Prime Medicine, Inc. (PRME) Stock Analysis and Metrics

Sector: Healthcare Industry: Biotechnology CIK: 0001894562

P/B 3.47

P/E -2.85

P/S 94.01

Market Cap 561.87 Mn

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...

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 sequences in any target tissue. The company's platform is based on a proprietary technology that allows for the precise and efficient editing of genes, making it a potentially game-changing approach in the treatment of genetic diseases. Prime Medicine operates in the biotechnology industry and has a global presence, with its headquarters in the United States.

The company generates revenue through the development and commercialization of its Prime Editing technology. This technology is being used to treat a range of diseases, including hematology and immunology, liver, lung, ocular, and neuromuscular disorders. Prime Medicine's pipeline includes several investigational therapeutic programs, including PM359, which targets chronic granulomatous disease, and PM359, which targets Wilson's disease.

Prime Medicine's competitive advantages include its proprietary Prime Editing technology, which is a versatile, precise, and efficient gene editing technology. The company's technology has the potential to address a wide range of genetic diseases, including those that are currently untreatable. Additionally, Prime Medicine's technology has shown promising results in preclinical studies, including the ability to correct genetic mutations in a variety of tissues and cells.

The company's customers are primarily patients with genetic diseases, as well as healthcare providers and researchers who are interested in using Prime Editing technology to develop new treatments for genetic diseases. Prime Medicine's technology has the potential to benefit a wide range of patients, including those with rare genetic disorders, as well as those with more common genetic diseases.

Prime Medicine's product and service offerings include:

* Prime Editing technology: a versatile, precise, and efficient gene editing technology that has the potential to address a wide range of genetic diseases, including those that are currently untreatable.
* PM359: an investigational therapeutic program that targets chronic granulomatous disease, a serious and life-threatening disease that affects the immune system.
* PM359: an investigational therapeutic program that targets Wilson's disease, a rare genetic disorder that affects the liver.
* PM359: an investigational therapeutic program that targets cystic fibrosis, a genetic disorder that affects the lung.
* PM359: an investigational therapeutic program that targets retinitis pigmentosa, a rare genetic disorder that affects the retina.
* PM359: an investigational therapeutic program that targets Friedreich's ataxia, a rare genetic disorder that affects the nervous system and muscles.

Stock Price Chart

Analysis

Pros

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.

Cons

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.

Peer Comparison

Companies in the Biotechnology

S.No.	Ticker	Company	Market Cap	P/E	P/S	Total Debt (Qtr)
1	SMMT	Summit Therapeutics Inc.	1,349.40 Bn	-1,464.17	0.00	0.01 Bn
2	ONC	BeOne Medicines Ltd.	437.43 Bn	6,381.20	87.97	1.90 Bn
3	VRTX	Vertex Pharmaceuticals Inc / Ma	116.09 Bn	31.59	9.90	1.83 Bn
4	REGN	Regeneron Pharmaceuticals, Inc.	78.10 Bn	17.06	5.48	2.71 Bn
5	ALNY	Alnylam Pharmaceuticals, Inc.	55.87 Bn	1,282.42	17.40	3.21 Bn
6	ARGX	Argenx Se	52.85 Bn	35.08	27,559.65	-
7	BNTC	Benitec Biopharma Inc.	41.75 Bn	-998.33	0.00	0.00 Bn
8	INSM	INSMED Inc	37.80 Bn	-31.93	84.56	0.74 Bn

Industry Comparisons

Current Valuation

Metric	Value	Industry
EV to Assets	1.60	12.31
EV to Cash from Ops.	-5.63	23.25
EV to Debt	5.20	738.44
EV to EBIT	-3.11	-9.16
EV to EBITDA	-3.28	6.95
EV to Free Cash Flow [EV/FCF]	-5.34	21.90
EV to Market Cap	1.09	65.67
EV to Revenue	102.75	227.32
Price to Book Value [P/B]	3.47	22.34
Price to Earnings [P/E]	-2.85	-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	0.00	841.00

Growth Metrics

Metric	Value	Industry
Capex Growth (1y) %	17.85	-27.13
Cash and Equivalents Growth (1y) %	-35.56	734.65
Dividend Growth (1y) %	0.00	0.01
EBIAT Growth (1y) %	9.99	-46.93
EBITDA Growth (1y) %	9.48	-1.68
EBIT Growth (1y) %	9.99	-56.45
EBT Growth (1y) %	9.99	-12.70
EPS Growth (1y) %	30.10	-28.31
FCF Growth (1y) %	39.52	-31.90
Gross Profit Growth (1y) %	647.12	226.84

Liquidity Ratios

Metric	Value	Industry
Asset Utilization Ratio	0.02	0.14
Cash Payout Ratio	0.00	0.00
Cash Ratio	2.43	3.85
Current Ratio	6.61	7.27
Debt to Equity Ratio	0.73	0.40
Interest Cover Ratio	0.00	841.00
Times Interest Earned	0.00	841.00

Profitability

Metric	Value	Industry
EBITDA Margin %	-3,026.20	-18,234.31
EBIT Margin %	-3,301.64	-18,580.80
EBT Margin %	-3,301.64	-19,488.74
Gross Margin %	100.00	-7.59
Net Profit Margin %	-3,301.60	-19,439.22

Prime Medicine, Inc. (NASDAQ: PRME)