60 Degrees Pharmaceuticals, Inc. (NASDAQ: SXTP)

Sector: Healthcare Industry: Biotechnology CIK: 0001946563
Market Cap 32.37 Mn
P/B 7.31
P/E -3.82
P/S 26.30
ROIC (Qtr) -229.33
Div Yield % 0.00
Rev 1y % (Qtr) 256.87
Total Debt (Qtr) 153,764.00
Debt/Equity (Qtr) 0.03
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About

60 Degrees Pharmaceuticals, Inc. (SXTP) operates in the specialty pharmaceutical industry, focusing on the development and commercialization of new therapies for the prevention and treatment of infectious diseases. The company's primary business activities include the development and commercialization of its products, Arakoda and Celgosivir. Arakoda, approved by the FDA and the Australian Therapeutic Goods Administration, is a once-weekly dosed regimen used for the prevention of malaria in travelers. It boasts a broad spectrum of activity against...

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Investment thesis

Bull case

  • Healthy cash reserves of 4.12M provide 469.20x coverage of short-term debt 8772, demonstrating strong liquidity position and minimal refinancing risk.
  • Operating cash flow of (6.79M) provides exceptional 1036.58x coverage of minority interest expenses (6555), showing strong core operations.
  • Strong tangible asset base of 6.54M provides 42.51x coverage of total debt 153764, indicating robust asset backing and low credit risk.
  • Tangible assets of 6.54M provide robust 8.20x coverage of other current liabilities 797275, indicating strong asset backing.
  • Strong cash position of 4.12M provides 5.16x coverage of other current liabilities 797275, indicating excellent liquidity.

Bear case

  • Operating cash flow of (6.79M) barely covers its investment activities of 1.62M, with a coverage ratio of -4.19, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of 1.62M provide weak support for R&D spending of 2.08M, which is 0.78x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • The company's operating cash flow of (6.79M) shows concerning coverage of stock compensation expenses of 406022, with a -16.74 ratio indicating potential earnings quality issues.
  • Free cash flow of (6.88M) provides weak coverage of capital expenditures of 82966, with a -82.90 ratio suggesting additional external financing needs for growth initiatives.
  • Operating cash flow of (6.79M) provides minimal -5178.95x coverage of tax expenses of 1312, suggesting potential tax planning inefficiencies or unsustainable tax positions.

Peer comparison

Companies in the Biotechnology
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 SMMT Summit Therapeutics Inc. 1,204.25 Bn -1,306.67 0.00 0.01 Bn
2 ONC BeOne Medicines Ltd. 486.51 Bn 7,097.20 97.84 1.90 Bn
3 VRTX Vertex Pharmaceuticals Inc / Ma 122.05 Bn 30.87 10.17 1.85 Bn
4 REGN Regeneron Pharmaceuticals, Inc. 83.00 Bn 18.42 5.79 2.71 Bn
5 ARGX Argenx Se 50.78 Bn 33.71 26,480.10 -
6 ALNY Alnylam Pharmaceuticals, Inc. 43.66 Bn 139.17 11.76 2.97 Bn
7 BNTC Benitec Biopharma Inc. 43.61 Bn -941.82 0.00 0.00 Bn
8 INSM INSMED Inc 28.88 Bn -24.40 64.61 0.74 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 4.57 11.06
EV to Cash from Ops. EV/CFO -4.50 26.32
EV to Debt EV to Debt 198.73 762.61
EV to EBIT EV/EBIT -3.84 -13.49
EV to EBITDA EV/EBITDA -3.75 8.61
EV to Free Cash Flow [EV/FCF] EV/FCF -4.44 25.66
EV to Market Cap EV to Market Cap 0.94 203.37
EV to Revenue EV/Rev 24.83 156.31
Price to Book Value [P/B] P/B 7.31 20.59
Price to Earnings [P/E] P/E -3.82 -0.88
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) -16.81 -12.64
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 -0.14
Interest Coverage Int. cover (Qtr) -1,296.89 956.66
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 62.32 7.87
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 24.69 753.48
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 0.01
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -0.80 -57.63
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 14.33 8.83
EBIT Growth (1y) % EBIT 1y % (Qtr) -0.79 -67.21
EBT Growth (1y) % EBT 1y % (Qtr) -0.72 -23.74
EPS Growth (1y) % EPS 1y % (Qtr) 99.58 -7.02
FCF Growth (1y) % FCF 1y % (Qtr) -60.18 -40.48
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 3,132.73 264.51
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.18 0.14
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.00
Cash Ratio Cash Ratio (Qtr) 1.87 3.92
Current Ratio Curr Ratio (Qtr) 2.87 7.33
Debt to Equity Ratio Debt/Equity (Qtr) 0.03 0.48
Interest Cover Ratio Int Coverage (Qtr) -1,296.89 956.66
Times Interest Earned Times Interest Earned (Qtr) -1,296.89 956.66
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) -640.90 -17,888.70
EBIT Margin % EBIT Margin % (Qtr) -647.06 -18,246.34
EBT Margin % EBT Margin % (Qtr) -647.56 -19,108.08
Gross Margin % Gross Margin % (Qtr) 22.40 -10.30
Net Profit Margin % Net Margin % (Qtr) -688.20 -19,056.96