Theravance Biopharma, Inc. (NASDAQ: TBPH)

Sector: Healthcare Industry: Biotechnology CIK: 0001583107
P/B 3.95
P/E 31.33
P/S 11.44
Market Cap 919.28 Mn
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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Analysis

Pros

  • 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.

Cons

  • 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.

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 1.64 12.31
EV to Cash from Ops. 2.80 23.25
EV to Debt 15.31 738.44
EV to EBIT 13.72 -9.16
EV to EBITDA -25.11 6.95
EV to Free Cash Flow [EV/FCF] 2.81 21.90
EV to Market Cap 0.74 65.67
EV to Revenue 8.50 227.32
Price to Book Value [P/B] 3.95 22.34
Price to Earnings [P/E] 31.33 -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 19.73 841.00

Growth Metrics

Metric Value Industry Percentile
Capex Growth (1y) % 72.65 -27.13
Cash and Equivalents Growth (1y) % 625.24 734.65
Dividend Growth (1y) % 0.00 0.01
EBIAT Growth (1y) % 166.71 -46.93
EBITDA Growth (1y) % 27.49 -1.68
EBIT Growth (1y) % 230.39 -56.45
EBT Growth (1y) % 216.09 -12.70
EPS Growth (1y) % 156.31 -28.31
FCF Growth (1y) % 2,078.54 -31.90
Gross Profit Growth (1y) % 27.12 226.84

Liquidity Ratios

Metric Value Industry Percentile
Asset Utilization Ratio 0.19 0.14
Cash Payout Ratio 0.00 0.00
Cash Ratio 4.69 3.85
Current Ratio 9.48 7.27
Debt to Equity Ratio 0.19 0.40
Interest Cover Ratio 19.73 841.00
Times Interest Earned 19.73 841.00

Profitability

Metric Value Industry Percentile
EBITDA Margin % 68.90 -18,234.31
EBIT Margin % 61.95 -18,580.80
EBT Margin % 58.81 -19,488.74
Gross Margin % 100.00 -7.59
Net Profit Margin % 36.50 -19,439.22