Rigel Pharmaceuticals Inc (NASDAQ: RIGL)

Sector: Healthcare Industry: Biotechnology CIK: 0001034842
Market Cap 796.50 Mn
P/B 6.77
P/E 7.03
P/S 2.82
ROIC (Qtr) 74.76
Div Yield % 0.00
Rev 1y % (Qtr) 25.59
Total Debt (Qtr) 60.88 Mn
Debt/Equity (Qtr) 0.52

About

Rigel Pharmaceuticals Inc., known by its ticker symbol RIGL, is a prominent player in the biotechnology industry. The company's primary focus is on developing and providing novel therapies that significantly improve the lives of patients with hematologic disorders and cancer. Rigel's business activities revolve around creating innovative treatments that target critical signaling pathways associated with these diseases. Rigel's main business activities include the development and commercialization of novel therapies. The company's primary products...

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Price action

Investment thesis

Bull case

  • Strong operating cash flow of 68.18M provides robust 1.12x coverage of total debt 60.88M, indicating excellent debt servicing capability and financial flexibility.
  • Strong tangible asset base of 217.20M provides 3.57x coverage of total debt 60.88M, indicating robust asset backing and low credit risk.
  • Tangible assets of 217.20M provide exceptional 6.92x coverage of deferred revenue 31.38M, showing strong service capability backing.
  • Short-term investments of 88.61M provide solid 1.47x coverage of other current liabilities 60.20M, indicating strong liquidity.
  • Operating cash flow of 68.18M provides solid 0.72x coverage of current liabilities 94.40M, showing strong operational health.

Bear case

  • Operating cash flow of 68.18M barely covers its investment activities of (77.92M), with a coverage ratio of -0.88, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of (77.92M) provide weak support for R&D spending of 28.24M, which is -2.76x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • High receivables of 45.92M relative to inventory of 13.30M (3.45 ratio) suggests aggressive credit terms or collection difficulties, potentially masking revenue quality issues.
  • Free cash flow of 68.21M provides weak coverage of capital expenditures of (34000), with a -2006.24 ratio suggesting additional external financing needs for growth initiatives.
  • Retained earnings of (1.29B) provide limited buffer against comprehensive income items of 96000, which is -13449.02x, indicating elevated exposure to market risks.

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 3.32 12.96
EV to Cash from Ops. EV/CFO 11.79 23.73
EV to Debt EV to Debt 13.21 772.65
EV to EBIT EV/EBIT 6.60 -11.30
EV to EBITDA EV/EBITDA 6.63 7.11
EV to Free Cash Flow [EV/FCF] EV/FCF 11.79 22.12
EV to Market Cap EV to Market Cap 1.01 68.89
EV to Revenue EV/Rev 2.85 199.70
Price to Book Value [P/B] P/B 6.77 22.62
Price to Earnings [P/E] P/E 7.03 -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) 16.09 857.11
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 114.53 -27.24
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -6.11 747.06
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 0.01
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 928.06 -48.21
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 962.78 -2.09
EBIT Growth (1y) % EBIT 1y % (Qtr) 937.45 -57.79
EBT Growth (1y) % EBT 1y % (Qtr) 2,846.02 -14.35
EPS Growth (1y) % EPS 1y % (Qtr) 2,652.17 -30.88
FCF Growth (1y) % FCF 1y % (Qtr) 550.01 -32.51
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 86.49 227.96
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 1.16 0.14
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.00
Cash Ratio Cash Ratio (Qtr) 0.51 3.79
Current Ratio Curr Ratio (Qtr) 2.28 7.23
Debt to Equity Ratio Debt/Equity (Qtr) 0.52 0.42
Interest Cover Ratio Int Coverage (Qtr) 16.09 857.11
Times Interest Earned Times Interest Earned (Qtr) 16.09 857.11
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 44.10 -18,509.94
EBIT Margin % EBIT Margin % (Qtr) 43.22 -18,862.18
EBT Margin % EBT Margin % (Qtr) 40.53 -19,783.19
Gross Margin % Gross Margin % (Qtr) 93.10 -8.62
Net Profit Margin % Net Margin % (Qtr) 40.20 -19,732.60