Forte Biosciences, Inc. (NASDAQ: FBRX)

Sector: Healthcare Industry: Biotechnology CIK: 0001419041
Market Cap 10.20 Bn
P/B 121.25
P/E -197.07
P/S 0.00
ROIC (Qtr) -58.49
Div Yield % 0.00
Rev 1y % (Qtr) 0.00
Total Debt (Qtr) 0.00
Debt/Equity (Qtr) 0.00

About

Forte Biosciences, Inc. (FBRX), a clinical-stage biopharmaceutical company, is dedicated to the development of innovative therapies for autoimmune and autoimmune-related diseases. The company's primary focus is on its lead product candidate, FB-102, which is currently in a Phase 1 trial and has the potential to address key pathways implicated in graft-versus-host disease (GvHD), vitiligo, and alopecia areata. Forte Biosciences is involved in the research, development, and commercialization of biologics, specializing in autoimmune and autoimmune-related...

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Price action

Investment thesis

Bull case

  • Tangible assets of 97.09M provide robust 12.94x coverage of other current liabilities 7.50M, indicating strong asset backing.
  • Cash reserves of 93.41M provide robust 7.19x coverage of current liabilities 12.99M, indicating strong short-term solvency.
  • Strong cash position of 93.41M provides 12.45x coverage of other current liabilities 7.50M, indicating excellent liquidity.
  • Robust R&D investment of 41.74M at 3.57x of SG&A 11.70M demonstrates strong commitment to innovation and future growth.
  • Cash position of 93.41M represents healthy 1.13x of working capital 82.42M, demonstrating strong operational liquidity.

Bear case

  • Operating cash flow of (44.42M) barely covers its investment activities of 247000, with a coverage ratio of -179.86, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of 247000 provide weak support for R&D spending of 41.74M, which is 0.01x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • The company's operating cash flow of (44.42M) shows concerning coverage of stock compensation expenses of 5.29M, with a -8.40 ratio indicating potential earnings quality issues.
  • Free cash flow of (44.57M) provides weak coverage of capital expenditures of 147000, with a -303.21 ratio suggesting additional external financing needs for growth initiatives.
  • Operating earnings of (51.74M) show weak coverage of depreciation charges of 55000, with a -940.76 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. 1,151.25 Bn -1,249.17 0.00 0.01 Bn
2 ONC BeOne Medicines Ltd. 485.22 Bn 7,078.40 97.58 1.90 Bn
3 VRTX Vertex Pharmaceuticals Inc / Ma 122.74 Bn 33.40 10.47 1.83 Bn
4 REGN Regeneron Pharmaceuticals, Inc. 82.16 Bn 18.24 5.73 2.71 Bn
5 ARGX Argenx Se 48.85 Bn 32.43 25,472.44 -
6 ALNY Alnylam Pharmaceuticals, Inc. 46.12 Bn 1,058.58 14.37 3.21 Bn
7 BNTC Benitec Biopharma Inc. 42.24 Bn -1,010.00 0.00 0.00 Bn
8 INSM INSMED Inc 28.75 Bn -24.29 64.32 0.74 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 103.93 11.11
EV to Cash from Ops. EV/CFO -227.14 26.32
EV to Debt EV to Debt 0.00 688.48
EV to EBIT EV/EBIT -195.02 -10.97
EV to EBITDA EV/EBITDA -189.03 8.32
EV to Free Cash Flow [EV/FCF] EV/FCF -226.39 25.03
EV to Market Cap EV to Market Cap 0.99 163.46
EV to Revenue EV/Rev 0.00 148.57
Price to Book Value [P/B] P/B 121.25 20.73
Price to Earnings [P/E] P/E -197.07 -0.34
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 -12.47
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 -0.14
Interest Coverage Int. cover (Qtr) 0.00 860.86
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -539.13 -26.99
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 470.89 756.75
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 0.01
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -51.31 -53.03
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -49.96 -4.42
EBIT Growth (1y) % EBIT 1y % (Qtr) -51.31 -62.56
EBT Growth (1y) % EBT 1y % (Qtr) -51.31 -19.19
EPS Growth (1y) % EPS 1y % (Qtr) 99.14 -4.07
FCF Growth (1y) % FCF 1y % (Qtr) -49.93 -33.40
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 0.00 264.38
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.00 0.14
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.00
Cash Ratio Cash Ratio (Qtr) 7.19 3.81
Current Ratio Curr Ratio (Qtr) 7.34 7.25
Debt to Equity Ratio Debt/Equity (Qtr) 0.00 0.43
Interest Cover Ratio Int Coverage (Qtr) 0.00 860.86
Times Interest Earned Times Interest Earned (Qtr) 0.00 860.86
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 0.00 -17,746.13
EBIT Margin % EBIT Margin % (Qtr) 0.00 -18,101.92
EBT Margin % EBT Margin % (Qtr) 0.00 -18,961.86
Gross Margin % Gross Margin % (Qtr) 0.00 -9.24
Net Profit Margin % Net Margin % (Qtr) 0.00 -18,911.61