Roivant Sciences Ltd. (NASDAQ: ROIV)

Sector: Healthcare Industry: Biotechnology CIK: 0001635088
Market Cap 17.86 Bn
P/B 4.18
P/E -22.07
P/S 1,341.74
ROIC (Qtr) -30.14
Div Yield % 0.00
Rev 1y % (Qtr) -77.83
Total Debt (Qtr) 108.94 Mn
Debt/Equity (Qtr) 0.03

About

Roivant Sciences Ltd., often referred to as Roivant, is a commercial-stage biopharmaceutical company operating in the healthcare sector. Its primary focus is on improving the lives of patients by accelerating the development and commercialization of medicines that have a significant impact. Roivant's business model is unique, as it creates nimble subsidiaries, or "Vants," each with its own management team and mission. This approach allows Roivant to leverage its business development expertise, vast network of industry relationships, and proprietary...

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Price action

Investment thesis

Bull case

  • Healthy cash reserves of 1.48B provide 141.65x coverage of short-term debt 10.44M, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 5.23B provides 47.97x coverage of total debt 108.94M, indicating robust asset backing and low credit risk.
  • Long-term investments of 433.91M provide solid 4.41x coverage of long-term debt 98.50M, indicating strategic financial planning.
  • Short-term investments of 3.05B provide solid 23.80x coverage of other current liabilities 128.23M, indicating strong liquidity.
  • Tangible assets of 5.23B provide robust 40.75x coverage of other current liabilities 128.23M, indicating strong asset backing.

Bear case

  • Operating cash flow of (759.10M) barely covers its investment activities of 218.37M, with a coverage ratio of -3.48, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of 218.37M provide weak support for R&D spending of 628.11M, which is 0.35x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • The company's operating cash flow of (759.10M) shows concerning coverage of stock compensation expenses of 352.48M, with a -2.15 ratio indicating potential earnings quality issues.
  • Free cash flow of (766.86M) provides weak coverage of capital expenditures of 7.76M, with a -98.83 ratio suggesting additional external financing needs for growth initiatives.
  • Operating cash flow of (759.10M) provides minimal -9.01x coverage of tax expenses of 84.30M, suggesting potential tax planning inefficiencies or unsustainable tax positions.

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 3.20 11.11
EV to Cash from Ops. EV/CFO -22.03 26.32
EV to Debt EV to Debt 153.48 688.48
EV to EBIT EV/EBIT -23.06 -10.97
EV to EBITDA EV/EBITDA -13.90 8.32
EV to Free Cash Flow [EV/FCF] EV/FCF -21.80 25.03
EV to Market Cap EV to Market Cap 0.94 163.46
EV to Revenue EV/Rev 1,256.23 148.57
Price to Book Value [P/B] P/B 4.18 20.73
Price to Earnings [P/E] P/E -22.07 -0.34
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 -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) -87.55 -26.99
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -25.74 756.75
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 0.01
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -593.91 -53.03
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -33.55 -4.42
EBIT Growth (1y) % EBIT 1y % (Qtr) -486.80 -62.56
EBT Growth (1y) % EBT 1y % (Qtr) -486.80 -19.19
EPS Growth (1y) % EPS 1y % (Qtr) -515.79 -4.07
FCF Growth (1y) % FCF 1y % (Qtr) 1.62 -33.40
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -58.99 264.38
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) 9.73 3.81
Current Ratio Curr Ratio (Qtr) 30.66 7.25
Debt to Equity Ratio Debt/Equity (Qtr) 0.03 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) -5,352.50 -17,746.13
EBIT Margin % EBIT Margin % (Qtr) -5,446.60 -18,101.92
EBT Margin % EBT Margin % (Qtr) -5,446.60 -18,961.86
Gross Margin % Gross Margin % (Qtr) 91.20 -9.24
Net Profit Margin % Net Margin % (Qtr) -6,079.90 -18,911.61