Zura Bio Ltd (NASDAQ: ZURA)

Sector: Healthcare Industry: Biotechnology CIK: 0001855644
Market Cap 505.93 Mn
P/B 4.67
P/E -8.09
P/S 0.00
ROIC (Qtr) -61.98
Div Yield % 0.00
Rev 1y % (Qtr) 0.00
Total Debt (Qtr) 0.00
Debt/Equity (Qtr) 0.00

About

Zura Bio Ltd, a biotechnology company that operates under the stock symbol ZURA, is dedicated to the development of innovative therapies for various diseases, with a particular focus on autoimmune conditions such as lupus, myositis, and eosinophilic disorders. The company boasts an experienced leadership team, headed by Dr. Somit Sidhu, who serves as the Founder, Chief Executive Officer, and Director, bringing a robust background in the life sciences industry. In the realm of biotechnology, Zura Bio engages in the development and commercialization...

Read more

Price action

Investment thesis

Bull case

  • Operating cash flow of (53.36M) provides exceptional 64.21x coverage of minority interest expenses (831000), showing strong core operations.
  • Cash reserves of 139.02M provide robust 5.45x coverage of current liabilities 25.49M, indicating strong short-term solvency.
  • Cash position of 139.02M represents healthy 1.19x of working capital 116.80M, demonstrating strong operational liquidity.
  • Robust R&D investment of 40.37M at 1.25x of SG&A 32.20M demonstrates strong commitment to innovation and future growth.
  • Strong R&D investment of 40.37M at 286.28x of capex 141000 shows balanced investment in innovation and infrastructure.

Bear case

  • Investment activities of (141000) provide weak support for R&D spending of 40.37M, which is -0x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • The company's operating cash flow of (53.36M) shows concerning coverage of stock compensation expenses of 12.57M, with a -4.24 ratio indicating potential earnings quality issues.
  • Free cash flow of (53.50M) provides weak coverage of capital expenditures of 141000, with a -379.45 ratio suggesting additional external financing needs for growth initiatives.
  • Operating earnings of (64.27M) show weak coverage of depreciation charges of 39000, with a -1647.92 ratio indicating high capital intensity and potential reinvestment needs.
  • Operating cash flow of (53.36M) is outpaced by equity issuance of 5.18M (-10.30 ratio), indicating concerning reliance on equity markets for funding operations.

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 2.44 12.96
EV to Cash from Ops. EV/CFO -6.59 23.73
EV to Debt EV to Debt 0.00 772.65
EV to EBIT EV/EBIT -5.47 -11.30
EV to EBITDA EV/EBITDA -4.85 7.11
EV to Free Cash Flow [EV/FCF] EV/FCF -6.57 22.12
EV to Market Cap EV to Market Cap 0.69 68.89
EV to Revenue EV to Revenue 0.00 199.70
Price to Book Value [P/B] P/B 4.67 22.62
Price to Earnings [P/E] P/E -8.09 -12.30
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 35.75 -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) -370.00 -27.24
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -26.14 747.06
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 0.01
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -36.02 -48.21
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -44.25 -2.09
EBIT Growth (1y) % EBIT 1y % (Qtr) -36.02 -57.79
EBT Growth (1y) % EBT 1y % (Qtr) -36.02 -14.35
EPS Growth (1y) % EPS 1y % (Qtr) -103.12 -30.88
FCF Growth (1y) % FCF 1y % (Qtr) -150.77 -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) 5.45 3.79
Current Ratio Curr Ratio (Qtr) 5.58 7.23
Debt to Equity Ratio Debt/Equity (Qtr) 0.00 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 % 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