Ionis Pharmaceuticals Inc (NASDAQ: IONS)

Sector: Healthcare Industry: Biotechnology CIK: 0000874015
Market Cap 12.98 Bn
P/B 21.01
P/E -50.65
P/S 13.43
ROIC (Qtr) -13.39
Div Yield % 0.00
Rev 1y % (Qtr) 17.12
Total Debt (Qtr) 1.49 Bn
Debt/Equity (Qtr) 2.41

About

IONIS Pharmaceuticals Inc., often recognized by its stock symbol IONS, is a trailblazing biotechnology company that focuses on the development of RNA-targeted medicines. The company is dedicated to creating a better future for people battling severe diseases by pioneering advancements in RNA therapies. The company's main business activities revolve around the discovery, development, and commercialization of innovative medicines that target specific diseases by leveraging the power of RNA. IONIS's operations span across various countries, with...

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Price action

Investment thesis

Bull case

  • Tangible assets of 3.03B provide exceptional 16.40x coverage of deferred revenue 184.89M, showing strong service capability backing.
  • Short-term investments of 1.90B provide solid 7.37x coverage of other current liabilities 258.22M, indicating strong liquidity.
  • Tangible assets of 3.03B provide robust 11.75x coverage of other current liabilities 258.22M, indicating strong asset backing.
  • R&D investment of 881.46M represents healthy 4.77x of deferred revenue 184.89M, indicating strong future innovation pipeline.
  • Cash reserves of 338.34M provide comfortable 3349.91x coverage of tax obligations 101000, showing strong fiscal management.

Bear case

  • Operating cash flow of (247.01M) barely covers its investment activities of 209.94M, with a coverage ratio of -1.18, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of 209.94M provide weak support for R&D spending of 881.46M, which is 0.24x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Operating cash flow of (247.01M) provides insufficient coverage of deferred revenue obligations of 184.89M, which is -1.34x, raising concerns about future service delivery capabilities.
  • The company's operating cash flow of (247.01M) shows concerning coverage of stock compensation expenses of 126.70M, with a -1.95 ratio indicating potential earnings quality issues.
  • Short-term investments of 1.90B significantly exceed cash reserves of 338.34M, which is 5.62x, indicating potentially excessive yield-seeking behavior at the expense of liquidity.

Type of Arrangement and Non-arrangement Transactions Breakdown of Revenue (2024)

Product and Service 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 4.65 12.96
EV to Cash from Ops. EV/CFO -57.10 23.73
EV to Debt EV to Debt 9.47 772.65
EV to EBIT EV/EBIT -83.96 -11.30
EV to EBITDA EV/EBITDA -54.79 7.11
EV to Free Cash Flow [EV/FCF] EV/FCF -46.60 22.12
EV to Market Cap EV to Market Cap 1.09 68.89
EV to Revenue EV/Rev 14.59 199.70
Price to Book Value [P/B] P/B 21.01 22.62
Price to Earnings [P/E] P/E -50.65 -12.30
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 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) -1.85 857.11
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -193.79 -27.24
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 1.12 747.06
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 0.01
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 37.90 -48.21
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 26.04 -2.09
EBIT Growth (1y) % EBIT 1y % (Qtr) 36.79 -57.79
EBT Growth (1y) % EBT 1y % (Qtr) 27.28 -14.35
EPS Growth (1y) % EPS 1y % (Qtr) 34.02 -30.88
FCF Growth (1y) % FCF 1y % (Qtr) 18.39 -32.51
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 20.51 227.96
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.32 0.14
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.00
Cash Ratio Cash Ratio (Qtr) 0.37 3.79
Current Ratio Curr Ratio (Qtr) 2.79 7.23
Debt to Equity Ratio Debt/Equity (Qtr) 2.41 0.42
Interest Cover Ratio Int Coverage (Qtr) -1.85 857.11
Times Interest Earned Times Interest Earned (Qtr) -1.85 857.11
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) -15.20 -18,509.94
EBIT Margin % EBIT Margin % (Qtr) -17.37 -18,862.18
EBT Margin % EBT Margin % (Qtr) -26.76 -19,783.19
Gross Margin % Gross Margin % (Qtr) 98.80 -8.62
Net Profit Margin % Net Margin % (Qtr) -26.50 -19,732.60