Rigel Pharmaceuticals Inc (RIGL) Stock Analysis and Metrics

Sector: Healthcare Industry: Biotechnology CIK: 0001034842

P/B 6.21

P/E 6.44

P/S 2.59

Market Cap 729.92 Mn

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...

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 include Tavalisse (fostamatinib disodium hexahydrate) tablets, Rezlidhia (olutasidenib) capsules, Gavreto (pralsetinib) for the treatment of metastatic RET fusion-positive non-small cell lung cancer and advanced thyroid cancers, and R289, an oral IRAK1/4 inhibitor for hematology-oncology, autoimmune, and inflammatory diseases.

The company generates revenue through the sales of its primary products. Tavalisse, for instance, is the only approved oral spleen tyrosine kinase (SYK) inhibitor for the treatment of adult patients with chronic immune thrombocytopenia (ITP) who have had an insufficient response to a previous treatment. Rezlidhia, on the other hand, is used for the treatment of adult patients with relapsed or refractory (R/R) acute myeloid leukemia (AML) with a susceptible isocitrate dehydrogenase-1 (IDH1) mutation as detected by an FDA-approved test.

In the competitive landscape, Rigel holds a strong position with its growing portfolio of commercial products and a pipeline of novel therapies in development. The company's competitive advantages include its expertise in developing novel therapies that target signaling pathways critical to disease mechanisms, its strong commercial and medical affairs team in the US, and its partnerships with leading pharmaceutical and biotechnology companies.

Rigel's customers include healthcare providers and hospitals, pharmaceutical and biotechnology companies, research institutions, and academic organizations. The company's partnerships with these entities provide a solid foundation for its future growth and success.

The company's product portfolio also includes:

* Tavalisse (fostamatinib disodium hexahydrate) tablets for the treatment of chronic ITP in adult patients.
* Rezlidhia (olutasidenib) capsules for the treatment of R/R AML with a susceptible IDH1 mutation in adult patients.
* Gavreto (pralsetinib) for the treatment of metastatic RET fusion-positive non-small cell lung cancer and advanced thyroid cancers.
* R289, an oral IRAK1/4 inhibitor for hematology-oncology, autoimmune, and inflammatory diseases.

Stock Price Chart

Analysis

Pros

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.

Cons

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.	1,349.40 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
EV to Assets	3.04	12.31
EV to Cash from Ops.	10.82	23.25
EV to Debt	12.11	738.44
EV to EBIT	6.05	-9.16
EV to EBITDA	6.08	6.95
EV to Free Cash Flow [EV/FCF]	10.81	21.90
EV to Market Cap	1.01	65.67
EV to Revenue	2.61	227.32
Price to Book Value [P/B]	6.21	22.34
Price to Earnings [P/E]	6.44	-11.77

Dividend Metrics

Metric	Value	Industry
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	16.09	841.00

Growth Metrics

Metric	Value	Industry
Capex Growth (1y) %	114.53	-27.13
Cash and Equivalents Growth (1y) %	-6.11	734.65
Dividend Growth (1y) %	0.00	0.01
EBIAT Growth (1y) %	928.06	-46.93
EBITDA Growth (1y) %	962.78	-1.68
EBIT Growth (1y) %	937.45	-56.45
EBT Growth (1y) %	2,846.02	-12.70
EPS Growth (1y) %	2,652.17	-28.31
FCF Growth (1y) %	550.01	-31.90
Gross Profit Growth (1y) %	86.49	226.84

Liquidity Ratios

Metric	Value	Industry
Asset Utilization Ratio	1.16	0.14
Cash Payout Ratio	0.00	0.00
Cash Ratio	0.51	3.85
Current Ratio	2.28	7.27
Debt to Equity Ratio	0.52	0.40
Interest Cover Ratio	16.09	841.00
Times Interest Earned	16.09	841.00

Profitability

Metric	Value	Industry
EBITDA Margin %	44.10	-18,234.31
EBIT Margin %	43.22	-18,580.80
EBT Margin %	40.53	-19,488.74
Gross Margin %	93.10	-7.59
Net Profit Margin %	40.20	-19,439.22

Rigel Pharmaceuticals Inc (NASDAQ: RIGL)