Precigen, Inc. (NASDAQ: PGEN)

Sector: Healthcare Industry: Biotechnology CIK: 0001356090
Market Cap 1.41 Bn
P/B 33.73
P/E -3.32
P/S 223.87
ROIC (Qtr) -216.46
Div Yield % 0.00
Rev 1y % (Qtr) 206.61
Total Debt (Qtr) 98.19 Mn
Debt/Equity (Qtr) 2.35

About

Precigen, Inc., a biopharmaceutical company (NASDAQ: PGEN), operates in the healthcare sector, specifically in the development of gene and cell therapies. The company's mission is to improve outcomes for patients with significant unmet medical needs by leveraging its proprietary technology platforms. These platforms are designed to enable precise control of gene expression and modification of biological molecules to treat underlying disease conditions. Precigen's technology platforms include UltraCAR-T, AdenoVerse immunotherapy, and ActoBiotics....

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Price action

Investment thesis

Bull case

  • Healthy cash reserves of 14.32M provide 12.75x coverage of short-term debt 1.12M, demonstrating strong liquidity position and minimal refinancing risk.
  • Tangible assets of 152.53M provide exceptional 265.27x coverage of deferred revenue 575000, showing strong service capability backing.
  • Operating cash flow of (72.61M) fully covers other non-current liabilities (317000) by 229.07x, showing strong long-term stability.
  • Short-term investments of 106.81M provide solid 4.33x coverage of other current liabilities 24.68M, indicating strong liquidity.
  • Tangible assets of 152.53M provide robust 6.18x coverage of other current liabilities 24.68M, indicating strong asset backing.

Bear case

  • Operating cash flow of (72.61M) barely covers its investment activities of (106.77M), with a coverage ratio of 0.68, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of (106.77M) provide weak support for R&D spending of 46.10M, which is -2.32x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Operating cash flow of (72.61M) provides insufficient coverage of deferred revenue obligations of 575000, which is -126.29x, raising concerns about future service delivery capabilities.
  • Short-term investments of 106.81M significantly exceed cash reserves of 14.32M, which is 7.46x, indicating potentially excessive yield-seeking behavior at the expense of liquidity.
  • The company's operating cash flow of (72.61M) shows concerning coverage of stock compensation expenses of 11.57M, with a -6.28 ratio indicating potential earnings quality issues.

Segments Breakdown of Revenue (2024)

Segments 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. 1,446.17 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 8.20 12.96
EV to Cash from Ops. EV/CFO -19.33 23.73
EV to Debt EV to Debt 14.30 772.65
EV to EBIT EV/EBIT -5.71 -11.30
EV to EBITDA EV/EBITDA -12.25 7.11
EV to Free Cash Flow [EV/FCF] EV/FCF -18.56 22.12
EV to Market Cap EV to Market Cap 0.99 68.89
EV to Revenue EV/Rev 222.51 199.70
Price to Book Value [P/B] P/B 33.73 22.62
Price to Earnings [P/E] P/E -3.32 -12.30
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) -2.38 -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) -272.48 857.11
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 64.66 -27.24
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -42.07 747.06
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 0.01
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -76.25 -48.21
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 15.25 -2.09
EBIT Growth (1y) % EBIT 1y % (Qtr) -73.78 -57.79
EBT Growth (1y) % EBT 1y % (Qtr) -74.40 -14.35
EPS Growth (1y) % EPS 1y % (Qtr) -152.73 -30.88
FCF Growth (1y) % FCF 1y % (Qtr) 10.19 -32.51
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 488.03 227.96
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.04 0.14
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.00
Cash Ratio Cash Ratio (Qtr) 0.45 3.79
Current Ratio Curr Ratio (Qtr) 4.04 7.23
Debt to Equity Ratio Debt/Equity (Qtr) 2.35 0.42
Interest Cover Ratio Int Coverage (Qtr) -272.48 857.11
Times Interest Earned Times Interest Earned (Qtr) -272.48 857.11
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) -3,856.80 -18,509.94
EBIT Margin % EBIT Margin % (Qtr) -3,899.94 -18,862.18
EBT Margin % EBT Margin % (Qtr) -3,914.25 -19,783.19
Gross Margin % Gross Margin % (Qtr) 30.30 -8.62
Net Profit Margin % Net Margin % (Qtr) -6,750.10 -19,732.60