Talphera, Inc. (NASDAQ: TLPH)

Sector: Healthcare Industry: Drug Manufacturers - Specialty & Generic CIK: 0001427925
Market Cap 37.16 Mn
P/B 1.94
P/E -3.00
P/S 1,327.29
ROIC (Qtr) -67.15
Div Yield % 0.00
Rev 1y % (Qtr) 0.00
Total Debt (Qtr) 6.50 Mn
Debt/Equity (Qtr) 0.34

About

Price action

Investment thesis

Bull case

  • Strong tangible asset base of 30.74M provides 4.73x coverage of total debt 6.50M, indicating robust asset backing and low credit risk.
  • Short-term investments of 17.83M provide solid 6.64x coverage of other current liabilities 2.69M, indicating strong liquidity.
  • Tangible assets of 30.74M provide robust 11.45x coverage of other current liabilities 2.69M, indicating strong asset backing.
  • Cash reserves of 3.46M provide robust 1.08x coverage of current liabilities 3.21M, indicating strong short-term solvency.
  • Cash reserves of 3.46M provide solid 1.86x coverage of other non-current liabilities 1.85M, indicating strong liquidity.

Bear case

  • Operating cash flow of (11.18M) barely covers its investment activities of (17.82M), with a coverage ratio of 0.63, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of (17.82M) provide weak support for R&D spending of 5.79M, which is -3.07x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • The company's operating cash flow of (11.18M) shows concerning coverage of stock compensation expenses of 744000, with a -15.03 ratio indicating potential earnings quality issues.
  • Short-term investments of 17.83M significantly exceed cash reserves of 3.46M, which is 5.16x, indicating potentially excessive yield-seeking behavior at the expense of liquidity.
  • High financing cash flow of 21.34M relative to working capital of 18.71M, which is 1.14x suggests concerning dependence on external funding for operational needs.

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 1.20 24.98
EV to Cash from Ops. EV/CFO -3.30 -85.40
EV to Debt EV to Debt 5.67 265.88
EV to EBIT EV/EBIT -2.98 -32.65
EV to EBITDA EV/EBITDA -2.83 -29.50
EV to Free Cash Flow [EV/FCF] EV/FCF -3.30 -32.62
EV to Market Cap EV to Market Cap 0.99 -10.98
EV to Revenue EV/Rev 1,316.86 -700.14
Price to Book Value [P/B] P/B 1.94 27.22
Price to Earnings [P/E] P/E -3.00 -122.96
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 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) 0.00 -38.10
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 0.00 -157.22
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -68.90 44,776.25
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 2.81
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 20.85 24.45
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 21.23 18.14
EBIT Growth (1y) % EBIT 1y % (Qtr) 20.87 37.66
EBT Growth (1y) % EBT 1y % (Qtr) 20.87 108.18
EPS Growth (1y) % EPS 1y % (Qtr) 41.54 52.88
FCF Growth (1y) % FCF 1y % (Qtr) 22.23 -54.47
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -90.04 25.28
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.00 0.50
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.02
Cash Ratio Cash Ratio (Qtr) 1.08 2.10
Current Ratio Curr Ratio (Qtr) 6.83 3.92
Debt to Equity Ratio Debt/Equity (Qtr) 0.34 -1.11
Interest Cover Ratio Int Coverage (Qtr) 0.00 -38.10
Times Interest Earned Times Interest Earned (Qtr) 0.00 -38.10
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) -44,242.90 -62,432.09
EBIT Margin % EBIT Margin % (Qtr) -44,242.86 -63,260.88
EBT Margin % EBT Margin % (Qtr) -44,242.86 -66,726.96
Gross Margin % Gross Margin % (Qtr) 100.00 8,332.72
Net Profit Margin % Net Margin % (Qtr) -44,242.90 -66,728.37