Sana Biotechnology, Inc. (NASDAQ: SANA)

Sector: Healthcare Industry: Biotechnology CIK: 0001770121
Market Cap 1.09 Bn
P/B 5.59
P/E -4.66
P/S 0.00
ROIC (Qtr) -98.84
Div Yield % 0.00
Rev 1y % (Qtr) 0.00
Total Debt (Qtr) 82.24 Mn
Debt/Equity (Qtr) 0.42

About

Sana Biotechnology, Inc., a prominent player in the biotechnology industry, operates under the ticker symbol SANA. The company is at the forefront of developing engineered cells as medicines, with a focus on transforming the treatment of various diseases by harnessing the power of these cells. Sana Biotechnology's primary business activities revolve around the development of ex vivo and in vivo cell engineering platforms. These platforms aim to treat human diseases by engrafting new cells to replace damaged, diseased, or missing cells in patients....

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Price action

Investment thesis

Bull case

  • Healthy cash reserves of 107.55M provide 7.49x coverage of short-term debt 14.37M, demonstrating strong liquidity position and minimal refinancing risk.
  • Robust free cash flow of (158.08M) exceeds capital expenditure of (270000) by 585.47x, indicating strong organic growth funding capability.
  • Strong tangible asset base of 235.61M provides 2.87x coverage of total debt 82.24M, indicating robust asset backing and low credit risk.
  • Short-term investments of 49.70M provide solid 2.58x coverage of other current liabilities 19.29M, indicating strong liquidity.
  • Tangible assets of 235.61M provide robust 12.22x coverage of other current liabilities 19.29M, indicating strong asset backing.

Bear case

  • Operating cash flow of (158.35M) barely covers its investment activities of 23.35M, with a coverage ratio of -6.78, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of 23.35M provide weak support for R&D spending of 145.99M, which is 0.16x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • The company's operating cash flow of (158.35M) shows concerning coverage of stock compensation expenses of 25.56M, with a -6.19 ratio indicating potential earnings quality issues.
  • Operating earnings of (234.41M) show weak coverage of depreciation charges of 24.35M, with a -9.63 ratio indicating high capital intensity and potential reinvestment needs.
  • Operating cash flow of (158.35M) barely covers operating expenses of 44.61M with a -3.55 ratio, suggesting thin operational efficiency margins and limited flexibility.

Peer comparison

Companies in the Biotechnology
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 SMMT Summit Therapeutics Inc. 1,446.17 Bn -1,569.17 0.00 0.01 Bn
2 ONC BeOne Medicines Ltd. 439.23 Bn 6,407.40 88.33 1.90 Bn
3 VRTX Vertex Pharmaceuticals Inc / Ma 120.62 Bn 32.82 10.29 1.83 Bn
4 REGN Regeneron Pharmaceuticals, Inc. 84.40 Bn 18.44 5.92 2.71 Bn
5 ALNY Alnylam Pharmaceuticals, Inc. 56.13 Bn 1,288.39 17.49 3.21 Bn
6 ARGX Argenx Se 47.89 Bn 31.79 24,973.95 -
7 BNTC Benitec Biopharma Inc. 42.45 Bn -1,015.00 0.00 0.00 Bn
8 INSM INSMED Inc 32.67 Bn -27.60 73.08 0.74 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 2.53 12.96
EV to Cash from Ops. EV/CFO -6.96 23.73
EV to Debt EV to Debt 13.40 772.65
EV to EBIT EV/EBIT -4.70 -11.30
EV to EBITDA EV/EBITDA -5.11 7.11
EV to Free Cash Flow [EV/FCF] EV/FCF -6.97 22.12
EV to Market Cap EV to Market Cap 1.01 68.89
EV to Revenue EV to Revenue 0.00 199.70
Price to Book Value [P/B] P/B 5.59 22.62
Price to Earnings [P/E] P/E -4.66 -12.30
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 -12.02
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 -0.15
Interest Coverage Interest Coverage 0.00 857.11
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 100.57 -27.24
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -17.79 747.06
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 0.01
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 23.35 -48.21
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 22.65 -2.09
EBIT Growth (1y) % EBIT 1y % (Qtr) 23.35 -57.79
EBT Growth (1y) % EBT 1y % (Qtr) 23.35 -14.35
EPS Growth (1y) % EPS 1y % (Qtr) 30.71 -30.88
FCF Growth (1y) % FCF 1y % (Qtr) 42.52 -32.51
Gross Profit Growth (1y) % Gross Profit Growth (1y) % 0.00 227.96
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) 3.03 3.79
Current Ratio Curr Ratio (Qtr) 4.56 7.23
Debt to Equity Ratio Debt/Equity (Qtr) 0.42 0.42
Interest Cover Ratio Interest Cover Ratio 0.00 857.11
Times Interest Earned Times Interest Earned 0.00 857.11
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % 0.00 -18,509.94
EBIT Margin % EBIT Margin % 0.00 -18,862.18
EBT Margin % EBT Margin % 0.00 -19,783.19
Gross Margin % Gross Margin % 0.00 -8.62
Net Profit Margin % Net Profit Margin % 0.00 -19,732.60