Vaxcyte, Inc. (NASDAQ: PCVX)

Sector: Healthcare Industry: Biotechnology CIK: 0001649094
Market Cap 6.15 Bn
P/B 2.13
P/E -9.36
P/S 0.00
ROIC (Qtr) -26.46
Div Yield % 0.00
Rev 1y % (Qtr) 0.00
Total Debt (Qtr) 84.44 Mn
Debt/Equity (Qtr) 0.03

About

Vaxcyte, Inc., a clinical-stage vaccine innovation company, is dedicated to protecting humanity from bacterial diseases. The company leverages its proprietary XpressCF cell-free protein synthesis platform to develop broad-spectrum conjugate and novel protein vaccines. Vaxcyte's operations span various countries, focusing on the development of high-fidelity vaccines to prevent or treat bacterial infectious diseases. Revenue generation for Vaxcyte primarily comes from its vaccine candidates, including VAX-24, VAX-31, VAX-A1, VAX-PG, and VAX-GI. VAX-24,...

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Price action

Investment thesis

Bull case

  • Healthy cash reserves of 281.08M provide 48.71x coverage of short-term debt 5.77M, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 3.17B provides 37.56x coverage of total debt 84.44M, indicating robust asset backing and low credit risk.
  • Long-term investments of 960.72M provide solid 12.21x coverage of long-term debt 78.67M, indicating strategic financial planning.
  • Short-term investments of 1.43B provide solid 9.84x coverage of other current liabilities 145.31M, indicating strong liquidity.
  • Tangible assets of 3.17B provide robust 21.83x coverage of other current liabilities 145.31M, indicating strong asset backing.

Bear case

  • Investment activities of (234.94M) provide weak support for R&D spending of 685.86M, which is -0.34x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • The company's operating cash flow of (542.15M) shows concerning coverage of stock compensation expenses of 127.22M, with a -4.26 ratio indicating potential earnings quality issues.
  • Short-term investments of 1.43B significantly exceed cash reserves of 281.08M, which is 5.09x, indicating potentially excessive yield-seeking behavior at the expense of liquidity.
  • Free cash flow of (620.73M) provides weak coverage of capital expenditures of 78.58M, with a -7.90 ratio suggesting additional external financing needs for growth initiatives.
  • Operating earnings of (657.20M) show weak coverage of depreciation charges of 19.84M, with a -33.12 ratio indicating high capital intensity and potential reinvestment needs.

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 1.87 12.96
EV to Cash from Ops. EV/CFO -10.94 23.73
EV to Debt EV to Debt 70.26 772.65
EV to EBIT EV/EBIT -9.03 -11.30
EV to EBITDA EV/EBITDA -7.49 7.11
EV to Free Cash Flow [EV/FCF] EV/FCF -9.56 22.12
EV to Market Cap EV to Market Cap 0.96 68.89
EV to Revenue EV to Revenue 0.00 199.70
Price to Book Value [P/B] P/B 2.13 22.62
Price to Earnings [P/E] P/E -9.36 -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 Int. cover (Qtr) 0.00 857.11
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 46.25 -27.24
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -73.24 747.06
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 0.01
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -29.46 -48.21
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -34.18 -2.09
EBIT Growth (1y) % EBIT 1y % (Qtr) -29.46 -57.79
EBT Growth (1y) % EBT 1y % (Qtr) -29.46 -14.35
EPS Growth (1y) % EPS 1y % (Qtr) -5.22 -30.88
FCF Growth (1y) % FCF 1y % (Qtr) -0.73 -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) 1.41 3.79
Current Ratio Curr Ratio (Qtr) 8.83 7.23
Debt to Equity Ratio Debt/Equity (Qtr) 0.03 0.42
Interest Cover Ratio Int Coverage (Qtr) 0.00 857.11
Times Interest Earned Times Interest Earned (Qtr) 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