Ptc Therapeutics, Inc. (NASDAQ: PTCT)

Sector: Healthcare Industry: Biotechnology CIK: 0001070081
Market Cap 5.84 Bn
P/B -37.50
P/E 7.77
P/S 3.28
ROIC (Qtr) -241.73
Div Yield % 0.00
Rev 1y % (Qtr) 7.23
Total Debt (Qtr) 410.13 Mn
Debt/Equity (Qtr) -2.63

About

Price action

Investment thesis

Bull case

  • Strong operating cash flow of 715.47M provides robust 1.74x coverage of total debt 410.13M, indicating excellent debt servicing capability and financial flexibility.
  • Healthy cash reserves of 672.62M provide 2.24x coverage of short-term debt 300.81M, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 2.16B provides 5.28x coverage of total debt 410.13M, indicating robust asset backing and low credit risk.
  • Strong operating cash flow of 715.47M provides 2.14x coverage of SG&A expenses 334.95M, showing efficient operational cost management.
  • Tangible assets of 2.16B provide exceptional 1280.24x coverage of deferred revenue 1.69M, showing strong service capability backing.

Bear case

  • Operating cash flow of 715.47M barely covers its investment activities of (628.28M), with a coverage ratio of -1.14, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of (628.28M) provide weak support for R&D spending of 446.89M, which is -1.41x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Cash reserves of 672.62M provide limited coverage of acquisition spending of (258.96M), which is -2.60x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • High receivables of 203.07M relative to inventory of 52.69M (3.85 ratio) suggests aggressive credit terms or collection difficulties, potentially masking revenue quality issues.
  • Free cash flow of 855.28M provides weak coverage of capital expenditures of (139.82M), with a -6.12 ratio suggesting additional external financing needs for growth initiatives.

Segments Breakdown of Revenue (2024)

Concentration Risk Type 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. 1,151.25 Bn -1,249.17 0.00 0.01 Bn
2 ONC BeOne Medicines Ltd. 485.22 Bn 7,078.40 97.58 1.90 Bn
3 VRTX Vertex Pharmaceuticals Inc / Ma 122.74 Bn 33.40 10.47 1.83 Bn
4 REGN Regeneron Pharmaceuticals, Inc. 82.16 Bn 18.24 5.73 2.71 Bn
5 ARGX Argenx Se 48.85 Bn 32.43 25,472.44 -
6 ALNY Alnylam Pharmaceuticals, Inc. 46.12 Bn 1,058.58 14.37 3.21 Bn
7 BNTC Benitec Biopharma Inc. 42.24 Bn -1,010.00 0.00 0.00 Bn
8 INSM INSMED Inc 28.75 Bn -24.29 64.32 0.74 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 1.97 11.11
EV to Cash from Ops. EV/CFO 7.29 26.32
EV to Debt EV to Debt 12.71 688.48
EV to EBIT EV/EBIT 5.93 -10.97
EV to EBITDA EV/EBITDA 6.48 8.32
EV to Free Cash Flow [EV/FCF] EV/FCF 6.09 25.03
EV to Market Cap EV to Market Cap 0.89 163.46
EV to Revenue EV/Rev 2.93 148.57
Price to Book Value [P/B] P/B -37.50 20.73
Price to Earnings [P/E] P/E 7.77 -0.34
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 0.00 -12.47
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 -0.14
Interest Coverage Int. cover (Qtr) 6.37 860.86
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 607.75 -26.99
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 27.87 756.75
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 0.01
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 428.00 -53.03
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 2,973.06 -4.42
EBIT Growth (1y) % EBIT 1y % (Qtr) 444.39 -62.56
EBT Growth (1y) % EBT 1y % (Qtr) 274.16 -19.19
EPS Growth (1y) % EPS 1y % (Qtr) 261.78 -4.07
FCF Growth (1y) % FCF 1y % (Qtr) 640.58 -33.40
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 107.46 264.38
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.67 0.14
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.00
Cash Ratio Cash Ratio (Qtr) 0.78 3.81
Current Ratio Curr Ratio (Qtr) 2.32 7.25
Debt to Equity Ratio Debt/Equity (Qtr) -2.63 0.43
Interest Cover Ratio Int Coverage (Qtr) 6.37 860.86
Times Interest Earned Times Interest Earned (Qtr) 6.37 860.86
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 51.60 -17,746.13
EBIT Margin % EBIT Margin % (Qtr) 49.41 -18,101.92
EBT Margin % EBT Margin % (Qtr) 41.65 -18,961.86
Gross Margin % Gross Margin % (Qtr) 96.80 -9.24
Net Profit Margin % Net Margin % (Qtr) 42.30 -18,911.61