Tectonic Therapeutic, Inc. (NASDAQ: TECX)

Sector: Healthcare Industry: Biotechnology CIK: 0001681087
Market Cap 536.88 Mn
P/B 2.01
P/E -7.98
P/S 0.00
ROIC (Qtr) -27.60
Div Yield % 0.00
Rev 1y % (Qtr) 0.00
Total Debt (Qtr) 1.24 Mn
Debt/Equity (Qtr) 0.00

About

Tectonic Therapeutic, Inc., or Tectonic, operates in the gene therapy industry, with its stock symbol being TECX. The company specializes in the development of potentially curative hematopoietic stem cell (HSC) gene therapies, targeting patients with rare diseases through a single-dose treatment regimen. Tectonic's business model revolves around developing and commercializing gene therapy products. The company has a robust product pipeline, with gene therapy programs such as AVR-RD-02 for Gaucher disease types 1 and 3, AVR-RD-03 for Pompe disease,...

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Price action

Investment thesis

Bull case

  • Healthy cash reserves of 269.51M provide 236.83x coverage of short-term debt 1.14M, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 277M provides 223.75x coverage of total debt 1.24M, indicating robust asset backing and low credit risk.
  • Strong cash position of 269.51M provides 39.93x coverage of other current liabilities 6.75M, indicating excellent liquidity.
  • Cash reserves of 269.51M provide robust 28.75x coverage of current liabilities 9.37M, indicating strong short-term solvency.
  • Tangible assets of 277M provide robust 41.04x coverage of other current liabilities 6.75M, indicating strong asset backing.

Bear case

  • Investment activities of (141000) provide weak support for R&D spending of 56.30M, which is -0x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • The company's operating cash flow of (62.44M) shows concerning coverage of stock compensation expenses of 8.62M, with a -7.24 ratio indicating potential earnings quality issues.
  • Free cash flow of (62.58M) provides weak coverage of capital expenditures of 141000, with a -443.82 ratio suggesting additional external financing needs for growth initiatives.
  • Operating cash flow of (62.44M) provides minimal -63.97x coverage of tax expenses of 976000, suggesting potential tax planning inefficiencies or unsustainable tax positions.
  • Operating earnings of (66.25M) show weak coverage of depreciation charges of 2.65M, with a -24.99 ratio indicating high capital intensity and potential reinvestment needs.

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 0.91 12.96
EV to Cash from Ops. EV/CFO -4.02 23.73
EV to Debt EV to Debt 202.63 772.65
EV to EBIT EV/EBIT -3.79 -11.30
EV to EBITDA EV/EBITDA -3.40 7.11
EV to Free Cash Flow [EV/FCF] EV/FCF -4.01 22.12
EV to Market Cap EV to Market Cap 0.47 68.89
EV to Revenue EV to Revenue 0.00 199.70
Price to Book Value [P/B] P/B 2.01 22.62
Price to Earnings [P/E] P/E -7.98 -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) -907.52 857.11
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 30.54 -27.24
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 68.78 747.06
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 0.01
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -25.98 -48.21
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -45.68 -2.09
EBIT Growth (1y) % EBIT 1y % (Qtr) -24.15 -57.79
EBT Growth (1y) % EBT 1y % (Qtr) -24.02 -14.35
EPS Growth (1y) % EPS 1y % (Qtr) 87.89 -30.88
FCF Growth (1y) % FCF 1y % (Qtr) -15.63 -32.51
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) 28.75 3.79
Current Ratio Curr Ratio (Qtr) 29.15 7.23
Debt to Equity Ratio Debt/Equity (Qtr) 0.00 0.42
Interest Cover Ratio Int Coverage (Qtr) -907.52 857.11
Times Interest Earned Times Interest Earned (Qtr) -907.52 857.11
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % 0.00 -18,509.94
EBIT Margin % EBIT Margin % 0.00 -18,862.18
EBT Margin % EBT Margin % 0.00 -19,783.19
Gross Margin % Gross Margin % 0.00 -8.62
Net Profit Margin % Net Profit Margin % 0.00 -19,732.60