* Note: Prices are in Million (M) USD.
Description:
Cytokinetics, Incorporated is a clinical-stage biopharmaceutical company based in South San Francisco, California, specializing in the development of innovative therapies for muscle-related diseases, notably heart failure and various neuromuscular disorders. Leveraging its expertise in muscle biology, the company is advancing a promising pipeline of muscle activators and inhibitors that aim to significantly improve patient outcomes. Cytokinetics' commitment to scientific innovation and its strategic focus on unmet medical needs position it as a potential leader in the biopharmaceutical sector, drawing the attention of institutional investors seeking groundbreaking healthcare solutions.
These criteria used Company's Cash, EBITDA and Debt balance to determines its fair value:
Cash : $225 M
Debt : $1,086 M
EBITDA : $-646 M
Net Debt (Debt - Cash): $861 M
Since Ebitda is less than 0, 0 points assigned.
This criteria used industry in which company operates:
Sector: Health care
Industry: Biotechnology
Biotechnology detected → treating as non-Technology. 3 points assigned.
This criteria used Company's Price To Earning (P/E) Ratio to determines its fair value:
Message: Cannot calculate PE Ratio since EPS is either 0 or negative.
Using default values for calculation.
Forward PE Ratio (using default values): 20.00
Since Forward PE Ratio is between 20 - 25, 2 points assigned.
This criteria used Company's ability to convert Sales into free cash flow to determine fair value:
Using last 20 overlapping fiscal years (max 20).Average Free Cash Flow: $-96 M
Average Revenue: $33 M
Revenue Converted To Free Cash Flow (%): -287.6%
Since Free Cash Flow (FCF) to Revenue percentage is non-positive, 0 point assigned.
This criteria used company's growth potential to calculate its fair value:
Latest Revenue (2024-12-31): $18 M
Revenue 5 Years Ago (2019-12-31): $27 M
Total Growth over 5 Years: -31.2%
5-Year Revenue CAGR (Historical): -7.2%
Forward 5-Year CAGR (Tapered): -6.5%
Since historical Revenue CAGR is between 0 - 5, 1 point assigned.
This criteria used Company's ability to buy back its own share:
Latest Share Count (2024-12-31): $112 M
Share Count 5 Years Ago (2020-12-31): $65 M
Company is not buying back its own shares, 0 points assigned.
This criteria used Company's dividend payout ratio to determine its fair value:
Next Year Earnings Per Share (EPS): $-5.76
Trailing 12-Month Earnings Per Share (EPS): $0.00
Average Earnings Per Share (EPS): $0.00
Dividend Per Share (DPS): $0
Payout Ratio: 0%
Dividend Yield: 0.00%
⚠️ Caution: Negative earnings detected — Further research is recommended - Next Fiscal Yr EPS: $-5.76
Since Dividend Per Share is less than or equal to 0, 0 point assigned.
Since Dividend Yield is less than 1, 0 point assigned.
This criteria used Company's Return On Equity (ROE%) to determine its fair value:
Using last 16 valid ROE years (max 20).Average ROE: -82.4%
Since Average ROE is non-positive, 0 point assigned.
This criteria used Company's current price to its 52 week low price to determines its fair value:
Current Price: $66.44
52-Week Low: $29.31
Threshold Price (15% Above 52-Week Low): $33.71
Since Current price is not within 15% threshold, 0 point assigned.
This criteria used Company's Market Cap to determines its fair value:
Market Capitalization: $8,123 M
Since Market Cap is less than 10B, 1 point assigned.
% Exposure to Total Portfolio
Based on the market cap, we recommend do not exceed 2% exposure of Total Portfolio.
Warren Buffett's Owners' Earnings:
Owners' Earnings (FCF/Share, latest positive annual) (2016-12-31): $0.32
Note: Many fast-growing companies reinvest heavily, so Owners' Earnings may appear low.
Consider other factors in your valuation.
Value-Trade has assigned 7 points to above Cytokinetics Inc (CYTK) stock.
Last 2 Years Avg PE 23.64, Fair Value PE 9, Industry Based PE 15, Risk-Free Anchored PE (25% MoS) 18.47. Based on these 4 values, average assigned is 16.53. The fair value of Cytokinetics Inc (CYTK) stock cannot be calculated since EBITDA and EPS are either 0 or negative.
