Nuvation Bio Inc. (NYSE: NUVB)

Sector: Healthcare Industry: Biotechnology CIK: 0001811063
Market Cap 3.75 Bn
P/B 11.51
P/E -17.24
P/S 140.21
ROIC (Qtr) -41.96
Div Yield % 0.00
Rev 1y % (Qtr) 1,704.68
Total Debt (Qtr) 208.15 Mn
Debt/Equity (Qtr) 0.64

About

Nuvation Bio Inc., a prominent player in the biopharmaceutical industry, is making waves in the development of innovative therapies targeting severe unmet medical needs in oncology. With a strong foundation in medicinal chemistry and a commitment to delivering meaningful benefits to patients, Nuvation Bio is at the forefront of creating novel small molecule BET inhibitors. At the heart of Nuvation Bio's operations is the development of BET inhibitors, specifically targeting the BRD4 protein, which plays a pivotal role in epigenetic regulation...

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Price action

Investment thesis

Bull case

  • Healthy cash reserves of 98.90M provide 7.34x coverage of short-term debt 13.47M, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 589.88M provides 2.83x coverage of total debt 208.15M, indicating robust asset backing and low credit risk.
  • Short-term investments of 450.15M provide solid 11.45x coverage of other current liabilities 39.30M, indicating strong liquidity.
  • Strong free cash flow of (190.25M) provides 23.51x coverage of acquisition spending (8.09M), indicating disciplined M&A strategy.
  • Tangible assets of 589.88M provide robust 15.01x coverage of other current liabilities 39.30M, indicating strong asset backing.

Bear case

  • Operating cash flow of (190M) barely covers its investment activities of 64.21M, with a coverage ratio of -2.96, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of 64.21M provide weak support for R&D spending of 110.11M, which is 0.58x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Cash reserves of 98.90M provide limited coverage of acquisition spending of (8.09M), which is -12.22x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • Short-term investments of 450.15M significantly exceed cash reserves of 98.90M, which is 4.55x, indicating potentially excessive yield-seeking behavior at the expense of liquidity.
  • Free cash flow of (190.25M) provides weak coverage of capital expenditures of 252000, with a -754.95 ratio suggesting additional external financing needs for growth initiatives.

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 6.16 12.96
EV to Cash from Ops. EV/CFO -19.50 23.73
EV to Debt EV to Debt 17.80 772.65
EV to EBIT EV/EBIT -17.61 -11.30
EV to EBITDA EV/EBITDA -16.02 7.11
EV to Free Cash Flow [EV/FCF] EV/FCF -19.48 22.12
EV to Market Cap EV to Market Cap 0.99 68.89
EV to Revenue EV/Rev 138.55 199.70
Price to Book Value [P/B] P/B 11.51 22.62
Price to Earnings [P/E] P/E -17.24 -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) -29.64 857.11
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -44.83 -27.24
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 229.26 747.06
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 0.01
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 60.46 -48.21
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 58.63 -2.09
EBIT Growth (1y) % EBIT 1y % (Qtr) 60.46 -57.79
EBT Growth (1y) % EBT 1y % (Qtr) 59.14 -14.35
EPS Growth (1y) % EPS 1y % (Qtr) 77.52 -30.88
FCF Growth (1y) % FCF 1y % (Qtr) -91.56 -32.51
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 2,173.29 227.96
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.04 0.14
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.00
Cash Ratio Cash Ratio (Qtr) 1.45 3.79
Current Ratio Curr Ratio (Qtr) 8.48 7.23
Debt to Equity Ratio Debt/Equity (Qtr) 0.64 0.42
Interest Cover Ratio Int Coverage (Qtr) -29.64 857.11
Times Interest Earned Times Interest Earned (Qtr) -29.64 857.11
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) -780.40 -18,509.94
EBIT Margin % EBIT Margin % (Qtr) -786.53 -18,862.18
EBT Margin % EBT Margin % (Qtr) -813.07 -19,783.19
Gross Margin % Gross Margin % (Qtr) 54.30 -8.62
Net Profit Margin % Net Margin % (Qtr) -813.10 -19,732.60