ImmunityBio, Inc. (NASDAQ: IBRX)

Sector: Healthcare Industry: Biotechnology CIK: 0001326110
Market Cap 2.00 Bn
P/B -3.82
P/E -5.74
P/S 24.25
ROIC (Qtr) -86.05
Div Yield % 0.00
Rev 1y % (Qtr) 425.07
Total Debt (Qtr) 858.40 Mn
Debt/Equity (Qtr) -1.64

About

ImmunityBio, Inc., a clinical-stage biotechnology company, is dedicated to the discovery, development, and commercialization of next-generation immuno- and cellular therapies that strengthen the natural immune system to drive and sustain an immune response (ImmunityBio, Inc.). The company's proprietary platforms amplify both the innate and adaptive branches of the immune system, advancing novel therapies and vaccines aimed at defeating urologic and other cancers, as well as infectious diseases. ImmunityBio's main business activities revolve around...

Read more

Price action

Investment thesis

Bull case

  • Healthy cash reserves of 60.24M provide 8.23x coverage of short-term debt 7.32M, demonstrating strong liquidity position and minimal refinancing risk.
  • Operating cash flow of (319.70M) provides exceptional 4151.97x coverage of minority interest expenses (77000), showing strong core operations.
  • Short-term investments of 197.57M provide solid 4.53x coverage of other current liabilities 43.60M, indicating strong liquidity.
  • Tangible assets of 504.51M provide robust 11.57x coverage of other current liabilities 43.60M, indicating strong asset backing.
  • Retained earnings of (3.66B) represent substantial 6.99x of equity (524.32M), indicating strong internal capital generation.

Bear case

  • Investment activities of (183.54M) provide weak support for R&D spending of 189.92M, which is -0.97x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Short-term investments of 197.57M significantly exceed cash reserves of 60.24M, which is 3.28x, indicating potentially excessive yield-seeking behavior at the expense of liquidity.
  • The company's operating cash flow of (319.70M) shows concerning coverage of stock compensation expenses of 37.10M, with a -8.62 ratio indicating potential earnings quality issues.
  • High receivables of 32.03M relative to inventory of 6.70M (4.78 ratio) suggests aggressive credit terms or collection difficulties, potentially masking revenue quality issues.
  • Free cash flow of (324.79M) provides weak coverage of capital expenditures of 5.09M, with a -63.83 ratio suggesting additional external financing needs for growth initiatives.

Geographical Breakdown of Revenue (2024)

Product and Service 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 5.22 12.96
EV to Cash from Ops. EV/CFO -8.47 23.73
EV to Debt EV to Debt 3.15 772.65
EV to EBIT EV/EBIT -11.99 -11.30
EV to EBITDA EV/EBITDA -11.34 7.11
EV to Free Cash Flow [EV/FCF] EV/FCF -8.33 22.12
EV to Market Cap EV to Market Cap 1.35 68.89
EV to Revenue EV/Rev 32.79 199.70
Price to Book Value [P/B] P/B -3.82 22.62
Price to Earnings [P/E] P/E -5.74 -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 Int. cover (Qtr) -1.84 857.11
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 60.04 -27.24
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -46.20 747.06
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 0.01
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 48.58 -48.21
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 29.13 -2.09
EBIT Growth (1y) % EBIT 1y % (Qtr) 48.58 -57.79
EBT Growth (1y) % EBT 1y % (Qtr) 40.69 -14.35
EPS Growth (1y) % EPS 1y % (Qtr) 56.67 -30.88
FCF Growth (1y) % FCF 1y % (Qtr) 25.18 -32.51
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 1,020.89 227.96
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.16 0.14
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.00
Cash Ratio Cash Ratio (Qtr) 1.05 3.79
Current Ratio Curr Ratio (Qtr) 5.77 7.23
Debt to Equity Ratio Debt/Equity (Qtr) -1.64 0.42
Interest Cover Ratio Int Coverage (Qtr) -1.84 857.11
Times Interest Earned Times Interest Earned (Qtr) -1.84 857.11
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) -246.60 -18,509.94
EBIT Margin % EBIT Margin % (Qtr) -273.40 -18,862.18
EBT Margin % EBT Margin % (Qtr) -422.28 -19,783.19
Gross Margin % Gross Margin % (Qtr) 99.60 -8.62
Net Profit Margin % Net Margin % (Qtr) -422.30 -19,732.60