Rallybio Corp (NASDAQ: RLYB)

Sector: Healthcare Industry: Biotechnology CIK: 0001739410
Market Cap 23.97 Mn
P/B 0.38
P/E -1.69
P/S 35.56
ROIC (Qtr) -70.04
Div Yield % 0.00
Rev 1y % (Qtr) -29.10
Total Debt (Qtr) 198,000.00
Debt/Equity (Qtr) 0.00
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About

Rallybio Corp, a clinical-stage biotechnology company, is dedicated to identifying and accelerating the development of life-transforming therapies for patients with severe and rare diseases. The company operates in the biotechnology industry, focusing on the development of novel therapeutics for rare diseases. Specifically, Rallybio's main business activities involve the development of therapies for maternal-fetal blood disorders, complement dysregulation, hematology, and metabolic disorders. The company operates primarily in the United States,...

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Investment thesis

Bull case

  • Healthy cash reserves of 32.12M provide 356.91x coverage of short-term debt 90000, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 67.66M provides 341.72x coverage of total debt 198000, indicating robust asset backing and low credit risk.
  • Tangible assets of 67.66M provide exceptional 159.58x coverage of deferred revenue 424000, showing strong service capability backing.
  • Operating cash flow of (35M) fully covers other non-current liabilities (424000) by 82.54x, showing strong long-term stability.
  • Short-term investments of 27.20M provide solid 6.54x coverage of other current liabilities 4.16M, indicating strong liquidity.

Bear case

  • Operating cash flow of (35M) barely covers its investment activities of 41.77M, with a coverage ratio of -0.84, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Operating cash flow of (35M) provides insufficient coverage of deferred revenue obligations of 424000, which is -82.54x, raising concerns about future service delivery capabilities.
  • The company's operating cash flow of (35M) shows concerning coverage of stock compensation expenses of 6.50M, with a -5.38 ratio indicating potential earnings quality issues.
  • Operating earnings of (14.17M) show weak coverage of depreciation charges of 119000, with a -119.08 ratio indicating high capital intensity and potential reinvestment needs.
  • Retained earnings of (296.15M) provide limited buffer against comprehensive income items of 24000, which is -12339.42x, 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. 1,204.25 Bn -1,306.67 0.00 0.01 Bn
2 ONC BeOne Medicines Ltd. 486.51 Bn 7,097.20 97.84 1.90 Bn
3 VRTX Vertex Pharmaceuticals Inc / Ma 122.05 Bn 30.87 10.17 1.85 Bn
4 REGN Regeneron Pharmaceuticals, Inc. 83.00 Bn 18.42 5.79 2.71 Bn
5 ARGX Argenx Se 50.78 Bn 33.71 26,480.10 -
6 ALNY Alnylam Pharmaceuticals, Inc. 43.66 Bn 139.17 11.76 2.97 Bn
7 BNTC Benitec Biopharma Inc. 43.61 Bn -941.82 0.00 0.00 Bn
8 INSM INSMED Inc 28.88 Bn -24.40 64.61 0.74 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.22 11.06
EV to Cash from Ops. EV/CFO -0.42 26.32
EV to Debt EV to Debt 73.64 762.61
EV to EBIT EV/EBIT -1.03 -13.49
EV to EBITDA EV/EBITDA -0.38 8.61
EV to Free Cash Flow [EV/FCF] EV/FCF -0.42 25.66
EV to Market Cap EV to Market Cap 0.61 203.37
EV to Revenue EV/Rev 21.63 156.31
Price to Book Value [P/B] P/B 0.38 20.59
Price to Earnings [P/E] P/E -1.69 -0.88
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 -12.64
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 -0.14
Interest Coverage Int. cover (Qtr) 0.00 956.66
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 0.00 7.87
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 26.86 753.48
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 0.01
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 78.84 -57.63
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 45.41 8.83
EBIT Growth (1y) % EBIT 1y % (Qtr) 78.84 -67.21
EBT Growth (1y) % EBT 1y % (Qtr) 78.84 -23.74
EPS Growth (1y) % EPS 1y % (Qtr) 79.84 -7.02
FCF Growth (1y) % FCF 1y % (Qtr) 31.48 -40.48
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 12.71 264.51
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.01 0.14
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.00
Cash Ratio Cash Ratio (Qtr) 7.11 3.92
Current Ratio Curr Ratio (Qtr) 14.74 7.33
Debt to Equity Ratio Debt/Equity (Qtr) 0.00 0.48
Interest Cover Ratio Int Coverage (Qtr) 0.00 956.66
Times Interest Earned Times Interest Earned (Qtr) 0.00 956.66
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) -2,084.70 -17,888.70
EBIT Margin % EBIT Margin % (Qtr) -2,102.37 -18,246.34
EBT Margin % EBT Margin % (Qtr) -2,102.37 -19,108.08
Gross Margin % Gross Margin % (Qtr) 100.00 -10.30
Net Profit Margin % Net Margin % (Qtr) -2,102.40 -19,056.96