GH Research PLC (NASDAQ: GHRS)

Sector: Healthcare Industry: Biotechnology CIK: 0001855129
P/B 2.60
P/E -17.62
P/S 0.00
Market Cap 756.37 Mn
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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Analysis

Pros

  • 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.

Cons

  • 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. 1,349.40 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 1.67 12.31
EV to Cash from Ops. -9.64 23.25
EV to Debt 864.51 738.44
EV to EBIT -11.87 -9.16
EV to EBITDA -8.89 6.95
EV to Free Cash Flow [EV/FCF] -9.62 21.90
EV to Market Cap 0.67 65.67
EV to Revenue 0.00 227.32
Price to Book Value [P/B] 2.60 22.34
Price to Earnings [P/E] -17.62 -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 -76.76 841.00

Growth Metrics

Metric Value Industry Percentile
Capex Growth (1y) % -164.58 -27.13
Cash and Equivalents Growth (1y) % 177.21 734.65
Dividend Growth (1y) % 0.00 0.01
EBIAT Growth (1y) % -4.10 -46.93
EBITDA Growth (1y) % -17.44 -1.68
EBIT Growth (1y) % -4.10 -56.45
EBT Growth (1y) % -3.60 -12.70
EPS Growth (1y) % 6.33 -28.31
FCF Growth (1y) % -14.02 -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 23.99 3.85
Current Ratio 28.32 7.27
Debt to Equity Ratio 0.00 0.40
Interest Cover Ratio -76.76 841.00
Times Interest Earned -76.76 841.00

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