Structure Therapeutics Inc. (NASDAQ: GPCR)

Sector: Healthcare Industry: Biotechnology CIK: 0001888886
Market Cap 3.86 Bn
P/B 5.01
P/E -18.30
P/S 0.00
ROIC (Qtr) -31.86
Div Yield % 0.00
Rev 1y % (Qtr) 0.00
Total Debt (Qtr) 7.09 Mn
Debt/Equity (Qtr) 0.01

About

Structure Therapeutics Inc., frequently abbreviated as GPCR, is a clinical-stage biopharmaceutical company that operates in the healthcare sector, specifically within the realm of G-protein coupled receptors (GPCRs). This company is dedicated to the development of novel oral therapeutics aimed at addressing a wide array of chronic diseases with unmet medical needs. GPCR's primary business activities revolve around the application of structure-based drug discovery and computational chemistry expertise to create oral small molecule therapeutics....

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Price action

Investment thesis

Bull case

  • Healthy cash reserves of 102.91M provide 36.73x coverage of short-term debt 2.80M, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 832.16M provides 117.37x coverage of total debt 7.09M, indicating robust asset backing and low credit risk.
  • Short-term investments of 696.13M provide solid 18.85x coverage of other current liabilities 36.93M, indicating strong liquidity.
  • Tangible assets of 832.16M provide robust 22.53x coverage of other current liabilities 36.93M, indicating strong asset backing.
  • Cash reserves of 102.91M provide solid 316.65x coverage of other non-current liabilities 325000, indicating strong liquidity.

Bear case

  • Operating cash flow of (194.25M) barely covers its investment activities of 66.89M, with a coverage ratio of -2.90, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of 66.89M provide weak support for R&D spending of 190.05M, which is 0.35x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Short-term investments of 696.13M significantly exceed cash reserves of 102.91M, which is 6.76x, indicating potentially excessive yield-seeking behavior at the expense of liquidity.
  • The company's operating cash flow of (194.25M) shows concerning coverage of stock compensation expenses of 26.75M, with a -7.26 ratio indicating potential earnings quality issues.
  • Operating cash flow of (194.25M) provides minimal -403.85x coverage of tax expenses of 481000, suggesting potential tax planning inefficiencies or unsustainable tax positions.

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 4.47 12.96
EV to Cash from Ops. EV/CFO -19.13 23.73
EV to Debt EV to Debt 524.16 772.65
EV to EBIT EV/EBIT -17.68 -11.30
EV to EBITDA EV/EBITDA -15.21 7.11
EV to Free Cash Flow [EV/FCF] EV/FCF -18.92 22.12
EV to Market Cap EV to Market Cap 0.96 68.89
EV to Revenue EV to Revenue 0.00 199.70
Price to Book Value [P/B] P/B 5.01 22.62
Price to Earnings [P/E] P/E -18.30 -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) 12.18 -27.24
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -40.21 747.06
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 0.01
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -90.58 -48.21
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -74.47 -2.09
EBIT Growth (1y) % EBIT 1y % (Qtr) -89.91 -57.79
EBT Growth (1y) % EBT 1y % (Qtr) -89.91 -14.35
EPS Growth (1y) % EPS 1y % (Qtr) -67.12 -30.88
FCF Growth (1y) % FCF 1y % (Qtr) -88.24 -32.51
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) 1.79 3.79
Current Ratio Curr Ratio (Qtr) 14.15 7.23
Debt to Equity Ratio Debt/Equity (Qtr) 0.01 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 % 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