Nuvalent, Inc. (NASDAQ: NUVL)

Sector: Healthcare Industry: Biotechnology CIK: 0001861560
Market Cap 7.35 Bn
P/B 8.69
P/E -19.26
P/S 0.00
ROIC (Qtr) -44.68
Div Yield % 0.00
Rev 1y % (Qtr) 0.00
Total Debt (Qtr) 0.00
Debt/Equity (Qtr) 0.00

About

Nuvalent, Inc., a clinical-stage biopharmaceutical company (NASDAQ: NUVL), operates in the healthcare and life sciences industry, specifically focusing on creating precisely targeted therapies for patients with cancer. The company leverages its team's deep expertise in chemistry and structure-based drug design to develop innovative small molecules that overcome the limitations of existing therapies. Nuvalent's primary business activities involve the research, development, and clinical testing of targeted cancer therapies. The company operates domestically,...

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Price action

Investment thesis

Bull case

  • Short-term investments of 827.35M provide solid 12.32x coverage of other current liabilities 67.14M, indicating strong liquidity.
  • Tangible assets of 979.91M provide robust 14.59x coverage of other current liabilities 67.14M, indicating strong asset backing.
  • Cash reserves of 115.75M provide robust 1.30x coverage of current liabilities 89.15M, indicating strong short-term solvency.
  • Strong cash position of 115.75M provides 1.72x coverage of other current liabilities 67.14M, indicating excellent liquidity.
  • Cash reserves of 115.75M provide solid 2.55x coverage of other non-current liabilities 45.36M, indicating strong liquidity.

Bear case

  • Investment activities of (13.18M) provide weak support for R&D spending of 308.60M, which is -0.04x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Short-term investments of 827.35M significantly exceed cash reserves of 115.75M, which is 7.15x, indicating potentially excessive yield-seeking behavior at the expense of liquidity.
  • The company's operating cash flow of (263.88M) shows concerning coverage of stock compensation expenses of 80.91M, with a -3.26 ratio indicating potential earnings quality issues.
  • Operating cash flow of (263.88M) provides minimal -436.17x coverage of tax expenses of 605000, suggesting potential tax planning inefficiencies or unsustainable tax positions.
  • Retained earnings of (853.72M) provide limited buffer against comprehensive income items of 2.37M, which is -360.22x, indicating elevated exposure to market risks.

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 7.37 12.96
EV to Cash from Ops. EV/CFO -27.36 23.73
EV to Debt EV to Debt 0.00 772.65
EV to EBIT EV/EBIT -18.96 -11.30
EV to EBITDA EV/EBITDA -18.12 7.11
EV to Free Cash Flow [EV/FCF] EV/FCF -27.36 22.12
EV to Market Cap EV to Market Cap 0.98 68.89
EV to Revenue EV to Revenue 0.00 199.70
Price to Book Value [P/B] P/B 8.69 22.62
Price to Earnings [P/E] P/E -19.26 -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 Interest Coverage 0.00 857.11
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex Growth (1y) % 0.00 -27.24
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -68.65 747.06
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 0.01
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -70.07 -48.21
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -65.64 -2.09
EBIT Growth (1y) % EBIT 1y % (Qtr) -70.25 -57.79
EBT Growth (1y) % EBT 1y % (Qtr) -70.25 -14.35
EPS Growth (1y) % EPS 1y % (Qtr) -53.60 -30.88
FCF Growth (1y) % FCF 1y % (Qtr) -72.16 -32.51
Gross Profit Growth (1y) % Gross Profit Growth (1y) % 0.00 227.96
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.00 0.14
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.00
Cash Ratio Cash Ratio (Qtr) 1.30 3.79
Current Ratio Curr Ratio (Qtr) 10.73 7.23
Debt to Equity Ratio Debt/Equity (Qtr) 0.00 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 % 0.00 -18,509.94
EBIT Margin % EBIT Margin % 0.00 -18,862.18
EBT Margin % EBT Margin % 0.00 -19,783.19
Gross Margin % Gross Margin % 0.00 -8.62
Net Profit Margin % Net Profit Margin % 0.00 -19,732.60