SAB Biotherapeutics, Inc. (NASDAQ: SABS)

Sector: Healthcare Industry: Biotechnology CIK: 0001833214
P/B 2.10
P/E 18.48
P/S 3,019.18
Market Cap 346.29 Mn
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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Analysis

Pros

  • 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.

Cons

  • 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. 1,349.40 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 Percentile
EV to Assets 1.90 12.31
EV to Cash from Ops. -9.30 23.25
EV to Debt 56.41 738.44
EV to EBIT 18.38 -9.16
EV to EBITDA -8.71 6.95
EV to Free Cash Flow [EV/FCF] -9.29 21.90
EV to Market Cap 1.01 65.67
EV to Revenue 3,042.96 227.32
Price to Book Value [P/B] 2.10 22.34
Price to Earnings [P/E] 18.48 -11.77

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 76.54 841.00

Growth Metrics

Metric Value Industry Percentile
Capex Growth (1y) % 84.31 -27.13
Cash and Equivalents Growth (1y) % 220.84 734.65
Dividend Growth (1y) % 0.00 0.01
EBIAT Growth (1y) % 141.97 -46.93
EBITDA Growth (1y) % 14.39 -1.68
EBIT Growth (1y) % 141.97 -56.45
EBT Growth (1y) % 141.13 -12.70
EPS Growth (1y) % 62.22 -28.31
FCF Growth (1y) % 2.52 -31.90
Gross Profit Growth (1y) % -92.42 226.84

Liquidity Ratios

Metric Value Industry Percentile
Asset Utilization Ratio 0.00 0.14
Cash Payout Ratio 0.00 0.00
Cash Ratio 2.73 3.85
Current Ratio 10.50 7.27
Debt to Equity Ratio 0.04 0.40
Interest Cover Ratio 76.54 841.00
Times Interest Earned 76.54 841.00

Profitability

Metric Value Industry Percentile
EBITDA Margin % 19,260.80 -18,234.31
EBIT Margin % 16,554.61 -18,580.80
EBT Margin % 16,338.32 -19,488.74
Gross Margin % 100.00 -7.59
Net Profit Margin % 16,338.30 -19,439.22