Zevra Therapeutics, Inc. (ZVRA) Stock Analysis and Metrics

Sector: Healthcare Industry: Biotechnology CIK: 0001434647

P/B 4.60

P/E 17.35

P/S 7.26

Market Cap 613.04 Mn

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...

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 medical needs. Zevra's product portfolio includes OLPRUVA, arimoclomol, celiprolol, and KP1077, which are at varying stages of development and approval.

Revenue for Zevra is generated through the sale of its approved products and the licensing of its product candidates. OLPRUVA, approved for the treatment of urea cycle disorders (UCDs) in the U.S., is a significant contributor to the company's revenue. Arimoclomol, an investigational product candidate for the treatment of Niemann-Pick disease type C (NPC), has been granted multiple designations by the FDA, indicating its potential significance. Celiprolol, another investigational product candidate, is being developed for the treatment of vascular Ehlers-Danlos syndrome (vEDS), and KP1077 for idiopathic hypersomnia (IH) and narcolepsy.

Zevra's position within the industry is unique due to its focus on developing therapies for diseases with limited or no treatment options. This focus sets it apart from competitors, which include other rare disease companies and pharmaceutical companies developing therapies for similar indications. Zevra's competitive advantages lie in its diverse portfolio of products and product candidates, its commitment to patient needs, and its partnerships with healthcare providers and patient organizations.

Zevra's customers include patients and healthcare providers who are treating patients with rare diseases. The company is committed to working with these customers to ensure that its products are safe and effective.

Zevra's product portfolio includes the following brand names and trade names: OLPRUVA, arimoclomol, celiprolol, and KP1077. Each of these products and product candidates is designed to address the unmet needs of patients with rare diseases.

Stock Price Chart

Analysis

Pros

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.

Cons

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.

Peer Comparison

Companies in the Biotechnology

S.No.	Ticker	Company	Market Cap	P/E	P/S	Total Debt (Qtr)
1	SMMT	Summit Therapeutics Inc.	1,349.40 Bn	-1,464.17	0.00	0.01 Bn
2	ONC	BeOne Medicines Ltd.	437.43 Bn	6,381.20	87.97	1.90 Bn
3	VRTX	Vertex Pharmaceuticals Inc / Ma	116.09 Bn	31.59	9.90	1.83 Bn
4	REGN	Regeneron Pharmaceuticals, Inc.	78.10 Bn	17.06	5.48	2.71 Bn
5	ALNY	Alnylam Pharmaceuticals, Inc.	55.87 Bn	1,282.42	17.40	3.21 Bn
6	ARGX	Argenx Se	52.85 Bn	35.08	27,559.65	-
7	BNTC	Benitec Biopharma Inc.	41.75 Bn	-998.33	0.00	0.00 Bn
8	INSM	INSMED Inc	37.80 Bn	-31.93	84.56	0.74 Bn

Industry Comparisons

Current Valuation

Metric	Value	Industry
EV to Assets	2.32	12.31
EV to Cash from Ops.	-26.86	23.25
EV to Debt	10.01	738.44
EV to EBIT	10.14	-9.16
EV to EBITDA	-7.62	6.95
EV to Free Cash Flow [EV/FCF]	-26.55	21.90
EV to Market Cap	1.02	65.67
EV to Revenue	7.44	227.32
Price to Book Value [P/B]	4.60	22.34
Price to Earnings [P/E]	17.35	-11.77

Dividend Metrics

Metric	Value	Industry
Dividend Coverage Ratio	0.00	-11.94
Dividend Payout Ratio %	0.00	0.16
Dividend per Basic Share	0.00	0.01
FCF Dividend Payout Ratio %	0.00	-0.14
Interest Coverage	7.52	841.00

Growth Metrics

Metric	Value	Industry
Capex Growth (1y) %	-284.72	-27.13
Cash and Equivalents Growth (1y) %	0.74	734.65
Dividend Growth (1y) %	0.00	0.01
EBIAT Growth (1y) %	148.64	-46.93
EBITDA Growth (1y) %	-1.38	-1.68
EBIT Growth (1y) %	173.87	-56.45
EBT Growth (1y) %	159.83	-12.70
EPS Growth (1y) %	122.75	-28.31
FCF Growth (1y) %	66.05	-31.90
Gross Profit Growth (1y) %	295.44	226.84

Liquidity Ratios

Metric	Value	Industry
Asset Utilization Ratio	0.31	0.14
Cash Payout Ratio	0.00	0.00
Cash Ratio	2.08	3.85
Current Ratio	8.62	7.27
Debt to Equity Ratio	0.47	0.40
Interest Cover Ratio	7.52	841.00
Times Interest Earned	7.52	841.00

Profitability

Metric	Value	Industry
EBITDA Margin %	79.60	-18,234.31
EBIT Margin %	73.31	-18,580.80
EBT Margin %	63.57	-19,488.74
Gross Margin %	80.70	-7.59
Net Profit Margin %	41.90	-19,439.22

Zevra Therapeutics, Inc. (NASDAQ: ZVRA)