Taysha Gene Therapies, Inc. (NASDAQ: TSHA)

Sector: Healthcare Industry: Biotechnology CIK: 0001806310
Market Cap 1.56 Bn
P/B 7.11
P/E -15.58
P/S 246.67
ROIC (Qtr) -34.45
Div Yield % 0.00
Rev 1y % (Qtr) 0.00
Total Debt (Qtr) 67.36 Mn
Debt/Equity (Qtr) 0.31

About

Taysha Gene Therapies, Inc., often recognized by its stock symbol TSHA, is a clinical-stage biotechnology company operating within the healthcare sector, specifically in the field of gene therapies for the treatment of severe monogenic diseases of the central nervous system (CNS). The company's primary focus is on discovering, developing, and commercializing gene therapies, with a particular emphasis on its lead clinical program targeting Rett syndrome. Taysha's business activities revolve around the use of AAV-based gene therapies to address the...

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Price action

Investment thesis

Bull case

  • Strong tangible asset base of 316.55M provides 4.70x coverage of total debt 67.36M, indicating robust asset backing and low credit risk.
  • Tangible assets of 316.55M provide exceptional 57.71x coverage of deferred revenue 5.49M, showing strong service capability backing.
  • Operating cash flow of (84.68M) fully covers other non-current liabilities (3.91M) by 21.66x, showing strong long-term stability.
  • Tangible assets of 316.55M provide robust 13.65x coverage of other current liabilities 23.19M, indicating strong asset backing.
  • Cash reserves of 299.94M provide robust 10.48x coverage of current liabilities 28.63M, indicating strong short-term solvency.

Bear case

  • Investment activities of (344000) provide weak support for R&D spending of 76.78M, which is -0x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Operating cash flow of (84.68M) provides insufficient coverage of deferred revenue obligations of 5.49M, which is -15.44x, raising concerns about future service delivery capabilities.
  • The company's operating cash flow of (84.68M) shows concerning coverage of stock compensation expenses of 12.98M, with a -6.52 ratio indicating potential earnings quality issues.
  • Free cash flow of (85.16M) provides weak coverage of capital expenditures of 486000, with a -175.23 ratio suggesting additional external financing needs for growth initiatives.
  • Operating earnings of (99.86M) show weak coverage of depreciation charges of 2.41M, with a -41.43 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 4.10 12.96
EV to Cash from Ops. EV/CFO -15.34 23.73
EV to Debt EV to Debt 19.28 772.65
EV to EBIT EV/EBIT -13.01 -11.30
EV to EBITDA EV/EBITDA -13.03 7.11
EV to Free Cash Flow [EV/FCF] EV/FCF -15.25 22.12
EV to Market Cap EV to Market Cap 0.83 68.89
EV to Revenue EV/Rev 205.86 199.70
Price to Book Value [P/B] P/B 7.11 22.62
Price to Earnings [P/E] P/E -15.58 -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) -1,367.89 857.11
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -23.66 -27.24
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 87.13 747.06
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 0.01
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -354.32 -48.21
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -16.94 -2.09
EBIT Growth (1y) % EBIT 1y % (Qtr) -354.32 -57.79
EBT Growth (1y) % EBT 1y % (Qtr) -338.82 -14.35
EPS Growth (1y) % EPS 1y % (Qtr) -152.38 -30.88
FCF Growth (1y) % FCF 1y % (Qtr) -7.22 -32.51
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -36.36 227.96
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.02 0.14
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.00
Cash Ratio Cash Ratio (Qtr) 10.48 3.79
Current Ratio Curr Ratio (Qtr) 10.48 7.23
Debt to Equity Ratio Debt/Equity (Qtr) 0.31 0.42
Interest Cover Ratio Int Coverage (Qtr) -1,367.89 857.11
Times Interest Earned Times Interest Earned (Qtr) -1,367.89 857.11
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) -1,544.30 -18,509.94
EBIT Margin % EBIT Margin % (Qtr) -1,582.50 -18,862.18
EBT Margin % EBT Margin % (Qtr) -1,583.66 -19,783.19
Gross Margin % Gross Margin % (Qtr) 100.00 -8.62
Net Profit Margin % Net Margin % (Qtr) -1,583.70 -19,732.60