Protara Therapeutics, Inc. (NASDAQ: TARA)

Sector: Healthcare Industry: Biotechnology CIK: 0001359931
Market Cap 220.42 Mn
P/B 1.67
P/E -4.17
P/S 0.00
ROIC (Qtr) -42.05
Div Yield % 0.00
Rev 1y % (Qtr) 0.00
Total Debt (Qtr) 3.66 Mn
Debt/Equity (Qtr) 0.03

About

Protara Therapeutics, Inc., also known by its stock symbol TARA, is a clinical-stage biopharmaceutical company operating in the healthcare and life sciences industry. The company is dedicated to advancing transformative therapies for the treatment of cancer and rare diseases. Protara's main business activities involve the development and commercialization of innovative cell therapies and other healthcare products. The company operates in the United States, with a focus on rare diseases that have high unmet medical needs. Protara Therapeutics generates...

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Price action

Investment thesis

Bull case

  • Healthy cash reserves of 12.55M provide 10.29x coverage of short-term debt 1.22M, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 144.64M provides 39.56x coverage of total debt 3.66M, indicating robust asset backing and low credit risk.
  • Short-term investments of 120.12M provide solid 28.70x coverage of other current liabilities 4.18M, indicating strong liquidity.
  • Tangible assets of 144.64M provide robust 34.56x coverage of other current liabilities 4.18M, indicating strong asset backing.
  • Long-term investments of 1.70M provide solid 0.70x coverage of long-term debt 2.44M, indicating strategic financial planning.

Bear case

  • Operating cash flow of (48.72M) barely covers its investment activities of (90.08M), with a coverage ratio of 0.54, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of (90.08M) provide weak support for R&D spending of 39.01M, which is -2.31x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Short-term investments of 120.12M significantly exceed cash reserves of 12.55M, which is 9.57x, indicating potentially excessive yield-seeking behavior at the expense of liquidity.
  • The company's operating cash flow of (48.72M) shows concerning coverage of stock compensation expenses of 3.69M, with a -13.21 ratio indicating potential earnings quality issues.
  • Free cash flow of (48.79M) provides weak coverage of capital expenditures of 70000, with a -697.04 ratio suggesting additional external financing needs for growth initiatives.

Peer comparison

Companies in the Biotechnology
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 SMMT Summit Therapeutics Inc. 1,511.45 Bn -1,640.00 0.00 0.01 Bn
2 ONC BeOne Medicines Ltd. 463.25 Bn 6,757.80 93.16 1.90 Bn
3 VRTX Vertex Pharmaceuticals Inc / Ma 119.13 Bn 32.42 10.16 1.83 Bn
4 REGN Regeneron Pharmaceuticals, Inc. 83.93 Bn 18.33 5.89 2.71 Bn
5 ALNY Alnylam Pharmaceuticals, Inc. 55.97 Bn 1,284.81 17.44 3.21 Bn
6 ARGX Argenx Se 47.47 Bn 31.51 24,751.70 -
7 BNTC Benitec Biopharma Inc. 41.27 Bn -986.67 0.00 0.00 Bn
8 INSM INSMED Inc 33.76 Bn -28.52 75.53 0.74 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 1.33 13.39
EV to Cash from Ops. EV/CFO -3.96 23.02
EV to Debt EV to Debt 52.76 789.59
EV to EBIT EV/EBIT -3.65 -11.14
EV to EBITDA EV/EBITDA -3.25 7.05
EV to Free Cash Flow [EV/FCF] EV/FCF -3.95 21.44
EV to Market Cap EV to Market Cap 0.88 72.36
EV to Revenue EV/Rev 0.00 194.41
Price to Book Value [P/B] P/B 1.67 23.19
Price to Earnings [P/E] P/E -4.17 -11.47
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 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 Int. cover (Qtr) 0.00 856.48
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -11.11 -27.12
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -75.75 747.06
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 0.01
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -25.81 -48.05
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -30.54 -1.94
EBIT Growth (1y) % EBIT 1y % (Qtr) -25.81 -57.64
EBT Growth (1y) % EBT 1y % (Qtr) -25.81 -14.19
EPS Growth (1y) % EPS 1y % (Qtr) 51.06 -30.71
FCF Growth (1y) % FCF 1y % (Qtr) -38.37 -32.52
Gross Profit Growth (1y) % Gross Profit Growth (1y) % 0.00 227.96
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.00 0.14
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.00
Cash Ratio Cash Ratio (Qtr) 1.27 3.79
Current Ratio Curr Ratio (Qtr) 13.69 7.23
Debt to Equity Ratio Debt/Equity (Qtr) 0.03 0.42
Interest Cover Ratio Int Coverage (Qtr) 0.00 856.48
Times Interest Earned Times Interest Earned (Qtr) 0.00 856.48
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 0.00 -18,509.94
EBIT Margin % EBIT Margin % (Qtr) 0.00 -18,862.18
EBT Margin % EBT Margin % (Qtr) 0.00 -19,783.19
Gross Margin % Gross Margin % (Qtr) 0.00 -8.62
Net Profit Margin % Net Margin % (Qtr) 0.00 -19,732.60