Kiniksa Pharmaceuticals International, plc (NASDAQ: KNSA)

Sector: Healthcare Industry: Drug Manufacturers - Specialty & Generic CIK: 0001730430
Market Cap 3.02 Bn
P/B 5.65
P/E 84.18
P/S 5.06
ROIC (Qtr) 4.93
Div Yield % 0.00
Rev 1y % (Qtr) 61.17
Total Debt (Qtr) 9.72 Mn
Debt/Equity (Qtr) 0.02

About

Kiniksa Pharmaceuticals International, plc (KNSA), a commercial-stage biopharmaceutical company, operates in the healthcare sector, specifically in the biopharmaceutical industry. The company is dedicated to discovering, acquiring, developing, and commercializing therapeutic medicines for patients dealing with debilitating diseases that have significant unmet medical needs. Kiniksa's business activities primarily revolve around the development and commercialization of three main products: ARCALYST, abiprubart, and mavrilimumab. ARCALYST is an interleukin-1α...

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Price action

Investment thesis

Bull case

  • Strong operating cash flow of 102.86M provides robust 10.58x coverage of total debt 9.72M, indicating excellent debt servicing capability and financial flexibility.
  • Healthy cash reserves of 174.86M provide 64.86x coverage of short-term debt 2.70M, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 696.83M provides 71.71x coverage of total debt 9.72M, indicating robust asset backing and low credit risk.
  • Robust free cash flow of 101.73M exceeds capital expenditure of 1.13M by 90.19x, indicating strong organic growth funding capability.
  • Tangible assets of 696.83M provide exceptional 21.91x coverage of deferred revenue 31.81M, showing strong service capability backing.

Bear case

  • Operating cash flow of 102.86M barely covers its investment activities of (52.89M), with a coverage ratio of -1.94, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of (52.89M) provide weak support for R&D spending of 97.46M, which is -0.54x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • The company's operating cash flow of 102.86M shows concerning coverage of stock compensation expenses of 35.07M, with a 2.93 ratio indicating potential earnings quality issues.
  • Operating cash flow of 102.86M barely covers operating expenses of 207.70M with a 0.50 ratio, suggesting thin operational efficiency margins and limited flexibility.
  • Tangible assets of 696.83M provide limited backing for working capital of 351.94M, which is 1.98x, suggesting increased operational risk in market downturns.

Peer comparison

Companies in the Drug Manufacturers - Specialty & Generic
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 ZTS Zoetis Inc. 56.15 Bn 21.18 5.98 7.27 Bn
2 TAK Takeda Pharmaceutical Co Ltd 48.92 Bn 221.13 1.66 36.24 Bn
3 HLN Haleon plc 46.13 Bn 25.59 3.29 -
4 TEVA Teva Pharmaceutical Industries Ltd 35.27 Bn 49.54 2.10 17.07 Bn
5 UTHR UNITED THERAPEUTICS Corp 21.76 Bn 17.11 6.95 0.00 Bn
6 VTRS Viatris Inc 14.87 Bn -4.03 1.05 14.44 Bn
7 NBIX Neurocrine Biosciences Inc 14.08 Bn 32.91 5.25 0.43 Bn
8 ELAN Elanco Animal Health Inc 11.64 Bn 323.29 2.54 4.32 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 3.99 24.98
EV to Cash from Ops. EV/CFO 27.62 -85.40
EV to Debt EV to Debt 292.39 265.88
EV to EBIT EV/EBIT 58.44 -32.65
EV to EBITDA EV/EBITDA 65.91 -29.50
EV to Free Cash Flow [EV/FCF] EV/FCF 27.93 -32.62
EV to Market Cap EV to Market Cap 0.94 -10.98
EV to Revenue EV/Rev 4.75 -700.14
Price to Book Value [P/B] P/B 5.65 27.22
Price to Earnings [P/E] P/E 84.18 -122.96
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 0.34
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 4.81
Dividend per Basic Share Div per Share (Qtr) 0.00 0.07
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 4.08
Interest Coverage Interest Coverage 0.00 -38.10
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -880.87 -157.22
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 79.57 44,776.25
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 2.81
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 496.10 24.45
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 302.45 18.14
EBIT Growth (1y) % EBIT 1y % (Qtr) 390.74 37.66
EBT Growth (1y) % EBT 1y % (Qtr) 390.74 108.18
EPS Growth (1y) % EPS 1y % (Qtr) 476.92 52.88
FCF Growth (1y) % FCF 1y % (Qtr) 814.13 -54.47
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 57.87 25.28
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.84 0.50
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.02
Cash Ratio Cash Ratio (Qtr) 1.41 2.10
Current Ratio Curr Ratio (Qtr) 3.85 3.92
Debt to Equity Ratio Debt/Equity (Qtr) 0.02 -1.11
Interest Cover Ratio Interest Cover Ratio 0.00 -38.10
Times Interest Earned Times Interest Earned 0.00 -38.10
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 9.00 -62,432.09
EBIT Margin % EBIT Margin % (Qtr) 8.13 -63,260.88
EBT Margin % EBT Margin % (Qtr) 8.13 -66,726.96
Gross Margin % Gross Margin % (Qtr) 87.50 8,332.72
Net Profit Margin % Net Margin % (Qtr) 6.00 -66,728.37