Quince Therapeutics, Inc. (NASDAQ: QNCX)

Sector: Healthcare Industry: Biotechnology CIK: 0001662774
Market Cap 161.05 Mn
P/B 152.08
P/E -2.83
P/S 0.00
ROIC (Qtr) -183.77
Div Yield % 0.00
Rev 1y % (Qtr) 0.00
Total Debt (Qtr) 17.88 Mn
Debt/Equity (Qtr) 16.88

About

Quince Therapeutics, Inc., a prominent player in the biotechnology industry, is revolutionizing the way therapies are delivered to patients with rare diseases through its innovative AIDE technology platform. This unique drug/device combination utilizes an automated process to encapsulate drugs into a patient's own red blood cells, offering a more effective and safer method of drug delivery. The company's primary focus is on developing treatments for rare diseases, a field that is both highly competitive and rapidly evolving. With a robust and experienced...

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Price action

Investment thesis

Bull case

  • Short-term investments of 19.84M provide solid 3.87x coverage of other current liabilities 5.12M, indicating strong liquidity.
  • Robust tangible asset base of 42.17M provides 13.35x coverage of working capital 3.16M, indicating strong operational backing.
  • Tangible assets of 42.17M provide robust 8.24x coverage of other current liabilities 5.12M, indicating strong asset backing.
  • Robust R&D investment of 28.61M at 1.82x of SG&A 15.70M demonstrates strong commitment to innovation and future growth.
  • Short-term investments of 19.84M provide healthy 6.28x coverage of working capital 3.16M, indicating strong liquidity.

Bear case

  • Operating cash flow of (38.50M) barely covers its investment activities of 26.02M, with a coverage ratio of -1.48, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of 26.02M provide weak support for R&D spending of 28.61M, which is 0.91x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Short-term investments of 19.84M significantly exceed cash reserves of 6.45M, which is 3.07x, indicating potentially excessive yield-seeking behavior at the expense of liquidity.
  • The company's operating cash flow of (38.50M) shows concerning coverage of stock compensation expenses of 5.04M, with a -7.64 ratio indicating potential earnings quality issues.
  • Free cash flow of (38.98M) provides weak coverage of capital expenditures of 481000, with a -81.03 ratio suggesting additional external financing needs for growth initiatives.

Peer comparison

Companies in the Biotechnology
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 SMMT Summit Therapeutics Inc. 1,233.43 Bn -1,338.33 0.00 0.01 Bn
2 ONC BeOne Medicines Ltd. 458.30 Bn 6,685.60 92.16 1.90 Bn
3 VRTX Vertex Pharmaceuticals Inc / Ma 113.54 Bn 30.89 9.68 1.83 Bn
4 REGN Regeneron Pharmaceuticals, Inc. 66.44 Bn -363.26 145.55 2.71 Bn
5 ALNY Alnylam Pharmaceuticals, Inc. 49.96 Bn 1,146.87 15.56 3.21 Bn
6 ARGX Argenx Se 48.74 Bn 32.36 25,415.62 -
7 BNTC Benitec Biopharma Inc. 40.53 Bn -969.17 0.00 0.00 Bn
8 INSM INSMED Inc 31.37 Bn -26.50 70.18 0.74 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 1.47 11.64
EV to Cash from Ops. EV/CFO -4.20 22.98
EV to Debt EV to Debt 9.04 714.06
EV to EBIT EV/EBIT -2.84 -12.88
EV to EBITDA EV/EBITDA -3.66 6.99
EV to Free Cash Flow [EV/FCF] EV/FCF -4.15 21.89
EV to Market Cap EV to Market Cap 1.00 103.76
EV to Revenue EV to Revenue 0.00 196.10
Price to Book Value [P/B] P/B 152.08 21.83
Price to Earnings [P/E] P/E -2.83 -13.53
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 -12.07
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) 0.00 859.48
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -225.00 -27.11
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 141.20 749.91
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 0.01
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -6.97 -51.60
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 13.47 -4.49
EBIT Growth (1y) % EBIT 1y % (Qtr) -7.10 -61.23
EBT Growth (1y) % EBT 1y % (Qtr) -7.10 -18.17
EPS Growth (1y) % EPS 1y % (Qtr) 2.42 -3.33
FCF Growth (1y) % FCF 1y % (Qtr) -27.47 -32.98
Gross Profit Growth (1y) % Gross Profit Growth (1y) % 0.00 228.66
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) 0.25 3.79
Current Ratio Curr Ratio (Qtr) 1.12 7.24
Debt to Equity Ratio Debt/Equity (Qtr) 16.88 0.42
Interest Cover Ratio Int Coverage (Qtr) 0.00 859.48
Times Interest Earned Times Interest Earned (Qtr) 0.00 859.48
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % 0.00 -17,651.95
EBIT Margin % EBIT Margin % 0.00 -18,005.40
EBT Margin % EBT Margin % 0.00 -18,859.43
Gross Margin % Gross Margin % 0.00 -8.65
Net Profit Margin % Net Profit Margin % 0.00 -18,808.76