Tarsus Pharmaceuticals, Inc. (NASDAQ: TARS)

Sector: Healthcare Industry: Biotechnology CIK: 0001819790
P/B 9.80
P/E -40.47
P/S 8.97
Market Cap 3.28 Bn
ROIC (Qtr) -21.53
Div Yield % 0.00
Rev 1y % (Qtr) 146.68
Total Debt (Qtr) 72.28 Mn
Debt/Equity (Qtr) 0.22

About

Stock Price Chart

Analysis

Pros

  • Strong tangible asset base of 526.96M provides 7.29x coverage of total debt 72.28M, indicating robust asset backing and low credit risk.
  • Short-term investments of 289.11M provide solid 21.33x coverage of other current liabilities 13.55M, indicating strong liquidity.
  • Tangible assets of 526.96M provide robust 38.88x coverage of other current liabilities 13.55M, indicating strong asset backing.
  • Cash reserves of 112.72M provide robust 0.96x coverage of current liabilities 117.05M, indicating strong short-term solvency.
  • Cash reserves of 112.72M provide solid 11.11x coverage of other non-current liabilities 10.15M, indicating strong liquidity.

Cons

  • Operating cash flow of (53.96M) barely covers its investment activities of (150.96M), with a coverage ratio of 0.36, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of (150.96M) provide weak support for R&D spending of 63.16M, which is -2.39x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • The company's operating cash flow of (53.96M) shows concerning coverage of stock compensation expenses of 34.81M, with a -1.55 ratio indicating potential earnings quality issues.
  • High receivables of 74.34M relative to inventory of 6.37M (11.67 ratio) suggests aggressive credit terms or collection difficulties, potentially masking revenue quality issues.
  • Free cash flow of (62.54M) provides weak coverage of capital expenditures of 8.57M, with a -7.29 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 Percentile
EV to Assets 6.10 12.31
EV to Cash from Ops. -60.41 23.25
EV to Debt 45.10 738.44
EV to EBIT -45.20 -9.16
EV to EBITDA -38.40 6.95
EV to Free Cash Flow [EV/FCF] -52.13 21.90
EV to Market Cap 0.99 65.67
EV to Revenue 8.91 227.32
Price to Book Value [P/B] 9.80 22.34
Price to Earnings [P/E] -40.47 -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 -7.98 841.00

Growth Metrics

Metric Value Industry Percentile
Capex Growth (1y) % -473.44 -27.13
Cash and Equivalents Growth (1y) % -36.03 734.65
Dividend Growth (1y) % 0.00 0.01
EBIAT Growth (1y) % 43.57 -46.93
EBITDA Growth (1y) % 38.86 -1.68
EBIT Growth (1y) % 43.57 -56.45
EBT Growth (1y) % 39.59 -12.70
EPS Growth (1y) % 46.68 -28.31
FCF Growth (1y) % 38.49 -31.90
Gross Profit Growth (1y) % 183.32 226.84

Liquidity Ratios

Metric Value Industry Percentile
Asset Utilization Ratio 0.68 0.14
Cash Payout Ratio 0.00 0.00
Cash Ratio 0.96 3.85
Current Ratio 4.29 7.27
Debt to Equity Ratio 0.22 0.40
Interest Cover Ratio -7.98 841.00
Times Interest Earned -7.98 841.00

Profitability

Metric Value Industry Percentile
EBITDA Margin % -19.00 -18,234.31
EBIT Margin % -19.70 -18,580.80
EBT Margin % -22.17 -19,488.74
Gross Margin % 93.30 -7.59
Net Profit Margin % -22.20 -19,439.22