Century Therapeutics, Inc. (NASDAQ: IPSC)

Sector: Healthcare Industry: Biotechnology CIK: 0001850119
Market Cap 161.34 Mn
P/B 0.91
P/E -6.09
P/S 1.42
ROIC (Qtr) -14.30
Div Yield % 0.00
Rev 1y % (Qtr) 0.00
Total Debt (Qtr) 41.19 Mn
Debt/Equity (Qtr) 0.23

About

Century Therapeutics, Inc. (IPSC), a leading biotechnology company, is revolutionizing the field of cell therapy through the use of adult stem cells. The company's primary focus is on developing curative cell therapy products for cancer and autoimmune and inflammatory diseases. With its industry-leading induced pluripotent stem cells (iPSCs), CRISPR mediated precision gene editing, sophisticated protein engineering capabilities, proprietary Allo-Evasion technology, and cutting-edge manufacturing capabilities, Century Therapeutics is well-positioned...

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Price action

Investment thesis

Bull case

  • Strong tangible asset base of 210.52M provides 5.11x coverage of total debt 41.19M, indicating robust asset backing and low credit risk.
  • Short-term investments of 77.23M provide solid 3.98x coverage of other current liabilities 19.41M, indicating strong liquidity.
  • Tangible assets of 210.52M provide robust 10.85x coverage of other current liabilities 19.41M, indicating strong asset backing.
  • Cash reserves of 57.83M provide robust 2.63x coverage of current liabilities 22.03M, indicating strong short-term solvency.
  • Strong cash position of 57.83M provides 2.98x coverage of other current liabilities 19.41M, indicating excellent liquidity.

Bear case

  • Operating cash flow of (112.02M) barely covers its investment activities of 115.75M, with a coverage ratio of -0.97, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of 115.75M provide weak support for R&D spending of 105.34M, which is 1.10x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • The company's operating cash flow of (112.02M) shows concerning coverage of stock compensation expenses of 8.20M, with a -13.66 ratio indicating potential earnings quality issues.
  • Free cash flow of (113.18M) provides weak coverage of capital expenditures of 1.16M, with a -97.40 ratio suggesting additional external financing needs for growth initiatives.
  • Operating cash flow of (112.02M) provides minimal -63.08x coverage of tax expenses of 1.78M, 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. 1,149.72 Bn -1,247.50 0.00 0.01 Bn
2 ONC BeOne Medicines Ltd. 478.27 Bn 6,977.00 96.18 1.90 Bn
3 VRTX Vertex Pharmaceuticals Inc / Ma 120.93 Bn 32.90 10.32 1.83 Bn
4 REGN Regeneron Pharmaceuticals, Inc. 81.61 Bn 18.12 5.69 2.71 Bn
5 ARGX Argenx Se 49.86 Bn 33.10 25,999.50 -
6 ALNY Alnylam Pharmaceuticals, Inc. 44.97 Bn 1,032.26 14.01 3.21 Bn
7 BNTC Benitec Biopharma Inc. 41.09 Bn -982.50 0.00 0.00 Bn
8 INSM INSMED Inc 28.69 Bn -24.24 64.19 0.74 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.61 11.12
EV to Cash from Ops. EV/CFO -1.32 26.73
EV to Debt EV to Debt 3.60 686.78
EV to EBIT EV/EBIT -6.01 -10.71
EV to EBITDA EV/EBITDA -7.75 8.30
EV to Free Cash Flow [EV/FCF] EV/FCF -1.31 25.45
EV to Market Cap EV to Market Cap 0.92 166.02
EV to Revenue EV/Rev 1.31 153.59
Price to Book Value [P/B] P/B 0.91 20.63
Price to Earnings [P/E] P/E -6.09 -0.19
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 -12.47
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) 0.00 860.86
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -21.17 -26.99
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 4.32 756.81
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 0.01
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 79.62 -52.99
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 85.21 -4.39
EBIT Growth (1y) % EBIT 1y % (Qtr) 81.11 -62.52
EBT Growth (1y) % EBT 1y % (Qtr) 81.11 -19.16
EPS Growth (1y) % EPS 1y % (Qtr) 82.70 -4.04
FCF Growth (1y) % FCF 1y % (Qtr) -0.07 -33.35
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 4,121.12 264.38
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.46 0.14
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.00
Cash Ratio Cash Ratio (Qtr) 2.63 3.83
Current Ratio Curr Ratio (Qtr) 6.25 7.27
Debt to Equity Ratio Debt/Equity (Qtr) 0.23 0.43
Interest Cover Ratio Int Coverage (Qtr) 0.00 860.86
Times Interest Earned Times Interest Earned (Qtr) 0.00 860.86
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) -8.80 -17,746.13
EBIT Margin % EBIT Margin % (Qtr) -21.79 -18,101.92
EBT Margin % EBT Margin % (Qtr) -21.79 -18,961.86
Gross Margin % Gross Margin % (Qtr) 100.00 -9.24
Net Profit Margin % Net Margin % (Qtr) -23.40 -18,911.61