Protara Therapeutics, Inc. (TARA) Stock Analysis and Metrics

Sector: Healthcare Industry: Biotechnology CIK: 0001359931

P/B 1.65

P/E -4.13

P/S 0.00

Market Cap 218.50 Mn

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...

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 revenue through the development and commercialization of its product candidates, including TARA-002 and IV Choline Chloride. TARA-002 is a genetically distinct Su strain of Streptococcus pyogenes (group A, type 3) produced through a proprietary manufacturing process. This product candidate is being developed for the treatment of non-muscle invasive bladder cancer (NMIBC) and lymphatic malformations (LMs). IV Choline Chloride, on the other hand, is a sterile aqueous choline salt composition licensed from Dr. Alan Buchman. It is used for the treatment of patients receiving total parenteral nutrition (PN) and has been granted Orphan Drug Designation by the FDA for the prevention of choline deficiency in PN patients.

Protara Therapeutics holds a competitive advantage in the biotechnology industry due to its experienced management team, focus on rare diseases, and innovative approach to developing new therapies. The company's primary product candidate, TARA-002, is a promising investigational cell therapy that has shown positive results in early clinical trials. Protara believes that a significant barrier to entry exists for TARA-002, as it believes only Chugai Pharmaceutical and Protara possess the specific strain and know-how to manufacture the product.

Protara Therapeutics has not yet generated any revenue from product sales, as its product candidates are still in the clinical development stage. However, the company expects to generate revenue from its product candidates in the future, pending regulatory approval.

Protara Therapeutics relies on patents, trade secrets, know-how, and in-licensing opportunities to develop and maintain its proprietary position. The company has entered into several collaborations and license agreements, including a sponsored research and license agreement with The University of Iowa, a choline license agreement with Dr. Alan Buchman, and a license agreement with The Feinstein Institute for Medical Research.

Stock Price Chart

Analysis

Pros

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.

Cons

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.	1,349.40 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	1.32	12.31
EV to Cash from Ops.	-3.92	23.25
EV to Debt	52.23	738.44
EV to EBIT	-3.61	-9.16
EV to EBITDA	-3.21	6.95
EV to Free Cash Flow [EV/FCF]	-3.91	21.90
EV to Market Cap	0.87	65.67
EV to Revenue	0.00	227.32
Price to Book Value [P/B]	1.65	22.34
Price to Earnings [P/E]	-4.13	-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) %	-11.11	-27.13
Cash and Equivalents Growth (1y) %	-75.75	734.65
Dividend Growth (1y) %	0.00	0.01
EBIAT Growth (1y) %	-25.81	-46.93
EBITDA Growth (1y) %	-30.54	-1.68
EBIT Growth (1y) %	-25.81	-56.45
EBT Growth (1y) %	-25.81	-12.70
EPS Growth (1y) %	51.06	-28.31
FCF Growth (1y) %	-38.37	-31.90
Gross Profit Growth (1y) %	0.00	226.84

Liquidity Ratios

Metric	Value	Industry
Asset Utilization Ratio	0.00	0.14
Cash Payout Ratio	0.00	0.00
Cash Ratio	1.27	3.85
Current Ratio	13.69	7.27
Debt to Equity Ratio	0.03	0.40
Interest Cover Ratio	0.00	841.00
Times Interest Earned	0.00	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

Protara Therapeutics, Inc. (NASDAQ: TARA)