Fortress Biotech, Inc. (NASDAQ: FBIO)

Sector: Healthcare Industry: Biotechnology CIK: 0001429260
Market Cap 212.51 Mn
P/B 3.80
P/E -39.82
P/S 3.41
ROIC (Qtr) -75.05
Div Yield % 0.00
Rev 1y % (Qtr) 20.52
Total Debt (Qtr) 68.29 Mn
Debt/Equity (Qtr) 1.22

About

Fortress Biotech, Inc., a company that operates in the biotechnology industry, is dedicated to enhancing long-term value for its shareholders through product revenue, equity holdings, and dividend and royalty revenue streams. The company's operations span various stages of development, with a diverse portfolio of products and product candidates. Fortress Biotech's main business activities involve the acquisition and advancement of assets. The company generates revenue through the sale of branded dermatology products, such as Qbrexza, Accutane,...

Read more

Price action

Investment thesis

Bull case

  • Healthy cash reserves of 87.44M provide 11.28x coverage of short-term debt 7.75M, demonstrating strong liquidity position and minimal refinancing risk.
  • Robust free cash flow of (64.97M) exceeds capital expenditure of (1.17M) by 55.77x, indicating strong organic growth funding capability.
  • Tangible assets of 152.74M provide robust 133.75x coverage of other current liabilities 1.14M, indicating strong asset backing.
  • Cash reserves of 87.44M provide ample 9.76x coverage of acquisition spending 8.96M, enabling strategic growth opportunities.
  • Cash reserves of 87.44M provide robust 1.62x coverage of current liabilities 54.07M, indicating strong short-term solvency.

Bear case

  • Investment activities of (4.88M) provide weak support for R&D spending of 22.21M, which is -0.22x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • The company's operating cash flow of (66.14M) shows concerning coverage of stock compensation expenses of 42.47M, with a -1.56 ratio indicating potential earnings quality issues.
  • Operating cash flow of (66.14M) provides minimal -182.71x coverage of tax expenses of 362000, suggesting potential tax planning inefficiencies or unsustainable tax positions.
  • Operating earnings of 15.01M show weak coverage of depreciation charges of 6.58M, with a 2.28 ratio indicating high capital intensity and potential reinvestment needs.
  • Operating cash flow of (66.14M) barely covers operating expenses of 3.11M with a -21.29 ratio, suggesting thin operational efficiency margins and limited flexibility.

Product and Service Breakdown of Revenue (2024)

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 1.14 12.96
EV to Cash from Ops. EV/CFO -3.12 23.73
EV to Debt EV to Debt 3.02 772.65
EV to EBIT EV/EBIT 13.73 -11.30
EV to EBITDA EV/EBITDA -2.49 7.11
EV to Free Cash Flow [EV/FCF] EV/FCF -3.17 22.12
EV to Market Cap EV to Market Cap 0.97 68.89
EV to Revenue EV/Rev 3.31 199.70
Price to Book Value [P/B] P/B 3.80 22.62
Price to Earnings [P/E] P/E -39.82 -12.30
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) -0.57 -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) 1.41 857.11
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 4,260.71 -27.24
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 43.54 747.06
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 0.01
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 138.87 -48.21
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 16.01 -2.09
EBIT Growth (1y) % EBIT 1y % (Qtr) 142.79 -57.79
EBT Growth (1y) % EBT 1y % (Qtr) 109.05 -14.35
EPS Growth (1y) % EPS 1y % (Qtr) 96.41 -30.88
FCF Growth (1y) % FCF 1y % (Qtr) 36.45 -32.51
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 1.20 227.96
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.34 0.14
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.00
Cash Ratio Cash Ratio (Qtr) 1.62 3.79
Current Ratio Curr Ratio (Qtr) 2.19 7.23
Debt to Equity Ratio Debt/Equity (Qtr) 1.22 0.42
Interest Cover Ratio Int Coverage (Qtr) 1.41 857.11
Times Interest Earned Times Interest Earned (Qtr) 1.41 857.11
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 34.60 -18,509.94
EBIT Margin % EBIT Margin % (Qtr) 24.09 -18,862.18
EBT Margin % EBT Margin % (Qtr) 6.98 -19,783.19
Gross Margin % Gross Margin % (Qtr) 71.60 -8.62
Net Profit Margin % Net Margin % (Qtr) -8.60 -19,732.60