Sarepta Therapeutics, Inc. (NASDAQ: SRPT)

Sector: Healthcare Industry: Biotechnology CIK: 0000873303
Market Cap 2.31 Bn
P/B 1.75
P/E -8.51
P/S 0.96
ROIC (Qtr) -4.44
Div Yield % 0.00
Rev 1y % (Qtr) -14.52
Total Debt (Qtr) 1.25 Bn
Debt/Equity (Qtr) 0.95

About

Sarepta Therapeutics, Inc. (SRPT) is a company that operates in the biotechnology industry, focusing on the development and commercialization of RNA-targeted therapeutics and gene therapy products for the treatment of rare diseases. The company's main business activities include the development of proprietary RNA-targeted therapeutics and gene therapy products for the treatment of rare diseases. Sarepta's operations span across various countries, with a focus on Duchenne muscular dystrophy (Duchenne) and Limb-girdle muscular dystrophies (LGMDs). Sarepta...

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Price action

Investment thesis

Bull case

  • Strong tangible asset base of 3.49B provides 2.79x coverage of total debt 1.25B, indicating robust asset backing and low credit risk.
  • Tangible assets of 3.49B provide exceptional 7.20x coverage of deferred revenue 485.45M, showing strong service capability backing.
  • Strong free cash flow of (388.84M) provides 5.42x coverage of acquisition spending (71.72M), indicating disciplined M&A strategy.
  • Tangible assets of 3.49B provide robust 4.22x coverage of other current liabilities 827.41M, indicating strong asset backing.
  • R&D investment of 1.40B represents healthy 2.88x of deferred revenue 485.45M, indicating strong future innovation pipeline.

Bear case

  • Operating cash flow of (244.64M) barely covers its investment activities of 737.55M, with a coverage ratio of -0.33, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of 737.55M provide weak support for R&D spending of 1.40B, which is 0.53x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Cash reserves of 613.08M provide limited coverage of acquisition spending of (71.72M), which is -8.55x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • Operating cash flow of (244.64M) provides insufficient coverage of deferred revenue obligations of 485.45M, which is -0.50x, raising concerns about future service delivery capabilities.
  • The company's operating cash flow of (244.64M) shows concerning coverage of stock compensation expenses of 143.06M, with a -1.71 ratio indicating potential earnings quality issues.

Scenario Breakdown of Revenue (2025)

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 0.90 12.96
EV to Cash from Ops. EV/CFO -12.89 23.73
EV to Debt EV to Debt 2.52 772.65
EV to EBIT EV/EBIT -12.51 -11.30
EV to EBITDA EV/EBITDA -51.21 7.11
EV to Free Cash Flow [EV/FCF] EV/FCF -8.11 22.12
EV to Market Cap EV to Market Cap 1.36 68.89
EV to Revenue EV/Rev 1.31 199.70
Price to Book Value [P/B] P/B 1.75 22.62
Price to Earnings [P/E] P/E -8.51 -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 Int. cover (Qtr) 0.00 857.11
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -12.73 -27.24
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 209.86 747.06
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 0.01
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -322.84 -48.21
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -145.35 -2.09
EBIT Growth (1y) % EBIT 1y % (Qtr) -294.89 -57.79
EBT Growth (1y) % EBT 1y % (Qtr) -294.89 -14.35
EPS Growth (1y) % EPS 1y % (Qtr) -274.36 -30.88
FCF Growth (1y) % FCF 1y % (Qtr) 19.06 -32.51
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 30.59 227.96
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.69 0.14
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.00
Cash Ratio Cash Ratio (Qtr) 0.67 3.79
Current Ratio Curr Ratio (Qtr) 2.95 7.23
Debt to Equity Ratio Debt/Equity (Qtr) 0.95 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) -7.80 -18,509.94
EBIT Margin % EBIT Margin % (Qtr) -10.45 -18,862.18
EBT Margin % EBT Margin % (Qtr) -10.45 -19,783.19
Gross Margin % Gross Margin % (Qtr) 76.30 -8.62
Net Profit Margin % Net Margin % (Qtr) -11.20 -19,732.60