Scholar Rock Holding Corp (NASDAQ: SRRK)

Sector: Healthcare Industry: Biotechnology CIK: 0001727196
P/B 21.40
P/E -14.83
P/S 0.00
Market Cap 5.24 Bn
ROIC (Qtr) -111.44
Div Yield % 0.00
Rev 1y % (Qtr) 0.00
Total Debt (Qtr) 110.08 Mn
Debt/Equity (Qtr) 0.45

About

Scholar Rock Holding Corp, known by its ticker symbol SRRK, is a prominent player in the biopharmaceutical industry. The company specializes in the discovery, development, and delivery of innovative medicines for the treatment of serious diseases where signaling by protein growth factors plays a crucial role. Scholar Rock's primary business activities revolve around the development of novel product candidates that selectively inhibit the activation of latent growth factors, which are believed to be significant drivers in a range of diseases. These...

Read more

Stock Price Chart

Analysis

Pros

  • Healthy cash reserves of 290.58M provide 54.57x coverage of short-term debt 5.33M, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 411.72M provides 3.74x coverage of total debt 110.08M, indicating robust asset backing and low credit risk.
  • Short-term investments of 82.86M provide solid 1.66x coverage of other current liabilities 49.88M, indicating strong liquidity.
  • Tangible assets of 411.72M provide robust 8.25x coverage of other current liabilities 49.88M, indicating strong asset backing.
  • Cash reserves of 290.58M provide robust 4.69x coverage of current liabilities 61.97M, indicating strong short-term solvency.

Cons

  • Investment activities of (15.65M) provide weak support for R&D spending of 211.93M, which is -0.07x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • The company's operating cash flow of (274.05M) shows concerning coverage of stock compensation expenses of 65.68M, with a -4.17 ratio indicating potential earnings quality issues.
  • Free cash flow of (274.64M) provides weak coverage of capital expenditures of 592000, with a -463.93 ratio suggesting additional external financing needs for growth initiatives.
  • Operating earnings of (350.89M) show weak coverage of depreciation charges of 6.70M, with a -52.41 ratio indicating high capital intensity and potential reinvestment needs.
  • Free cash flow of (274.64M) represents just -5.59x of debt issuance 49.14M, suggesting concerning reliance on leverage rather than internal cash generation for growth.

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 12.50 12.31
EV to Cash from Ops. -18.79 23.25
EV to Debt 46.77 738.44
EV to EBIT -14.67 -9.16
EV to EBITDA -14.49 6.95
EV to Free Cash Flow [EV/FCF] -18.75 21.90
EV to Market Cap 0.98 65.67
EV to Revenue 0.00 227.32
Price to Book Value [P/B] 21.40 22.34
Price to Earnings [P/E] -14.83 -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 -138.14 841.00

Growth Metrics

Metric Value Industry Percentile
Capex Growth (1y) % -678.95 -27.13
Cash and Equivalents Growth (1y) % 268.76 734.65
Dividend Growth (1y) % 0.00 0.01
EBIAT Growth (1y) % -57.70 -46.93
EBITDA Growth (1y) % -59.45 -1.68
EBIT Growth (1y) % -57.70 -56.45
EBT Growth (1y) % -56.41 -12.70
EPS Growth (1y) % -34.47 -28.31
FCF Growth (1y) % -45.42 -31.90
Gross Profit Growth (1y) % 0.00 226.84

Liquidity Ratios

Metric Value Industry Percentile
Asset Utilization Ratio 0.00 0.14
Cash Payout Ratio 0.00 0.00
Cash Ratio 4.69 3.85
Current Ratio 6.31 7.27
Debt to Equity Ratio 0.45 0.40
Interest Cover Ratio -138.14 841.00
Times Interest Earned -138.14 841.00

Profitability

Metric Value Industry Percentile
EBITDA Margin % 0.00 -18,234.31
EBIT Margin % 0.00 -18,580.80
EBT Margin % 0.00 -19,488.74
Gross Margin % 0.00 -7.59
Net Profit Margin % 0.00 -19,439.22