Monte Rosa Therapeutics, Inc. (NASDAQ: GLUE)

Sector: Healthcare Industry: Biotechnology CIK: 0001826457
Market Cap 1.66 Bn
P/B 6.74
P/E 79.09
P/S 9.13
ROIC (Qtr) 2.56
Div Yield % 0.00
Rev 1y % (Qtr) 38.54
Total Debt (Qtr) 40.17 Mn
Debt/Equity (Qtr) 0.16

About

Price action

Investment thesis

Bull case

  • Strong operating cash flow of 149.14M provides robust 3.71x coverage of total debt 40.17M, indicating excellent debt servicing capability and financial flexibility.
  • Healthy cash reserves of 213.29M provide 50.29x coverage of short-term debt 4.24M, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 459.84M provides 11.45x coverage of total debt 40.17M, indicating robust asset backing and low credit risk.
  • Strong operating cash flow of 149.14M provides 4.31x coverage of SG&A expenses 34.64M, showing efficient operational cost management.
  • Robust free cash flow of 145.02M exceeds capital expenditure of 4.12M by 35.23x, indicating strong organic growth funding capability.

Bear case

  • Operating cash flow of 149.14M barely covers its investment activities of (67.66M), with a coverage ratio of -2.20, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of (67.66M) provide weak support for R&D spending of 138.39M, which is -0.49x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Operating cash flow of 149.14M provides insufficient coverage of deferred revenue obligations of 136.69M, which is 1.09x, raising concerns about future service delivery capabilities.
  • Operating earnings of 21.95M show weak coverage of depreciation charges of 8.33M, with a 2.64 ratio indicating high capital intensity and potential reinvestment needs.
  • Tangible assets of 459.84M provide limited backing for working capital of 340.37M, which is 1.35x, suggesting increased operational risk in market downturns.

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 3.53 12.96
EV to Cash from Ops. EV/CFO 10.89 23.73
EV to Debt EV to Debt 40.42 772.65
EV to EBIT EV/EBIT 73.95 -11.30
EV to EBITDA EV/EBITDA 96.40 7.11
EV to Free Cash Flow [EV/FCF] EV/FCF 11.19 22.12
EV to Market Cap EV to Market Cap 0.98 68.89
EV to Revenue EV/Rev 8.94 199.70
Price to Book Value [P/B] P/B 6.74 22.62
Price to Earnings [P/E] P/E 79.09 -12.30
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 Interest Coverage 0.00 857.11
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 25.08 -27.24
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 63.46 747.06
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 0.01
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 117.54 -48.21
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 113.91 -2.09
EBIT Growth (1y) % EBIT 1y % (Qtr) 118.45 -57.79
EBT Growth (1y) % EBT 1y % (Qtr) 118.45 -14.35
EPS Growth (1y) % EPS 1y % (Qtr) 117.58 -30.88
FCF Growth (1y) % FCF 1y % (Qtr) 330.98 -32.51
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 1,112.27 227.96
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.39 0.14
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.00
Cash Ratio Cash Ratio (Qtr) 3.47 3.79
Current Ratio Curr Ratio (Qtr) 6.54 7.23
Debt to Equity Ratio Debt/Equity (Qtr) 0.16 0.42
Interest Cover Ratio Interest Cover Ratio 0.00 857.11
Times Interest Earned Times Interest Earned 0.00 857.11
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 16.70 -18,509.94
EBIT Margin % EBIT Margin % (Qtr) 12.09 -18,862.18
EBT Margin % EBT Margin % (Qtr) 12.09 -19,783.19
Gross Margin % Gross Margin % (Qtr) 100.00 -8.62
Net Profit Margin % Net Margin % (Qtr) 11.50 -19,732.60