Geron Corp (NASDAQ: GERN)

Sector: Healthcare Industry: Biotechnology CIK: 0000886744
Market Cap 913.22 Mn
P/B 3.67
P/E -11.42
P/S 4.98
ROIC (Qtr) -12.50
Div Yield % 0.00
Rev 1y % (Qtr) 67.05
Total Debt (Qtr) 251.25 Mn
Debt/Equity (Qtr) 1.01

About

Price action

Investment thesis

Bull case

  • Healthy cash reserves of 79.99M provide 3.94x coverage of short-term debt 20.29M, demonstrating strong liquidity position and minimal refinancing risk.
  • Robust free cash flow of (132.82M) exceeds capital expenditure of (92000) by 1443.73x, indicating strong organic growth funding capability.
  • Short-term investments of 302.42M provide solid 5.37x coverage of other current liabilities 56.32M, indicating strong liquidity.
  • Tangible assets of 567.38M provide robust 10.07x coverage of other current liabilities 56.32M, indicating strong asset backing.
  • Cash reserves of 79.99M provide robust 0.91x coverage of current liabilities 87.71M, indicating strong short-term solvency.

Bear case

  • Investment activities of (17.41M) provide weak support for R&D spending of 81.32M, which is -0.21x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Short-term investments of 302.42M significantly exceed cash reserves of 79.99M, which is 3.78x, indicating potentially excessive yield-seeking behavior at the expense of liquidity.
  • The company's operating cash flow of (132.91M) shows concerning coverage of stock compensation expenses of 27.76M, with a -4.79 ratio indicating potential earnings quality issues.
  • Operating earnings of (45.92M) show weak coverage of depreciation charges of 1.25M, with a -36.89 ratio indicating high capital intensity and potential reinvestment needs.
  • Free cash flow of (132.82M) represents just -0.83x of debt issuance 159.57M, suggesting concerning reliance on leverage rather than internal cash generation for growth.

Product and Service 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 1.91 12.96
EV to Cash from Ops. EV/CFO -8.15 23.73
EV to Debt EV to Debt 4.31 772.65
EV to EBIT EV/EBIT -23.59 -11.30
EV to EBITDA EV/EBITDA -17.52 7.11
EV to Free Cash Flow [EV/FCF] EV/FCF -8.16 22.12
EV to Market Cap EV to Market Cap 1.19 68.89
EV to Revenue EV/Rev 5.91 199.70
Price to Book Value [P/B] P/B 3.67 22.62
Price to Earnings [P/E] P/E -11.42 -12.30
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 0.00 -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) -1.35 857.11
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 110.40 -27.24
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 28.61 747.06
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 0.01
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 75.71 -48.21
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 70.10 -2.09
EBIT Growth (1y) % EBIT 1y % (Qtr) 75.71 -57.79
EBT Growth (1y) % EBT 1y % (Qtr) 60.24 -14.35
EPS Growth (1y) % EPS 1y % (Qtr) 62.50 -30.88
FCF Growth (1y) % FCF 1y % (Qtr) 38.65 -32.51
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 517.72 227.96
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.32 0.14
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.00
Cash Ratio Cash Ratio (Qtr) 0.91 3.79
Current Ratio Curr Ratio (Qtr) 5.96 7.23
Debt to Equity Ratio Debt/Equity (Qtr) 1.01 0.42
Interest Cover Ratio Int Coverage (Qtr) -1.35 857.11
Times Interest Earned Times Interest Earned (Qtr) -1.35 857.11
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) -24.40 -18,509.94
EBIT Margin % EBIT Margin % (Qtr) -25.04 -18,862.18
EBT Margin % EBT Margin % (Qtr) -43.61 -19,783.19
Gross Margin % Gross Margin % (Qtr) 97.70 -8.62
Net Profit Margin % Net Margin % (Qtr) -43.60 -19,732.60