Innoviva, Inc. (NASDAQ: INVA)

Sector: Healthcare Industry: Biotechnology CIK: 0001080014
Market Cap 1.32 Bn
P/B 1.31
P/E 10.40
P/S 3.41
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

Price action

Investment thesis

Bull case

  • 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.

Bear case

  • 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.

Product and Service Breakdown of Revenue (2024)

Consolidation Items 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. 1,446.17 Bn -1,569.17 0.00 0.01 Bn
2 ONC BeOne Medicines Ltd. 439.23 Bn 6,407.40 88.33 1.90 Bn
3 VRTX Vertex Pharmaceuticals Inc / Ma 120.62 Bn 32.82 10.29 1.83 Bn
4 REGN Regeneron Pharmaceuticals, Inc. 84.40 Bn 18.44 5.92 2.71 Bn
5 ALNY Alnylam Pharmaceuticals, Inc. 56.13 Bn 1,288.39 17.49 3.21 Bn
6 ARGX Argenx Se 47.89 Bn 31.79 24,973.95 -
7 BNTC Benitec Biopharma Inc. 42.45 Bn -1,015.00 0.00 0.00 Bn
8 INSM INSMED Inc 32.67 Bn -27.60 73.08 0.74 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.96 12.96
EV to Cash from Ops. EV/CFO 6.82 23.73
EV to Debt EV to Debt 5.34 772.65
EV to EBIT EV/EBIT 7.87 -11.30
EV to EBITDA EV/EBITDA 6.61 7.11
EV to Free Cash Flow [EV/FCF] EV/FCF 7.00 22.12
EV to Market Cap EV to Market Cap 1.04 68.89
EV to Revenue EV/Rev 3.54 199.70
Price to Book Value [P/B] P/B 1.31 22.62
Price to Earnings [P/E] P/E 10.40 -12.30
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 0.00 -12.02
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 -0.15
Interest Coverage Int. cover (Qtr) 9.63 857.11
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -1,484.52 -27.24
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 82.83 747.06
Dividend Growth (1y) % Div 1y % (Qtr) 0.00 0.01
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 67.07 -48.21
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 3.84 -2.09
EBIT Growth (1y) % EBIT 1y % (Qtr) 79.49 -57.79
EBT Growth (1y) % EBT 1y % (Qtr) 111.81 -14.35
EPS Growth (1y) % EPS 1y % (Qtr) 87.13 -30.88
FCF Growth (1y) % FCF 1y % (Qtr) 21.03 -32.51
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 8.89 227.96
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.27 0.14
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.00
Cash Ratio Cash Ratio (Qtr) 9.83 3.79
Current Ratio Curr Ratio (Qtr) 14.12 7.23
Debt to Equity Ratio Debt/Equity (Qtr) 0.25 0.42
Interest Cover Ratio Int Coverage (Qtr) 9.63 857.11
Times Interest Earned Times Interest Earned (Qtr) 9.63 857.11
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 55.30 -18,509.94
EBIT Margin % EBIT Margin % (Qtr) 44.95 -18,862.18
EBT Margin % EBT Margin % (Qtr) 40.29 -19,783.19
Gross Margin % Gross Margin % (Qtr) 81.50 -8.62
Net Profit Margin % Net Margin % (Qtr) 32.80 -19,732.60