vTv Therapeutics Inc. (NASDAQ: VTVT)

Sector: Healthcare Industry: Biotechnology CIK: 0001641489
Market Cap 208.29 Mn
P/B 2.95
P/E -8.87
P/S 12,252.19
ROIC (Qtr) -80.25
Div Yield % 0.00
Rev 1y % (Qtr) 0.00
Total Debt (Qtr) 360,000.00
Debt/Equity (Qtr) 0.01

About

VTv Therapeutics Inc., often recognized by its stock symbol VTVT, is a company that operates within the biopharmaceutical industry. The organization is dedicated to the development of orally administered treatments for metabolic and inflammatory diseases, with a primary focus on type 1 diabetes (T1D) and other metabolic disorders. The company's main business activities revolve around the development of small molecule drug candidates. Their primary product, cadisegliatin (TTP399), is a novel, orally administered, small molecule, liver-selective...

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Price action

Investment thesis

Bull case

  • Healthy cash reserves of 98.50M provide 273.62x coverage of short-term debt 360000, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 99.49M provides 276.37x coverage of total debt 360000, indicating robust asset backing and low credit risk.
  • Operating cash flow of (20.83M) provides strong 91.76x coverage of operating expenses (227000), showing operational efficiency.
  • Cash reserves of 98.50M provide robust 9.69x coverage of current liabilities 10.16M, indicating strong short-term solvency.
  • Cash reserves of 98.50M provide solid 5.24x coverage of other non-current liabilities 18.79M, indicating strong liquidity.

Bear case

  • Investment activities of 0 provide weak support for R&D spending of 16.19M, which is 0x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • The company's operating cash flow of (20.83M) shows concerning coverage of stock compensation expenses of 3.58M, with a -5.83 ratio indicating potential earnings quality issues.
  • Operating earnings of (23.46M) show weak coverage of depreciation charges of 36000, with a -651.81 ratio indicating high capital intensity and potential reinvestment needs.
  • Free cash flow of (20.83M) represents just -63.50x of debt issuance 328000, suggesting concerning reliance on leverage rather than internal cash generation for growth.
  • High financing cash flow of 77.76M relative to working capital of 89.29M, which is 0.87x suggests concerning dependence on external funding for operational 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. 1,151.25 Bn -1,249.17 0.00 0.01 Bn
2 ONC BeOne Medicines Ltd. 485.22 Bn 7,078.40 97.58 1.90 Bn
3 VRTX Vertex Pharmaceuticals Inc / Ma 122.74 Bn 33.40 10.47 1.83 Bn
4 REGN Regeneron Pharmaceuticals, Inc. 82.16 Bn 18.24 5.73 2.71 Bn
5 ARGX Argenx Se 48.85 Bn 32.43 25,472.44 -
6 ALNY Alnylam Pharmaceuticals, Inc. 46.12 Bn 1,058.58 14.37 3.21 Bn
7 BNTC Benitec Biopharma Inc. 42.24 Bn -1,010.00 0.00 0.00 Bn
8 INSM INSMED Inc 28.75 Bn -24.29 64.32 0.74 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 1.83 11.11
EV to Cash from Ops. EV/CFO -8.76 26.32
EV to Debt EV to Debt 506.79 688.48
EV to EBIT EV/EBIT -7.78 -10.97
EV to EBITDA EV/EBITDA -6.17 8.32
EV to Free Cash Flow [EV/FCF] EV/FCF -8.76 25.03
EV to Market Cap EV to Market Cap 0.88 163.46
EV to Revenue EV/Rev 10,732.02 148.57
Price to Book Value [P/B] P/B 2.95 20.73
Price to Earnings [P/E] P/E -8.87 -0.34
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 0.00 -12.47
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 -0.14
Interest Coverage Int. cover (Qtr) -4,693.00 860.86
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 0.00 -26.99
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 136.95 756.75
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 0.01
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -28.23 -53.03
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -22.17 -4.42
EBIT Growth (1y) % EBIT 1y % (Qtr) -28.94 -62.56
EBT Growth (1y) % EBT 1y % (Qtr) -28.91 -19.19
EPS Growth (1y) % EPS 1y % (Qtr) 27.81 -4.07
FCF Growth (1y) % FCF 1y % (Qtr) 10.97 -33.40
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -98.30 264.38
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) 9.69 3.81
Current Ratio Curr Ratio (Qtr) 9.79 7.25
Debt to Equity Ratio Debt/Equity (Qtr) 0.01 0.43
Interest Cover Ratio Int Coverage (Qtr) -4,693.00 860.86
Times Interest Earned Times Interest Earned (Qtr) -4,693.00 860.86
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) -137,817.60 -17,746.13
EBIT Margin % EBIT Margin % (Qtr) -138,029.41 -18,101.92
EBT Margin % EBT Margin % (Qtr) -138,058.82 -18,961.86
Gross Margin % Gross Margin % (Qtr) 100.00 -9.24
Net Profit Margin % Net Margin % (Qtr) -138,058.80 -18,911.61