Outlook Therapeutics, Inc. (NASDAQ: OTLK)

Sector: Healthcare Industry: Biotechnology CIK: 0001649989
Market Cap 16.49 Mn
P/B -0.43
P/E -0.16
P/S 80.16
ROIC (Qtr) 3,230.13
Div Yield % 0.00
Rev 1y % (Qtr) 0.00
Total Debt (Qtr) 36.89 Mn
Debt/Equity (Qtr) -0.96
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About

Outlook Therapeutics, Inc., a biopharmaceutical company, operates primarily in the ophthalmic industry, with its main business activities centered around the development and commercialization of ONS-5010. This investigational ophthalmic formulation of bevacizumab is a full-length, humanized anti-vascular endothelial growth factor (VEGF) recombinant monoclonal antibody that inhibits VEGF and associated angiogenic activity. The company's revenue is generated through the development and commercialization of ONS-5010, which is expected to be launched...

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Investment thesis

Bull case

  • Long-term investments of 513549 provide solid 2.99x coverage of long-term debt 171988, indicating strategic financial planning.
  • Retained earnings of (628.77M) represent substantial 16.31x of equity (38.55M), indicating strong internal capital generation.
  • Strong cash position of 8.68M provides 1.73x coverage of other current liabilities 5.02M, indicating excellent liquidity.
  • Cash reserves of 8.68M provide solid 1.15x coverage of other non-current liabilities 7.56M, indicating strong liquidity.
  • Cash reserves of 8.68M provide comfortable 28.73x coverage of tax obligations 302000, showing strong fiscal management.

Bear case

  • Investment activities of 0 provide weak support for R&D spending of 21.15M, which is 0x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • The company's operating cash flow of (55.80M) shows concerning coverage of stock compensation expenses of 6.11M, with a -9.14 ratio indicating potential earnings quality issues.
  • Operating earnings of (104.08M) show weak coverage of depreciation charges of 118325, with a -879.61 ratio indicating high capital intensity and potential reinvestment needs.
  • Long-term investments of 513549 represent a high 2.42x of fixed assets 212413, indicating potential overexposure to financial assets versus operational capabilities.
  • Other non-current liabilities of 7.56M represent a high 0.41x of tangible assets 18.24M, suggesting significant long-term obligations without clear asset backing.

Peer comparison

Companies in the Biotechnology
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 SMMT Summit Therapeutics Inc. 1,204.25 Bn -1,306.67 0.00 0.01 Bn
2 ONC BeOne Medicines Ltd. 486.51 Bn 7,097.20 97.84 1.90 Bn
3 VRTX Vertex Pharmaceuticals Inc / Ma 122.05 Bn 30.87 10.17 1.85 Bn
4 REGN Regeneron Pharmaceuticals, Inc. 83.00 Bn 18.42 5.79 2.71 Bn
5 ARGX Argenx Se 50.78 Bn 33.71 26,480.10 -
6 ALNY Alnylam Pharmaceuticals, Inc. 43.66 Bn 139.17 11.76 2.97 Bn
7 BNTC Benitec Biopharma Inc. 43.61 Bn -941.82 0.00 0.00 Bn
8 INSM INSMED Inc 28.88 Bn -24.40 64.61 0.74 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 2.12 11.06
EV to Cash from Ops. EV/CFO -0.69 26.32
EV to Debt EV to Debt 1.05 762.61
EV to EBIT EV/EBIT -0.37 -13.49
EV to EBITDA EV/EBITDA -0.66 8.61
EV to Free Cash Flow [EV/FCF] EV/FCF -0.69 25.66
EV to Market Cap EV to Market Cap 2.34 203.37
EV to Revenue EV/Rev 187.65 156.31
Price to Book Value [P/B] P/B -0.43 20.59
Price to Earnings [P/E] P/E -0.16 -0.88
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 0.00 -12.64
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) -313.49 956.66
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 0.00 7.87
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 52.17 753.48
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 0.01
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -135.90 -57.63
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 29.02 8.83
EBIT Growth (1y) % EBIT 1y % (Qtr) -139.47 -67.21
EBT Growth (1y) % EBT 1y % (Qtr) -123.07 -23.74
EPS Growth (1y) % EPS 1y % (Qtr) 43.29 -7.02
FCF Growth (1y) % FCF 1y % (Qtr) 16.38 -40.48
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 0.00 264.51
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.01 0.14
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.00
Cash Ratio Cash Ratio (Qtr) 0.18 3.92
Current Ratio Curr Ratio (Qtr) 0.35 7.33
Debt to Equity Ratio Debt/Equity (Qtr) -0.96 0.48
Interest Cover Ratio Int Coverage (Qtr) -313.49 956.66
Times Interest Earned Times Interest Earned (Qtr) -313.49 956.66
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) -50,540.20 -17,888.70
EBIT Margin % EBIT Margin % (Qtr) -50,597.68 -18,246.34
EBT Margin % EBT Margin % (Qtr) -50,759.08 -19,108.08
Gross Margin % Gross Margin % (Qtr) -573.80 -10.30
Net Profit Margin % Net Margin % (Qtr) -50,004.70 -19,056.96