Arcus Biosciences, Inc. (NYSE: RCUS)

Sector: Healthcare Industry: Biotechnology CIK: 0001724521
P/B 4.90
P/E -6.26
P/S 8.89
Market Cap 2.13 Bn
ROIC (Qtr) -63.56
Div Yield % 0.00
Rev 1y % (Qtr) -45.83
Total Debt (Qtr) 98.00 Mn
Debt/Equity (Qtr) 0.22

About

Arcus Biosciences, a clinical-stage biopharmaceutical company, is dedicated to the creation of best-in-class therapies for the treatment of various diseases (Arcus Biosciences, Inc.). With a focus on developing novel small molecules and enabling antibodies that target different immune mechanisms and cell-intrinsic pathways crucial for cancer growth and metastasis, Arcus Biosciences operates in the biotechnology industry, specifically in the field of oncology (Arcus Biosciences, Inc.). The company's operations span across various countries, including...

Read more

Stock Price Chart

Analysis

Pros

  • Strong tangible asset base of 974M provides 9.94x coverage of total debt 98M, indicating robust asset backing and low credit risk.
  • Tangible assets of 974M provide exceptional 9.28x coverage of deferred revenue 105M, showing strong service capability backing.
  • Short-term investments of 593M provide solid 3.07x coverage of other current liabilities 193M, indicating strong liquidity.
  • Tangible assets of 974M provide robust 5.05x coverage of other current liabilities 193M, indicating strong asset backing.
  • Cash reserves of 238M provide robust 1.01x coverage of current liabilities 235M, indicating strong short-term solvency.

Cons

  • Operating cash flow of (462M) barely covers its investment activities of 299M, with a coverage ratio of -1.55, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of 299M provide weak support for R&D spending of 503M, which is 0.59x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Operating cash flow of (462M) provides insufficient coverage of deferred revenue obligations of 105M, which is -4.40x, raising concerns about future service delivery capabilities.
  • The company's operating cash flow of (462M) shows concerning coverage of stock compensation expenses of 62M, with a -7.45 ratio indicating potential earnings quality issues.
  • Operating earnings of (332M) show weak coverage of depreciation charges of 17M, with a -19.53 ratio indicating high capital intensity and potential reinvestment needs.

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 Percentile
EV to Assets 2.04 12.31
EV to Cash from Ops. -4.29 23.25
EV to Debt 20.24 738.44
EV to EBIT -5.97 -9.16
EV to EBITDA -5.54 6.95
EV to Free Cash Flow [EV/FCF] -4.27 21.90
EV to Market Cap 0.93 65.67
EV to Revenue 8.26 227.32
Price to Book Value [P/B] 4.90 22.34
Price to Earnings [P/E] -6.26 -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 -41.50 841.00

Growth Metrics

Metric Value Industry Percentile
Capex Growth (1y) % 81.82 -27.13
Cash and Equivalents Growth (1y) % 18.41 734.65
Dividend Growth (1y) % 0.00 0.01
EBIAT Growth (1y) % -24.25 -46.93
EBITDA Growth (1y) % -18.94 -1.68
EBIT Growth (1y) % -24.34 -56.45
EBT Growth (1y) % -26.39 -12.70
EPS Growth (1y) % -9.21 -28.31
FCF Growth (1y) % -174.56 -31.90
Gross Profit Growth (1y) % -8.75 226.84

Liquidity Ratios

Metric Value Industry Percentile
Asset Utilization Ratio 0.25 0.14
Cash Payout Ratio 0.00 0.00
Cash Ratio 1.01 3.85
Current Ratio 3.65 7.27
Debt to Equity Ratio 0.22 0.40
Interest Cover Ratio -41.50 841.00
Times Interest Earned -41.50 841.00

Profitability

Metric Value Industry Percentile
EBITDA Margin % -131.20 -18,234.31
EBIT Margin % -138.33 -18,580.80
EBT Margin % -141.67 -19,488.74
Gross Margin % 100.00 -7.59
Net Profit Margin % -142.10 -19,439.22