Cartesian Therapeutics, Inc. (RNAC) Stock Analysis and Metrics

Sector: Healthcare Industry: Biotechnology CIK: 0001453687

P/B -8.47

P/E -6.00

P/S 278.32

Market Cap 303.64 Mn

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...

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 mRNA in situ. The company's operations span across various countries, with its main base in the United States.

The company generates revenue through the development and commercialization of its mRNA cell therapies. Its primary products include Descartes-08, Descartes-15, and Descartes-33, which are being developed for the treatment of various autoimmune diseases. The customer base for these products includes pharmaceutical and biotechnology companies, academic institutions, and government agencies.

Cartesian Therapeutics holds a unique position within the industry, boasting a competitive advantage through its proprietary mRNA CAR-T technology. This technology introduces one or more mRNA molecules into cells to enhance their function, unlike DNA-based cell therapies. The mRNA CAR-T cells do not replicate and degrade naturally over time, allowing for pharmacokinetic control and reducing the risk of severe toxicity.

In addition to its mRNA CAR-T programs, Cartesian Therapeutics is developing Descartes-33, an allogeneic mRNA MSC product candidate. This product delivers a combination of therapeutic proteins to target key drivers in the pathogenesis of autoimmunity.

The company has established a manufacturing facility in Gaithersburg, Maryland, which operates under current good manufacturing practice (cGMP) and is capable of producing mRNA products, including Descartes-08. Cartesian Therapeutics also has a robust patent portfolio that includes issued patents and pending patent applications, as well as trade secrets and know-how.

The biotechnology and pharmaceutical industries are highly competitive, with rapidly advancing technologies and a strong emphasis on proprietary products. Cartesian Therapeutics faces potential competition from many different sources, including pharmaceutical and biotechnology companies, academic institutions, governmental agencies, and public and private research institutions. The company's competitors may have significantly greater financial resources, established presence in the market, expertise in research and development, manufacturing, preclinical and clinical testing, obtaining regulatory approvals and reimbursement and marketing approved products than Cartesian Therapeutics does.

Stock Price Chart

Analysis

Pros

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.

Cons

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.	1,349.40 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	0.42	12.31
EV to Cash from Ops.	-2.48	23.25
EV to Debt	12.43	738.44
EV to EBIT	-3.28	-9.16
EV to EBITDA	-1.79	6.95
EV to Free Cash Flow [EV/FCF]	-2.29	21.90
EV to Market Cap	0.52	65.67
EV to Revenue	143.60	227.32
Price to Book Value [P/B]	-8.47	22.34
Price to Earnings [P/E]	-6.00	-11.77

Dividend Metrics

Metric	Value	Industry
Dividend Coverage Ratio	-19.26	-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	0.00	841.00

Growth Metrics

Metric	Value	Industry
Capex Growth (1y) %	37.10	-27.13
Cash and Equivalents Growth (1y) %	-34.59	734.65
Dividend Growth (1y) %	0.00	0.01
EBIAT Growth (1y) %	80.40	-46.93
EBITDA Growth (1y) %	-73.74	-1.68
EBIT Growth (1y) %	81.92	-56.45
EBT Growth (1y) %	81.92	-12.70
EPS Growth (1y) %	97.30	-28.31
FCF Growth (1y) %	-41.60	-31.90
Gross Profit Growth (1y) %	-97.72	226.84

Liquidity Ratios

Metric	Value	Industry
Asset Utilization Ratio	0.00	0.14
Cash Payout Ratio	0.00	0.00
Cash Ratio	10.39	3.85
Current Ratio	10.67	7.27
Debt to Equity Ratio	-0.35	0.40
Interest Cover Ratio	0.00	841.00
Times Interest Earned	0.00	841.00

Profitability

Metric	Value	Industry
EBITDA Margin %	-3,998.30	-18,234.31
EBIT Margin %	-4,371.40	-18,580.80
EBT Margin %	-4,371.40	-19,488.74
Gross Margin %	100.00	-7.59
Net Profit Margin %	-4,638.60	-19,439.22

Cartesian Therapeutics, Inc. (NASDAQ: RNAC)