23.25
EV to Debt 12.42 738.44
EV to EBIT -4.27 -9.16
EV to EBITDA -3.87 6.95
EV to Free Cash Flow [EV/FCF] -4.10 21.90
EV to Market Cap 0.92 65.67
EV to Revenue 0.00 227.32
Price to Book Value [P/B] 2.10 22.34
Price to Earnings [P/E] -4.45 -11.77

Dividend Metrics

Metric Value Industry Percentile
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 -30.40 841.00

Growth Metrics

Metric Value Industry Percentile
Capex Growth (1y) % -55.88 -27.13
Cash and Equivalents Growth (1y) % -87.34 734.65
Dividend Growth (1y) % 0.00 0.01
EBIAT Growth (1y) % 23.03 -46.93
EBITDA Growth (1y) % -83.20 -1.68
EBIT Growth (1y) % 23.46 -56.45
EBT Growth (1y) % 23.01 -12.70
EPS Growth (1y) % 98.44 -28.31
FCF Growth (1y) % -161.97 -31.90
Gross Profit Growth (1y) % 0.00 226.84

Liquidity Ratios

Metric Value Industry Percentile
Asset Utilization Ratio 0.00 0.14
Cash Payout Ratio 0.00 0.00
Cash Ratio 1.60 3.85
Current Ratio 10.34 7.27
Debt to Equity Ratio 0.16 0.40
Interest Cover Ratio -30.40 841.00
Times Interest Earned -30.40 841.00

Profitability

Metric Value Industry Percentile
EBITDA Margin % 0.00 -18,234.31
EBIT Margin % 0.00 -18,580.80
EBT Margin % 0.00 -19,488.74
Gross Margin % 0.00 -7.59
Net Profit Margin % 0.00 -19,439.22