GH Research PLC (NASDAQ: GHRS)

Sector: Healthcare Industry: Biotechnology CIK: 0001855129
Market Cap 870.64 Mn
P/B 2.99
P/E -20.28
P/S 0.00
ROIC (Qtr) -19.12
Div Yield % 0.00
Rev 1y % (Qtr) 0.00
Total Debt (Qtr) 582,000.00
Debt/Equity (Qtr) 0.00

About

GH Research PLC (GHRS), a clinical-stage biopharmaceutical company, is dedicated to developing novel and proprietary mebufotenin therapies for the treatment of psychiatric and neurological disorders. The company's primary product candidate, GH001, is an inhalable mebufotenin product candidate being developed for the treatment of treatment-resistant depression (TRD). Incorporated in Ireland, GH Research PLC's principal place of business is in Dublin, and it trades on the NASDAQ stock exchange under the symbol GHRS. The company's business activities...

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Price action

Investment thesis

Bull case

  • Healthy cash reserves of 249.65M provide 683.98x coverage of short-term debt 365000, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 302.02M provides 518.94x coverage of total debt 582000, indicating robust asset backing and low credit risk.
  • Long-term investments of 5.38M provide solid 24.78x coverage of long-term debt 217000, indicating strategic financial planning.
  • Short-term investments of 38.85M provide solid 6.26x coverage of other current liabilities 6.21M, indicating strong liquidity.
  • Tangible assets of 302.02M provide robust 48.67x coverage of other current liabilities 6.21M, indicating strong asset backing.

Bear case

  • Operating cash flow of (52.17M) barely covers its investment activities of 58.66M, with a coverage ratio of -0.89, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • The company's operating cash flow of (52.17M) shows concerning coverage of stock compensation expenses of 6.61M, with a -7.90 ratio indicating potential earnings quality issues.
  • Free cash flow of (52.30M) provides weak coverage of capital expenditures of 127000, with a -411.79 ratio suggesting additional external financing needs for growth initiatives.
  • Operating earnings of (42.37M) show weak coverage of depreciation charges of 325000, with a -130.37 ratio indicating high capital intensity and potential reinvestment needs.
  • Long-term investments of 5.38M represent a high 7.77x of fixed assets 692000, indicating potential overexposure to financial assets versus operational capabilities.

Peer comparison

Companies in the Biotechnology
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 SMMT Summit Therapeutics Inc. 1,511.45 Bn -1,640.00 0.00 0.01 Bn
2 ONC BeOne Medicines Ltd. 463.25 Bn 6,757.80 93.16 1.90 Bn
3 VRTX Vertex Pharmaceuticals Inc / Ma 119.13 Bn 32.42 10.16 1.83 Bn
4 REGN Regeneron Pharmaceuticals, Inc. 83.93 Bn 18.33 5.89 2.71 Bn
5 ALNY Alnylam Pharmaceuticals, Inc. 55.97 Bn 1,284.81 17.44 3.21 Bn
6 ARGX Argenx Se 47.47 Bn 31.51 24,751.70 -
7 BNTC Benitec Biopharma Inc. 41.27 Bn -986.67 0.00 0.00 Bn
8 INSM INSMED Inc 33.76 Bn -28.52 75.53 0.74 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 2.04 13.39
EV to Cash from Ops. EV/CFO -11.83 23.02
EV to Debt EV to Debt 1,060.85 789.59
EV to EBIT EV/EBIT -14.57 -11.14
EV to EBITDA EV/EBITDA -10.90 7.05
EV to Free Cash Flow [EV/FCF] EV/FCF -11.81 21.44
EV to Market Cap EV to Market Cap 0.71 72.36
EV to Revenue EV to Revenue 0.00 194.41
Price to Book Value [P/B] P/B 2.99 23.19
Price to Earnings [P/E] P/E -20.28 -11.47
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 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) -76.76 856.48
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -164.58 -27.12
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 177.21 747.06
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 0.01
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -4.10 -48.05
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -17.44 -1.94
EBIT Growth (1y) % EBIT 1y % (Qtr) -4.10 -57.64
EBT Growth (1y) % EBT 1y % (Qtr) -3.60 -14.19
EPS Growth (1y) % EPS 1y % (Qtr) 6.33 -30.71
FCF Growth (1y) % FCF 1y % (Qtr) -14.02 -32.52
Gross Profit Growth (1y) % Gross Profit Growth (1y) % 0.00 227.96
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) 23.99 3.79
Current Ratio Curr Ratio (Qtr) 28.32 7.23
Debt to Equity Ratio Debt/Equity (Qtr) 0.00 0.42
Interest Cover Ratio Int Coverage (Qtr) -76.76 856.48
Times Interest Earned Times Interest Earned (Qtr) -76.76 856.48
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % 0.00 -18,509.94
EBIT Margin % EBIT Margin % 0.00 -18,862.18
EBT Margin % EBT Margin % 0.00 -19,783.19
Gross Margin % Gross Margin % 0.00 -8.62
Net Profit Margin % Net Profit Margin % 0.00 -19,732.60