Shattuck Labs, Inc. (STTK) Stock Analysis and Metrics

Sector: Healthcare Industry: Biotechnology CIK: 0001680367

P/B 1.79

P/E -3.04

P/S 166.84

Market Cap 166.84 Mn

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...

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 an antitumor immune response.

Shattuck Labs' main business activities are centered on the development of biologic medicines that can effectively treat cancer and autoimmune diseases. The company's ARC platform has the potential to create therapeutics that can dramatically change the way these diseases are treated. Shattuck Labs' strategy is to rapidly advance its clinical-stage ARC product candidate, SL-172154, through clinical development and marketing approval, while also leveraging its ARC platform to rapidly advance additional product candidates into clinical development.

Shattuck Labs generates revenue through the development of its product candidates that are being evaluated in clinical trials. The company's lead product candidate, SL-172154, is a dual CD47/SIRPα blocking and CD40-activating ARC compound that is being evaluated in Phase 1 clinical trials for the treatment of various types of cancer, including ovarian cancer and acute myeloid leukemia (AML). SL-172154 is designed to inhibit the interaction between CD47 and SIRPα, while simultaneously activating CD40, which can lead to a more effective and durable immune response.

Shattuck Labs' position within the industry is strengthened by its proprietary ARC platform, its experienced management team, and its strong intellectual property portfolio. The company's ARC platform is designed to overcome the limitations of traditional antibody-based therapies, and its modular design allows for the rapid generation of new constructs. The company's experienced management team has a strong track record of developing innovative biologic medicines, and its strong intellectual property portfolio provides protection for its proprietary technology.

Shattuck Labs' customers include patients with various types of cancer and autoimmune diseases. The company's product candidates are being developed to treat a range of diseases, including ovarian cancer, AML, and autoimmune diseases such as rheumatoid arthritis and multiple sclerosis. The company's product candidates are designed to provide a more effective and durable immune response, which can lead to improved patient outcomes.

The company's lead product candidate, SL-172154, is a dual CD47/SIRPα blocking and CD40-activating ARC compound being evaluated in Phase 1 clinical trials for the treatment of various types of cancer, including ovarian cancer and acute myeloid leukemia (AML). Additionally, Shattuck Labs is developing several other product candidates that are designed to inhibit the interaction between TIGIT and its known ligands, while simultaneously activating HVEM and LTβ receptors.

Shattuck Labs' competitive advantages include its proprietary ARC platform, its experienced management team, and its strong intellectual property portfolio. The company's ARC platform is designed to overcome the limitations of traditional antibody-based therapies, and its modular design allows for the rapid generation of new constructs. The company's experienced management team has a strong track record of developing innovative biologic medicines, and its strong intellectual property portfolio provides protection for its proprietary technology.

In terms of competition, Shattuck Labs faces significant competition from pharmaceutical and biotechnology companies that target specific tumor-associated antigens using immune cells or other cytotoxic modalities. These companies include large pharmaceutical and biotechnology companies such as AstraZeneca/MedImmune, Bristol Myers Squibb, Merck, Novartis, Pfizer, Roche/Genentech, and Gilead. Shattuck Labs also faces competition from other companies that are developing CD47 inhibitors, including magrolimab, evorpacept, lemzoparlimab, TTI-621, TTI-622, DSP107, and APX005M.

Shattuck Labs has a number of collaborations and license agreements in place to support the development of its product candidates. These include a strategic collaboration and option agreement with Ono Pharmaceutical Co., Ltd., a clinical trial collaboration and supply agreement with ImmunoGen, and a Kopfkino license agreement with Kopfkino IP, LLC. These agreements provide Shattuck Labs with access to additional expertise, resources, and intellectual property, which can help to support the development of its product candidates.

Stock Price Chart

Analysis

Pros

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.

Cons

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.	1,349.40 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
EV to Assets	1.18	12.31
EV to Cash from Ops.	-2.43	23.25
EV to Debt	67.38	738.44
EV to EBIT	-2.16	-9.16
EV to EBITDA	-2.21	6.95
EV to Free Cash Flow [EV/FCF]	-2.42	21.90
EV to Market Cap	0.71	65.67
EV to Revenue	118.39	227.32
Price to Book Value [P/B]	1.79	22.34
Price to Earnings [P/E]	-3.04	-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
Capex Growth (1y) %	6.58	-27.13
Cash and Equivalents Growth (1y) %	-2.92	734.65
Dividend Growth (1y) %	0.00	0.01
EBIAT Growth (1y) %	26.23	-46.93
EBITDA Growth (1y) %	29.14	-1.68
EBIT Growth (1y) %	26.23	-56.45
EBT Growth (1y) %	26.23	-12.70
EPS Growth (1y) %	33.33	-28.31
FCF Growth (1y) %	22.04	-31.90
Gross Profit Growth (1y) %	-84.46	226.84

Liquidity Ratios

Metric	Value	Industry
Asset Utilization Ratio	0.01	0.14
Cash Payout Ratio	0.00	0.00
Cash Ratio	7.97	3.85
Current Ratio	17.00	7.27
Debt to Equity Ratio	0.02	0.40
Interest Cover Ratio	0.00	841.00
Times Interest Earned	0.00	841.00

Profitability

Metric	Value	Industry
EBITDA Margin %	-5,068.60	-18,234.31
EBIT Margin %	-5,489.50	-18,580.80
EBT Margin %	-5,489.50	-19,488.74
Gross Margin %	100.00	-7.59
Net Profit Margin %	-5,489.50	-19,439.22

Shattuck Labs, Inc. (NASDAQ: STTK)