Moderna, Inc. (NASDAQ: MRNA)

Sector: Healthcare Industry: Biotechnology CIK: 0001682852
Market Cap 13.07 Bn
P/B 1.40
P/E -4.20
P/S 5.86
ROIC (Qtr) -36.83
Div Yield % 0.00
Rev 1y % (Qtr) -45.44
Total Debt (Qtr) 686.00 Mn
Debt/Equity (Qtr) 0.07

About

Moderna, Inc., often recognized by its stock symbol MRNA, is a biotechnology company operating within the pharmaceutical industry. Its primary business activities revolve around the development of messenger RNA (mRNA) medicines for various diseases and conditions, including infectious diseases, cancer, and rare genetic disorders. Moderna's mRNA platform aims to facilitate rapid development and manufacturing of mRNA-based medicines, catering to a wide range of medical needs. The company's revenue is mainly generated through its primary products...

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Price action

Investment thesis

Bull case

  • Strong tangible asset base of 12.13B provides 17.69x coverage of total debt 686M, indicating robust asset backing and low credit risk.
  • Tangible assets of 12.13B provide exceptional 37.92x coverage of deferred revenue 320M, showing strong service capability backing.
  • Short-term investments of 3.37B provide solid 2.38x coverage of other current liabilities 1.41B, indicating strong liquidity.
  • Retained earnings of 8.05B provide full 11.73x coverage of long-term debt 686M, indicating strong internal capital position.
  • Long-term investments of 2.14B provide solid 3.12x coverage of long-term debt 686M, indicating strategic financial planning.

Bear case

  • Operating cash flow of (1.98B) barely covers its investment activities of 1.46B, with a coverage ratio of -1.36, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of 1.46B provide weak support for R&D spending of 3.48B, which is 0.42x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Operating cash flow of (1.98B) provides insufficient coverage of deferred revenue obligations of 320M, which is -6.18x, raising concerns about future service delivery capabilities.
  • The company's operating cash flow of (1.98B) shows concerning coverage of stock compensation expenses of 474M, with a -4.17 ratio indicating potential earnings quality issues.
  • High receivables of 1.05B relative to inventory of 332M (3.15 ratio) suggests aggressive credit terms or collection difficulties, potentially masking revenue quality issues.

Product and Service Breakdown of Revenue (2024)

Geographical 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 1.03 12.96
EV to Cash from Ops. EV/CFO -6.32 23.73
EV to Debt EV to Debt 18.21 772.65
EV to EBIT EV/EBIT -3.96 -11.30
EV to EBITDA EV/EBITDA -3.84 7.11
EV to Free Cash Flow [EV/FCF] EV/FCF -4.69 22.12
EV to Market Cap EV to Market Cap 0.96 68.89
EV to Revenue EV/Rev 5.60 199.70
Price to Book Value [P/B] P/B 1.40 22.62
Price to Earnings [P/E] P/E -4.20 -12.30
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 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 Interest Coverage 0.00 857.11
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 8.54 -27.24
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -31.14 747.06
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 0.01
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -40.11 -48.21
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -37.81 -2.09
EBIT Growth (1y) % EBIT 1y % (Qtr) -34.00 -57.79
EBT Growth (1y) % EBT 1y % (Qtr) -34.00 -14.35
EPS Growth (1y) % EPS 1y % (Qtr) -38.90 -30.88
FCF Growth (1y) % FCF 1y % (Qtr) 32.68 -32.51
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -68.57 227.96
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.18 0.14
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.00
Cash Ratio Cash Ratio (Qtr) 0.67 3.79
Current Ratio Curr Ratio (Qtr) 3.93 7.23
Debt to Equity Ratio Debt/Equity (Qtr) 0.07 0.42
Interest Cover Ratio Interest Cover Ratio 0.00 857.11
Times Interest Earned Times Interest Earned 0.00 857.11
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) -131.90 -18,509.94
EBIT Margin % EBIT Margin % (Qtr) -141.26 -18,862.18
EBT Margin % EBT Margin % (Qtr) -141.26 -19,783.19
Gross Margin % Gross Margin % (Qtr) 48.30 -8.62
Net Profit Margin % Net Margin % (Qtr) -139.60 -19,732.60