Sarepta Therapeutics, Inc. (NASDAQ: SRPT)

Sector: Healthcare Industry: Biotechnology CIK: 0000873303
P/B 1.63
P/E -7.92
P/S 0.89
Market Cap 2.15 Bn
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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Analysis

Pros

  • 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.

Cons

  • 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.

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 Percentile
EV to Assets 0.86 12.31
EV to Cash from Ops. -12.23 23.25
EV to Debt 2.39 738.44
EV to EBIT -11.87 -9.16
EV to EBITDA -48.59 6.95
EV to Free Cash Flow [EV/FCF] -7.70 21.90
EV to Market Cap 1.39 65.67
EV to Revenue 1.24 227.32
Price to Book Value [P/B] 1.63 22.34
Price to Earnings [P/E] -7.92 -11.77

Dividend Metrics

Metric Value Industry Percentile
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 0.00 841.00

Growth Metrics

Metric Value Industry Percentile
Capex Growth (1y) % -12.73 -27.13
Cash and Equivalents Growth (1y) % 209.86 734.65
Dividend Growth (1y) % 0.00 0.01
EBIAT Growth (1y) % -322.84 -46.93
EBITDA Growth (1y) % -145.35 -1.68
EBIT Growth (1y) % -294.89 -56.45
EBT Growth (1y) % -294.89 -12.70
EPS Growth (1y) % -274.36 -28.31
FCF Growth (1y) % 19.06 -31.90
Gross Profit Growth (1y) % 30.59 226.84

Liquidity Ratios

Metric Value Industry Percentile
Asset Utilization Ratio 0.69 0.14
Cash Payout Ratio 0.00 0.00
Cash Ratio 0.67 3.85
Current Ratio 2.95 7.27
Debt to Equity Ratio 0.95 0.40
Interest Cover Ratio 0.00 841.00
Times Interest Earned 0.00 841.00

Profitability

Metric Value Industry Percentile
EBITDA Margin % -7.80 -18,234.31
EBIT Margin % -10.45 -18,580.80
EBT Margin % -10.45 -19,488.74
Gross Margin % 76.30 -7.59
Net Profit Margin % -11.20 -19,439.22