Zevra Therapeutics, Inc. (NASDAQ: ZVRA)

Sector: Healthcare Industry: Biotechnology CIK: 0001434647
Market Cap 635.11 Mn
P/B 4.77
P/E 17.98
P/S 7.53
ROIC (Qtr) -26.01
Div Yield % 0.00
Rev 1y % (Qtr) 605.36
Total Debt (Qtr) 62.72 Mn
Debt/Equity (Qtr) 0.47

About

Zevra Therapeutics, Inc., a company that trades under the symbol ZVRA, operates within the rare disease industry. Its mission is to bring life-changing therapeutics to people living with rare diseases. Zevra achieves this by combining science, data, and patient needs to create transformational therapies for diseases with limited or no treatment options. Zevra's primary business activities revolve around the development of therapies for rare diseases. The company operates in the United States and Europe, focusing on diseases with significant unmet...

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Price action

Investment thesis

Bull case

  • Healthy cash reserves of 54.44M provide 123.44x coverage of short-term debt 441000, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 258.68M provides 4.12x coverage of total debt 62.72M, indicating robust asset backing and low credit risk.
  • Tangible assets of 258.68M provide exceptional 13.65x coverage of deferred revenue 18.95M, showing strong service capability backing.
  • Short-term investments of 145.07M provide solid 9.94x coverage of other current liabilities 14.60M, indicating strong liquidity.
  • Tangible assets of 258.68M provide robust 17.72x coverage of other current liabilities 14.60M, indicating strong asset backing.

Bear case

  • Operating cash flow of (23.36M) barely covers its investment activities of 12.43M, with a coverage ratio of -1.88, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of 12.43M provide weak support for R&D spending of 18.48M, which is 0.67x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Cash reserves of 54.44M provide limited coverage of acquisition spending of 144M, which is 0.38x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • Operating cash flow of (23.36M) provides insufficient coverage of deferred revenue obligations of 18.95M, which is -1.23x, raising concerns about future service delivery capabilities.
  • The company's operating cash flow of (23.36M) shows concerning coverage of stock compensation expenses of 12.37M, with a -1.89 ratio indicating potential earnings quality issues.

Revision of Prior Period Breakdown of Revenue (2023)

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 2.41 12.96
EV to Cash from Ops. EV/CFO -27.81 23.73
EV to Debt EV to Debt 10.36 772.65
EV to EBIT EV/EBIT 10.50 -11.30
EV to EBITDA EV/EBITDA -7.89 7.11
EV to Free Cash Flow [EV/FCF] EV/FCF -27.48 22.12
EV to Market Cap EV to Market Cap 1.02 68.89
EV to Revenue EV/Rev 7.70 199.70
Price to Book Value [P/B] P/B 4.77 22.62
Price to Earnings [P/E] P/E 17.98 -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 Int. cover (Qtr) 7.52 857.11
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -284.72 -27.24
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 0.74 747.06
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 0.01
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 148.64 -48.21
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -1.38 -2.09
EBIT Growth (1y) % EBIT 1y % (Qtr) 173.87 -57.79
EBT Growth (1y) % EBT 1y % (Qtr) 159.83 -14.35
EPS Growth (1y) % EPS 1y % (Qtr) 122.75 -30.88
FCF Growth (1y) % FCF 1y % (Qtr) 66.05 -32.51
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 295.44 227.96
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.31 0.14
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.00
Cash Ratio Cash Ratio (Qtr) 2.08 3.79
Current Ratio Curr Ratio (Qtr) 8.62 7.23
Debt to Equity Ratio Debt/Equity (Qtr) 0.47 0.42
Interest Cover Ratio Int Coverage (Qtr) 7.52 857.11
Times Interest Earned Times Interest Earned (Qtr) 7.52 857.11
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 79.60 -18,509.94
EBIT Margin % EBIT Margin % (Qtr) 73.31 -18,862.18
EBT Margin % EBT Margin % (Qtr) 63.57 -19,783.19
Gross Margin % Gross Margin % (Qtr) 80.70 -8.62
Net Profit Margin % Net Margin % (Qtr) 41.90 -19,732.60