Protagonist Therapeutics, Inc (PTGX) Stock Analysis and Metrics

Sector: Healthcare Industry: Biotechnology CIK: 0001377121

P/B 8.81

P/E 123.83

P/S 27.17

Market Cap 5.68 Bn

ROIC (Qtr) 2.85

Div Yield % 0.00

Rev 1y % (Qtr) 0.79

Total Debt (Qtr) 10.75 Mn

Debt/Equity (Qtr) 0.02

About

Protagonist Therapeutics, Inc., a biopharmaceutical company listed under the symbol PTGX, operates in the healthcare sector, specifically in the development of peptide-based new chemical entities for the treatment of hematology and blood disorders, as well as inflammatory and immunomodulatory diseases. Protagonist Therapeutics' primary business activities revolve around the discovery, development, and commercialization of innovative therapeutic solutions. The company's operations span across various countries, with a significant focus on the United...

Protagonist Therapeutics, Inc., a biopharmaceutical company listed under the symbol PTGX, operates in the healthcare sector, specifically in the development of peptide-based new chemical entities for the treatment of hematology and blood disorders, as well as inflammatory and immunomodulatory diseases.

Protagonist Therapeutics' primary business activities revolve around the discovery, development, and commercialization of innovative therapeutic solutions. The company's operations span across various countries, with a significant focus on the United States. Their research and development efforts are geared towards addressing unmet medical needs in the aforementioned therapeutic areas.

The company generates revenue through the development and commercialization of its primary products and services. Its most advanced clinical asset, rusfertide, is an injectable hepcidin mimetic being developed for the treatment of polycythemia vera (PV) and other blood disorders. Another key product candidate is JNJ-2113, an orally delivered interleukin-23 receptor (IL-23R) antagonist, which is being developed for the treatment of inflammatory bowel disease (IBD) and other inflammatory conditions.

Within the industry, Protagonist Therapeutics competes with several key players. However, the company's competitive advantage lies in its discovery platform, which enables the design and development of novel, structurally constrained peptides. This unique platform sets the company apart, providing it with a strong position in the industry.

Protagonist Therapeutics' customer base primarily consists of patients with PV and other blood disorders, as well as patients with IBD and other inflammatory conditions. The company is committed to establishing relationships with healthcare providers and payors to ensure access to its products.

Among the brand names and trade names of its products and services, rusfertide and JNJ-2113 stand out. These are the company's most advanced clinical assets, with promising results in clinical trials.

In the field of psoriasis, there is an urgent need for safe and effective oral therapies. The development of JNJ-2113, an orally delivered IL-23R antagonist, is a significant step towards addressing this need. The IL-23/IL-17 axis is a key pathway driving psoriatic inflammation, and the development of targeted therapies that inhibit this axis has revolutionized the treatment of moderate-to-severe psoriasis.

Stock Price Chart

Analysis

Pros

Strong operating cash flow of 65.47M provides robust 6.09x coverage of total debt 10.75M, indicating excellent debt servicing capability and financial flexibility.
Healthy cash reserves of 113.71M provide 51.04x coverage of short-term debt 2.23M, demonstrating strong liquidity position and minimal refinancing risk.
Strong tangible asset base of 701.69M provides 65.28x coverage of total debt 10.75M, indicating robust asset backing and low credit risk.
Tangible assets of 701.69M provide exceptional 41.30x coverage of deferred revenue 16.99M, showing strong service capability backing.
Strong operating cash flow of 65.47M provides 1.55x coverage of SG&A expenses 42.37M, showing efficient operational cost management.

Cons

Operating cash flow of 65.47M barely covers its investment activities of (106.87M), with a coverage ratio of -0.61, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
Investment activities of (106.87M) provide weak support for R&D spending of 147.84M, which is -0.72x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
Short-term investments of 462.40M significantly exceed cash reserves of 113.71M, which is 4.07x, indicating potentially excessive yield-seeking behavior at the expense of liquidity.
The company's operating cash flow of 65.47M shows concerning coverage of stock compensation expenses of 44.37M, with a 1.48 ratio indicating potential earnings quality issues.
Long-term investments of 102.70M represent a high 8.37x of fixed assets 12.27M, indicating potential overexposure to financial assets versus operational capabilities.

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	7.88	12.31
EV to Cash from Ops.	84.43	23.25
EV to Debt	514.25	738.44
EV to EBIT	114.99	-9.16
EV to EBITDA	254.84	6.95
EV to Free Cash Flow [EV/FCF]	86.76	21.90
EV to Market Cap	0.97	65.67
EV to Revenue	26.42	227.32
Price to Book Value [P/B]	8.81	22.34
Price to Earnings [P/E]	123.83	-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) %	-65.04	-27.13
Cash and Equivalents Growth (1y) %	-13.28	734.65
Dividend Growth (1y) %	0.00	0.01
EBIAT Growth (1y) %	-73.13	-46.93
EBITDA Growth (1y) %	-85.76	-1.68
EBIT Growth (1y) %	-72.23	-56.45
EBT Growth (1y) %	-72.23	-12.70
EPS Growth (1y) %	-73.36	-28.31
FCF Growth (1y) %	-72.21	-31.90
Gross Profit Growth (1y) %	-35.39	226.84

Liquidity Ratios

Metric	Value	Industry
Asset Utilization Ratio	0.30	0.14
Cash Payout Ratio	0.00	0.00
Cash Ratio	2.53	3.85
Current Ratio	13.05	7.27
Debt to Equity Ratio	0.02	0.40
Interest Cover Ratio	0.00	841.00
Times Interest Earned	0.00	841.00

Profitability

Metric	Value	Industry
EBITDA Margin %	24.30	-18,234.31
EBIT Margin %	22.98	-18,580.80
EBT Margin %	22.98	-19,488.74
Gross Margin %	100.00	-7.59
Net Profit Margin %	21.90	-19,439.22

Protagonist Therapeutics, Inc (NASDAQ: PTGX)