Nuvalent, Inc. (NUVL) Stock Analysis and Metrics

Sector: Healthcare Industry: Biotechnology CIK: 0001861560

P/B 8.87

P/E -19.66

P/S 0.00

Market Cap 7.50 Bn

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,...

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, in the United States, with its headquarters located in Cambridge, Massachusetts. Its operations are centered around the development of novel oncology therapies, from research through commercialization.

The company generates revenue primarily through revenue-sharing agreements with Deerfield and its scientific founder, Matthew Shair, Ph.D. Nuvalent's intellectual property portfolio includes several pending and issued patents related to its product candidates. For the manufacture of its product candidates, Nuvalent relies on third-party contract manufacturing organizations (CMOs) and plans to continue this arrangement in the future.

Nuvalent's competitive advantage lies in its patient-driven focus, deep expertise in chemistry and structure-based drug design, and efficient drug discovery and development. The company's management team and scientific advisors have extensive experience in developing novel oncology therapies, further bolstering Nuvalent's competitive edge.

The company's pipeline consists of three lead product candidates: NVL-520, a ROS1-selective inhibitor; NVL-655, an ALK-selective inhibitor; and NVL-330, a HER2-selective inhibitor. NVL-520 is being developed for patients with ROS1-positive non-small cell lung cancer (NSCLC), while NVL-655 is targeted at patients with ALK-positive NSCLC. NVL-330 is being developed for patients with HER2-altered NSCLC.

The primary customers for Nuvalent's product candidates are healthcare providers and medical institutions treating cancer patients. Specific names of customers are not provided in the document.

Nuvalent's revenue sharing agreements are with Deerfield and its scientific founder, Matthew Shair, Ph.D. The company's intellectual property portfolio includes several pending and issued patents related to its product candidates. Nuvalent relies on third-party contract manufacturing organizations (CMOs) for the manufacture of its product candidates and plans to continue to do so in the future.

The company's commercialization strategy is to retain significant development and commercial rights to its product candidates and, if marketing approval is obtained, to commercialize its product candidates on its own or potentially with a collaboration partner. Nuvalent currently has no sales, marketing, or commercial product distribution capabilities and intends to build the necessary infrastructure and capabilities over time.

Government regulation plays a significant role in the development and commercialization of Nuvalent's product candidates. The company must comply with various regulations and guidelines related to the development, testing, manufacture, and marketing of its product candidates. Nuvalent must also obtain marketing approval from regulatory authorities, such as the FDA, before it can commercialize its product candidates.

Stock Price Chart

Analysis

Pros

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.

Cons

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.	1,349.40 Bn	-1,464.17	0.00	0.01 Bn
2	ONC	BeOne Medicines Ltd.	437.43 Bn	6,381.20	87.97	1.90 Bn
3	VRTX	Vertex Pharmaceuticals Inc / Ma	116.09 Bn	31.59	9.90	1.83 Bn
4	REGN	Regeneron Pharmaceuticals, Inc.	78.10 Bn	17.06	5.48	2.71 Bn
5	ALNY	Alnylam Pharmaceuticals, Inc.	55.87 Bn	1,282.42	17.40	3.21 Bn
6	ARGX	Argenx Se	52.85 Bn	35.08	27,559.65	-
7	BNTC	Benitec Biopharma Inc.	41.75 Bn	-998.33	0.00	0.00 Bn
8	INSM	INSMED Inc	37.80 Bn	-31.93	84.56	0.74 Bn

Industry Comparisons

Current Valuation

Metric	Value	Industry
EV to Assets	7.52	12.31
EV to Cash from Ops.	-27.94	23.25
EV to Debt	0.00	738.44
EV to EBIT	-19.36	-9.16
EV to EBITDA	-18.51	6.95
EV to Free Cash Flow [EV/FCF]	-27.94	21.90
EV to Market Cap	0.98	65.67
EV to Revenue	0.00	227.32
Price to Book Value [P/B]	8.87	22.34
Price to Earnings [P/E]	-19.66	-11.77

Dividend Metrics

Metric	Value	Industry	Percentile
Dividend Coverage Ratio	0.00	-11.94
Dividend Payout Ratio %	0.00	0.16
Dividend per Basic Share	0.00	0.01
FCF Dividend Payout Ratio %	0.00	-0.14
Interest Coverage	0.00	841.00

Growth Metrics

Metric	Value	Industry
Capex Growth (1y) %	0.00	-27.13
Cash and Equivalents Growth (1y) %	-68.65	734.65
Dividend Growth (1y) %	0.00	0.01
EBIAT Growth (1y) %	-70.07	-46.93
EBITDA Growth (1y) %	-65.64	-1.68
EBIT Growth (1y) %	-70.25	-56.45
EBT Growth (1y) %	-70.25	-12.70
EPS Growth (1y) %	-53.60	-28.31
FCF Growth (1y) %	-72.16	-31.90
Gross Profit Growth (1y) %	0.00	226.84

Liquidity Ratios

Metric	Value	Industry
Asset Utilization Ratio	0.00	0.14
Cash Payout Ratio	0.00	0.00
Cash Ratio	1.30	3.85
Current Ratio	10.73	7.27
Debt to Equity Ratio	0.00	0.40
Interest Cover Ratio	0.00	841.00
Times Interest Earned	0.00	841.00

Profitability

Metric	Value	Industry	Percentile
EBITDA Margin %	0.00	-18,234.31
EBIT Margin %	0.00	-18,580.80
EBT Margin %	0.00	-19,488.74
Gross Margin %	0.00	-7.59
Net Profit Margin %	0.00	-19,439.22

Nuvalent, Inc. (NASDAQ: NUVL)