Rezolute, Inc. (NASDAQ: RZLT)

Sector: Healthcare Industry: Biotechnology CIK: 0001509261
P/B 1.14
P/E -2.17
P/S 0.00
Market Cap 167.65 Mn
ROIC (Qtr) -53.00
Div Yield % 0.00
Rev 1y % (Qtr) 0.00
Total Debt (Qtr) 1.45 Mn
Debt/Equity (Qtr) 0.01

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

Stock Price Chart

Analysis

Pros

  • Healthy cash reserves of 9.10M provide 14x coverage of short-term debt 650000, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 158.66M provides 109.12x coverage of total debt 1.45M, indicating robust asset backing and low credit risk.
  • Short-term investments of 143.10M provide solid 22.71x coverage of other current liabilities 6.30M, indicating strong liquidity.
  • Tangible assets of 158.66M provide robust 25.18x coverage of other current liabilities 6.30M, indicating strong asset backing.
  • Cash reserves of 9.10M provide solid 18.84x coverage of other non-current liabilities 483000, indicating strong liquidity.

Cons

  • Investment activities of (33.62M) provide weak support for R&D spending of 61.92M, which is -0.54x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Short-term investments of 143.10M significantly exceed cash reserves of 9.10M, which is 15.73x, indicating potentially excessive yield-seeking behavior at the expense of liquidity.
  • The company's operating cash flow of (70.49M) shows concerning coverage of stock compensation expenses of 8.25M, with a -8.54 ratio indicating potential earnings quality issues.
  • Operating earnings of (77.18M) show weak coverage of depreciation charges of 574000, with a -134.47 ratio indicating high capital intensity and potential reinvestment needs.
  • Retained earnings of (422.01M) provide limited buffer against comprehensive income items of 49000, which is -8612.37x, 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. 1,323.29 Bn -1,435.83 0.00 0.01 Bn
2 ONC BeOne Medicines Ltd. 417.21 Bn 6,086.20 83.90 1.90 Bn
3 VRTX Vertex Pharmaceuticals Inc / Ma 116.84 Bn 31.79 9.97 1.83 Bn
4 REGN Regeneron Pharmaceuticals, Inc. 78.64 Bn 17.18 5.52 2.71 Bn
5 ALNY Alnylam Pharmaceuticals, Inc. 54.97 Bn 1,261.84 17.12 3.21 Bn
6 ARGX Argenx Se 51.25 Bn 34.02 26,727.15 -
7 BNTC Benitec Biopharma Inc. 43.25 Bn -1,034.17 0.00 0.00 Bn
8 INSM INSMED Inc 38.50 Bn -32.52 86.13 0.74 Bn

Industry Comparisons

Current Valuation

Metric Value Industry Percentile
EV to Assets 0.47 12.03
EV to Cash from Ops. -1.07 24.32
EV to Debt 51.69 730.11
EV to EBIT -0.97 -10.85
EV to EBITDA -0.91 7.07
EV to Free Cash Flow [EV/FCF] -1.07 22.90
EV to Market Cap 0.45 80.68
EV to Revenue 0.00 219.46
Price to Book Value [P/B] 1.14 21.99
Price to Earnings [P/E] -2.17 -12.59

Dividend Metrics

Metric Value Industry Percentile
Dividend Coverage Ratio 0.00 -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 0.00 841.02

Growth Metrics

Metric Value Industry Percentile
Capex Growth (1y) % 0.00 -27.16
Cash and Equivalents Growth (1y) % -13.12 734.69
Dividend Growth (1y) % 0.00 0.01
EBIAT Growth (1y) % -11.36 -46.35
EBITDA Growth (1y) % -15.96 -1.81
EBIT Growth (1y) % -11.36 -55.92
EBT Growth (1y) % -11.36 -12.18
EPS Growth (1y) % 26.77 -27.84
FCF Growth (1y) % -12.25 -32.19
Gross Profit Growth (1y) % 0.00 226.86

Liquidity Ratios

Metric Value Industry Percentile
Asset Utilization Ratio 0.00 0.14
Cash Payout Ratio 0.00 0.00
Cash Ratio 0.89 3.86
Current Ratio 15.15 7.28
Debt to Equity Ratio 0.01 0.41
Interest Cover Ratio 0.00 841.02
Times Interest Earned 0.00 841.02

Profitability

Metric Value Industry Percentile
EBITDA Margin % 0.00 -18,230.47
EBIT Margin % 0.00 -18,577.52
EBT Margin % 0.00 -19,484.48
Gross Margin % 0.00 -7.76
Net Profit Margin % 0.00 -19,434.96