Today we're going to take a closer look at Mid-Cap Health Care company Ionis Pharmaceuticals, whose shares are currently trading at $42.13. We've been asking ourselves whether the company is under or over valued at today's prices... let's perform a brief value analysis to find out!
Ionis Pharmaceuticals's P/B and P/E Ratios Are Higher Than Average:
Ionis Pharmaceuticals, Inc., a commercial-stage biotechnology company, provides RNA-targeted medicines in the United States. The company belongs to the Health Care sector, which has an average price to earnings (P/E) ratio of 22.94 and an average price to book (P/B) ratio of 3.19. In contrast, Ionis Pharmaceuticals has a trailing 12 month P/E ratio of -23.9 and a P/B ratio of 10.62.
Ionis Pharmaceuticals has moved -11.8% over the last year compared to 14.1% for the S&P 500 — a difference of -25.9%. Ionis Pharmaceuticals has a 52 week high of $50.43 and a 52 week low of $23.95.
The Business Is Unprofitable and Its Balance Sheet Is Highly Leveraged:
| 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | |
|---|---|---|---|---|---|---|
| Revenue (k) | $1,122,599 | $729,264 | $810,456 | $587,367 | $787,647 | $705,138 |
| Operating Margins | 33% | -24% | -4% | -70% | -45% | -67% |
| Net Margins | 25% | -61% | -4% | -46% | -47% | -64% |
| Net Income (k) | $278,143 | -$444,263 | -$28,597 | -$269,722 | -$366,286 | -$453,897 |
| Net Interest Expense (k) | $12,440 | $9,510 | $9,349 | $8,122 | $12,660 | $16,994 |
| Depreciation & Amort. (k) | $12,540 | $13,365 | $15,487 | $14,328 | $10,292 | $9,614 |
| Diluted Shares (k) | 153,303 | 139,612 | 160,340 | 141,848 | 143,190 | 149,514 |
| Earnings Per Share | $1.9 | -$3.18 | -$0.2 | -$1.9 | -$2.56 | -$3.04 |
| EPS Growth | n/a | -267.37% | 93.71% | -850.0% | -34.74% | -18.75% |
| Avg. Price | $64.97 | $54.17 | $40.86 | $35.3 | $50.59 | $42.48 |
| P/E Ratio | 32.48 | -17.03 | -204.3 | -18.58 | -19.76 | -13.97 |
| Free Cash Flow (k) | $314,722 | $772 | $18,844 | -$290,091 | -$331,318 | -$546,227 |
| CAPEX (k) | $30,905 | $35,120 | $11,955 | $15,721 | $23,805 | $45,280 |
| EV / EBITDA | 24.03 | -48.41 | -336.5 | -14.95 | -23.7 | -15.47 |
| Total Debt (k) | $785,500 | $539,112 | $59,713 | $1,194,233 | $1,308,360 | $1,253,062 |
| Current Ratio | 9.97 | 3.56 | 9.75 | 7.07 | 5.9 | 8.47 |
Ionis Pharmaceuticals has declining EPS growth, negative cash flows, and High Levels of Debt. On the other hand, the company has an excellent current ratio of 8.47 working in its favor. Furthermore, Ionis Pharmaceuticals has declining revenues and increasing reinvestment in the business.
