BeOne Medicines Ltd. (NASDAQ: ONC)

Sector: Healthcare Industry: Biotechnology CIK: 0001651308
P/B 107.13
P/E 6,453.60
P/S 88.96
Market Cap 442.39 Bn
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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Analysis

Pros

  • 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.

Cons

  • 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.

Peer Comparison

Companies in the Biotechnology
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 SMMT Summit Therapeutics Inc. 1,377.82 Bn -1,495.00 0.00 0.01 Bn
2 ONC BeOne Medicines Ltd. 442.39 Bn 6,453.60 88.96 1.90 Bn
3 VRTX Vertex Pharmaceuticals Inc / Ma 114.19 Bn 31.07 9.74 1.83 Bn
4 REGN Regeneron Pharmaceuticals, Inc. 76.52 Bn 16.71 5.37 2.71 Bn
5 ALNY Alnylam Pharmaceuticals, Inc. 56.84 Bn 1,304.71 17.71 3.21 Bn
6 ARGX Argenx Se 53.58 Bn 35.57 27,941.68 -
7 BNTC Benitec Biopharma Inc. 44.65 Bn -1,067.50 0.00 0.00 Bn
8 INSM INSMED Inc 36.43 Bn -30.77 81.49 0.74 Bn

Industry Comparisons

Current Valuation

Metric Value Industry Percentile
EV to Assets 57.08 12.31
EV to Cash from Ops. 554.76 23.25
EV to Debt 228.72 738.44
EV to EBIT 2,688.18 -9.16
EV to EBITDA 1,286.68 6.95
EV to Free Cash Flow [EV/FCF] 823.21 21.90
EV to Market Cap 1.00 65.67
EV to Revenue 87.62 227.32
Price to Book Value [P/B] 105.93 22.34
Price to Earnings [P/E] 6,381.20 -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 -8.03 841.00

Growth Metrics

Metric Value Industry Percentile
Capex Growth (1y) % 53.63 -27.13
Cash and Equivalents Growth (1y) % 49.41 734.65
Dividend Growth (1y) % 0.00 0.01
EBIAT Growth (1y) % 106.62 -46.93
EBITDA Growth (1y) % 146.56 -1.68
EBIT Growth (1y) % 118.96 -56.45
EBT Growth (1y) % 122.83 -12.70
EPS Growth (1y) % 107.81 -28.31
FCF Growth (1y) % 153.47 -31.90
Gross Profit Growth (1y) % 54.31 226.84

Liquidity Ratios

Metric Value Industry Percentile
Asset Utilization Ratio 0.65 0.14
Cash Payout Ratio 0.00 0.00
Cash Ratio 1.70 3.85
Current Ratio 2.39 7.27
Debt to Equity Ratio 0.46 0.40
Interest Cover Ratio -8.03 841.00
Times Interest Earned -8.03 841.00

Profitability

Metric Value Industry Percentile
EBITDA Margin % 6.40 -18,234.31
EBIT Margin % 3.26 -18,580.80
EBT Margin % 3.67 -19,488.74
Gross Margin % 86.20 -7.59
Net Profit Margin % 1.40 -19,439.22