Kura Oncology, Inc. (NASDAQ: KURA)

Sector: Healthcare Industry: Biotechnology CIK: 0001422143
P/B 3.69
P/E -4.12
P/S 8.59
Market Cap 893.77 Mn
ROIC (Qtr) -81.71
Div Yield % 0.00
Rev 1y % (Qtr) 0.00
Total Debt (Qtr) 19.47 Mn
Debt/Equity (Qtr) 0.08

About

Kura Oncology, Inc., a clinical-stage biopharmaceutical company, is dedicated to the development of precision medicines for cancer treatment. The company's primary business activities include discovering, acquiring, developing, and commercializing innovative anti-cancer agents, with a particular focus on oncology indications that have significant unmet medical needs and attractive commercial potential. Kura Oncology's approach to developing precision medicines involves a disciplined strategy designed to identify response signals early in development...

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Stock Price Chart

Analysis

Pros

  • Strong operating cash flow of 87.80M provides robust 4.51x coverage of total debt 19.47M, indicating excellent debt servicing capability and financial flexibility.
  • Healthy cash reserves of 95.29M provide 16.53x coverage of short-term debt 5.77M, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 649.38M provides 33.36x coverage of total debt 19.47M, indicating robust asset backing and low credit risk.
  • Operating cash flow of 87.80M provides exceptional 55.96x coverage of interest expenses 1.57M, showing strong debt service capability.
  • Robust free cash flow of 83.11M exceeds capital expenditure of 4.69M by 17.72x, indicating strong organic growth funding capability.

Cons

  • Operating cash flow of 87.80M barely covers its investment activities of (43.46M), with a coverage ratio of -2.02, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of (43.46M) provide weak support for R&D spending of 238.93M, which is -0.18x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Operating cash flow of 87.80M provides insufficient coverage of deferred revenue obligations of 268.85M, which is 0.33x, raising concerns about future service delivery capabilities.
  • Short-term investments of 454.38M significantly exceed cash reserves of 95.29M, which is 4.77x, indicating potentially excessive yield-seeking behavior at the expense of liquidity.
  • The company's operating cash flow of 87.80M shows concerning coverage of stock compensation expenses of 34.39M, with a 2.55 ratio indicating potential earnings quality issues.

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 1.28 12.31
EV to Cash from Ops. 9.47 23.25
EV to Debt 42.71 738.44
EV to EBIT -3.90 -9.16
EV to EBITDA -3.48 6.95
EV to Free Cash Flow [EV/FCF] 10.00 21.90
EV to Market Cap 0.93 65.67
EV to Revenue 7.99 227.32
Price to Book Value [P/B] 3.69 22.34
Price to Earnings [P/E] -4.12 -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 -135.80 841.00

Growth Metrics

Metric Value Industry Percentile
Capex Growth (1y) % -3,942.24 -27.13
Cash and Equivalents Growth (1y) % 92.58 734.65
Dividend Growth (1y) % 0.00 0.01
EBIAT Growth (1y) % -9.88 -46.93
EBITDA Growth (1y) % -10.31 -1.68
EBIT Growth (1y) % -8.74 -56.45
EBT Growth (1y) % -8.65 -12.70
EPS Growth (1y) % -5.08 -28.31
FCF Growth (1y) % 149.11 -31.90
Gross Profit Growth (1y) % 0.00 226.84

Liquidity Ratios

Metric Value Industry Percentile
Asset Utilization Ratio 0.16 0.14
Cash Payout Ratio 0.00 0.00
Cash Ratio 0.79 3.85
Current Ratio 5.12 7.27
Debt to Equity Ratio 0.08 0.40
Interest Cover Ratio -135.80 841.00
Times Interest Earned -135.80 841.00

Profitability

Metric Value Industry Percentile
EBITDA Margin % -204.00 -18,234.31
EBIT Margin % -204.82 -18,580.80
EBT Margin % -206.33 -19,488.74
Gross Margin % 100.00 -7.59
Net Profit Margin % -208.50 -19,439.22