Wave Life Sciences Ltd. (NASDAQ: WVE)

Sector: Healthcare Industry: Biotechnology CIK: 0001631574
Market Cap 2.78 Bn
P/B 22.34
P/E -22.82
P/S 25.47
ROIC (Qtr) -89.06
Div Yield % 0.00
Rev 1y % (Qtr) 199.11
Total Debt (Qtr) 19.77 Mn
Debt/Equity (Qtr) 0.16

About

Price action

Investment thesis

Bull case

  • Healthy cash reserves of 196.22M provide 23.38x coverage of short-term debt 8.39M, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 241.38M provides 12.21x coverage of total debt 19.77M, indicating robust asset backing and low credit risk.
  • Operating cash flow of (197.37M) fully covers other non-current liabilities (46.52M) by 4.24x, showing strong long-term stability.
  • Strong cash position of 196.22M provides 3.11x coverage of other current liabilities 63.01M, indicating excellent liquidity.
  • Cash reserves of 196.22M provide robust 2.28x coverage of current liabilities 85.90M, indicating strong short-term solvency.

Bear case

  • Investment activities of (805000) provide weak support for R&D spending of 174.61M, which is -0x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Operating cash flow of (197.37M) provides insufficient coverage of deferred revenue obligations of 58.21M, which is -3.39x, raising concerns about future service delivery capabilities.
  • The company's operating cash flow of (197.37M) shows concerning coverage of stock compensation expenses of 20.86M, with a -9.46 ratio indicating potential earnings quality issues.
  • Free cash flow of (198.17M) provides weak coverage of capital expenditures of 805000, with a -246.17 ratio suggesting additional external financing needs for growth initiatives.
  • Operating earnings of (121.95M) show weak coverage of depreciation charges of 8.75M, with a -13.94 ratio indicating high capital intensity and potential reinvestment needs.

Product and Service 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 10.75 12.96
EV to Cash from Ops. EV/CFO -13.15 23.73
EV to Debt EV to Debt 131.27 772.65
EV to EBIT EV/EBIT -21.28 -11.30
EV to EBITDA EV/EBITDA -20.40 7.11
EV to Free Cash Flow [EV/FCF] EV/FCF -13.10 22.12
EV to Market Cap EV to Market Cap 0.93 68.89
EV to Revenue EV/Rev 23.76 199.70
Price to Book Value [P/B] P/B 22.34 22.62
Price to Earnings [P/E] P/E -22.82 -12.30
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 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) 33.36 -27.24
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -36.90 747.06
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 0.01
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 14.43 -48.21
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 11.27 -2.09
EBIT Growth (1y) % EBIT 1y % (Qtr) 14.43 -57.79
EBT Growth (1y) % EBT 1y % (Qtr) 14.43 -14.35
EPS Growth (1y) % EPS 1y % (Qtr) 41.44 -30.88
FCF Growth (1y) % FCF 1y % (Qtr) -39.73 -32.51
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 103.75 227.96
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.45 0.14
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.00
Cash Ratio Cash Ratio (Qtr) 2.28 3.79
Current Ratio Curr Ratio (Qtr) 2.51 7.23
Debt to Equity Ratio Debt/Equity (Qtr) 0.16 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) -103.60 -18,509.94
EBIT Margin % EBIT Margin % (Qtr) -111.64 -18,862.18
EBT Margin % EBT Margin % (Qtr) -111.64 -19,783.19
Gross Margin % Gross Margin % (Qtr) 100.00 -8.62
Net Profit Margin % Net Margin % (Qtr) -111.60 -19,732.60