Sagimet Biosciences Inc. (NASDAQ: SGMT)

Sector: Healthcare Industry: Biotechnology CIK: 0001400118
Market Cap 180.46 Mn
P/B 1.51
P/E -3.13
P/S 0.00
ROIC (Qtr) -51.52
Div Yield % 0.00
Rev 1y % (Qtr) 0.00
Total Debt (Qtr) 115,000.00
Debt/Equity (Qtr) 0.00

About

Sagimet Biosciences Inc. (SGMT) is a clinical-stage biopharmaceutical company operating in the biotechnology industry. The company is renowned for its development of novel therapeutics, specifically fatty acid synthase (FASN) inhibitors, which target dysfunctional metabolic pathways in diseases resulting from the overproduction of the fatty acid, palmitate. Sagimet Biosciences Inc.'s main business activities revolve around the research, development, and clinical testing of FASN inhibitors. These activities are primarily focused on three key areas:...

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Price action

Investment thesis

Bull case

  • Healthy cash reserves of 32.50M provide 282.57x coverage of short-term debt 115000, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 128.40M provides 1116.53x coverage of total debt 115000, indicating robust asset backing and low credit risk.
  • Short-term investments of 84.20M provide solid 17.59x coverage of other current liabilities 4.79M, indicating strong liquidity.
  • Tangible assets of 128.40M provide robust 26.82x coverage of other current liabilities 4.79M, indicating strong asset backing.
  • Cash reserves of 32.50M provide robust 3.55x coverage of current liabilities 9.15M, indicating strong short-term solvency.

Bear case

  • Operating cash flow of (44.84M) barely covers its investment activities of 48000, with a coverage ratio of -934.19, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of 48000 provide weak support for R&D spending of 46.54M, which is 0x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • The company's operating cash flow of (44.84M) shows concerning coverage of stock compensation expenses of 6.29M, with a -7.13 ratio indicating potential earnings quality issues.
  • Operating earnings of (57.67M) show weak coverage of depreciation charges of 151000, with a -381.93 ratio indicating high capital intensity and potential reinvestment needs.
  • Long-term investments of 8.81M represent a high 76.57x of fixed assets 115000, 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. 1,446.17 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 1.08 12.96
EV to Cash from Ops. EV/CFO -3.08 23.73
EV to Debt EV to Debt 1,202.52 772.65
EV to EBIT EV/EBIT -2.40 -11.30
EV to EBITDA EV/EBITDA -2.16 7.11
EV to Free Cash Flow [EV/FCF] EV/FCF -3.08 22.12
EV to Market Cap EV to Market Cap 0.77 68.89
EV to Revenue EV/Rev 0.00 199.70
Price to Book Value [P/B] P/B 1.51 22.62
Price to Earnings [P/E] P/E -3.13 -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 Growth (1y) % 0.00 -27.24
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -57.81 747.06
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 0.01
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -53.72 -48.21
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -40.78 -2.09
EBIT Growth (1y) % EBIT 1y % (Qtr) -53.72 -57.79
EBT Growth (1y) % EBT 1y % (Qtr) -53.72 -14.35
EPS Growth (1y) % EPS 1y % (Qtr) -381.08 -30.88
FCF Growth (1y) % FCF 1y % (Qtr) -16.49 -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) 3.55 3.79
Current Ratio Curr Ratio (Qtr) 13.06 7.23
Debt to Equity Ratio Debt/Equity (Qtr) 0.00 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 % (Qtr) 0.00 -18,509.94
EBIT Margin % EBIT Margin % (Qtr) 0.00 -18,862.18
EBT Margin % EBT Margin % (Qtr) 0.00 -19,783.19
Gross Margin % Gross Margin % (Qtr) 0.00 -8.62
Net Profit Margin % Net Margin % (Qtr) 0.00 -19,732.60