Metagenomi, Inc. (NASDAQ: MGX)

Sector: Healthcare Industry: Biotechnology CIK: 0001785279
Market Cap 53.98 Mn
P/B 0.30
P/E -0.61
P/S 1.75
ROIC (Qtr) -39.75
Div Yield % 0.00
Rev 1y % (Qtr) -24.80
Total Debt (Qtr) 41.66 Mn
Debt/Equity (Qtr) 0.23
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About

Metagenomi, Inc., a company that trades under the symbol META on the NASDAQ stock exchange, is a key player in the precision genetic medicines industry. Its main business activities involve the development of novel genome editing tools and technologies, aimed at treating a wide range of genetic diseases. The company operates in the field of genetic medicine, with its main office located in the United States, and it conducts its operations in various countries and regions. The primary revenue generation for Metagenomi comes from the development...

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Investment thesis

Bull case

  • Healthy cash reserves of 38.02M provide 6.82x coverage of short-term debt 5.57M, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 247.94M provides 5.95x coverage of total debt 41.66M, indicating robust asset backing and low credit risk.
  • Tangible assets of 247.94M provide exceptional 16.76x coverage of deferred revenue 14.80M, showing strong service capability backing.
  • Operating cash flow of (91.62M) fully covers other non-current liabilities (10.98M) by 8.34x, showing strong long-term stability.
  • Short-term investments of 151.34M provide solid 6.64x coverage of other current liabilities 22.80M, indicating strong liquidity.

Bear case

  • Operating cash flow of (91.62M) barely covers its investment activities of 99.71M, with a coverage ratio of -0.92, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of 99.71M provide weak support for R&D spending of 96.10M, which is 1.04x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Operating cash flow of (91.62M) provides insufficient coverage of deferred revenue obligations of 14.80M, which is -6.19x, raising concerns about future service delivery capabilities.
  • Short-term investments of 151.34M significantly exceed cash reserves of 38.02M, which is 3.98x, indicating potentially excessive yield-seeking behavior at the expense of liquidity.
  • The company's operating cash flow of (91.62M) shows concerning coverage of stock compensation expenses of 12.57M, with a -7.29 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. 1,204.25 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 0.26 11.06
EV to Cash from Ops. EV/CFO -0.71 26.32
EV to Debt EV to Debt 1.56 762.61
EV to EBIT EV/EBIT -0.72 -13.49
EV to EBITDA EV/EBITDA -0.79 8.61
EV to Free Cash Flow [EV/FCF] EV/FCF -0.70 25.66
EV to Market Cap EV to Market Cap 1.20 203.37
EV to Revenue EV/Rev 2.10 156.31
Price to Book Value [P/B] P/B 0.30 20.59
Price to Earnings [P/E] P/E -0.61 -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 Interest Coverage 0.00 956.66
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 82.60 7.87
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 25.21 753.48
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 0.01
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -19.99 -57.63
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -3.61 8.83
EBIT Growth (1y) % EBIT 1y % (Qtr) -19.20 -67.21
EBT Growth (1y) % EBT 1y % (Qtr) -19.20 -23.74
EPS Growth (1y) % EPS 1y % (Qtr) 68.67 -7.02
FCF Growth (1y) % FCF 1y % (Qtr) 14.36 -40.48
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -43.88 264.51
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.12 0.14
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.00
Cash Ratio Cash Ratio (Qtr) 1.29 3.92
Current Ratio Curr Ratio (Qtr) 6.42 7.33
Debt to Equity Ratio Debt/Equity (Qtr) 0.23 0.48
Interest Cover Ratio Interest Cover Ratio 0.00 956.66
Times Interest Earned Times Interest Earned 0.00 956.66
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) -256.90 -17,888.70
EBIT Margin % EBIT Margin % (Qtr) -291.26 -18,246.34
EBT Margin % EBT Margin % (Qtr) -291.26 -19,108.08
Gross Margin % Gross Margin % (Qtr) 100.00 -10.30
Net Profit Margin % Net Margin % (Qtr) -287.10 -19,056.96