Prime Medicine, Inc. (NASDAQ: PRME)

Sector: Healthcare Industry: Biotechnology CIK: 0001894562
Market Cap 537.20 Mn
P/B 3.32
P/E -2.72
P/S 89.88
ROIC (Qtr) -88.57
Div Yield % 0.00
Rev 1y % (Qtr) 486.12
Total Debt (Qtr) 118.14 Mn
Debt/Equity (Qtr) 0.73

About

Prime Medicine, Inc. (PRME) is a biotechnology company that specializes in developing a new class of differentiated one-time curative genetic therapies using its proprietary Prime Editing technology. The company's primary focus is on perfecting Prime Editing technology, a versatile, precise, and efficient gene editing technology that has the potential to revolutionize the field of gene editing. Prime Medicine's main business activities involve the development of Prime Editing technology, which is designed to edit, correct, insert, and delete DNA...

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Price action

Investment thesis

Bull case

  • Healthy cash reserves of 85.09M provide 11.03x coverage of short-term debt 7.71M, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 385.01M provides 3.26x coverage of total debt 118.14M, indicating robust asset backing and low credit risk.
  • Tangible assets of 385.01M provide exceptional 5.77x coverage of deferred revenue 66.70M, showing strong service capability backing.
  • Short-term investments of 141.89M provide solid 7.90x coverage of other current liabilities 17.95M, indicating strong liquidity.
  • Tangible assets of 385.01M provide robust 21.45x coverage of other current liabilities 17.95M, indicating strong asset backing.

Bear case

  • Investment activities of (88.84M) provide weak support for R&D spending of 160.03M, which is -0.56x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Operating cash flow of (109.06M) provides insufficient coverage of deferred revenue obligations of 66.70M, which is -1.64x, raising concerns about future service delivery capabilities.
  • The company's operating cash flow of (109.06M) shows concerning coverage of stock compensation expenses of 30.69M, with a -3.55 ratio indicating potential earnings quality issues.
  • Free cash flow of (115.09M) provides weak coverage of capital expenditures of 6.03M, with a -19.08 ratio suggesting additional external financing needs for growth initiatives.
  • Operating earnings of (197.34M) show weak coverage of depreciation charges of 16.46M, with a -11.99 ratio indicating high capital intensity and potential reinvestment needs.

Related and Nonrelated Parties 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 1.53 12.96
EV to Cash from Ops. EV/CFO -5.40 23.73
EV to Debt EV to Debt 4.99 772.65
EV to EBIT EV/EBIT -2.99 -11.30
EV to EBITDA EV/EBITDA -3.14 7.11
EV to Free Cash Flow [EV/FCF] EV/FCF -5.12 22.12
EV to Market Cap EV to Market Cap 1.10 68.89
EV to Revenue EV/Rev 98.62 199.70
Price to Book Value [P/B] P/B 3.32 22.62
Price to Earnings [P/E] P/E -2.72 -12.30
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 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 Interest Coverage 0.00 857.11
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 17.85 -27.24
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -35.56 747.06
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 0.01
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 9.99 -48.21
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 9.48 -2.09
EBIT Growth (1y) % EBIT 1y % (Qtr) 9.99 -57.79
EBT Growth (1y) % EBT 1y % (Qtr) 9.99 -14.35
EPS Growth (1y) % EPS 1y % (Qtr) 30.10 -30.88
FCF Growth (1y) % FCF 1y % (Qtr) 39.52 -32.51
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 647.12 227.96
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.02 0.14
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.00
Cash Ratio Cash Ratio (Qtr) 2.43 3.79
Current Ratio Curr Ratio (Qtr) 6.61 7.23
Debt to Equity Ratio Debt/Equity (Qtr) 0.73 0.42
Interest Cover Ratio Interest Cover Ratio 0.00 857.11
Times Interest Earned Times Interest Earned 0.00 857.11
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) -3,026.20 -18,509.94
EBIT Margin % EBIT Margin % (Qtr) -3,301.64 -18,862.18
EBT Margin % EBT Margin % (Qtr) -3,301.64 -19,783.19
Gross Margin % Gross Margin % (Qtr) 100.00 -8.62
Net Profit Margin % Net Margin % (Qtr) -3,301.60 -19,732.60