Disc Medicine, Inc. (NASDAQ: IRON)

Sector: Healthcare Industry: Biotechnology CIK: 0001816736
Market Cap 2.68 Bn
P/B 4.68
P/E -14.82
P/S 0.00
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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Price action

Investment thesis

Bull case

  • 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.

Bear case

  • 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. 1,446.17 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 4.10 12.96
EV to Cash from Ops. EV/CFO -15.72 23.73
EV to Debt EV to Debt 83.54 772.65
EV to EBIT EV/EBIT -14.59 -11.30
EV to EBITDA EV/EBITDA -12.75 7.11
EV to Free Cash Flow [EV/FCF] EV/FCF -15.59 22.12
EV to Market Cap EV to Market Cap 0.96 68.89
EV to Revenue EV to Revenue 0.00 199.70
Price to Book Value [P/B] P/B 4.68 22.62
Price to Earnings [P/E] P/E -14.82 -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) -53.81 857.11
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -2,208.47 -27.24
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -26.98 747.06
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 0.01
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -71.83 -48.21
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -63.30 -2.09
EBIT Growth (1y) % EBIT 1y % (Qtr) -71.75 -57.79
EBT Growth (1y) % EBT 1y % (Qtr) -74.94 -14.35
EPS Growth (1y) % EPS 1y % (Qtr) -34.42 -30.88
FCF Growth (1y) % FCF 1y % (Qtr) -97.16 -32.51
Gross Profit Growth (1y) % Gross Profit Growth (1y) % 0.00 227.96
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.00 0.14
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.00
Cash Ratio Cash Ratio (Qtr) 5.26 3.79
Current Ratio Curr Ratio (Qtr) 23.45 7.23
Debt to Equity Ratio Debt/Equity (Qtr) 0.05 0.42
Interest Cover Ratio Int Coverage (Qtr) -53.81 857.11
Times Interest Earned Times Interest Earned (Qtr) -53.81 857.11
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % 0.00 -18,509.94
EBIT Margin % EBIT Margin % 0.00 -18,862.18
EBT Margin % EBT Margin % 0.00 -19,783.19
Gross Margin % Gross Margin % 0.00 -8.62
Net Profit Margin % Net Profit Margin % 0.00 -19,732.60