Ultragenyx Pharmaceutical Inc. (NASDAQ: RARE)

Sector: Healthcare Industry: Biotechnology CIK: 0001515673
Market Cap 2.20 Bn
P/B 1,019.46
P/E -3.80
P/S 3.49
ROIC (Qtr) -58.19
Div Yield % 0.00
Rev 1y % (Qtr) 14.65
Total Debt (Qtr) 863.11 Mn
Debt/Equity (Qtr) 399.77

About

Price action

Investment thesis

Bull case

  • Healthy cash reserves of 202.51M provide 2.61x coverage of short-term debt 77.69M, demonstrating strong liquidity position and minimal refinancing risk.
  • Robust tangible asset base of 973.10M provides 3.21x coverage of working capital 303.18M, indicating strong operational backing.
  • Tangible assets of 973.10M provide robust 4.39x coverage of other current liabilities 221.76M, indicating strong asset backing.
  • Cash reserves of 202.51M provide solid 4.15x coverage of other non-current liabilities 48.84M, indicating strong liquidity.
  • Cash reserves of 202.51M exceed inventory value of 52.20M by 3.88x, indicating strong liquidity and inventory management.

Bear case

  • Operating cash flow of (445.67M) barely covers its investment activities of 410.98M, with a coverage ratio of -1.08, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of 410.98M provide weak support for R&D spending of 734.49M, which is 0.56x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • The company's operating cash flow of (445.67M) shows concerning coverage of stock compensation expenses of 155.88M, with a -2.86 ratio indicating potential earnings quality issues.
  • High receivables of 112.54M relative to inventory of 52.20M (2.16 ratio) suggests aggressive credit terms or collection difficulties, potentially masking revenue quality issues.
  • Free cash flow of (451.39M) provides weak coverage of capital expenditures of 5.72M, with a -78.97 ratio suggesting additional external financing needs for growth initiatives.

Product and Service Breakdown of Revenue (2024)

Product and Service 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. 1,511.45 Bn -1,640.00 0.00 0.01 Bn
2 ONC BeOne Medicines Ltd. 463.25 Bn 6,757.80 93.16 1.90 Bn
3 VRTX Vertex Pharmaceuticals Inc / Ma 119.13 Bn 32.42 10.16 1.83 Bn
4 REGN Regeneron Pharmaceuticals, Inc. 83.93 Bn 18.33 5.89 2.71 Bn
5 ALNY Alnylam Pharmaceuticals, Inc. 55.97 Bn 1,284.81 17.44 3.21 Bn
6 ARGX Argenx Se 47.47 Bn 31.51 24,751.70 -
7 BNTC Benitec Biopharma Inc. 41.27 Bn -986.67 0.00 0.00 Bn
8 INSM INSMED Inc 33.76 Bn -28.52 75.53 0.74 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 2.44 13.39
EV to Cash from Ops. EV/CFO -6.52 23.02
EV to Debt EV to Debt 3.37 789.59
EV to EBIT EV/EBIT -5.04 -11.14
EV to EBITDA EV/EBITDA -5.67 7.05
EV to Free Cash Flow [EV/FCF] EV/FCF -6.44 21.44
EV to Market Cap EV to Market Cap 1.32 72.36
EV to Revenue EV/Rev 4.61 194.41
Price to Book Value [P/B] P/B 1,019.46 23.19
Price to Earnings [P/E] P/E -3.80 -11.47
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 Interest Coverage 0.00 856.48
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 32.25 -27.12
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 34.45 747.06
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 0.01
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -3.73 -48.05
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -2.25 -1.94
EBIT Growth (1y) % EBIT 1y % (Qtr) -2.79 -57.64
EBT Growth (1y) % EBT 1y % (Qtr) -2.79 -14.19
EPS Growth (1y) % EPS 1y % (Qtr) 7.20 -30.71
FCF Growth (1y) % FCF 1y % (Qtr) -5.71 -32.52
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 18.45 227.96
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.53 0.14
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.00
Cash Ratio Cash Ratio (Qtr) 0.60 3.79
Current Ratio Curr Ratio (Qtr) 1.89 7.23
Debt to Equity Ratio Debt/Equity (Qtr) 399.77 0.42
Interest Cover Ratio Interest Cover Ratio 0.00 856.48
Times Interest Earned Times Interest Earned 0.00 856.48
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) -85.90 -18,509.94
EBIT Margin % EBIT Margin % (Qtr) -91.46 -18,862.18
EBT Margin % EBT Margin % (Qtr) -91.46 -19,783.19
Gross Margin % Gross Margin % (Qtr) 84.70 -8.62
Net Profit Margin % Net Margin % (Qtr) -91.90 -19,732.60