Cartesian Therapeutics, Inc. (NASDAQ: RNAC)

Sector: Healthcare Industry: Biotechnology CIK: 0001453687
Market Cap 231.30 Mn
P/B -6.45
P/E -4.57
P/S 212.00
ROIC (Qtr) 1,473.50
Div Yield % 0.00
Rev 1y % (Qtr) 16.80
Total Debt (Qtr) 12.60 Mn
Debt/Equity (Qtr) -0.35

About

Cartesian Therapeutics, Inc. (RNAC) is a clinical-stage biotechnology company that specializes in the development of mRNA cell therapies for the treatment of autoimmune diseases. The company, headquartered in Gaithersburg, Maryland, was established in 2007 and has since been dedicated to creating innovative solutions in the biotechnology industry. Cartesian Therapeutics operates within the biotechnology industry, focusing on the development of mRNA cell therapies. The company's work is divided into three main modalities: mRNA CAR-T, mRNA MSC, and...

Read more

Price action

Investment thesis

Bull case

  • Healthy cash reserves of 143.38M provide 36.99x coverage of short-term debt 3.88M, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 324.51M provides 25.75x coverage of total debt 12.60M, indicating robust asset backing and low credit risk.
  • Retained earnings of (729.80M) represent substantial 20.36x of equity (35.84M), indicating strong internal capital generation.
  • Tangible assets of 324.51M provide robust 42.13x coverage of other current liabilities 7.70M, indicating strong asset backing.
  • Cash reserves of 143.38M provide robust 10.39x coverage of current liabilities 13.80M, indicating strong short-term solvency.

Bear case

  • Investment activities of (5.32M) provide weak support for R&D spending of 54.65M, which is -0.10x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • The company's operating cash flow of (63.23M) shows concerning coverage of stock compensation expenses of 10.24M, with a -6.17 ratio indicating potential earnings quality issues.
  • Free cash flow of (68.55M) provides weak coverage of capital expenditures of 5.32M, with a -12.89 ratio suggesting additional external financing needs for growth initiatives.
  • Operating cash flow of (63.23M) provides minimal -220.32x coverage of tax expenses of 287000, suggesting potential tax planning inefficiencies or unsustainable tax positions.
  • Operating earnings of (47.69M) show weak coverage of depreciation charges of 4.07M, with a -11.72 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. 1,151.25 Bn -1,249.17 0.00 0.01 Bn
2 ONC BeOne Medicines Ltd. 485.22 Bn 7,078.40 97.58 1.90 Bn
3 VRTX Vertex Pharmaceuticals Inc / Ma 122.74 Bn 33.40 10.47 1.83 Bn
4 REGN Regeneron Pharmaceuticals, Inc. 82.16 Bn 18.24 5.73 2.71 Bn
5 ARGX Argenx Se 48.85 Bn 32.43 25,472.44 -
6 ALNY Alnylam Pharmaceuticals, Inc. 46.12 Bn 1,058.58 14.37 3.21 Bn
7 BNTC Benitec Biopharma Inc. 42.24 Bn -1,010.00 0.00 0.00 Bn
8 INSM INSMED Inc 28.75 Bn -24.29 64.32 0.74 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.23 11.11
EV to Cash from Ops. EV/CFO -1.33 26.32
EV to Debt EV to Debt 6.69 688.48
EV to EBIT EV/EBIT -1.77 -10.97
EV to EBITDA EV/EBITDA -0.96 8.32
EV to Free Cash Flow [EV/FCF] EV/FCF -1.23 25.03
EV to Market Cap EV to Market Cap 0.36 163.46
EV to Revenue EV/Rev 77.29 148.57
Price to Book Value [P/B] P/B -6.45 20.73
Price to Earnings [P/E] P/E -4.57 -0.34
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) -19.26 -12.47
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) 0.00 860.86
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 37.10 -26.99
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -34.59 756.75
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 0.01
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 80.40 -53.03
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -73.74 -4.42
EBIT Growth (1y) % EBIT 1y % (Qtr) 81.92 -62.56
EBT Growth (1y) % EBT 1y % (Qtr) 81.92 -19.19
EPS Growth (1y) % EPS 1y % (Qtr) 97.30 -4.07
FCF Growth (1y) % FCF 1y % (Qtr) -41.60 -33.40
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -97.72 264.38
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.00 0.14
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.00
Cash Ratio Cash Ratio (Qtr) 10.39 3.81
Current Ratio Curr Ratio (Qtr) 10.67 7.25
Debt to Equity Ratio Debt/Equity (Qtr) -0.35 0.43
Interest Cover Ratio Int Coverage (Qtr) 0.00 860.86
Times Interest Earned Times Interest Earned (Qtr) 0.00 860.86
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) -3,998.30 -17,746.13
EBIT Margin % EBIT Margin % (Qtr) -4,371.40 -18,101.92
EBT Margin % EBT Margin % (Qtr) -4,371.40 -18,961.86
Gross Margin % Gross Margin % (Qtr) 100.00 -9.24
Net Profit Margin % Net Margin % (Qtr) -4,638.60 -18,911.61