Vir Biotechnology, Inc. (NASDAQ: VIR)

Sector: Healthcare Industry: Biotechnology CIK: 0001706431
Market Cap 823.53 Mn
P/B 1.03
P/E -1.65
P/S 48.85
ROIC (Qtr) -56.96
Div Yield % 0.00
Rev 1y % (Qtr) -89.92
Total Debt (Qtr) 91.22 Mn
Debt/Equity (Qtr) 0.11

About

Vir Biotechnology, Inc., often referred to as Vir, operates in the biotechnology sector of the healthcare industry. Specifically, Vir is a commercial-stage immunology company dedicated to the development of treatments and preventions for serious infectious diseases. The company's mission is to create a world without infectious diseases, and it achieves this by focusing on four technology platforms that stimulate and enhance the immune system. These platforms include the antibody platform, T cell platform, innate immunity platform, and small interfering...

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Price action

Investment thesis

Bull case

  • Strong tangible asset base of 994.59M provides 10.90x coverage of total debt 91.22M, indicating robust asset backing and low credit risk.
  • Tangible assets of 994.59M provide exceptional 105.44x coverage of deferred revenue 9.43M, showing strong service capability backing.
  • Operating cash flow of (453.54M) provides strong 109.92x coverage of operating expenses (4.13M), showing operational efficiency.
  • Long-term investments of 311.17M provide solid 3.41x coverage of long-term debt 91.22M, indicating strategic financial planning.
  • Short-term investments of 336.43M provide solid 4.92x coverage of other current liabilities 68.38M, indicating strong liquidity.

Bear case

  • Operating cash flow of (453.54M) barely covers its investment activities of 364.46M, with a coverage ratio of -1.24, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of 364.46M provide weak support for R&D spending of 473.70M, which is 0.77x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Operating cash flow of (453.54M) provides insufficient coverage of deferred revenue obligations of 9.43M, which is -48.08x, raising concerns about future service delivery capabilities.
  • The company's operating cash flow of (453.54M) shows concerning coverage of stock compensation expenses of 53.71M, with a -8.44 ratio indicating potential earnings quality issues.
  • Operating cash flow of (453.54M) provides minimal -1692.31x coverage of tax expenses of 268000, suggesting potential tax planning inefficiencies or unsustainable tax positions.

Geographical Breakdown of Revenue (2024)

Segments Breakdown of Revenue (2024)

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 0.61 12.96
EV to Cash from Ops. EV/CFO -1.36 23.73
EV to Debt EV to Debt 6.77 772.65
EV to EBIT EV/EBIT -1.24 -11.30
EV to EBITDA EV/EBITDA -1.16 7.11
EV to Free Cash Flow [EV/FCF] EV/FCF -1.35 22.12
EV to Market Cap EV to Market Cap 0.75 68.89
EV to Revenue EV/Rev 36.63 199.70
Price to Book Value [P/B] P/B 1.03 22.62
Price to Earnings [P/E] P/E -1.65 -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 Interest Coverage 0.00 857.11
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 31.25 -27.24
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -33.20 747.06
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 0.01
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 6.32 -48.21
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 9.39 -2.09
EBIT Growth (1y) % EBIT 1y % (Qtr) 7.38 -57.79
EBT Growth (1y) % EBT 1y % (Qtr) 7.38 -14.35
EPS Growth (1y) % EPS 1y % (Qtr) 7.91 -30.88
FCF Growth (1y) % FCF 1y % (Qtr) 3.16 -32.51
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -79.17 227.96
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) 2.29 3.79
Current Ratio Curr Ratio (Qtr) 7.25 7.23
Debt to Equity Ratio Debt/Equity (Qtr) 0.11 0.42
Interest Cover Ratio Interest Cover Ratio 0.00 857.11
Times Interest Earned Times Interest Earned 0.00 857.11
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) -2,864.50 -18,509.94
EBIT Margin % EBIT Margin % (Qtr) -2,961.95 -18,862.18
EBT Margin % EBT Margin % (Qtr) -2,961.95 -19,783.19
Gross Margin % Gross Margin % (Qtr) 95.90 -8.62
Net Profit Margin % Net Margin % (Qtr) -2,963.50 -19,732.60