Silence Therapeutics plc (SLN) Stock Analysis and Metrics

Sector: Healthcare Industry: Biotechnology CIK: 0001479615

P/B -3.91

P/E -4.34

P/S 11.08

Market Cap 289.25 Mn

ROIC (Qtr) 101.97

Div Yield % 0.00

Rev 1y % (Qtr) -89.39

Total Debt (Qtr) 182,000.00

Debt/Equity (Qtr) 0.00

About

Silence Therapeutics plc, a biotechnology company, is dedicated to discovering and developing innovative molecules that incorporate short interfering ribonucleic acid (siRNA) to inhibit the expression of specific target genes believed to be involved in the pathology of diseases with significant unmet medical needs. The company's siRNA molecules harness the body's natural mechanism of RNA interference (RNAi) by specifically binding to and degrading messenger RNA (mRNA) molecules that encode specific disease-associated proteins in a cell. Silence...

Silence Therapeutics plc, a biotechnology company, is dedicated to discovering and developing innovative molecules that incorporate short interfering ribonucleic acid (siRNA) to inhibit the expression of specific target genes believed to be involved in the pathology of diseases with significant unmet medical needs. The company's siRNA molecules harness the body's natural mechanism of RNA interference (RNAi) by specifically binding to and degrading messenger RNA (mRNA) molecules that encode specific disease-associated proteins in a cell.

Silence Therapeutics' main business activities revolve around its liver-targeting mRNAi GOLDâ„¢ platform. This platform is a comprehensive toolbox that consists of proprietary chemical modifications, liver cell targeting technology, and a target selection and screening process. The platform is designed to enable the development of siRNA molecules that can be delivered to the liver, where they can specifically bind to and degrade target mRNAs, thereby reducing the production and activity of disease-associated proteins.

The company's primary products are siRNA molecules, including zerlasiran (SLN360) and divesiran (SLN124). Zerlasiran is designed to treat cardiovascular disease by lowering the body's production of apolipoprotein(a), a key component of lipoprotein(a), which has been associated with an increased risk of cardiovascular events. Divesiran, on the other hand, is designed to inhibit the expression of TMPRSS6, a gene that regulates the production of hepcidin, a peptide hormone that is the master regulator of systemic iron balance, thereby addressing hematology disorders.

Silence Therapeutics' siRNA product candidates are administered by subcutaneous injection and have the potential to reduce disease-associated protein production and activity. The company's pipeline is centered around its liver-targeting mRNAi GOLDâ„¢ platform and consists of a diversified set of therapeutic areas, including cardiovascular disease, hematology, and rare diseases.

The company's position within the industry is strong, with a proprietary mRNAi GOLDâ„¢ platform that has been validated through ongoing research and development collaborations with leading pharmaceutical companies. These collaborations have not only validated the platform but also established the company's credibility and position in the industry. Silence Therapeutics has also established partnerships with third-party collaborators to develop and commercialize its siRNA product candidates, further strengthening its position.

The company's customers include leading pharmaceutical companies, such as AstraZeneca, Mallinckrodt, and Hansoh. These companies have partnered with Silence Therapeutics to develop and commercialize its siRNA product candidates, indicating the company's product candidates' potential and the trust they have garnered within the industry. The company's siRNA product candidates have also been tested in clinical trials, with positive results reported in several studies, further attesting to their efficacy and potential.

Stock Price Chart

Analysis

Pros

Healthy cash reserves of 82.03M provide 965.07x coverage of short-term debt 85000, demonstrating strong liquidity position and minimal refinancing risk.
Strong tangible asset base of 135.88M provides 746.58x coverage of total debt 182000, indicating robust asset backing and low credit risk.
Operating cash flow of (72.67M) fully covers other non-current liabilities (301000) by 241.42x, showing strong long-term stability.
Retained earnings of 550.80M provide full 5678.37x coverage of long-term debt 97000, indicating strong internal capital position.
Short-term investments of 20.16M provide solid 66.98x coverage of other current liabilities 301000, indicating strong liquidity.

Cons

Operating cash flow of (72.67M) barely covers its investment activities of 67.54M, with a coverage ratio of -1.08, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
Investment activities of 67.54M provide weak support for R&D spending of 82.54M, which is 0.82x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
Operating cash flow of (72.67M) provides insufficient coverage of deferred revenue obligations of 55.55M, which is -1.31x, raising concerns about future service delivery capabilities.
The company's operating cash flow of (72.67M) shows concerning coverage of stock compensation expenses of 12.43M, with a -5.85 ratio indicating potential earnings quality issues.
Free cash flow of (72.79M) provides weak coverage of capital expenditures of 121000, with a -601.56 ratio suggesting additional external financing needs for growth initiatives.

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
EV to Assets	1.44	12.31
EV to Cash from Ops.	-2.92	23.25
EV to Debt	1,164.71	738.44
EV to EBIT	-3.10	-9.16
EV to EBITDA	-2.49	6.95
EV to Free Cash Flow [EV/FCF]	-2.91	21.90
EV to Market Cap	0.73	65.67
EV to Revenue	8.12	227.32
Price to Book Value [P/B]	-3.91	22.34
Price to Earnings [P/E]	-4.34	-11.77

Dividend Metrics

Metric	Value	Industry
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	6.34	841.00

Growth Metrics

Metric	Value	Industry
Capex Growth (1y) %	19.33	-27.13
Cash and Equivalents Growth (1y) %	5.93	734.65
Dividend Growth (1y) %	0.00	0.01
EBIAT Growth (1y) %	-4.15	-46.93
EBITDA Growth (1y) %	-9.97	-1.68
EBIT Growth (1y) %	-3.12	-56.45
EBT Growth (1y) %	12.98	-12.70
EPS Growth (1y) %	0.00	-28.31
FCF Growth (1y) %	-31.35	-31.90
Gross Profit Growth (1y) %	160.20	226.84

Liquidity Ratios

Metric	Value	Industry
Asset Utilization Ratio	0.18	0.14
Cash Payout Ratio	0.00	0.00
Cash Ratio	4.72	3.85
Current Ratio	7.69	7.27
Debt to Equity Ratio	0.00	0.40
Interest Cover Ratio	6.34	841.00
Times Interest Earned	6.34	841.00

Profitability

Metric	Value	Industry
EBITDA Margin %	-259.60	-18,234.31
EBIT Margin %	-261.96	-18,580.80
EBT Margin %	-220.65	-19,488.74
Gross Margin %	90.50	-7.59
Net Profit Margin %	-255.10	-19,439.22

Silence Therapeutics plc (NASDAQ: SLN)