SELLAS Life Sciences Group, Inc. (NASDAQ: SLS)

Sector: Healthcare Industry: Biotechnology CIK: 0001390478
Market Cap 357.63 Mn
P/B 7.84
P/E -13.79
P/S 0.00
ROIC (Qtr) -73.68
Div Yield % 0.00
Rev 1y % (Qtr) 0.00
Total Debt (Qtr) 599,000.00
Debt/Equity (Qtr) 0.01

About

SELLAS Life Sciences Group, Inc., often recognized by its stock symbol SLS, is a company that operates within the biopharmaceutical industry. Specifically, it is a late-stage clinical biopharmaceutical company dedicated to the development of novel therapeutics for a wide range of cancer indications. The company's primary products are Galinpepimut-S (GPS) and SLS009, both of which are in various stages of clinical development. SELLAS Life Sciences Group is involved in the business of developing innovative therapeutic solutions for cancer, a field...

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Price action

Investment thesis

Bull case

  • Healthy cash reserves of 44.42M provide 74.16x coverage of short-term debt 599000, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 49.64M provides 82.87x coverage of total debt 599000, indicating robust asset backing and low credit risk.
  • Tangible assets of 49.64M provide robust 16.43x coverage of other current liabilities 3.02M, indicating strong asset backing.
  • Strong cash position of 44.42M provides 14.70x coverage of other current liabilities 3.02M, indicating excellent liquidity.
  • Cash reserves of 44.42M provide robust 7.50x coverage of current liabilities 5.92M, indicating strong short-term solvency.

Bear case

  • Investment activities of 0 provide weak support for R&D spending of 15.73M, which is 0x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • The company's operating cash flow of (30.62M) shows concerning coverage of stock compensation expenses of 1.88M, with a -16.27 ratio indicating potential earnings quality issues.
  • Operating earnings of (25.94M) show weak coverage of depreciation charges of 591000, with a -43.90 ratio indicating high capital intensity and potential reinvestment needs.
  • High financing cash flow of 53.91M relative to working capital of 43.13M, which is 1.25x suggests concerning dependence on external funding for operational needs.
  • Operating cash flow of (30.62M) is outpaced by equity issuance of 31.95M (-0.96 ratio), indicating concerning reliance on equity markets for funding operations.

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 6.46 12.96
EV to Cash from Ops. EV/CFO -10.87 23.73
EV to Debt EV to Debt 555.87 772.65
EV to EBIT EV/EBIT -12.84 -11.30
EV to EBITDA EV/EBITDA -12.64 7.11
EV to Free Cash Flow [EV/FCF] EV/FCF -10.87 22.12
EV to Market Cap EV to Market Cap 0.93 68.89
EV to Revenue EV/Rev 0.00 199.70
Price to Book Value [P/B] P/B 7.84 22.62
Price to Earnings [P/E] P/E -13.79 -12.30
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 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 Int. cover (Qtr) 0.00 857.11
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 0.00 -27.24
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 110.21 747.06
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 0.01
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 19.63 -48.21
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 18.26 -2.09
EBIT Growth (1y) % EBIT 1y % (Qtr) 19.63 -57.79
EBT Growth (1y) % EBT 1y % (Qtr) 19.63 -14.35
EPS Growth (1y) % EPS 1y % (Qtr) 59.42 -30.88
FCF Growth (1y) % FCF 1y % (Qtr) 7.42 -32.51
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 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) 7.50 3.79
Current Ratio Curr Ratio (Qtr) 8.28 7.23
Debt to Equity Ratio Debt/Equity (Qtr) 0.01 0.42
Interest Cover Ratio Int Coverage (Qtr) 0.00 857.11
Times Interest Earned Times Interest Earned (Qtr) 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