Fulcrum Therapeutics, Inc. (NASDAQ: FULC)

Sector: Healthcare Industry: Biotechnology CIK: 0001680581
P/B 4.09
P/E -11.40
P/S 0.00
Market Cap 810.95 Mn
ROIC (Qtr) -38.15
Div Yield % 0.00
Rev 1y % (Qtr) 0.00
Total Debt (Qtr) 7.01 Mn
Debt/Equity (Qtr) 0.04

About

Fulcrum Therapeutics, Inc., a clinical-stage biopharmaceutical company, operates in the industry of developing treatments for rare diseases. The company is specifically focused on improving the lives of patients with genetically defined rare diseases in areas of high unmet medical need. Fulcrum Therapeutics has developed a proprietary product engine, FulcrumSeek, which is used to systematically identify and validate cellular drug targets that can potentially modulate gene expression to treat known root causes of genetically defined diseases. The...

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Analysis

Pros

  • Healthy cash reserves of 48.28M provide 20.56x coverage of short-term debt 2.35M, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 214.86M provides 30.65x coverage of total debt 7.01M, indicating robust asset backing and low credit risk.
  • Short-term investments of 153.57M provide solid 23.89x coverage of other current liabilities 6.43M, indicating strong liquidity.
  • Tangible assets of 214.86M provide robust 33.43x coverage of other current liabilities 6.43M, indicating strong asset backing.
  • Cash reserves of 48.28M provide solid 245.07x coverage of other non-current liabilities 197000, indicating strong liquidity.

Cons

  • Operating cash flow of (60.03M) barely covers its investment activities of 34.03M, with a coverage ratio of -1.76, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of 34.03M provide weak support for R&D spending of 52.40M, which is 0.65x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Short-term investments of 153.57M significantly exceed cash reserves of 48.28M, which is 3.18x, indicating potentially excessive yield-seeking behavior at the expense of liquidity.
  • The company's operating cash flow of (60.03M) shows concerning coverage of stock compensation expenses of 11.88M, with a -5.05 ratio indicating potential earnings quality issues.
  • Free cash flow of (60.41M) provides weak coverage of capital expenditures of 386000, with a -156.51 ratio suggesting additional external financing needs for growth initiatives.

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 3.61 12.31
EV to Cash from Ops. -12.91 23.25
EV to Debt 110.50 738.44
EV to EBIT -10.89 -9.16
EV to EBITDA -9.67 6.95
EV to Free Cash Flow [EV/FCF] -12.82 21.90
EV to Market Cap 0.96 65.67
EV to Revenue 0.00 227.32
Price to Book Value [P/B] 4.09 22.34
Price to Earnings [P/E] -11.40 -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) % -211.29 -27.13
Cash and Equivalents Growth (1y) % -34.61 734.65
Dividend Growth (1y) % 0.00 0.01
EBIAT Growth (1y) % -297.00 -46.93
EBITDA Growth (1y) % -178.80 -1.68
EBIT Growth (1y) % -297.00 -56.45
EBT Growth (1y) % -297.00 -12.70
EPS Growth (1y) % -293.10 -28.31
FCF Growth (1y) % -591.31 -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 4.15 3.85
Current Ratio 17.70 7.27
Debt to Equity Ratio 0.04 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