Inhibikase Therapeutics, Inc. (NASDAQ: IKT)

Sector: Healthcare Industry: Biotechnology CIK: 0001750149
Market Cap 157.85 Mn
P/B 2.17
P/E -3.31
P/S 0.00
ROIC (Qtr) -69.47
Div Yield % 0.00
Rev 1y % (Qtr) 0.00
Total Debt (Qtr) 0.00
Debt/Equity (Qtr) 0.00

About

Inhibikase Therapeutics, Inc., often symbolized as IBAK in the stock market, operates in the competitive pharmaceutical industry. The company focuses on developing protein kinase inhibitor therapeutics, aiming to modify the course of Parkinson's disease, Parkinson's-related disorders, and other diseases arising from Abelson Tyrosine Kinases. Its lead program, Risvodetinib (IkT-148009), is a selective inhibitor of the non-receptor Abelson Tyrosine Kinases, targeting the treatment of Parkinson's disease inside and outside the brain, as well as other...

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Price action

Investment thesis

Bull case

  • Short-term investments of 39.05M provide solid 6.43x coverage of other current liabilities 6.08M, indicating strong liquidity.
  • Tangible assets of 79.59M provide robust 13.10x coverage of other current liabilities 6.08M, indicating strong asset backing.
  • Cash reserves of 38.27M provide robust 5.72x coverage of current liabilities 6.70M, indicating strong short-term solvency.
  • Strong cash position of 38.27M provides 6.30x coverage of other current liabilities 6.08M, indicating excellent liquidity.
  • Short-term investments of 39.05M provide healthy 0.54x coverage of working capital 71.84M, indicating strong liquidity.

Bear case

  • Operating cash flow of (25.62M) barely covers its investment activities of (36.61M), with a coverage ratio of 0.70, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of (36.61M) provide weak support for R&D spending of 30.63M, which is -1.20x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • The company's operating cash flow of (25.62M) shows concerning coverage of stock compensation expenses of 18.68M, with a -1.37 ratio indicating potential earnings quality issues.
  • Free cash flow of (25.63M) provides weak coverage of capital expenditures of 13399, with a -1912.79 ratio suggesting additional external financing needs for growth initiatives.
  • Operating earnings of (47.66M) show weak coverage of depreciation charges of 67066, with a -710.60 ratio indicating high capital intensity and potential reinvestment needs.

Peer comparison

Companies in the Biotechnology
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 SMMT Summit Therapeutics Inc. 1,511.45 Bn -1,640.00 0.00 0.01 Bn
2 ONC BeOne Medicines Ltd. 463.25 Bn 6,757.80 93.16 1.90 Bn
3 VRTX Vertex Pharmaceuticals Inc / Ma 119.13 Bn 32.42 10.16 1.83 Bn
4 REGN Regeneron Pharmaceuticals, Inc. 83.93 Bn 18.33 5.89 2.71 Bn
5 ALNY Alnylam Pharmaceuticals, Inc. 55.97 Bn 1,284.81 17.44 3.21 Bn
6 ARGX Argenx Se 47.47 Bn 31.51 24,751.70 -
7 BNTC Benitec Biopharma Inc. 41.27 Bn -986.67 0.00 0.00 Bn
8 INSM INSMED Inc 33.76 Bn -28.52 75.53 0.74 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 1.01 13.39
EV to Cash from Ops. EV/CFO -3.13 23.02
EV to Debt EV to Debt 0.00 789.59
EV to EBIT EV/EBIT -1.68 -11.14
EV to EBITDA EV/EBITDA -1.51 7.05
EV to Free Cash Flow [EV/FCF] EV/FCF -3.13 21.44
EV to Market Cap EV to Market Cap 0.51 72.36
EV to Revenue EV/Rev 0.00 194.41
Price to Book Value [P/B] P/B 2.17 23.19
Price to Earnings [P/E] P/E -3.31 -11.47
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) 0.00 856.48
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 0.00 -27.12
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 4,089.72 747.06
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 0.01
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -143.58 -48.05
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -164.88 -1.94
EBIT Growth (1y) % EBIT 1y % (Qtr) -143.58 -57.64
EBT Growth (1y) % EBT 1y % (Qtr) -143.58 -14.19
EPS Growth (1y) % EPS 1y % (Qtr) 117.65 -30.71
FCF Growth (1y) % FCF 1y % (Qtr) -48.62 -32.52
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 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) 5.72 3.79
Current Ratio Curr Ratio (Qtr) 11.73 7.23
Debt to Equity Ratio Debt/Equity (Qtr) 0.00 0.42
Interest Cover Ratio Int Coverage (Qtr) 0.00 856.48
Times Interest Earned Times Interest Earned (Qtr) 0.00 856.48
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 0.00 -18,509.94
EBIT Margin % EBIT Margin % (Qtr) 0.00 -18,862.18
EBT Margin % EBT Margin % (Qtr) 0.00 -19,783.19
Gross Margin % Gross Margin % (Qtr) 0.00 -8.62
Net Profit Margin % Net Margin % (Qtr) 0.00 -19,732.60