X4 Pharmaceuticals, Inc (NASDAQ: XFOR)

Sector: Healthcare Industry: Biotechnology CIK: 0001501697
Market Cap 29.13 Mn
P/B 0.47
P/E -0.31
P/S 0.86
ROIC (Qtr) -89.42
Div Yield % 0.00
Rev 1y % (Qtr) 215.18
Total Debt (Qtr) 77.36 Mn
Debt/Equity (Qtr) 1.26
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About

X4 Pharmaceuticals, Inc. (X4), a company operating in the biopharmaceutical industry, is dedicated to the discovery and development of novel therapeutics for the treatment of rare diseases and those with limited treatment options. Its primary focus is on mavorixafor, an oral, once-daily therapy that functions as a small-molecule selective antagonist of chemokine receptor CXCR4. Mavorixafor has been designed to facilitate the mobilization of white blood cells from the bone marrow into the blood, thereby increasing levels of circulating neutrophils,...

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Investment thesis

Bull case

  • Healthy cash reserves of 69.63M provide 58.03x coverage of short-term debt 1.20M, demonstrating strong liquidity position and minimal refinancing risk.
  • Tangible assets of 136.77M provide exceptional 99.03x coverage of deferred revenue 1.38M, showing strong service capability backing.
  • Short-term investments of 52.56M provide solid 3.05x coverage of other current liabilities 17.25M, indicating strong liquidity.
  • Tangible assets of 136.77M provide robust 7.93x coverage of other current liabilities 17.25M, indicating strong asset backing.
  • R&D investment of 75.90M represents healthy 54.96x of deferred revenue 1.38M, indicating strong future innovation pipeline.

Bear case

  • Investment activities of (17.32M) provide weak support for R&D spending of 75.90M, which is -0.23x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Operating cash flow of (103.09M) provides insufficient coverage of deferred revenue obligations of 1.38M, which is -74.65x, raising concerns about future service delivery capabilities.
  • The company's operating cash flow of (103.09M) shows concerning coverage of stock compensation expenses of 4.24M, with a -24.29 ratio indicating potential earnings quality issues.
  • Operating cash flow of (103.09M) provides minimal -344.77x coverage of tax expenses of 299000, suggesting potential tax planning inefficiencies or unsustainable tax positions.
  • Free cash flow of (106.13M) provides weak coverage of capital expenditures of 3.04M, with a -34.90 ratio suggesting additional external financing needs for growth initiatives.

Peer comparison

Companies in the Biotechnology
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 SMMT Summit Therapeutics Inc. 1,204.25 Bn -1,306.67 0.00 0.01 Bn
2 ONC BeOne Medicines Ltd. 486.51 Bn 7,097.20 97.84 1.90 Bn
3 VRTX Vertex Pharmaceuticals Inc / Ma 122.05 Bn 30.87 10.17 1.85 Bn
4 REGN Regeneron Pharmaceuticals, Inc. 83.00 Bn 18.42 5.79 2.71 Bn
5 ARGX Argenx Se 50.78 Bn 33.71 26,480.10 -
6 ALNY Alnylam Pharmaceuticals, Inc. 43.66 Bn 139.17 11.76 2.97 Bn
7 BNTC Benitec Biopharma Inc. 43.61 Bn -941.82 0.00 0.00 Bn
8 INSM INSMED Inc 28.88 Bn -24.40 64.61 0.74 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.42 11.06
EV to Cash from Ops. EV/CFO -0.66 26.32
EV to Debt EV to Debt 0.88 762.61
EV to EBIT EV/EBIT -0.79 -13.49
EV to EBITDA EV/EBITDA -0.72 8.61
EV to Free Cash Flow [EV/FCF] EV/FCF -0.64 25.66
EV to Market Cap EV to Market Cap 2.33 203.37
EV to Revenue EV/Rev 2.00 156.31
Price to Book Value [P/B] P/B 0.47 20.59
Price to Earnings [P/E] P/E -0.31 -0.88
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 0.00 -12.64
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) -9.54 956.66
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 58.46 7.87
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -28.52 753.48
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 0.01
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -928.79 -57.63
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -300.03 8.83
EBIT Growth (1y) % EBIT 1y % (Qtr) -930.78 -67.21
EBT Growth (1y) % EBT 1y % (Qtr) -468.53 -23.74
EPS Growth (1y) % EPS 1y % (Qtr) -328.81 -7.02
FCF Growth (1y) % FCF 1y % (Qtr) 20.19 -40.48
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 4,403.82 264.51
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.21 0.14
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.00
Cash Ratio Cash Ratio (Qtr) 2.96 3.92
Current Ratio Curr Ratio (Qtr) 5.65 7.33
Debt to Equity Ratio Debt/Equity (Qtr) 1.26 0.48
Interest Cover Ratio Int Coverage (Qtr) -9.54 956.66
Times Interest Earned Times Interest Earned (Qtr) -9.54 956.66
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) -240.70 -17,888.70
EBIT Margin % EBIT Margin % (Qtr) -252.51 -18,246.34
EBT Margin % EBT Margin % (Qtr) -278.98 -19,108.08
Gross Margin % Gross Margin % (Qtr) 83.20 -10.30
Net Profit Margin % Net Margin % (Qtr) -279.90 -19,056.96