INSMED Inc (NASDAQ: INSM)

Sector: Healthcare Industry: Biotechnology CIK: 0001104506
Market Cap 28.88 Bn
P/B 30.54
P/E -24.40
P/S 64.61
ROIC (Qtr) -63.22
Div Yield % 0.00
Rev 1y % (Qtr) 52.36
Total Debt (Qtr) 740.14 Mn
Debt/Equity (Qtr) 0.78
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About

Investment thesis

Bull case

  • Healthy cash reserves of 334.76M provide 45.37x coverage of short-term debt 7.38M, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 2.14B provides 2.89x coverage of total debt 740.13M, indicating robust asset backing and low credit risk.
  • Cash reserves of 334.76M provide robust 0.80x coverage of current liabilities 417.21M, indicating strong short-term solvency.
  • Cash reserves of 334.76M provide solid 1.26x coverage of other non-current liabilities 265.19M, indicating strong liquidity.
  • Cash reserves of 334.76M exceed inventory value of 120.97M by 2.77x, indicating strong liquidity and inventory management.

Bear case

  • Investment activities of (322.23M) provide weak support for R&D spending of 695.91M, which is -0.46x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • The company's operating cash flow of (883.40M) shows concerning coverage of stock compensation expenses of 140.22M, with a -6.30 ratio indicating potential earnings quality issues.
  • Short-term investments of 1.35B significantly exceed cash reserves of 334.76M, which is 4.02x, indicating potentially excessive yield-seeking behavior at the expense of liquidity.
  • Free cash flow of (906.14M) provides weak coverage of capital expenditures of 22.74M, with a -39.84 ratio suggesting additional external financing needs for growth initiatives.
  • Operating cash flow of (883.40M) provides minimal -186.33x coverage of tax expenses of 4.74M, suggesting potential tax planning inefficiencies or unsustainable tax positions.

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 12.00 11.06
EV to Cash from Ops. EV/CFO -32.08 26.32
EV to Debt EV to Debt 38.28 762.61
EV to EBIT EV/EBIT -25.89 -13.49
EV to EBITDA EV/EBITDA -24.86 8.61
EV to Free Cash Flow [EV/FCF] EV/FCF -31.27 25.66
EV to Market Cap EV to Market Cap 0.98 203.37
EV to Revenue EV/Rev 63.39 156.31
Price to Book Value [P/B] P/B 30.54 20.59
Price to Earnings [P/E] P/E -24.40 -0.88
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 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) -12.91 956.66
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -31.44 7.87
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -27.45 753.48
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 0.01
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -40.90 -57.63
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -40.34 8.83
EBIT Growth (1y) % EBIT 1y % (Qtr) -40.90 -67.21
EBT Growth (1y) % EBT 1y % (Qtr) -36.97 -23.74
EPS Growth (1y) % EPS 1y % (Qtr) -11.17 -7.02
FCF Growth (1y) % FCF 1y % (Qtr) -42.47 -40.48
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 29.15 264.51
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.19 0.14
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.00
Cash Ratio Cash Ratio (Qtr) 0.80 3.92
Current Ratio Curr Ratio (Qtr) 4.63 7.33
Debt to Equity Ratio Debt/Equity (Qtr) 0.78 0.48
Interest Cover Ratio Int Coverage (Qtr) -12.91 956.66
Times Interest Earned Times Interest Earned (Qtr) -12.91 956.66
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) -240.80 -17,888.70
EBIT Margin % EBIT Margin % (Qtr) -244.81 -18,246.34
EBT Margin % EBT Margin % (Qtr) -263.77 -19,108.08
Gross Margin % Gross Margin % (Qtr) 76.50 -10.30
Net Profit Margin % Net Margin % (Qtr) -264.80 -19,056.96