Mannkind Corp (NASDAQ: MNKD)

Sector: Healthcare Industry: Biotechnology CIK: 0000899460
Market Cap 1.76 Bn
P/B -39.43
P/E 60.10
P/S 5.60
ROIC (Qtr) 28.55
Div Yield % 0.00
Rev 1y % (Qtr) 17.20
Total Debt (Qtr) 360.39 Mn
Debt/Equity (Qtr) -8.09

About

MannKind Corporation, trading under the symbol MNKD, is a biopharmaceutical company operating within the healthcare sector. The company specializes in the development and commercialization of innovative therapeutic products and devices targeting serious unmet medical needs in the areas of endocrine and orphan lung diseases. MannKind's business activities span across the development, manufacturing, and marketing of novel pharmaceutical products. The company's operations are primarily based in the United States, although it has a global outlook and...

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Price action

Investment thesis

Bull case

  • Healthy cash reserves of 128.13M provide 2.76x coverage of short-term debt 46.48M, demonstrating strong liquidity position and minimal refinancing risk.
  • Tangible assets of 487.59M provide exceptional 8.36x coverage of deferred revenue 58.32M, showing strong service capability backing.
  • Robust free cash flow of 43.39M exceeds capital expenditure of 5.47M by 7.94x, indicating strong organic growth funding capability.
  • Short-term investments of 132.64M provide solid 2.40x coverage of other current liabilities 55.38M, indicating strong liquidity.
  • Tangible assets of 487.59M provide robust 8.80x coverage of other current liabilities 55.38M, indicating strong asset backing.

Bear case

  • Investment activities of 35.38M provide weak support for R&D spending of 49.90M, which is 0.71x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Operating cash flow of 48.86M provides insufficient coverage of deferred revenue obligations of 58.32M, which is 0.84x, raising concerns about future service delivery capabilities.
  • The company's operating cash flow of 48.86M shows concerning coverage of stock compensation expenses of 23.04M, with a 2.12 ratio indicating potential earnings quality issues.
  • Free cash flow of 43.39M represents just -3.25x of debt issuance (13.34M), suggesting concerning reliance on leverage rather than internal cash generation for growth.
  • Retained earnings of (3.18B) provide limited buffer against comprehensive income items of 137000, which is -23211.74x, indicating elevated exposure to market risks.

Collaborative Arrangement and Arrangement Other than Collaborative Breakdown of Revenue (2024)

Segments Breakdown of Revenue (2024)

Peer comparison

Companies in the Biotechnology
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 SMMT Summit Therapeutics Inc. 1,446.17 Bn -1,569.17 0.00 0.01 Bn
2 ONC BeOne Medicines Ltd. 439.23 Bn 6,407.40 88.33 1.90 Bn
3 VRTX Vertex Pharmaceuticals Inc / Ma 120.62 Bn 32.82 10.29 1.83 Bn
4 REGN Regeneron Pharmaceuticals, Inc. 84.40 Bn 18.44 5.92 2.71 Bn
5 ALNY Alnylam Pharmaceuticals, Inc. 56.13 Bn 1,288.39 17.49 3.21 Bn
6 ARGX Argenx Se 47.89 Bn 31.79 24,973.95 -
7 BNTC Benitec Biopharma Inc. 42.45 Bn -1,015.00 0.00 0.00 Bn
8 INSM INSMED Inc 32.67 Bn -27.60 73.08 0.74 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 4.02 12.96
EV to Cash from Ops. EV/CFO 40.67 23.73
EV to Debt EV to Debt 5.51 772.65
EV to EBIT EV/EBIT 31.83 -11.30
EV to EBITDA EV/EBITDA 22.82 7.11
EV to Free Cash Flow [EV/FCF] EV/FCF 45.79 22.12
EV to Market Cap EV to Market Cap 1.13 68.89
EV to Revenue EV/Rev 6.33 199.70
Price to Book Value [P/B] P/B -39.43 22.62
Price to Earnings [P/E] P/E 60.10 -12.30
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 -12.02
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 -0.15
Interest Coverage Int. cover (Qtr) 1.97 857.11
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 56.85 -27.24
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 103.04 747.06
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 0.01
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 13.01 -48.21
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 33.63 -2.09
EBIT Growth (1y) % EBIT 1y % (Qtr) 2.51 -57.79
EBT Growth (1y) % EBT 1y % (Qtr) 22.96 -14.35
EPS Growth (1y) % EPS 1y % (Qtr) 25.00 -30.88
FCF Growth (1y) % FCF 1y % (Qtr) 50.27 -32.51
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 22.78 227.96
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.63 0.14
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.00
Cash Ratio Cash Ratio (Qtr) 1.17 3.79
Current Ratio Curr Ratio (Qtr) 3.29 7.23
Debt to Equity Ratio Debt/Equity (Qtr) -8.09 0.42
Interest Cover Ratio Int Coverage (Qtr) 1.97 857.11
Times Interest Earned Times Interest Earned (Qtr) 1.97 857.11
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 23.30 -18,509.94
EBIT Margin % EBIT Margin % (Qtr) 19.89 -18,862.18
EBT Margin % EBT Margin % (Qtr) 9.81 -19,783.19
Gross Margin % Gross Margin % (Qtr) 75.20 -8.62
Net Profit Margin % Net Margin % (Qtr) 9.30 -19,732.60