Gyre Therapeutics, Inc. (NASDAQ: GYRE)

Sector: Healthcare Industry: Biotechnology CIK: 0001124105
Market Cap 719.26 Mn
P/B 7.06
P/E 108.14
P/S 6.71
ROIC (Qtr) 8.29
Div Yield % 0.00
Rev 1y % (Qtr) 19.92
Total Debt (Qtr) 1.17 Mn
Debt/Equity (Qtr) 0.01

About

Price action

Investment thesis

Bull case

  • Strong operating cash flow of 3.88M provides robust 3.33x coverage of total debt 1.17M, indicating excellent debt servicing capability and financial flexibility.
  • Healthy cash reserves of 40.40M provide 64.54x coverage of short-term debt 626000, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 154.54M provides 132.65x coverage of total debt 1.17M, indicating robust asset backing and low credit risk.
  • Tangible assets of 154.54M provide exceptional 167.25x coverage of deferred revenue 924000, showing strong service capability backing.
  • Robust free cash flow of 3.05M exceeds capital expenditure of 824000 by 3.71x, indicating strong organic growth funding capability.

Bear case

  • Operating cash flow of 3.88M barely covers its investment activities of (4.33M), with a coverage ratio of -0.90, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of (4.33M) provide weak support for R&D spending of 12.60M, which is -0.34x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • High receivables of 26.11M relative to inventory of 8.85M (2.95 ratio) suggests aggressive credit terms or collection difficulties, potentially masking revenue quality issues.
  • The company's operating cash flow of 3.88M shows concerning coverage of stock compensation expenses of 3.13M, with a 1.24 ratio indicating potential earnings quality issues.
  • Operating cash flow of 3.88M provides minimal 1.12x coverage of tax expenses of 3.46M, suggesting potential tax planning inefficiencies or unsustainable tax positions.

Segments 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 4.29 12.96
EV to Cash from Ops. EV/CFO 176.47 23.73
EV to Debt EV to Debt 587.26 772.65
EV to EBIT EV/EBIT 67.67 -11.30
EV to EBITDA EV/EBITDA 45.35 7.11
EV to Free Cash Flow [EV/FCF] EV/FCF 224.09 22.12
EV to Market Cap EV to Market Cap 0.95 68.89
EV to Revenue EV/Rev 6.38 199.70
Price to Book Value [P/B] P/B 7.06 22.62
Price to Earnings [P/E] P/E 108.14 -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) 0.00 857.11
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 80.72 -27.24
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 154.65 747.06
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 0.01
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 107.49 -48.21
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 120.31 -2.09
EBIT Growth (1y) % EBIT 1y % (Qtr) 112.18 -57.79
EBT Growth (1y) % EBT 1y % (Qtr) 112.18 -14.35
EPS Growth (1y) % EPS 1y % (Qtr) 105.00 -30.88
FCF Growth (1y) % FCF 1y % (Qtr) 269.89 -32.51
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 1.32 227.96
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.67 0.14
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.00
Cash Ratio Cash Ratio (Qtr) 2.54 3.79
Current Ratio Curr Ratio (Qtr) 6.20 7.23
Debt to Equity Ratio Debt/Equity (Qtr) 0.01 0.42
Interest Cover Ratio Int Coverage (Qtr) 0.00 857.11
Times Interest Earned Times Interest Earned (Qtr) 0.00 857.11
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 12.30 -18,509.94
EBIT Margin % EBIT Margin % (Qtr) 9.43 -18,862.18
EBT Margin % EBT Margin % (Qtr) 9.43 -19,783.19
Gross Margin % Gross Margin % (Qtr) 95.50 -8.62
Net Profit Margin % Net Margin % (Qtr) 6.20 -19,732.60