Lexicon Pharmaceuticals, Inc. (NASDAQ: LXRX)

Sector: Healthcare Industry: Biotechnology CIK: 0001062822
P/B 3.90
P/E -6.84
P/S 6.62
Market Cap 469.22 Mn
ROIC (Qtr) -36.92
Div Yield % 0.00
Rev 1y % (Qtr) 710.40
Total Debt (Qtr) 56.51 Mn
Debt/Equity (Qtr) 0.47

About

Stock Price Chart

Analysis

Pros

  • Strong tangible asset base of 161.38M provides 2.86x coverage of total debt 56.51M, indicating robust asset backing and low credit risk.
  • Tangible assets of 161.38M provide exceptional 37.50x coverage of deferred revenue 4.30M, showing strong service capability backing.
  • Short-term investments of 66.29M provide solid 3.70x coverage of other current liabilities 17.92M, indicating strong liquidity.
  • R&D investment of 76.49M represents healthy 17.78x of deferred revenue 4.30M, indicating strong future innovation pipeline.
  • Cash reserves of 78.66M provide robust 3.62x coverage of current liabilities 21.72M, indicating strong short-term solvency.

Cons

  • Operating cash flow of (72.11M) barely covers its investment activities of 161.89M, with a coverage ratio of -0.45, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Operating cash flow of (72.11M) provides insufficient coverage of deferred revenue obligations of 4.30M, which is -16.76x, raising concerns about future service delivery capabilities.
  • The company's operating cash flow of (72.11M) shows concerning coverage of stock compensation expenses of 11.22M, with a -6.43 ratio indicating potential earnings quality issues.
  • High receivables of 2.33M relative to inventory of 158000 (14.77 ratio) suggests aggressive credit terms or collection difficulties, potentially masking revenue quality issues.
  • Free cash flow of (72.58M) provides weak coverage of capital expenditures of 474000, with a -153.13 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 2.31 12.31
EV to Cash from Ops. -6.59 23.25
EV to Debt 8.41 738.44
EV to EBIT -8.13 -9.16
EV to EBITDA -7.17 6.95
EV to Free Cash Flow [EV/FCF] -6.54 21.90
EV to Market Cap 1.01 65.67
EV to Revenue 6.70 227.32
Price to Book Value [P/B] 3.90 22.34
Price to Earnings [P/E] -6.84 -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 -5.75 841.00

Growth Metrics

Metric Value Industry Percentile
Capex Growth (1y) % 14.90 -27.13
Cash and Equivalents Growth (1y) % 127.65 734.65
Dividend Growth (1y) % 0.00 0.01
EBIAT Growth (1y) % 70.68 -46.93
EBITDA Growth (1y) % 68.54 -1.68
EBIT Growth (1y) % 70.68 -56.45
EBT Growth (1y) % 68.31 -12.70
EPS Growth (1y) % 74.67 -28.31
FCF Growth (1y) % 65.17 -31.90
Gross Profit Growth (1y) % 1,340.26 226.84

Liquidity Ratios

Metric Value Industry Percentile
Asset Utilization Ratio 0.34 0.14
Cash Payout Ratio 0.00 0.00
Cash Ratio 3.62 3.85
Current Ratio 5.64 7.27
Debt to Equity Ratio 0.47 0.40
Interest Cover Ratio -5.75 841.00
Times Interest Earned -5.75 841.00

Profitability

Metric Value Industry Percentile
EBITDA Margin % -81.50 -18,234.31
EBIT Margin % -82.43 -18,580.80
EBT Margin % -96.77 -19,488.74
Gross Margin % 99.40 -7.59
Net Profit Margin % -96.80 -19,439.22