InMed Pharmaceuticals Inc. (NASDAQ: INM)

Sector: Healthcare Industry: Drug Manufacturers - Specialty & Generic CIK: 0001728328
Market Cap 1.35 Mn
P/B 0.12
P/E -0.16
P/S 0.28
ROIC (Qtr) -61.25
Div Yield % 0.00
Rev 1y % (Qtr) -11.43
Total Debt (Qtr) 424,765.00
Debt/Equity (Qtr) 0.04

About

Price action

Investment thesis

Bull case

  • Healthy cash reserves of 9.33M provide 21.97x coverage of short-term debt 424765, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 11.78M provides 27.74x coverage of total debt 424765, indicating robust asset backing and low credit risk.
  • Cash reserves of 9.33M provide solid 43.30x coverage of other non-current liabilities 215478, indicating strong liquidity.
  • Cash reserves of 9.33M exceed inventory value of 890807 by 10.47x, indicating strong liquidity and inventory management.
  • Cash reserves of 9.33M provide robust 6x coverage of current liabilities 1.55M, indicating strong short-term solvency.

Bear case

  • Investment activities of 0 provide weak support for R&D spending of 2.66M, which is 0x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • The company's operating cash flow of (7.55M) shows concerning coverage of stock compensation expenses of 110548, with a -68.28 ratio indicating potential earnings quality issues.
  • Operating earnings of (7.84M) show weak coverage of depreciation charges of 546424, with a -14.35 ratio indicating high capital intensity and potential reinvestment needs.
  • Operating cash flow of (7.55M) barely covers operating expenses of 211462 with a -35.69 ratio, suggesting thin operational efficiency margins and limited flexibility.
  • Retained earnings of (118.96M) provide limited buffer against comprehensive income items of 128569, which is -925.30x, indicating elevated exposure to market risks.

Peer comparison

Companies in the Drug Manufacturers - Specialty & Generic
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 ZTS Zoetis Inc. 56.15 Bn 21.18 5.98 7.27 Bn
2 TAK Takeda Pharmaceutical Co Ltd 48.92 Bn 221.13 1.66 36.24 Bn
3 HLN Haleon plc 46.13 Bn 25.59 3.29 -
4 TEVA Teva Pharmaceutical Industries Ltd 35.27 Bn 49.54 2.10 17.07 Bn
5 UTHR UNITED THERAPEUTICS Corp 21.76 Bn 17.11 6.95 0.00 Bn
6 VTRS Viatris Inc 14.87 Bn -4.03 1.05 14.44 Bn
7 NBIX Neurocrine Biosciences Inc 14.08 Bn 32.91 5.25 0.43 Bn
8 ELAN Elanco Animal Health Inc 11.64 Bn 323.29 2.54 4.32 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets -0.70 24.98
EV to Cash from Ops. EV/CFO 1.23 -85.40
EV to Debt EV to Debt -21.87 265.88
EV to EBIT EV/EBIT 1.19 -32.65
EV to EBITDA EV/EBITDA 1.26 -29.50
EV to Free Cash Flow [EV/FCF] EV/FCF 1.23 -32.62
EV to Market Cap EV to Market Cap -6.89 -10.98
EV to Revenue EV/Rev -1.94 -700.14
Price to Book Value [P/B] P/B 0.12 27.22
Price to Earnings [P/E] P/E -0.16 -122.96
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 0.34
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 4.81
Dividend per Basic Share Div per Share (Qtr) 0.00 0.07
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 4.08
Interest Coverage Int. cover (Qtr) -21.10 -38.10
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 0.00 -157.22
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 67.13 44,776.25
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 2.81
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -15.01 24.45
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -10.76 18.14
EBIT Growth (1y) % EBIT 1y % (Qtr) -15.13 37.66
EBT Growth (1y) % EBT 1y % (Qtr) -20.58 108.18
EPS Growth (1y) % EPS 1y % (Qtr) 52.78 52.88
FCF Growth (1y) % FCF 1y % (Qtr) -13.54 -54.47
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 2.75 25.28
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.36 0.50
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.02
Cash Ratio Cash Ratio (Qtr) 6.00 2.10
Current Ratio Curr Ratio (Qtr) 6.95 3.92
Debt to Equity Ratio Debt/Equity (Qtr) 0.04 -1.11
Interest Cover Ratio Int Coverage (Qtr) -21.10 -38.10
Times Interest Earned Times Interest Earned (Qtr) -21.10 -38.10
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) -152.00 -62,432.09
EBIT Margin % EBIT Margin % (Qtr) -163.39 -63,260.88
EBT Margin % EBT Margin % (Qtr) -171.13 -66,726.96
Gross Margin % Gross Margin % (Qtr) 33.70 8,332.72
Net Profit Margin % Net Margin % (Qtr) -171.10 -66,728.37