Viking Therapeutics, Inc. (VKTX) Stock Analysis and Metrics

Sector: Healthcare Industry: Biotechnology CIK: 0001607678

P/B 5.82

P/E -17.49

P/S 0.00

Market Cap 4.15 Bn

ROIC (Qtr) -36.40

Div Yield % 0.00

Rev 1y % (Qtr) 0.00

Total Debt (Qtr) 755,000.00

Debt/Equity (Qtr) 0.00

About

Viking Therapeutics, Inc. (NASDAQ: VKTX) is a clinical-stage biopharmaceutical company operating in the healthcare industry, with a focus on developing novel therapies for metabolic and endocrine disorders. The company's main business activities revolve around the research, development, and commercialization of innovative treatments for various medical conditions, with a strong emphasis on addressing unmet medical needs. Viking Therapeutics operates primarily in the United States, although its impact is felt globally through its groundbreaking work...

Viking Therapeutics, Inc. (NASDAQ: VKTX) is a clinical-stage biopharmaceutical company operating in the healthcare industry, with a focus on developing novel therapies for metabolic and endocrine disorders. The company's main business activities revolve around the research, development, and commercialization of innovative treatments for various medical conditions, with a strong emphasis on addressing unmet medical needs. Viking Therapeutics operates primarily in the United States, although its impact is felt globally through its groundbreaking work in the field of biopharmaceuticals.

The company generates revenue through the development and commercialization of its innovative therapies. Viking Therapeutics' primary products include VK2809, an orally available, tissue and receptor-subtype selective agonist of the thyroid hormone receptor beta (TRβ), which is currently being developed for the treatment of non-alcoholic steatohepatitis (NASH) and other metabolic disorders. Additionally, the company has a strong pipeline of clinical-stage assets, including VK2735, a dual agonist of the glucagon-like peptide 1 (GLP-1) and glucose-dependent insulinotropic polypeptide (GIP) receptors, being developed for the treatment of obesity and type 2 diabetes. VK0214, another orally available, tissue and receptor-subtype selective agonist of TRβ, is being developed for the treatment of X-linked adrenoleukodystrophy (X-ALD).

Within the industry, Viking Therapeutics holds a strong competitive position due to its unique portfolio of assets that address significant unmet medical needs. The company's primary competitors include Madrigal Pharmaceuticals, Inc., Galmed Pharmaceuticals Ltd., and Gilead Sciences, Inc. However, Viking Therapeutics distinguishes itself through its strong team of experienced executives and scientists, who have a proven track record of success in developing novel therapeutics. The company's collaborations with several major pharmaceutical companies further strengthen its competitive position and provide a potential source of future revenue and growth.

Viking Therapeutics' customers primarily consist of patients with NASH, obesity, type 2 diabetes, and X-ALD. The company's products are designed to address the underlying causes of these diseases, rather than merely treating the symptoms, providing significant benefits to patients, including improved liver health, weight loss, and reduced risk of cardiovascular disease.

In terms of brand names and trade names, Viking Therapeutics' portfolio includes VK2809, VK2735, and VK0214. These innovative therapies highlight the company's commitment to addressing unmet medical needs and its focus on developing novel, first-in-class or best-in-class treatments for metabolic and endocrine disorders.

Stock Price Chart

Analysis

Pros

Healthy cash reserves of 100.42M provide 229.80x coverage of short-term debt 437000, demonstrating strong liquidity position and minimal refinancing risk.
Strong tangible asset base of 739.41M provides 979.36x coverage of total debt 755000, indicating robust asset backing and low credit risk.
Short-term investments of 614.19M provide solid 28.95x coverage of other current liabilities 21.22M, indicating strong liquidity.
Tangible assets of 739.41M provide robust 34.85x coverage of other current liabilities 21.22M, indicating strong asset backing.
Cash reserves of 100.42M provide robust 3.85x coverage of current liabilities 26.07M, indicating strong short-term solvency.

Cons

Operating cash flow of (224.58M) barely covers its investment activities of 272.36M, with a coverage ratio of -0.82, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
Investment activities of 272.36M provide weak support for R&D spending of 222.48M, which is 1.22x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
Short-term investments of 614.19M significantly exceed cash reserves of 100.42M, which is 6.12x, indicating potentially excessive yield-seeking behavior at the expense of liquidity.
The company's operating cash flow of (224.58M) shows concerning coverage of stock compensation expenses of 37.90M, with a -5.93 ratio indicating potential earnings quality issues.
Operating earnings of (237.39M) show weak coverage of depreciation charges of 447000, with a -531.08 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.	1,349.40 Bn	-1,464.17	0.00	0.01 Bn
2	ONC	BeOne Medicines Ltd.	437.43 Bn	6,381.20	87.97	1.90 Bn
3	VRTX	Vertex Pharmaceuticals Inc / Ma	116.09 Bn	31.59	9.90	1.83 Bn
4	REGN	Regeneron Pharmaceuticals, Inc.	78.10 Bn	17.06	5.48	2.71 Bn
5	ALNY	Alnylam Pharmaceuticals, Inc.	55.87 Bn	1,282.42	17.40	3.21 Bn
6	ARGX	Argenx Se	52.85 Bn	35.08	27,559.65	-
7	BNTC	Benitec Biopharma Inc.	41.75 Bn	-998.33	0.00	0.00 Bn
8	INSM	INSMED Inc	37.80 Bn	-31.93	84.56	0.74 Bn

Industry Comparisons

Current Valuation

Metric	Value	Industry
EV to Assets	5.57	12.31
EV to Cash from Ops.	-18.34	23.25
EV to Debt	5,455.77	738.44
EV to EBIT	-17.35	-9.16
EV to EBITDA	-15.01	6.95
EV to Free Cash Flow [EV/FCF]	-18.34	21.90
EV to Market Cap	0.99	65.67
EV to Revenue	0.00	227.32
Price to Book Value [P/B]	5.82	22.34
Price to Earnings [P/E]	-17.49	-11.77

Dividend Metrics

Metric	Value	Industry	Percentile
Dividend Coverage Ratio	0.00	-11.94
Dividend Payout Ratio %	0.00	0.16
Dividend per Basic Share	0.00	0.01
FCF Dividend Payout Ratio %	0.00	-0.14
Interest Coverage	0.00	841.00

Growth Metrics

Metric	Value	Industry
Capex Growth (1y) %	0.00	-27.13
Cash and Equivalents Growth (1y) %	99.28	734.65
Dividend Growth (1y) %	0.00	0.01
EBIAT Growth (1y) %	-139.43	-46.93
EBITDA Growth (1y) %	-105.30	-1.68
EBIT Growth (1y) %	-139.43	-56.45
EBT Growth (1y) %	-139.43	-12.70
EPS Growth (1y) %	-127.96	-28.31
FCF Growth (1y) %	-202.46	-31.90
Gross Profit Growth (1y) %	0.00	226.84

Liquidity Ratios

Metric	Value	Industry
Asset Utilization Ratio	0.00	0.14
Cash Payout Ratio	0.00	0.00
Cash Ratio	3.85	3.85
Current Ratio	28.34	7.27
Debt to Equity Ratio	0.00	0.40
Interest Cover Ratio	0.00	841.00
Times Interest Earned	0.00	841.00

Profitability

Metric	Value	Industry	Percentile
EBITDA Margin %	0.00	-18,234.31
EBIT Margin %	0.00	-18,580.80
EBT Margin %	0.00	-19,488.74
Gross Margin %	0.00	-7.59
Net Profit Margin %	0.00	-19,439.22

Viking Therapeutics, Inc. (NASDAQ: VKTX)