Disc Medicine, Inc. (NASDAQ: IRON)

Sector: Healthcare Industry: Biotechnology CIK: 0001816736
P/B 5.42
P/E -17.17
P/S 0.00
Market Cap 3.11 Bn
ROIC (Qtr) -32.64
Div Yield % 0.00
Rev 1y % (Qtr) 0.00
Total Debt (Qtr) 30.98 Mn
Debt/Equity (Qtr) 0.05

About

Disc Medicine, Inc., also known by its stock symbol IRON, is a company operating within the biopharmaceutical industry. Its primary focus is on the discovery, development, and commercialization of novel treatments for patients suffering from serious hematologic diseases. The company's mission is to modify fundamental biological pathways associated with the formation and function of red blood cells. Disc Medicine's main business activities revolve around the development of a portfolio of clinical and preclinical product candidates. These candidates...

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Stock Price Chart

Analysis

Pros

  • Healthy cash reserves of 140.66M provide 214.43x coverage of short-term debt 656000, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 630.46M provides 20.35x coverage of total debt 30.98M, indicating robust asset backing and low credit risk.
  • Short-term investments of 475.26M provide solid 25.25x coverage of other current liabilities 18.82M, indicating strong liquidity.
  • Tangible assets of 630.46M provide robust 33.50x coverage of other current liabilities 18.82M, indicating strong asset backing.
  • Cash reserves of 140.66M provide robust 5.26x coverage of current liabilities 26.74M, indicating strong short-term solvency.

Cons

  • Operating cash flow of (164.67M) barely covers its investment activities of (172.83M), with a coverage ratio of 0.95, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of (172.83M) provide weak support for R&D spending of 149.21M, which is -1.16x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Short-term investments of 475.26M significantly exceed cash reserves of 140.66M, which is 3.38x, indicating potentially excessive yield-seeking behavior at the expense of liquidity.
  • The company's operating cash flow of (164.67M) shows concerning coverage of stock compensation expenses of 28.63M, with a -5.75 ratio indicating potential earnings quality issues.
  • Free cash flow of (166.03M) provides weak coverage of capital expenditures of 1.36M, with a -121.90 ratio suggesting additional external financing needs for growth initiatives.

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 4.78 12.31
EV to Cash from Ops. -18.30 23.25
EV to Debt 97.26 738.44
EV to EBIT -16.99 -9.16
EV to EBITDA -14.85 6.95
EV to Free Cash Flow [EV/FCF] -18.15 21.90
EV to Market Cap 0.97 65.67
EV to Revenue 0.00 227.32
Price to Book Value [P/B] 5.42 22.34
Price to Earnings [P/E] -17.17 -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 -53.81 841.00

Growth Metrics

Metric Value Industry Percentile
Capex Growth (1y) % -2,208.47 -27.13
Cash and Equivalents Growth (1y) % -26.98 734.65
Dividend Growth (1y) % 0.00 0.01
EBIAT Growth (1y) % -71.83 -46.93
EBITDA Growth (1y) % -63.30 -1.68
EBIT Growth (1y) % -71.75 -56.45
EBT Growth (1y) % -74.94 -12.70
EPS Growth (1y) % -34.42 -28.31
FCF Growth (1y) % -97.16 -31.90
Gross Profit Growth (1y) % 0.00 226.84

Liquidity Ratios

Metric Value Industry Percentile
Asset Utilization Ratio 0.00 0.14
Cash Payout Ratio 0.00 0.00
Cash Ratio 5.26 3.85
Current Ratio 23.45 7.27
Debt to Equity Ratio 0.05 0.40
Interest Cover Ratio -53.81 841.00
Times Interest Earned -53.81 841.00

Profitability

Metric Value Industry Percentile
EBITDA Margin % 0.00 -18,234.31
EBIT Margin % 0.00 -18,580.80
EBT Margin % 0.00 -19,488.74
Gross Margin % 0.00 -7.59
Net Profit Margin % 0.00 -19,439.22