Siga Technologies Inc (NASDAQ: SIGA)

Sector: Healthcare Industry: Drug Manufacturers - Specialty & Generic CIK: 0001010086
Market Cap 437.51 Mn
P/B 2.15
P/E 5.87
P/S 2.54
ROIC (Qtr) 33.33
Div Yield % 9.82
Rev 1y % (Qtr) -73.83
Total Debt (Qtr) 0.00
Debt/Equity (Qtr) 0.00

About

SIGA Technologies, Inc., a commercial-stage pharmaceutical company (NASDAQ: SIGA), operates in the development and commercialization of medical countermeasures for biological threats. The company's main business activities involve the creation and sale of antiviral drugs to combat smallpox and monkeypox. SIGA's operations span across the United States, with a significant portion of its revenue generated through contracts with the U.S. Department of Defense (DoD) and other organizations, as well as through the sale of its lead product, TPOXX, to...

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Price action

Investment thesis

Bull case

  • Operating cash flow of 116.64M provides strong 31.74x coverage of stock compensation 3.67M, indicating sustainable incentive practices.
  • Robust free cash flow of 116.31M exceeds capital expenditure of 332308 by 350.01x, indicating strong organic growth funding capability.
  • Tangible assets of 230.70M provide exceptional 22.53x coverage of deferred revenue 10.24M, showing strong service capability backing.
  • Strong operating cash flow of 116.64M provides 5.10x coverage of SG&A expenses 22.86M, showing efficient operational cost management.
  • Operating cash flow of 116.64M provides strong 11.39x coverage of deferred revenue 10.24M, indicating service delivery capability.

Bear case

  • Operating cash flow of 116.64M barely covers its investment activities of (332308), with a coverage ratio of -351.01, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Operating cash flow of 116.64M provides thin coverage of dividend payments of (43.03M) with a -2.71 ratio, suggesting potential dividend sustainability issues if operational performance deteriorates.
  • Investment activities of (332308) provide weak support for R&D spending of 18.26M, which is -0.02x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Tangible assets of 230.70M provide limited backing for working capital of 202.90M, which is 1.14x, suggesting increased operational risk in market downturns.
  • Fixed assets of 1.20M showing 2.19x ratio to depreciation of 546818 indicates aging infrastructure requiring significant near-term capital investment.

Peer comparison

Companies in the Drug Manufacturers - Specialty & Generic
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 ZTS Zoetis Inc. 56.15 Bn 21.18 5.98 7.27 Bn
2 TAK Takeda Pharmaceutical Co Ltd 48.92 Bn 221.13 1.66 36.24 Bn
3 HLN Haleon plc 46.13 Bn 25.59 3.29 -
4 TEVA Teva Pharmaceutical Industries Ltd 35.27 Bn 49.54 2.10 17.07 Bn
5 UTHR UNITED THERAPEUTICS Corp 21.76 Bn 17.11 6.95 0.00 Bn
6 VTRS Viatris Inc 14.87 Bn -4.03 1.05 14.44 Bn
7 NBIX Neurocrine Biosciences Inc 14.08 Bn 32.91 5.25 0.43 Bn
8 ELAN Elanco Animal Health Inc 11.64 Bn 323.29 2.54 4.32 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 1.10 24.98
EV to Cash from Ops. EV/CFO 2.19 -85.40
EV to Debt EV to Debt 0.00 265.88
EV to EBIT EV/EBIT 2.63 -32.65
EV to EBITDA EV/EBITDA 2.81 -29.50
EV to Free Cash Flow [EV/FCF] EV/FCF 2.19 -32.62
EV to Market Cap EV to Market Cap 0.58 -10.98
EV to Revenue EV/Rev 1.48 -700.14
Price to Book Value [P/B] P/B 2.15 27.22
Price to Earnings [P/E] P/E 5.87 -122.96
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 1.73 0.34
Dividend Payout Ratio % Div Payout % (Qtr) 57.70 4.81
Dividend per Basic Share Div per Share (Qtr) 0.60 0.07
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 36.95 4.08
Interest Coverage Int. cover (Qtr) 0.00 -38.10
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -1,250.19 -157.22
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 73.22 44,776.25
Dividend Growth (1y) % Div 1y % (Qtr) 0.00 2.81
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -13.11 24.45
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -13.59 18.14
EBIT Growth (1y) % EBIT 1y % (Qtr) -12.17 37.66
EBT Growth (1y) % EBT 1y % (Qtr) -12.17 108.18
EPS Growth (1y) % EPS 1y % (Qtr) -13.33 52.88
FCF Growth (1y) % FCF 1y % (Qtr) 62.77 -54.47
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -7.31 25.28
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.74 0.50
Cash Payout Ratio Cash Payout (Qtr) 0.37 0.02
Cash Ratio Cash Ratio (Qtr) 6.92 2.10
Current Ratio Curr Ratio (Qtr) 9.17 3.92
Debt to Equity Ratio Debt/Equity (Qtr) 0.00 -1.11
Interest Cover Ratio Int Coverage (Qtr) 0.00 -38.10
Times Interest Earned Times Interest Earned (Qtr) 0.00 -38.10
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 56.60 -62,432.09
EBIT Margin % EBIT Margin % (Qtr) 56.27 -63,260.88
EBT Margin % EBT Margin % (Qtr) 56.27 -66,726.96
Gross Margin % Gross Margin % (Qtr) 76.30 8,332.72
Net Profit Margin % Net Margin % (Qtr) 43.20 -66,728.37