Viking Therapeutics, Inc. (NASDAQ: VKTX)

Sector: Healthcare Industry: Biotechnology CIK: 0001607678
Market Cap 3.54 Bn
P/B 4.97
P/E -14.93
P/S 0.00
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...

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Price action

Investment thesis

Bull case

  • 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.

Bear case

  • 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. 1,446.17 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 4.75 12.96
EV to Cash from Ops. EV/CFO -15.63 23.73
EV to Debt EV to Debt 4,650.42 772.65
EV to EBIT EV/EBIT -14.79 -11.30
EV to EBITDA EV/EBITDA -12.80 7.11
EV to Free Cash Flow [EV/FCF] EV/FCF -15.63 22.12
EV to Market Cap EV to Market Cap 0.99 68.89
EV to Revenue EV to Revenue 0.00 199.70
Price to Book Value [P/B] P/B 4.97 22.62
Price to Earnings [P/E] P/E -14.93 -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) 0.00 857.11
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex Growth (1y) % 0.00 -27.24
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 99.28 747.06
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 0.01
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -139.43 -48.21
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -105.30 -2.09
EBIT Growth (1y) % EBIT 1y % (Qtr) -139.43 -57.79
EBT Growth (1y) % EBT 1y % (Qtr) -139.43 -14.35
EPS Growth (1y) % EPS 1y % (Qtr) -127.96 -30.88
FCF Growth (1y) % FCF 1y % (Qtr) -202.46 -32.51
Gross Profit Growth (1y) % Gross Profit Growth (1y) % 0.00 227.96
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.00 0.14
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.00
Cash Ratio Cash Ratio (Qtr) 3.85 3.79
Current Ratio Curr Ratio (Qtr) 28.34 7.23
Debt to Equity Ratio Debt/Equity (Qtr) 0.00 0.42
Interest Cover Ratio Int Coverage (Qtr) 0.00 857.11
Times Interest Earned Times Interest Earned (Qtr) 0.00 857.11
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % 0.00 -18,509.94
EBIT Margin % EBIT Margin % 0.00 -18,862.18
EBT Margin % EBT Margin % 0.00 -19,783.19
Gross Margin % Gross Margin % 0.00 -8.62
Net Profit Margin % Net Profit Margin % 0.00 -19,732.60