Edgewise Therapeutics, Inc. (NASDAQ: EWTX)

Sector: Healthcare Industry: Biotechnology CIK: 0001710072
P/B 4.21
P/E -14.95
P/S 0.00
Market Cap 2.35 Bn
ROIC (Qtr) -31.30
Div Yield % 0.00
Rev 1y % (Qtr) 0.00
Total Debt (Qtr) 4.18 Mn
Debt/Equity (Qtr) 0.01

About

Edgewise Therapeutics, Inc. (EWTX) is a clinical-stage biopharmaceutical company that operates within the healthcare and life sciences industry. The company's primary focus is on the discovery, development, and commercialization of innovative treatments for severe muscle diseases. Edgewise's mission is to improve the lives of people facing serious muscle disease, recognizing the urgency for effective treatments for patients with rare and debilitating diseases. Edgewise's operations span across multiple clinical-stage programs and several preclinical...

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Stock Price Chart

Analysis

Pros

  • Healthy cash reserves of 46M provide 45.64x coverage of short-term debt 1.01M, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 583.47M provides 139.55x coverage of total debt 4.18M, indicating robust asset backing and low credit risk.
  • Short-term investments of 517.34M provide solid 35.73x coverage of other current liabilities 14.48M, indicating strong liquidity.
  • Tangible assets of 583.47M provide robust 40.29x coverage of other current liabilities 14.48M, indicating strong asset backing.
  • Short-term investments of 517.34M provide 513.23x coverage of short-term debt 1.01M, showing strong liquidity management.

Cons

  • Investment activities of (61.63M) provide weak support for R&D spending of 144.16M, which is -0.43x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • The company's operating cash flow of (132.18M) shows concerning coverage of stock compensation expenses of 32.61M, with a -4.05 ratio indicating potential earnings quality issues.
  • Short-term investments of 517.34M significantly exceed cash reserves of 46M, which is 11.25x, indicating potentially excessive yield-seeking behavior at the expense of liquidity.
  • Free cash flow of (132.64M) provides weak coverage of capital expenditures of 457000, with a -290.24 ratio suggesting additional external financing needs for growth initiatives.
  • Operating earnings of (157.24M) show weak coverage of depreciation charges of 2.32M, with a -67.78 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 Percentile
EV to Assets 3.96 12.31
EV to Cash from Ops. -17.49 23.25
EV to Debt 552.89 738.44
EV to EBIT -14.70 -9.16
EV to EBITDA -12.94 6.95
EV to Free Cash Flow [EV/FCF] -17.43 21.90
EV to Market Cap 0.98 65.67
EV to Revenue 0.00 227.32
Price to Book Value [P/B] 4.21 22.34
Price to Earnings [P/E] -14.95 -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 0.00 841.00

Growth Metrics

Metric Value Industry Percentile
Capex Growth (1y) % 61.88 -27.13
Cash and Equivalents Growth (1y) % 2.67 734.65
Dividend Growth (1y) % 0.00 0.01
EBIAT Growth (1y) % -26.51 -46.93
EBITDA Growth (1y) % -23.24 -1.68
EBIT Growth (1y) % -26.51 -56.45
EBT Growth (1y) % -26.51 -12.70
EPS Growth (1y) % -5.33 -28.31
FCF Growth (1y) % -20.47 -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 2.13 3.85
Current Ratio 26.51 7.27
Debt to Equity Ratio 0.01 0.40
Interest Cover Ratio 0.00 841.00
Times Interest Earned 0.00 841.00

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