Protagonist Therapeutics, Inc (NASDAQ: PTGX)

Sector: Healthcare Industry: Biotechnology CIK: 0001377121
Market Cap 4.78 Bn
P/B 7.41
P/E 104.16
P/S 22.86
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...

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Price action

Investment thesis

Bull case

  • 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.

Bear case

  • 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.

Segments 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 6.59 12.96
EV to Cash from Ops. EV/CFO 70.64 23.73
EV to Debt EV to Debt 430.22 772.65
EV to EBIT EV/EBIT 96.20 -11.30
EV to EBITDA EV/EBITDA 213.20 7.11
EV to Free Cash Flow [EV/FCF] EV/FCF 72.58 22.12
EV to Market Cap EV to Market Cap 0.97 68.89
EV to Revenue EV/Rev 22.10 199.70
Price to Book Value [P/B] P/B 7.41 22.62
Price to Earnings [P/E] P/E 104.16 -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) 0.00 857.11
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -65.04 -27.24
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -13.28 747.06
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 0.01
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -73.13 -48.21
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -85.76 -2.09
EBIT Growth (1y) % EBIT 1y % (Qtr) -72.23 -57.79
EBT Growth (1y) % EBT 1y % (Qtr) -72.23 -14.35
EPS Growth (1y) % EPS 1y % (Qtr) -73.36 -30.88
FCF Growth (1y) % FCF 1y % (Qtr) -72.21 -32.51
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -35.39 227.96
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.30 0.14
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.00
Cash Ratio Cash Ratio (Qtr) 2.53 3.79
Current Ratio Curr Ratio (Qtr) 13.05 7.23
Debt to Equity Ratio Debt/Equity (Qtr) 0.02 0.42
Interest Cover Ratio Int Coverage (Qtr) 0.00 857.11
Times Interest Earned Times Interest Earned (Qtr) 0.00 857.11
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 24.30 -18,509.94
EBIT Margin % EBIT Margin % (Qtr) 22.98 -18,862.18
EBT Margin % EBT Margin % (Qtr) 22.98 -19,783.19
Gross Margin % Gross Margin % (Qtr) 100.00 -8.62
Net Profit Margin % Net Margin % (Qtr) 21.90 -19,732.60