Medicus Pharma Ltd. (NASDAQ: MDCX)

Sector: Healthcare Industry: Drug Manufacturers - General CIK: 0001997296
Market Cap 17.65 Mn
P/B -19.39
P/E -0.51
P/S 0.00
ROIC (Qtr) -402.88
Div Yield % 0.00
Rev 1y % (Qtr) 0.00
Total Debt (Qtr) 7.05 Mn
Debt/Equity (Qtr) -7.75
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About

Investment thesis

Bull case

  • Operating cash flow of (19.43M) provides exceptional 185.88x coverage of interest expenses (104556), showing strong debt service capability.
  • Free cash flow of (19.43M) provides exceptional 185.88x coverage of interest expense (104556), showing strong debt service ability.
  • Retained earnings of (56.16M) represent substantial 61.71x of equity (910126), indicating strong internal capital generation.
  • Tangible assets of 9.98M provide robust 6.39x coverage of other current liabilities 1.56M, indicating strong asset backing.
  • Cash reserves of 8.66M provide robust 0.81x coverage of current liabilities 10.66M, indicating strong short-term solvency.

Bear case

  • Investment activities of 0 provide weak support for R&D spending of 6.50M, which is 0x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • The company's operating cash flow of (19.43M) shows concerning coverage of stock compensation expenses of 1.21M, with a -16 ratio indicating potential earnings quality issues.
  • Free cash flow of (19.43M) represents just -3.17x of debt issuance 6.13M, suggesting concerning reliance on leverage rather than internal cash generation for growth.
  • Operating cash flow of (19.43M) barely covers operating expenses of 8.06M with a -2.41 ratio, suggesting thin operational efficiency margins and limited flexibility.
  • Retained earnings of (56.16M) provide limited buffer against comprehensive income items of 10676, which is -5260.74x, indicating elevated exposure to market risks.

Peer comparison

Companies in the Drug Manufacturers - General
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 LLY ELI LILLY & Co 1,096.48 Bn 444.66 53.21 42.50 Bn
2 JNJ Johnson & Johnson 586.00 Bn 21.86 6.22 47.93 Bn
3 MRK Merck & Co., Inc. 351.73 Bn 29.51 8.33 41.37 Bn
4 ABBV AbbVie Inc. 346.46 Bn 41.07 10.17 68.74 Bn
5 AZN Astrazeneca Plc 324.54 Bn 31.74 5.53 29.62 Bn
6 NVS Novartis Ag 322.29 Bn 23.05 5.69 35.46 Bn
7 GILD Gilead Sciences, Inc. 237.69 Bn 78.03 22.28 24.94 Bn
8 AMGN Amgen Inc 233.95 Bn 29.40 9.93 54.60 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 1.30 2.46
EV to Cash from Ops. EV/CFO -0.67 38.77
EV to Debt EV to Debt 1.84 6.68
EV to EBIT EV/EBIT -0.44 37.43
EV to EBITDA EV/EBITDA -0.45 30.58
EV to Free Cash Flow [EV/FCF] EV/FCF -0.67 50.59
EV to Market Cap EV to Market Cap 0.73 1.31
EV to Revenue EV to Revenue 0.00 8.62
Price to Book Value [P/B] P/B -19.39 5.91
Price to Earnings [P/E] P/E -0.51 44.84
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 0.00 0.95
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 65.78
Dividend per Basic Share Div per Share (Qtr) 0.00 2.89
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 40.65
Interest Coverage Int. cover (Qtr) 283.47 20.38
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex Growth (1y) % 0.00 -17.39
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 63.25 74.29
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 3.76
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -237.62 71.80
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -153.47 65.77
EBIT Growth (1y) % EBIT 1y % (Qtr) -237.62 63.01
EBT Growth (1y) % EBT 1y % (Qtr) -228.25 306.04
EPS Growth (1y) % EPS 1y % (Qtr) -465.79 348.81
FCF Growth (1y) % FCF 1y % (Qtr) -86.08 11.69
Gross Profit Growth (1y) % Gross Profit Growth (1y) % 0.00 7.99
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.00 0.39
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.28
Cash Ratio Cash Ratio (Qtr) 0.81 2.08
Current Ratio Curr Ratio (Qtr) 0.92 6.16
Debt to Equity Ratio Debt/Equity (Qtr) -7.75 -0.39
Interest Cover Ratio Int Coverage (Qtr) 283.47 20.38
Times Interest Earned Times Interest Earned (Qtr) 283.47 20.38
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % 0.00 -13.64
EBIT Margin % EBIT Margin % 0.00 -10.45
EBT Margin % EBT Margin % 0.00 -25.59
Gross Margin % Gross Margin % 0.00 65.04
Net Profit Margin % Net Profit Margin % 0.00 -34.87