Shattuck Labs, Inc. (NASDAQ: STTK)

Sector: Healthcare Industry: Biotechnology CIK: 0001680367
Market Cap 249.72 Mn
P/B 2.68
P/E -4.55
P/S 249.72
ROIC (Qtr) -75.02
Div Yield % 0.00
Rev 1y % (Qtr) -66.63
Total Debt (Qtr) 1.76 Mn
Debt/Equity (Qtr) 0.02

About

Shattuck Labs, Inc. (NASDAQ: STKU) is a clinical-stage biotechnology company that operates in the development of innovative biologic medicines to treat cancer and autoimmune diseases. The company's ARC platform is designed to create therapeutics that can significantly change the way these diseases are treated. Shattuck Labs specializes in the development of dual-sided fusion proteins, a new class of biologic medicine, that can simultaneously inhibit checkpoint molecules and activate costimulatory molecules with a single therapeutic, ultimately inducing...

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Price action

Investment thesis

Bull case

  • Strong tangible asset base of 100.33M provides 57.10x coverage of total debt 1.76M, indicating robust asset backing and low credit risk.
  • Short-term investments of 43.58M provide solid 10.44x coverage of other current liabilities 4.17M, indicating strong liquidity.
  • Tangible assets of 100.33M provide robust 24.04x coverage of other current liabilities 4.17M, indicating strong asset backing.
  • Strong cash position of 42.55M provides 10.19x coverage of other current liabilities 4.17M, indicating excellent liquidity.
  • Cash reserves of 42.55M provide robust 7.97x coverage of current liabilities 5.34M, indicating strong short-term solvency.

Bear case

  • Operating cash flow of (48.76M) barely covers its investment activities of 3.11M, with a coverage ratio of -15.66, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of 3.11M provide weak support for R&D spending of 41.61M, which is 0.07x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • The company's operating cash flow of (48.76M) shows concerning coverage of stock compensation expenses of 7.24M, with a -6.74 ratio indicating potential earnings quality issues.
  • Free cash flow of (48.83M) provides weak coverage of capital expenditures of 71000, with a -687.79 ratio suggesting additional external financing needs for growth initiatives.
  • Operating earnings of (54.90M) show weak coverage of depreciation charges of 4.21M, with a -13.04 ratio indicating high capital intensity and potential reinvestment needs.

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 2.01 12.96
EV to Cash from Ops. EV/CFO -4.13 23.73
EV to Debt EV to Debt 114.55 772.65
EV to EBIT EV/EBIT -3.67 -11.30
EV to EBITDA EV/EBITDA -3.76 7.11
EV to Free Cash Flow [EV/FCF] EV/FCF -4.12 22.12
EV to Market Cap EV to Market Cap 0.81 68.89
EV to Revenue EV/Rev 201.27 199.70
Price to Book Value [P/B] P/B 2.68 22.62
Price to Earnings [P/E] P/E -4.55 -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 Interest Coverage 0.00 857.11
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 6.58 -27.24
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -2.92 747.06
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 0.01
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 26.23 -48.21
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 29.14 -2.09
EBIT Growth (1y) % EBIT 1y % (Qtr) 26.23 -57.79
EBT Growth (1y) % EBT 1y % (Qtr) 26.23 -14.35
EPS Growth (1y) % EPS 1y % (Qtr) 33.33 -30.88
FCF Growth (1y) % FCF 1y % (Qtr) 22.04 -32.51
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -84.46 227.96
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.01 0.14
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.00
Cash Ratio Cash Ratio (Qtr) 7.97 3.79
Current Ratio Curr Ratio (Qtr) 17.00 7.23
Debt to Equity Ratio Debt/Equity (Qtr) 0.02 0.42
Interest Cover Ratio Interest Cover Ratio 0.00 857.11
Times Interest Earned Times Interest Earned 0.00 857.11
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) -5,068.60 -18,509.94
EBIT Margin % EBIT Margin % (Qtr) -5,489.50 -18,862.18
EBT Margin % EBT Margin % (Qtr) -5,489.50 -19,783.19
Gross Margin % Gross Margin % (Qtr) 100.00 -8.62
Net Profit Margin % Net Margin % (Qtr) -5,489.50 -19,732.60