Prokidney Corp. (NASDAQ: PROK)

Sector: Healthcare Industry: Biotechnology CIK: 0001850270
Market Cap 304.80 Mn
P/B -0.30
P/E -4.29
P/S 409.67
ROIC (Qtr) 17.71
Div Yield % 0.00
Rev 1y % (Qtr) 0.00
Total Debt (Qtr) 4.24 Mn
Debt/Equity (Qtr) 0.00

About

ProKidney Corp., a clinical-stage biotechnology company, is at the forefront of developing innovative treatments for chronic kidney disease (CKD). With a focus on using a patient's own cells for therapy, ProKidney Corp.'s proprietary cell therapy platform has the potential to transform the lives of many individuals suffering from this debilitating disease. ProKidney Corp. is a fully integrated biopharmaceutical company that specializes in developing and commercializing treatments for CKD. Its strategy is to become a leading player in the CKD market...

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Price action

Investment thesis

Bull case

  • Healthy cash reserves of 95.32M provide 96.19x coverage of short-term debt 991000, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 351.61M provides 83x coverage of total debt 4.24M, indicating robust asset backing and low credit risk.
  • Short-term investments of 176.40M provide solid 6.75x coverage of other current liabilities 26.13M, indicating strong liquidity.
  • Tangible assets of 351.61M provide robust 13.46x coverage of other current liabilities 26.13M, indicating strong asset backing.
  • Cash reserves of 95.32M provide robust 3.28x coverage of current liabilities 29.06M, indicating strong short-term solvency.

Bear case

  • Operating cash flow of (111.78M) barely covers its investment activities of 90.95M, with a coverage ratio of -1.23, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of 90.95M provide weak support for R&D spending of 119.75M, which is 0.76x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • The company's operating cash flow of (111.78M) shows concerning coverage of stock compensation expenses of 26.58M, with a -4.21 ratio indicating potential earnings quality issues.
  • Free cash flow of (146.73M) provides weak coverage of capital expenditures of 34.95M, with a -4.20 ratio suggesting additional external financing needs for growth initiatives.
  • Operating cash flow of (111.78M) provides minimal -30.20x coverage of tax expenses of 3.70M, suggesting potential tax planning inefficiencies or unsustainable tax positions.

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 0.64 12.96
EV to Cash from Ops. EV/CFO -2.01 23.73
EV to Debt EV to Debt 52.94 772.65
EV to EBIT EV/EBIT -3.33 -11.30
EV to EBITDA EV/EBITDA -1.36 7.11
EV to Free Cash Flow [EV/FCF] EV/FCF -1.53 22.12
EV to Market Cap EV to Market Cap 0.74 68.89
EV to Revenue EV/Rev 301.44 199.70
Price to Book Value [P/B] P/B -0.30 22.62
Price to Earnings [P/E] P/E -4.29 -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) -13,465.40 857.11
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -527.30 -27.24
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -11.81 747.06
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 0.01
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -55.77 -48.21
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -8.98 -2.09
EBIT Growth (1y) % EBIT 1y % (Qtr) -49.26 -57.79
EBT Growth (1y) % EBT 1y % (Qtr) -49.24 -14.35
EPS Growth (1y) % EPS 1y % (Qtr) 0.00 -30.88
FCF Growth (1y) % FCF 1y % (Qtr) -10.21 -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) 3.28 3.79
Current Ratio Curr Ratio (Qtr) 10.32 7.23
Debt to Equity Ratio Debt/Equity (Qtr) 0.00 0.42
Interest Cover Ratio Int Coverage (Qtr) -13,465.40 857.11
Times Interest Earned Times Interest Earned (Qtr) -13,465.40 857.11
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) -8,200.90 -18,509.94
EBIT Margin % EBIT Margin % (Qtr) -9,049.33 -18,862.18
EBT Margin % EBT Margin % (Qtr) -9,050.00 -19,783.19
Gross Margin % Gross Margin % (Qtr) 100.00 -8.62
Net Profit Margin % Net Margin % (Qtr) -9,547.40 -19,732.60