BeOne Medicines Ltd. (NASDAQ: ONC)

Sector: Healthcare Industry: Biotechnology CIK: 0001651308
Market Cap 485.22 Bn
P/B 117.51
P/E 7,078.40
P/S 97.58
ROIC (Qtr) 2.86
Div Yield % 0.00
Rev 1y % (Qtr) 41.00
Total Debt (Qtr) 1.90 Bn
Debt/Equity (Qtr) 0.46

About

BeiGene, Ltd., a global oncology company based in Beijing, China, is dedicated to the discovery and development of innovative cancer treatments for patients worldwide. Since its inception in 2010, the company has built a robust portfolio of approved and investigational products, including small molecule inhibitors, monoclonal antibodies, and bispecific antibodies, targeting various cancer indications. BeiGene's main business activities are focused on research and development, manufacturing, and commercialization of these cancer treatments. The...

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Price action

Investment thesis

Bull case

  • Strong operating cash flow of 785.39M provides robust 0.41x coverage of total debt 1.90B, indicating excellent debt servicing capability and financial flexibility.
  • Healthy cash reserves of 4.04B provide 4.58x coverage of short-term debt 881.27M, demonstrating strong liquidity position and minimal refinancing risk.
  • Robust free cash flow of 529.27M exceeds capital expenditure of 256.12M by 2.07x, indicating strong organic growth funding capability.
  • Strong tangible asset base of 7.57B provides 3.97x coverage of total debt 1.90B, indicating robust asset backing and low credit risk.
  • Operating cash flow of 785.39M fully covers other non-current liabilities 111.12M by 7.07x, showing strong long-term stability.

Bear case

  • Operating cash flow of 785.39M barely covers its investment activities of (331.43M), with a coverage ratio of -2.37, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of (331.43M) provide weak support for R&D spending of 2.07B, which is -0.16x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • The company's operating cash flow of 785.39M shows concerning coverage of stock compensation expenses of 494.71M, with a 1.59 ratio indicating potential earnings quality issues.
  • Operating earnings of 162.08M show weak coverage of depreciation charges of 155.95M, with a 1.04 ratio indicating high capital intensity and potential reinvestment needs.
  • Cash position of 4.04B provides only -200.02x coverage of interest expenses of (20.18M), indicating potential refinancing risks in a rising rate environment.

Product and Service Breakdown of Revenue (2024)

Product and Service 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. 1,151.25 Bn -1,249.17 0.00 0.01 Bn
2 ONC BeOne Medicines Ltd. 485.22 Bn 7,078.40 97.58 1.90 Bn
3 VRTX Vertex Pharmaceuticals Inc / Ma 122.74 Bn 33.40 10.47 1.83 Bn
4 REGN Regeneron Pharmaceuticals, Inc. 82.16 Bn 18.24 5.73 2.71 Bn
5 ARGX Argenx Se 48.85 Bn 32.43 25,472.44 -
6 ALNY Alnylam Pharmaceuticals, Inc. 46.12 Bn 1,058.58 14.37 3.21 Bn
7 BNTC Benitec Biopharma Inc. 42.24 Bn -1,010.00 0.00 0.00 Bn
8 INSM INSMED Inc 28.75 Bn -24.29 64.32 0.74 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 63.35 11.11
EV to Cash from Ops. EV/CFO 615.61 26.32
EV to Debt EV to Debt 253.80 688.48
EV to EBIT EV/EBIT 2,983.06 -10.97
EV to EBITDA EV/EBITDA 1,427.82 8.32
EV to Free Cash Flow [EV/FCF] EV/FCF 913.51 25.03
EV to Market Cap EV to Market Cap 1.00 163.46
EV to Revenue EV/Rev 97.23 148.57
Price to Book Value [P/B] P/B 117.51 20.73
Price to Earnings [P/E] P/E 7,078.40 -0.34
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 -12.47
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) -8.03 860.86
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 53.63 -26.99
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 49.41 756.75
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 0.01
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 106.62 -53.03
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 146.56 -4.42
EBIT Growth (1y) % EBIT 1y % (Qtr) 118.96 -62.56
EBT Growth (1y) % EBT 1y % (Qtr) 122.83 -19.19
EPS Growth (1y) % EPS 1y % (Qtr) 107.81 -4.07
FCF Growth (1y) % FCF 1y % (Qtr) 153.47 -33.40
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 54.31 264.38
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.65 0.14
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.00
Cash Ratio Cash Ratio (Qtr) 1.70 3.81
Current Ratio Curr Ratio (Qtr) 2.39 7.25
Debt to Equity Ratio Debt/Equity (Qtr) 0.46 0.43
Interest Cover Ratio Int Coverage (Qtr) -8.03 860.86
Times Interest Earned Times Interest Earned (Qtr) -8.03 860.86
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 6.40 -17,746.13
EBIT Margin % EBIT Margin % (Qtr) 3.26 -18,101.92
EBT Margin % EBT Margin % (Qtr) 3.67 -18,961.86
Gross Margin % Gross Margin % (Qtr) 86.20 -9.24
Net Profit Margin % Net Margin % (Qtr) 1.40 -18,911.61