4D Molecular Therapeutics, Inc. (FDMT) Stock Analysis and Metrics

Sector: Healthcare Industry: Biotechnology CIK: 0001650648

P/B 1.64

P/E -2.89

P/S 5,038.84

Market Cap 604.66 Mn

ROIC (Qtr) -55.17

Div Yield % 0.00

Rev 1y % (Qtr) 2,900.00

Total Debt (Qtr) 22.26 Mn

Debt/Equity (Qtr) 0.06

About

4D Molecular Therapeutics, Inc. (FDMT) is a clinical-stage biopharma company that specializes in the development of genetic medicines through its proprietary Therapeutic Vector Evolution platform. This platform combines the power of directed evolution with approximately one billion synthetic adeno-associated virus (AAV) capsid-derived sequences to create customized and evolved vectors for use in the company's product candidates. With a focus on unlocking the full potential of genetic medicines, 4D Molecular Therapeutics aims to revolutionize medicine...

4D Molecular Therapeutics, Inc. (FDMT) is a clinical-stage biopharma company that specializes in the development of genetic medicines through its proprietary Therapeutic Vector Evolution platform. This platform combines the power of directed evolution with approximately one billion synthetic adeno-associated virus (AAV) capsid-derived sequences to create customized and evolved vectors for use in the company's product candidates. With a focus on unlocking the full potential of genetic medicines, 4D Molecular Therapeutics aims to revolutionize medicine with potential curative therapies for millions of patients.

The company's main business activities involve the design, development, and manufacturing of genetic medicines. These activities are carried out in the ophthalmology, pulmonology, and cardiology therapeutic areas, with a focus on treating severe diseases using customized and evolved vectors. The company operates in the United States, with its headquarters located in California.

4D Molecular Therapeutics generates revenue through the development of its product candidates, which are designed to treat various diseases. The company's primary products include 4D-150, 4D-710, 4D-310, 4D-125, and 4D-110. These products are designed to treat severe diseases such as wet age-related macular degeneration, cystic fibrosis, Fabry disease, X-linked retinoschisis, and choroideremia. The company's proprietary vectors are designed to overcome the limitations of conventional AAV vectors, which are naturally occurring and non-targeted.

Within the ophthalmology therapeutic area, 4D Molecular Therapeutics competes with companies such as EyePoint, Ocular, and Opthea. However, the company's competitive advantage lies in its proprietary Therapeutic Vector Evolution platform, which enables the efficient creation and advancement of its diverse product pipeline. This platform has allowed the company to demonstrate clinical proof-of-concept for three proprietary and evolved vectors in three therapeutic areas, each with a different route of administration.

The company's customers include the Cystic Fibrosis Foundation, which has provided funding for the development of the company's product candidate for cystic fibrosis. Additionally, the company has entered into a co-development and co-commercialization agreement with Arbor Biotechnologies, Inc. for the development of genetic medicine products to treat central nervous system indications.

In terms of its product names, the company's 4D-150 product candidate is a dual-transgene, intravitreal genetic medicine designed to inhibit four distinct VEGF members to prevent angiogenesis and reduce vascular permeability. The product candidate has shown a favorable safety profile and has demonstrated a dose response in a Phase 1/2 clinical trial. The company's 4D-710 product candidate is a single-dose aerosolized genetic medicine designed to deliver a corrective CFTR gene construct to the lung tissue. The product candidate has shown promising results in preclinical studies, demonstrating widespread distribution, CFTR transgene expression, and resistance to neutralization by human pooled antibody preparations. The company's 4D-310 product candidate is a single low-dose intravenous genetic medicine designed to generate AGA activity via intracellular production within diseased cells, including cardiomyocytes. The product candidate has the potential to treat both classic and late-onset Fabry disease, including those who have previously received enzyme replacement therapy.

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Analysis

Pros

Healthy cash reserves of 48.55M provide 8.53x coverage of short-term debt 5.70M, demonstrating strong liquidity position and minimal refinancing risk.
Strong tangible asset base of 423.98M provides 19.04x coverage of total debt 22.26M, indicating robust asset backing and low credit risk.
Tangible assets of 423.98M provide exceptional 354.80x coverage of deferred revenue 1.20M, showing strong service capability backing.
Short-term investments of 256.51M provide solid 10.45x coverage of other current liabilities 24.55M, indicating strong liquidity.
Long-term investments of 67.17M provide solid 4.05x coverage of long-term debt 16.57M, indicating strategic financial planning.

Cons

Operating cash flow of (183.50M) barely covers its investment activities of 42.93M, with a coverage ratio of -4.27, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
Investment activities of 42.93M provide weak support for R&D spending of 181.18M, which is 0.24x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
Operating cash flow of (183.50M) provides insufficient coverage of deferred revenue obligations of 1.20M, which is -153.55x, raising concerns about future service delivery capabilities.
Short-term investments of 256.51M significantly exceed cash reserves of 48.55M, which is 5.28x, indicating potentially excessive yield-seeking behavior at the expense of liquidity.
The company's operating cash flow of (183.50M) shows concerning coverage of stock compensation expenses of 24.04M, with a -7.63 ratio indicating potential earnings quality issues.

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	1.30	12.31
EV to Cash from Ops.	-3.00	23.25
EV to Debt	24.73	738.44
EV to EBIT	-2.63	-9.16
EV to EBITDA	-2.47	6.95
EV to Free Cash Flow [EV/FCF]	-2.98	21.90
EV to Market Cap	0.91	65.67
EV to Revenue	4,588.16	227.32
Price to Book Value [P/B]	1.64	22.34
Price to Earnings [P/E]	-2.89	-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
Capex Growth (1y) %	54.08	-27.13
Cash and Equivalents Growth (1y) %	-74.11	734.65
Dividend Growth (1y) %	0.00	0.01
EBIAT Growth (1y) %	-45.79	-46.93
EBITDA Growth (1y) %	-37.67	-1.68
EBIT Growth (1y) %	-45.79	-56.45
EBT Growth (1y) %	-45.79	-12.70
EPS Growth (1y) %	-31.58	-28.31
FCF Growth (1y) %	-58.49	-31.90
Gross Profit Growth (1y) %	605.88	226.84

Liquidity Ratios

Metric	Value	Industry
Asset Utilization Ratio	0.00	0.14
Cash Payout Ratio	0.00	0.00
Cash Ratio	1.31	3.85
Current Ratio	8.42	7.27
Debt to Equity Ratio	0.06	0.40
Interest Cover Ratio	0.00	841.00
Times Interest Earned	0.00	841.00

Profitability

Metric	Value	Industry
EBITDA Margin %	-168,123.30	-18,234.31
EBIT Margin %	-174,314.17	-18,580.80
EBT Margin %	-174,314.17	-19,488.74
Gross Margin %	100.00	-7.59
Net Profit Margin %	-174,314.20	-19,439.22

4D Molecular Therapeutics, Inc. (NASDAQ: FDMT)