Innoviva, Inc. (NASDAQ: INVA)

Sector: Healthcare Industry: Biotechnology CIK: 0001080014
P/B 1.38
P/E 10.92
P/S 3.58
Market Cap 1.39 Bn
ROIC (Qtr) 12.71
Div Yield % 0.00
Rev 1y % (Qtr) 20.44
Total Debt (Qtr) 257.38 Mn
Debt/Equity (Qtr) 0.25

About

Stock Price Chart

Analysis

Pros

  • Strong operating cash flow of 201.66M provides robust 0.78x coverage of total debt 257.38M, indicating excellent debt servicing capability and financial flexibility.
  • Operating cash flow of 201.66M provides exceptional 11.12x coverage of interest expenses 18.14M, showing strong debt service capability.
  • Strong tangible asset base of 1.22B provides 4.75x coverage of total debt 257.38M, indicating robust asset backing and low credit risk.
  • Operating cash flow of 201.66M provides strong 23.39x coverage of stock compensation 8.62M, indicating sustainable incentive practices.
  • Strong operating cash flow of 201.66M provides 1.79x coverage of SG&A expenses 112.52M, showing efficient operational cost management.

Cons

  • Investment activities of 1.38M provide weak support for R&D spending of 29.71M, which is 0.05x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Cash reserves of 476.51M provide limited coverage of acquisition spending of (9.37M), which is -50.87x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • High receivables of 93.52M relative to inventory of 38.36M (2.44 ratio) suggests aggressive credit terms or collection difficulties, potentially masking revenue quality issues.
  • Free cash flow of 196.54M represents just -7861.52x of debt issuance (25000), suggesting concerning reliance on leverage rather than internal cash generation for growth.
  • Long-term investments of 426.37M represent a high 145.47x of fixed assets 2.93M, indicating potential overexposure to financial assets versus operational capabilities.

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 1.01 12.31
EV to Cash from Ops. 7.15 23.25
EV to Debt 5.60 738.44
EV to EBIT 8.25 -9.16
EV to EBITDA 6.93 6.95
EV to Free Cash Flow [EV/FCF] 7.33 21.90
EV to Market Cap 1.04 65.67
EV to Revenue 3.71 227.32
Price to Book Value [P/B] 1.38 22.34
Price to Earnings [P/E] 10.92 -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 9.63 841.00

Growth Metrics

Metric Value Industry Percentile
Capex Growth (1y) % -1,484.52 -27.13
Cash and Equivalents Growth (1y) % 82.83 734.65
Dividend Growth (1y) % 0.00 0.01
EBIAT Growth (1y) % 67.07 -46.93
EBITDA Growth (1y) % 3.84 -1.68
EBIT Growth (1y) % 79.49 -56.45
EBT Growth (1y) % 111.81 -12.70
EPS Growth (1y) % 87.13 -28.31
FCF Growth (1y) % 21.03 -31.90
Gross Profit Growth (1y) % 8.89 226.84

Liquidity Ratios

Metric Value Industry Percentile
Asset Utilization Ratio 0.27 0.14
Cash Payout Ratio 0.00 0.00
Cash Ratio 9.83 3.85
Current Ratio 14.12 7.27
Debt to Equity Ratio 0.25 0.40
Interest Cover Ratio 9.63 841.00
Times Interest Earned 9.63 841.00

Profitability

Metric Value Industry Percentile
EBITDA Margin % 55.30 -18,234.31
EBIT Margin % 44.95 -18,580.80
EBT Margin % 40.29 -19,488.74
Gross Margin % 81.50 -7.59
Net Profit Margin % 32.80 -19,439.22