Theravance Biopharma, Inc. (NASDAQ: TBPH)

Sector: Healthcare Industry: Biotechnology CIK: 0001583107
Market Cap 962.28 Mn
P/B 4.14
P/E 32.79
P/S 11.98
ROIC (Qtr) 14.97
Div Yield % 0.00
Rev 1y % (Qtr) 18.51
Total Debt (Qtr) 44.60 Mn
Debt/Equity (Qtr) 0.19

About

Theravance Biopharma, Inc., a prominent player in the biopharmaceutical industry, is dedicated to the development and commercialization of medicines that have a significant impact on people's lives. The company's primary business activities revolve around the development and commercialization of pharmaceutical products, largely through partnerships and collaborations. Theravance Biopharma's revenue generation is primarily through the sale of its products. Its product portfolio includes YUPELRI (revefenacin) inhalation solution, which is approved...

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Price action

Investment thesis

Bull case

  • Strong operating cash flow of 243.70M provides robust 5.46x coverage of total debt 44.59M, indicating excellent debt servicing capability and financial flexibility.
  • Healthy cash reserves of 175.61M provide 16.09x coverage of short-term debt 10.91M, demonstrating strong liquidity position and minimal refinancing risk.
  • Operating cash flow of 243.70M provides strong 12.29x coverage of stock compensation 19.82M, indicating sustainable incentive practices.
  • Robust free cash flow of 243.48M exceeds capital expenditure of 224000 by 1086.96x, indicating strong organic growth funding capability.
  • Strong tangible asset base of 415.46M provides 9.32x coverage of total debt 44.59M, indicating robust asset backing and low credit risk.

Bear case

  • Operating cash flow of 243.70M barely covers its investment activities of (90.19M), with a coverage ratio of -2.70, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of (90.19M) provide weak support for R&D spending of 39.51M, which is -2.28x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Retained earnings of (920.65M) provide limited buffer against comprehensive income items of 32000, which is -28770.34x, indicating elevated exposure to market risks.
  • Operating cash flow of 243.70M is outpaced by equity issuance of (2.12M) (-114.85 ratio), indicating concerning reliance on equity markets for funding operations.
  • Tangible assets of 415.46M provide limited backing for working capital of 317.29M, which is 1.31x, suggesting increased operational risk in market downturns.

Type of Arrangement and Non-arrangement Transactions Breakdown of Revenue (2024)

Geographical Breakdown of Revenue (2024)

Peer comparison

Companies in the Biotechnology
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 SMMT Summit Therapeutics Inc. 1,446.17 Bn -1,569.17 0.00 0.01 Bn
2 ONC BeOne Medicines Ltd. 439.23 Bn 6,407.40 88.33 1.90 Bn
3 VRTX Vertex Pharmaceuticals Inc / Ma 120.62 Bn 32.82 10.29 1.83 Bn
4 REGN Regeneron Pharmaceuticals, Inc. 84.40 Bn 18.44 5.92 2.71 Bn
5 ALNY Alnylam Pharmaceuticals, Inc. 56.13 Bn 1,288.39 17.49 3.21 Bn
6 ARGX Argenx Se 47.89 Bn 31.79 24,973.95 -
7 BNTC Benitec Biopharma Inc. 42.45 Bn -1,015.00 0.00 0.00 Bn
8 INSM INSMED Inc 32.67 Bn -27.60 73.08 0.74 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 1.75 12.96
EV to Cash from Ops. EV/CFO 2.98 23.73
EV to Debt EV to Debt 16.28 772.65
EV to EBIT EV/EBIT 14.59 -11.30
EV to EBITDA EV/EBITDA -26.69 7.11
EV to Free Cash Flow [EV/FCF] EV/FCF 2.98 22.12
EV to Market Cap EV to Market Cap 0.75 68.89
EV to Revenue EV/Rev 9.04 199.70
Price to Book Value [P/B] P/B 4.14 22.62
Price to Earnings [P/E] P/E 32.79 -12.30
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 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) 19.73 857.11
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 72.65 -27.24
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 625.24 747.06
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 0.01
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 166.71 -48.21
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 27.49 -2.09
EBIT Growth (1y) % EBIT 1y % (Qtr) 230.39 -57.79
EBT Growth (1y) % EBT 1y % (Qtr) 216.09 -14.35
EPS Growth (1y) % EPS 1y % (Qtr) 156.31 -30.88
FCF Growth (1y) % FCF 1y % (Qtr) 2,078.54 -32.51
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 27.12 227.96
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.19 0.14
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.00
Cash Ratio Cash Ratio (Qtr) 4.69 3.79
Current Ratio Curr Ratio (Qtr) 9.48 7.23
Debt to Equity Ratio Debt/Equity (Qtr) 0.19 0.42
Interest Cover Ratio Int Coverage (Qtr) 19.73 857.11
Times Interest Earned Times Interest Earned (Qtr) 19.73 857.11
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 68.90 -18,509.94
EBIT Margin % EBIT Margin % (Qtr) 61.95 -18,862.18
EBT Margin % EBT Margin % (Qtr) 58.81 -19,783.19
Gross Margin % Gross Margin % (Qtr) 100.00 -8.62
Net Profit Margin % Net Margin % (Qtr) 36.50 -19,732.60