Immunocore Holdings plc (NASDAQ: IMCR)

Sector: Healthcare Industry: Biotechnology CIK: 0001671927
P/B 4.76
P/E -64.56
P/S 4.97
Market Cap 1.89 Bn
ROIC (Qtr) 3.17
Div Yield % 0.00
Rev 1y % (Qtr) 29.22
Total Debt (Qtr) 435.86 Mn
Debt/Equity (Qtr) 1.10

About

Immunocore Holdings plc, a company that trades under the symbol IMCR, is a commercial-stage biotechnology firm operating in the healthcare industry. Its main business activities involve the development of a novel class of TCR bispecific immunotherapies, known as ImmTAX, which are designed to treat a wide range of diseases, including cancer, infectious, and autoimmune disorders. The company's operations span multiple therapeutic areas, including oncology, infectious diseases, and autoimmune conditions. Immunocore's headquarters are in the United...

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Analysis

Pros

  • Healthy cash reserves of 498.41M provide 265.40x coverage of short-term debt 1.88M, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 1.10B provides 2.53x coverage of total debt 435.86M, indicating robust asset backing and low credit risk.
  • Tangible assets of 1.10B provide exceptional 197.69x coverage of deferred revenue 5.58M, showing strong service capability backing.
  • Short-term investments of 393.94M provide solid 2.71x coverage of other current liabilities 145.52M, indicating strong liquidity.
  • Strong cash position of 498.41M provides 3.43x coverage of other current liabilities 145.52M, indicating excellent liquidity.

Cons

  • Operating cash flow of 7.99M barely covers its investment activities of (19M), with a coverage ratio of -0.42, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of (19M) provide weak support for R&D spending of 256.90M, which is -0.07x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Operating cash flow of 7.99M provides insufficient coverage of deferred revenue obligations of 5.58M, which is 1.43x, raising concerns about future service delivery capabilities.
  • High receivables of 75.88M relative to inventory of 5.66M (13.42 ratio) suggests aggressive credit terms or collection difficulties, potentially masking revenue quality issues.
  • The company's operating cash flow of 7.99M shows concerning coverage of stock compensation expenses of 38.03M, with a 0.21 ratio indicating potential earnings quality issues.

Peer Comparison

Companies in the Biotechnology
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 SMMT Summit Therapeutics Inc. 1,349.40 Bn -1,464.17 0.00 0.01 Bn
2 ONC BeOne Medicines Ltd. 437.43 Bn 6,381.20 87.97 1.90 Bn
3 VRTX Vertex Pharmaceuticals Inc / Ma 116.09 Bn 31.59 9.90 1.83 Bn
4 REGN Regeneron Pharmaceuticals, Inc. 78.10 Bn 17.06 5.48 2.71 Bn
5 ALNY Alnylam Pharmaceuticals, Inc. 55.87 Bn 1,282.42 17.40 3.21 Bn
6 ARGX Argenx Se 52.85 Bn 35.08 27,559.65 -
7 BNTC Benitec Biopharma Inc. 41.75 Bn -998.33 0.00 0.00 Bn
8 INSM INSMED Inc 37.80 Bn -31.93 84.56 0.74 Bn

Industry Comparisons

Current Valuation

Metric Value Industry Percentile
EV to Assets 1.66 12.31
EV to Cash from Ops. 229.65 23.25
EV to Debt 4.21 738.44
EV to EBIT -153.25 -9.16
EV to EBITDA -46.73 6.95
EV to Free Cash Flow [EV/FCF] 613.42 21.90
EV to Market Cap 0.97 65.67
EV to Revenue 4.84 227.32
Price to Book Value [P/B] 4.76 22.34
Price to Earnings [P/E] -64.56 -11.77

Dividend Metrics

Metric Value Industry Percentile
Dividend Coverage Ratio 0.00 -11.94
Dividend Payout Ratio % 0.00 0.16
Dividend per Basic Share 0.00 0.01
FCF Dividend Payout Ratio % 0.00 -0.14
Interest Coverage -0.74 841.00

Growth Metrics

Metric Value Industry Percentile
Capex Growth (1y) % -107.81 -27.13
Cash and Equivalents Growth (1y) % -7.32 734.65
Dividend Growth (1y) % 0.00 0.01
EBIAT Growth (1y) % 65.02 -46.93
EBITDA Growth (1y) % 36.86 -1.68
EBIT Growth (1y) % 70.53 -56.45
EBT Growth (1y) % 47.68 -12.70
EPS Growth (1y) % 40.00 -28.31
FCF Growth (1y) % -84.94 -31.90
Gross Profit Growth (1y) % 28.32 226.84

Liquidity Ratios

Metric Value Industry Percentile
Asset Utilization Ratio 0.34 0.14
Cash Payout Ratio 0.00 0.00
Cash Ratio 2.93 3.85
Current Ratio 6.00 7.27
Debt to Equity Ratio 1.10 0.40
Interest Cover Ratio -0.74 841.00
Times Interest Earned -0.74 841.00

Profitability

Metric Value Industry Percentile
EBITDA Margin % -1.60 -18,234.31
EBIT Margin % -3.15 -18,580.80
EBT Margin % -7.41 -19,488.74
Gross Margin % 99.30 -7.59
Net Profit Margin % -7.70 -19,439.22