Alpha Teknova, Inc. (NASDAQ: TKNO)

Sector: Healthcare Industry: Drug Manufacturers - Specialty & Generic CIK: 0001850902
Market Cap 203.64 Mn
P/B 2.80
P/E -11.18
P/S 5.12
ROIC (Qtr) -17.74
Div Yield % 0.00
Rev 1y % (Qtr) 9.17
Total Debt (Qtr) 28.98 Mn
Debt/Equity (Qtr) 0.40

About

Alpha Teknova, Inc., a prominent entity in the life sciences industry, is publicly recognized through its stock symbol NATV. The company specializes in the production of critical reagents that facilitate the discovery, development, and commercialization of novel therapies, vaccines, and molecular diagnostics. Alpha Teknova's operations span across various stages of biopharmaceutical and diagnostic development workflows, with a particular focus on cell and gene therapy research, mRNA vaccine and therapeutics development, and molecular diagnostics...

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Price action

Investment thesis

Bull case

  • Strong tangible asset base of 95.39M provides 3.29x coverage of total debt 28.98M, indicating robust asset backing and low credit risk.
  • Robust tangible asset base of 95.39M provides 3.22x coverage of working capital 29.63M, indicating strong operational backing.
  • Short-term investments of 18.91M provide solid 4.77x coverage of other current liabilities 3.97M, indicating strong liquidity.
  • Tangible assets of 95.39M provide robust 24.05x coverage of other current liabilities 3.97M, indicating strong asset backing.
  • Cash reserves of 3.20M provide solid 3.39x coverage of other non-current liabilities 946000, indicating strong liquidity.

Bear case

  • Operating cash flow of (9.12M) barely covers its investment activities of 6.08M, with a coverage ratio of -1.50, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Short-term investments of 18.91M significantly exceed cash reserves of 3.20M, which is 5.90x, indicating potentially excessive yield-seeking behavior at the expense of liquidity.
  • The company's operating cash flow of (9.12M) shows concerning coverage of stock compensation expenses of 3.42M, with a -2.67 ratio indicating potential earnings quality issues.
  • Free cash flow of (10.49M) provides weak coverage of capital expenditures of 1.37M, with a -7.67 ratio suggesting additional external financing needs for growth initiatives.
  • Operating cash flow of (9.12M) provides minimal -111.22x coverage of tax expenses of 82000, suggesting potential tax planning inefficiencies or unsustainable tax positions.

Peer comparison

Companies in the Drug Manufacturers - Specialty & Generic
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 ZTS Zoetis Inc. 56.15 Bn 21.18 5.98 7.27 Bn
2 TAK Takeda Pharmaceutical Co Ltd 48.92 Bn 221.13 1.66 36.24 Bn
3 HLN Haleon plc 46.13 Bn 25.59 3.29 -
4 TEVA Teva Pharmaceutical Industries Ltd 35.27 Bn 49.54 2.10 17.07 Bn
5 UTHR UNITED THERAPEUTICS Corp 21.76 Bn 17.11 6.95 0.00 Bn
6 VTRS Viatris Inc 14.87 Bn -4.03 1.05 14.44 Bn
7 NBIX Neurocrine Biosciences Inc 14.08 Bn 32.91 5.25 0.43 Bn
8 ELAN Elanco Animal Health Inc 11.64 Bn 323.29 2.54 4.32 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 2.13 24.98
EV to Cash from Ops. EV/CFO -25.15 -85.40
EV to Debt EV to Debt 7.91 265.88
EV to EBIT EV/EBIT -13.10 -32.65
EV to EBITDA EV/EBITDA -20.02 -29.50
EV to Free Cash Flow [EV/FCF] EV/FCF -21.87 -32.62
EV to Market Cap EV to Market Cap 1.13 -10.98
EV to Revenue EV/Rev 5.76 -700.14
Price to Book Value [P/B] P/B 2.80 27.22
Price to Earnings [P/E] P/E -11.18 -122.96
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 0.34
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 4.81
Dividend per Basic Share Div per Share (Qtr) 0.00 0.07
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 4.08
Interest Coverage Int. cover (Qtr) -27.88 -38.10
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -149.45 -157.22
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -13.59 44,776.25
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 2.81
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 43.81 24.45
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 53.51 18.14
EBIT Growth (1y) % EBIT 1y % (Qtr) 44.68 37.66
EBT Growth (1y) % EBT 1y % (Qtr) 43.38 108.18
EPS Growth (1y) % EPS 1y % (Qtr) 53.42 52.88
FCF Growth (1y) % FCF 1y % (Qtr) 29.59 -54.47
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 91.44 25.28
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.37 0.50
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.02
Cash Ratio Cash Ratio (Qtr) 0.46 2.10
Current Ratio Curr Ratio (Qtr) 5.27 3.92
Debt to Equity Ratio Debt/Equity (Qtr) 0.40 -1.11
Interest Cover Ratio Int Coverage (Qtr) -27.88 -38.10
Times Interest Earned Times Interest Earned (Qtr) -27.88 -38.10
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) -27.60 -62,432.09
EBIT Margin % EBIT Margin % (Qtr) -43.99 -63,260.88
EBT Margin % EBT Margin % (Qtr) -45.57 -66,726.96
Gross Margin % Gross Margin % (Qtr) 31.00 8,332.72
Net Profit Margin % Net Margin % (Qtr) -45.80 -66,728.37