Inovio Pharmaceuticals, Inc. (NASDAQ: INO)

Sector: Healthcare Industry: Biotechnology CIK: 0001055726
Market Cap 68.03 Mn
P/B -8.81
P/E -0.63
P/S 373.09
ROIC (Qtr) -432.47
Div Yield % 0.00
Rev 1y % (Qtr) 0.00
Total Debt (Qtr) 10.02 Mn
Debt/Equity (Qtr) -1.30
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About

Inovio Pharmaceuticals, Inc. (INO), a clinical-stage biotechnology company, is dedicated to the development and commercialization of DNA medicines for the treatment of diseases associated with human papillomavirus (HPV), cancer, and infectious diseases. The company's platform leverages the power of in vivo protein production, utilizing optimized design and delivery of DNA medicines to teach the body to manufacture its own disease-fighting tools. Inovio Pharmaceuticals' DNA medicines platform consists of DNA plasmids and its proprietary CELLECTRA...

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Investment thesis

Bull case

  • Healthy cash reserves of 36.57M provide 13.35x coverage of short-term debt 2.74M, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 69.39M provides 6.92x coverage of total debt 10.02M, indicating robust asset backing and low credit risk.
  • Retained earnings of (1.82B) represent substantial 235.61x of equity (7.72M), indicating strong internal capital generation.
  • Robust R&D investment of 56.83M at 1.72x of SG&A 33.07M demonstrates strong commitment to innovation and future growth.
  • Short-term investments of 14.24M provide 5.20x coverage of short-term debt 2.74M, showing strong liquidity management.

Bear case

  • Operating cash flow of (88.92M) barely covers its investment activities of 48.74M, with a coverage ratio of -1.82, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of 48.74M provide weak support for R&D spending of 56.83M, which is 0.86x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • The company's operating cash flow of (88.92M) shows concerning coverage of stock compensation expenses of 4.31M, with a -20.65 ratio indicating potential earnings quality issues.
  • Free cash flow of (89.02M) provides weak coverage of capital expenditures of 98935, with a -899.80 ratio suggesting additional external financing needs for growth initiatives.
  • Operating earnings of (108.09M) show weak coverage of depreciation charges of 3.01M, with a -35.90 ratio indicating high capital intensity and potential reinvestment needs.

Customer Breakdown of Revenue (2024)

Segments 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. 1,204.25 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 0.78 11.06
EV to Cash from Ops. EV/CFO -0.61 26.32
EV to Debt EV to Debt 5.42 762.61
EV to EBIT EV/EBIT -0.50 -13.49
EV to EBITDA EV/EBITDA -0.63 8.61
EV to Free Cash Flow [EV/FCF] EV/FCF -0.61 25.66
EV to Market Cap EV to Market Cap 0.80 203.37
EV to Revenue EV/Rev 297.99 156.31
Price to Book Value [P/B] P/B -8.81 20.59
Price to Earnings [P/E] P/E -0.63 -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 Int. cover (Qtr) 0.00 956.66
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 70.86 7.87
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 68.61 753.48
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 0.01
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 3.85 -57.63
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 25.83 8.83
EBIT Growth (1y) % EBIT 1y % (Qtr) 3.85 -67.21
EBT Growth (1y) % EBT 1y % (Qtr) 4.24 -23.74
EPS Growth (1y) % EPS 1y % (Qtr) 42.06 -7.02
FCF Growth (1y) % FCF 1y % (Qtr) 19.82 -40.48
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -10.36 264.51
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) 0.52 3.92
Current Ratio Curr Ratio (Qtr) 0.79 7.33
Debt to Equity Ratio Debt/Equity (Qtr) -1.30 0.48
Interest Cover Ratio Int Coverage (Qtr) 0.00 956.66
Times Interest Earned Times Interest Earned (Qtr) 0.00 956.66
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) -57,630.60 -17,888.70
EBIT Margin % EBIT Margin % (Qtr) -59,281.69 -18,246.34
EBT Margin % EBT Margin % (Qtr) -59,281.69 -19,108.08
Gross Margin % Gross Margin % (Qtr) 100.00 -10.30
Net Profit Margin % Net Margin % (Qtr) -59,281.70 -19,056.96