Rezolute, Inc. (NASDAQ: RZLT)

Sector: Healthcare Industry: Biotechnology CIK: 0001509261
Market Cap 328.76 Mn
P/B 2.57
P/E -3.90
P/S 0.00
ROIC (Qtr) -64.71
Div Yield % 0.00
Rev 1y % (Qtr) 0.00
Total Debt (Qtr) 1.29 Mn
Debt/Equity (Qtr) 0.01
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About

Rezolute, Inc. (RZLT) operates in the biopharmaceutical industry, specifically focused on developing therapies for metabolic diseases related to chronic glucose imbalance. The company's main business activities involve the creation of treatments for congenital hyperinsulinism (HI) and diabetic macular edema (DME). Rezolute's operations span across various countries, with a significant presence in the United States.

Rezolute generates revenue through the development and commercialization of its primary products, RZ358 and RZ402. RZ3

Investment thesis

Bull case

  • Healthy cash reserves of 11.94M provide 17.93x coverage of short-term debt 666000, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 138.63M provides 107.88x coverage of total debt 1.28M, indicating robust asset backing and low credit risk.
  • Short-term investments of 120.99M provide solid 23.82x coverage of other current liabilities 5.08M, indicating strong liquidity.
  • Tangible assets of 138.63M provide robust 27.29x coverage of other current liabilities 5.08M, indicating strong asset backing.
  • Cash reserves of 11.94M provide solid 24.73x coverage of other non-current liabilities 483000, indicating strong liquidity.

Bear case

  • Investment activities of (22.28M) provide weak support for R&D spending of 63.64M, which is -0.35x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Short-term investments of 120.99M significantly exceed cash reserves of 11.94M, which is 10.13x, indicating potentially excessive yield-seeking behavior at the expense of liquidity.
  • The company's operating cash flow of (77.15M) shows concerning coverage of stock compensation expenses of 10.22M, with a -7.55 ratio indicating potential earnings quality issues.
  • Operating earnings of (84.23M) show weak coverage of depreciation charges of 584000, with a -144.23 ratio indicating high capital intensity and potential reinvestment needs.
  • High financing cash flow of 102.44M relative to working capital of 125.58M, which is 0.82x suggests concerning dependence on external funding for operational 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. 1,204.25 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 2.32 11.06
EV to Cash from Ops. EV/CFO -4.16 26.32
EV to Debt EV to Debt 249.90 762.61
EV to EBIT EV/EBIT -3.81 -13.49
EV to EBITDA EV/EBITDA -3.59 8.61
EV to Free Cash Flow [EV/FCF] EV/FCF -4.16 25.66
EV to Market Cap EV to Market Cap 0.98 203.37
EV to Revenue EV to Revenue 0.00 156.31
Price to Book Value [P/B] P/B 2.57 20.59
Price to Earnings [P/E] P/E -3.90 -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) 33.72 753.48
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 0.01
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -18.41 -57.63
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -22.71 8.83
EBIT Growth (1y) % EBIT 1y % (Qtr) -18.41 -67.21
EBT Growth (1y) % EBT 1y % (Qtr) -18.41 -23.74
EPS Growth (1y) % EPS 1y % (Qtr) 23.77 -7.02
FCF Growth (1y) % FCF 1y % (Qtr) -21.60 -40.48
Gross Profit Growth (1y) % Gross Profit Growth (1y) % 0.00 264.51
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) 1.25 3.92
Current Ratio Curr Ratio (Qtr) 14.18 7.33
Debt to Equity Ratio Debt/Equity (Qtr) 0.01 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 % 0.00 -17,888.70
EBIT Margin % EBIT Margin % 0.00 -18,246.34
EBT Margin % EBT Margin % 0.00 -19,108.08
Gross Margin % Gross Margin % 0.00 -10.30
Net Profit Margin % Net Profit Margin % 0.00 -19,056.96