Iterum Therapeutics plc (NASDAQ: ITRM)

Sector: Healthcare Industry: Biotechnology CIK: 0001659323
Market Cap 9.87 Mn
P/B -1.34
P/E -0.37
P/S 25.32
ROIC (Qtr) -76.14
Div Yield % 0.00
Rev 1y % (Qtr) 0.00
Total Debt (Qtr) 33.74 Mn
Debt/Equity (Qtr) -4.57
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About

Iterum Therapeutics plc, known by its ticker symbol ITRM, is a company that operates in the competitive and regulated pharmaceutical industry. The organization is focused on developing and commercializing sulopenem, a potent antibiotic that has the potential to address the growing concerns related to antibacterial resistance. Iterum's main business activities are centered around the development and commercialization of sulopenem, a potent antibiotic that has the potential to address the growing concerns related to antibacterial resistance. This...

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Investment thesis

Bull case

  • Healthy cash reserves of 11.03M provide 39.26x coverage of short-term debt 281000, demonstrating strong liquidity position and minimal refinancing risk.
  • Retained earnings of (506.45M) represent substantial 68.62x of equity (7.38M), indicating strong internal capital generation.
  • Strong cash position of 11.03M provides 1.98x coverage of other current liabilities 5.57M, indicating excellent liquidity.
  • Cash reserves of 11.03M provide robust 1.72x coverage of current liabilities 6.43M, indicating strong short-term solvency.
  • Cash reserves of 11.03M provide comfortable 459.62x coverage of tax obligations 24000, showing strong fiscal management.

Bear case

  • Operating cash flow of (19.51M) barely covers its investment activities of 1.09M, with a coverage ratio of -17.97, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of 1.09M provide weak support for R&D spending of 4.15M, which is 0.26x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • The company's operating cash flow of (19.51M) shows concerning coverage of stock compensation expenses of 259000, with a -75.34 ratio indicating potential earnings quality issues.
  • Free cash flow of (19.53M) provides weak coverage of capital expenditures of 14000, with a -1394.86 ratio suggesting additional external financing needs for growth initiatives.
  • Operating cash flow of (19.51M) provides minimal -70.70x coverage of tax expenses of 276000, 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. 1,204.25 Bn -1,306.67 0.00 0.01 Bn
2 ONC BeOne Medicines Ltd. 486.51 Bn 7,097.20 97.84 1.90 Bn
3 VRTX Vertex Pharmaceuticals Inc / Ma 122.05 Bn 30.87 10.17 1.85 Bn
4 REGN Regeneron Pharmaceuticals, Inc. 83.00 Bn 18.42 5.79 2.71 Bn
5 ARGX Argenx Se 50.78 Bn 33.71 26,480.10 -
6 ALNY Alnylam Pharmaceuticals, Inc. 43.66 Bn 139.17 11.76 2.97 Bn
7 BNTC Benitec Biopharma Inc. 43.61 Bn -941.82 0.00 0.00 Bn
8 INSM INSMED Inc 28.88 Bn -24.40 64.61 0.74 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.90 11.06
EV to Cash from Ops. EV/CFO -1.51 26.32
EV to Debt EV to Debt 0.87 762.61
EV to EBIT EV/EBIT -1.20 -13.49
EV to EBITDA EV/EBITDA -1.52 8.61
EV to Free Cash Flow [EV/FCF] EV/FCF -1.50 25.66
EV to Market Cap EV to Market Cap 2.97 203.37
EV to Revenue EV/Rev 75.31 156.31
Price to Book Value [P/B] P/B -1.34 20.59
Price to Earnings [P/E] P/E -0.37 -0.88
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 -12.64
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) -11.33 956.66
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -600.00 7.87
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -17.92 753.48
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 0.01
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 13.00 -57.63
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 25.66 8.83
EBIT Growth (1y) % EBIT 1y % (Qtr) 12.88 -67.21
EBT Growth (1y) % EBT 1y % (Qtr) 11.63 -23.74
EPS Growth (1y) % EPS 1y % (Qtr) 64.50 -7.02
FCF Growth (1y) % FCF 1y % (Qtr) 44.77 -40.48
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 0.00 264.51
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.01 0.14
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.00
Cash Ratio Cash Ratio (Qtr) 1.72 3.92
Current Ratio Curr Ratio (Qtr) 2.14 7.33
Debt to Equity Ratio Debt/Equity (Qtr) -4.57 0.48
Interest Cover Ratio Int Coverage (Qtr) -11.33 956.66
Times Interest Earned Times Interest Earned (Qtr) -11.33 956.66
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) -5,949.70 -17,888.70
EBIT Margin % EBIT Margin % (Qtr) -6,287.18 -18,246.34
EBT Margin % EBT Margin % (Qtr) -6,842.31 -19,108.08
Gross Margin % Gross Margin % (Qtr) -146.40 -10.30
Net Profit Margin % Net Margin % (Qtr) -6,913.10 -19,056.96