TherapeuticsMD, Inc. (NASDAQ: TXMD)

Sector: Healthcare Industry: Drug Manufacturers - Specialty & Generic CIK: 0000025743
Market Cap 24.61 Mn
P/B 0.90
P/E 81.50
P/S 8.80
ROIC (Qtr) -8.34
Div Yield % 0.00
Rev 1y % (Qtr) 43.33
Total Debt (Qtr) 5.41 Mn
Debt/Equity (Qtr) 0.20

About

TherapeuticsMD, Inc. (TXMD), a pharmaceutical royalty company, generates revenue from royalties on products licensed to pharmaceutical organizations that possess commercial capabilities in the relevant territories. The company operates in the pharmaceutical industry and is based in the United States. TherapeuticsMD's main business activities involve the development, licensing, and commercialization of pharmaceutical products that address the unmet medical needs of women. The company's primary products include IMVEXXY, BIJUVA, and prescription prenatal...

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Price action

Investment thesis

Bull case

  • Strong tangible asset base of 34.76M provides 6.42x coverage of total debt 5.41M, indicating robust asset backing and low credit risk.
  • Operating cash flow of (11000) provides exceptional 11x coverage of interest expenses (1000), showing strong debt service capability.
  • Robust tangible asset base of 34.76M provides 3.64x coverage of working capital 9.56M, indicating strong operational backing.
  • Free cash flow of (11000) provides exceptional 11x coverage of interest expense (1000), showing strong debt service ability.
  • Tangible assets of 34.76M provide robust 7.42x coverage of other current liabilities 4.68M, indicating strong asset backing.

Bear case

  • The company's operating cash flow of (11000) shows concerning coverage of stock compensation expenses of 48000, with a -0.23 ratio indicating potential earnings quality issues.
  • Operating cash flow of (11000) provides minimal 0.17x coverage of tax expenses of (63000), suggesting potential tax planning inefficiencies or unsustainable tax positions.
  • Operating earnings of 238000 show weak coverage of depreciation charges of 387000, with a 0.61 ratio indicating high capital intensity and potential reinvestment needs.
  • Operating cash flow of (11000) barely covers operating expenses of 514000 with a -0.02 ratio, suggesting thin operational efficiency margins and limited flexibility.
  • Cash position of 7.12M provides only -7115x coverage of interest expenses of (1000), indicating potential refinancing risks in a rising rate environment.

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 0.63 24.98
EV to Cash from Ops. EV/CFO -2,205.64 -85.40
EV to Debt EV to Debt 4.48 265.88
EV to EBIT EV/EBIT 101.94 -32.65
EV to EBITDA EV/EBITDA -10.28 -29.50
EV to Free Cash Flow [EV/FCF] EV/FCF -2,205.64 -32.62
EV to Market Cap EV to Market Cap 0.99 -10.98
EV to Revenue EV/Rev 8.68 -700.14
Price to Book Value [P/B] P/B 0.90 27.22
Price to Earnings [P/E] P/E 81.50 -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) -238.00 -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) 40.97 44,776.25
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 2.81
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 108.79 24.45
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 58.08 18.14
EBIT Growth (1y) % EBIT 1y % (Qtr) 106.87 37.66
EBT Growth (1y) % EBT 1y % (Qtr) 107.12 108.18
EPS Growth (1y) % EPS 1y % (Qtr) 107.41 52.88
FCF Growth (1y) % FCF 1y % (Qtr) 99.87 -54.47
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 75.19 25.28
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.07 0.50
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.02
Cash Ratio Cash Ratio (Qtr) 1.44 2.10
Current Ratio Curr Ratio (Qtr) 2.93 3.92
Debt to Equity Ratio Debt/Equity (Qtr) 0.20 -1.11
Interest Cover Ratio Int Coverage (Qtr) -238.00 -38.10
Times Interest Earned Times Interest Earned (Qtr) -238.00 -38.10
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 22.40 -62,432.09
EBIT Margin % EBIT Margin % (Qtr) 8.51 -63,260.88
EBT Margin % EBT Margin % (Qtr) 8.55 -66,726.96
Gross Margin % Gross Margin % (Qtr) 100.00 8,332.72
Net Profit Margin % Net Margin % (Qtr) 10.80 -66,728.37