IDEAYA Biosciences, Inc. (NASDAQ: IDYA)

Sector: Healthcare Industry: Biotechnology CIK: 0001676725
Market Cap 2.73 Bn
P/B 2.67
P/E -24.03
P/S 12.49
ROIC (Qtr) -14.68
Div Yield % 0.00
Rev 1y % (Qtr) 55.37
Total Debt (Qtr) 27.91 Mn
Debt/Equity (Qtr) 0.03
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About

IDEAYA Biosciences, Inc., a company specializing in precision medicine oncology, is publicly traded on the NASDAQ exchange under the symbol IDYA. With a focus on discovering and developing targeted therapeutics for patient populations selected using molecular diagnostics, IDEAYA operates in the oncology sector, specifically targeting genetic alterations in cancer cells. IDEAYA's primary business activities revolve around the discovery and development of small molecule inhibitors of protein kinases and other targets in DNA damage repair pathways...

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Investment thesis

Bull case

  • Healthy cash reserves of 113.84M provide 335.81x coverage of short-term debt 339000, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 1.11B provides 39.74x coverage of total debt 27.91M, indicating robust asset backing and low credit risk.
  • Long-term investments of 410.30M provide solid 14.88x coverage of long-term debt 27.57M, indicating strategic financial planning.
  • Short-term investments of 526.56M provide solid 12.88x coverage of other current liabilities 40.89M, indicating strong liquidity.
  • Tangible assets of 1.11B provide robust 27.13x coverage of other current liabilities 40.89M, indicating strong asset backing.

Bear case

  • Operating cash flow of (71.10M) barely covers its investment activities of 69.98M, with a coverage ratio of -1.02, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of 69.98M provide weak support for R&D spending of 314.70M, which is 0.22x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Short-term investments of 526.56M significantly exceed cash reserves of 113.84M, which is 4.63x, indicating potentially excessive yield-seeking behavior at the expense of liquidity.
  • The company's operating cash flow of (71.10M) shows concerning coverage of stock compensation expenses of 46.12M, with a -1.54 ratio indicating potential earnings quality issues.
  • Free cash flow of (73.47M) provides weak coverage of capital expenditures of 2.37M, with a -31.02 ratio suggesting additional external financing needs for growth initiatives.

Peer comparison

Companies in the Biotechnology
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 SMMT Summit Therapeutics Inc. 1,204.25 Bn -1,306.67 0.00 0.01 Bn
2 ONC BeOne Medicines Ltd. 486.51 Bn 7,097.20 97.84 1.90 Bn
3 VRTX Vertex Pharmaceuticals Inc / Ma 122.05 Bn 30.87 10.17 1.85 Bn
4 REGN Regeneron Pharmaceuticals, Inc. 83.00 Bn 18.42 5.79 2.71 Bn
5 ARGX Argenx Se 50.78 Bn 33.71 26,480.10 -
6 ALNY Alnylam Pharmaceuticals, Inc. 43.66 Bn 139.17 11.76 2.97 Bn
7 BNTC Benitec Biopharma Inc. 43.61 Bn -941.82 0.00 0.00 Bn
8 INSM INSMED Inc 28.88 Bn -24.40 64.61 0.74 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 2.22 11.06
EV to Cash from Ops. EV/CFO -34.60 26.32
EV to Debt EV to Debt 88.12 762.61
EV to EBIT EV/EBIT -21.63 -13.49
EV to EBITDA EV/EBITDA -15.90 8.61
EV to Free Cash Flow [EV/FCF] EV/FCF -33.48 25.66
EV to Market Cap EV to Market Cap 0.90 203.37
EV to Revenue EV/Rev 11.25 156.31
Price to Book Value [P/B] P/B 2.67 20.59
Price to Earnings [P/E] P/E -24.03 -0.88
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 -12.64
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 -0.14
Interest Coverage Interest Coverage 0.00 956.66
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 38.61 7.87
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 33.64 753.48
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 0.01
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 58.58 -57.63
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 52.12 8.83
EBIT Growth (1y) % EBIT 1y % (Qtr) 58.58 -67.21
EBT Growth (1y) % EBT 1y % (Qtr) 58.58 -23.74
EPS Growth (1y) % EPS 1y % (Qtr) 61.90 -7.02
FCF Growth (1y) % FCF 1y % (Qtr) 70.78 -40.48
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 3,024.43 264.51
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.20 0.14
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.00
Cash Ratio Cash Ratio (Qtr) 1.94 3.92
Current Ratio Curr Ratio (Qtr) 11.34 7.33
Debt to Equity Ratio Debt/Equity (Qtr) 0.03 0.48
Interest Cover Ratio Interest Cover Ratio 0.00 956.66
Times Interest Earned Times Interest Earned 0.00 956.66
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) -49.90 -17,888.70
EBIT Margin % EBIT Margin % (Qtr) -51.99 -18,246.34
EBT Margin % EBT Margin % (Qtr) -51.99 -19,108.08
Gross Margin % Gross Margin % (Qtr) 100.00 -10.30
Net Profit Margin % Net Margin % (Qtr) -52.00 -19,056.96