SAB Biotherapeutics, Inc. (NASDAQ: SABS)

Sector: Healthcare Industry: Biotechnology CIK: 0001833214
Market Cap 379.02 Mn
P/B 2.30
P/E 20.23
P/S 3,304.46
ROIC (Qtr) -45.54
Div Yield % 0.00
Rev 1y % (Qtr) 0.00
Total Debt (Qtr) 6.19 Mn
Debt/Equity (Qtr) 0.04

About

SAB Biotherapeutics, Inc. (SABS) is a clinical-stage biopharmaceutical company operating within the healthcare sector, specifically specializing in developing human polyclonal immunotherapeutic antibodies, also known as human immunoglobulins (hIgG), to address immune system disorders and infectious diseases. The company's unique selling point lies in its innovative approach, which involves the creation of product candidates that differentiate themselves from existing treatments through mechanisms of action, safety profiles, and potency. SAB Biotherapeutics'...

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Price action

Investment thesis

Bull case

  • Healthy cash reserves of 29.42M provide 29.77x coverage of short-term debt 988319, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 183.45M provides 29.65x coverage of total debt 6.19M, indicating robust asset backing and low credit risk.
  • Short-term investments of 81.46M provide solid 11.89x coverage of other current liabilities 6.85M, indicating strong liquidity.
  • Long-term investments of 50.61M provide solid 9.73x coverage of long-term debt 5.20M, indicating strategic financial planning.
  • Tangible assets of 183.45M provide robust 26.78x coverage of other current liabilities 6.85M, indicating strong asset backing.

Bear case

  • Operating cash flow of (37.53M) barely covers its investment activities of (110.67M), with a coverage ratio of 0.34, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of (110.67M) provide weak support for R&D spending of 31.28M, which is -3.54x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • The company's operating cash flow of (37.53M) shows concerning coverage of stock compensation expenses of 2.72M, with a -13.82 ratio indicating potential earnings quality issues.
  • Free cash flow of (37.59M) provides weak coverage of capital expenditures of 54877, with a -684.91 ratio suggesting additional external financing needs for growth initiatives.
  • Long-term investments of 50.61M represent a high 2.60x of fixed assets 19.44M, indicating potential overexposure to financial assets versus operational capabilities.

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 2.08 11.11
EV to Cash from Ops. EV/CFO -10.17 26.32
EV to Debt EV to Debt 61.70 688.48
EV to EBIT EV/EBIT 20.10 -10.97
EV to EBITDA EV/EBITDA -9.52 8.32
EV to Free Cash Flow [EV/FCF] EV/FCF -10.16 25.03
EV to Market Cap EV to Market Cap 1.01 163.46
EV to Revenue EV/Rev 3,328.23 148.57
Price to Book Value [P/B] P/B 2.30 20.73
Price to Earnings [P/E] P/E 20.23 -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) 76.54 860.86
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 84.31 -26.99
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 220.84 756.75
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 0.01
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 141.97 -53.03
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 14.39 -4.42
EBIT Growth (1y) % EBIT 1y % (Qtr) 141.97 -62.56
EBT Growth (1y) % EBT 1y % (Qtr) 141.13 -19.19
EPS Growth (1y) % EPS 1y % (Qtr) 62.22 -4.07
FCF Growth (1y) % FCF 1y % (Qtr) 2.52 -33.40
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -92.42 264.38
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) 2.73 3.81
Current Ratio Curr Ratio (Qtr) 10.50 7.25
Debt to Equity Ratio Debt/Equity (Qtr) 0.04 0.43
Interest Cover Ratio Int Coverage (Qtr) 76.54 860.86
Times Interest Earned Times Interest Earned (Qtr) 76.54 860.86
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 19,260.80 -17,746.13
EBIT Margin % EBIT Margin % (Qtr) 16,554.61 -18,101.92
EBT Margin % EBT Margin % (Qtr) 16,338.32 -18,961.86
Gross Margin % Gross Margin % (Qtr) 100.00 -9.24
Net Profit Margin % Net Margin % (Qtr) 16,338.30 -18,911.61