NRX Pharmaceuticals, Inc. (NASDAQ: NRXP)

Sector: Healthcare Industry: Biotechnology CIK: 0001719406
Market Cap 29.03 Mn
P/B -1.13
P/E -0.76
P/S 119.96
ROIC (Qtr) 68.91
Div Yield % 0.00
Rev 1y % (Qtr) 0.00
Total Debt (Qtr) 10.41 Mn
Debt/Equity (Qtr) -0.40
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About

Investment thesis

Bull case

  • Operating cash flow of (12.50M) provides strong 10.68x coverage of operating expenses (1.17M), showing operational efficiency.
  • Retained earnings of (307.26M) represent substantial 11.93x of equity (25.75M), indicating strong internal capital generation.
  • Free cash flow of (12.50M) provides solid 10.68x coverage of operating expenses (1.17M), showing operational efficiency.
  • Robust R&D investment of 4.26M at 0.38x of SG&A 11.09M demonstrates strong commitment to innovation and future growth.
  • Strong tangible asset base of 12.61M provides 5.28x coverage of intangibles 2.39M, indicating robust asset quality.

Bear case

  • Investment activities of 0 provide weak support for R&D spending of 4.26M, which is 0x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • The company's operating cash flow of (12.50M) shows concerning coverage of stock compensation expenses of 190000, with a -65.77 ratio indicating potential earnings quality issues.
  • Operating earnings of (38.06M) show weak coverage of depreciation charges of 44000, with a -865.02 ratio indicating high capital intensity and potential reinvestment needs.
  • Free cash flow of (12.50M) represents just -2.41x of debt issuance 5.20M, suggesting concerning reliance on leverage rather than internal cash generation for growth.
  • Operating cash flow of (12.50M) is outpaced by equity issuance of 14.22M (-0.88 ratio), indicating concerning reliance on equity markets for funding operations.

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 2.42 11.06
EV to Cash from Ops. EV/CFO -2.91 26.32
EV to Debt EV to Debt 3.49 762.61
EV to EBIT EV/EBIT -0.96 -13.49
EV to EBITDA EV/EBITDA -2.60 8.61
EV to Free Cash Flow [EV/FCF] EV/FCF -2.91 25.66
EV to Market Cap EV to Market Cap 1.25 203.37
EV to Revenue EV/Rev 150.21 156.31
Price to Book Value [P/B] P/B -1.13 20.59
Price to Earnings [P/E] P/E -0.76 -0.88
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 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 Int. cover (Qtr) 0.00 956.66
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 0.00 7.87
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 336.45 753.48
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 0.01
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -89.64 -57.63
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 31.66 8.83
EBIT Growth (1y) % EBIT 1y % (Qtr) -89.64 -67.21
EBT Growth (1y) % EBT 1y % (Qtr) -86.76 -23.74
EPS Growth (1y) % EPS 1y % (Qtr) -10.28 -7.02
FCF Growth (1y) % FCF 1y % (Qtr) -6.54 -40.48
Gross Profit Growth (1y) % Gross Profit Growth (1y) % 0.00 264.51
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.02 0.14
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.00
Cash Ratio Cash Ratio (Qtr) 0.18 3.92
Current Ratio Curr Ratio (Qtr) 0.29 7.33
Debt to Equity Ratio Debt/Equity (Qtr) -0.40 0.48
Interest Cover Ratio Int Coverage (Qtr) 0.00 956.66
Times Interest Earned Times Interest Earned (Qtr) 0.00 956.66
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) -15,709.50 -17,888.70
EBIT Margin % EBIT Margin % (Qtr) -15,727.69 -18,246.34
EBT Margin % EBT Margin % (Qtr) -15,727.69 -19,108.08
Gross Margin % Gross Margin % (Qtr) 59.90 -10.30
Net Profit Margin % Net Margin % (Qtr) -15,727.70 -19,056.96