Asset Breakdown
Assets Non Current
59.5 M
Current Assets
| Total Assets | 63.1 Million | |
| Current Assets | 59.51 Million | |
| Assets Non Current | 3.2 Million |
Will Vyne Therapeutics (USA Stocks:VYNE) be in financial trouble before September?
 | By Aina Ster | Macroaxis Story |
Vyne Therapeutics, a notable player in the Biotechnology industry, has been a topic of interest for investors on the NASDAQ exchange. The company, with a total of 3.2M common stock shares outstanding, has shown some intriguing financial figures. With a total stockholder equity of 31.2M and other stockholder equity amounting to a staggering 692.3M, Vyne Therapeutics seems to have a solid financial foundation. However, it's worth noting the company's retained earnings report a loss of 662.7M, which might raise concerns. The firm's total operating expenses stand at 34.8M, with a reported EBITDA loss of 33.9M. Despite these figures, the company has managed to maintain a healthy cash flow of 42.9M at the beginning of the period. The question remains: given these financials and a possible downside price of 0.056, is it time to buy, sell, or hold Vyne Therapeutics stock? The forthcoming quarterly report for Vyne Therapeutics is anticipated on August 11, 2023. The stock has been experiencing above-average trading activity. Based on the reporting trends of the past few years, Vyne Therapeutics' Average Assets are projected to see a significant increase. The Average Assets for the previous year stood at $51.79 million. The Average Equity for the current year is expected to grow to approximately $50.8 million. However, the Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) are predicted to decline to -$25 million. As some investors are growing increasingly interested in the biotechnology sector, it's important to examine Vyne Therapeutics in more detail to better assess its debt utilization.
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Reviewed by Raphi Shpitalnik
Vyne Therapeutics (USA Stocks: VYNE) presents an intriguing investment proposition from a leverage perspective. The company's financials show a net working capital of 28.9M, which indicates a solid liquidity position. However, the firm reported a loss from continuing operations of 33.9M, which could be a cause for concern for potential investors. On the other hand, Vyne's cash and short-term investments stand at 30.9M, providing the company with a cushion to navigate through its operational challenges. The biotechnology industry, where Vyne operates, is known for its high-risk, high-reward nature. The company's high coefficient of variation of 2K and a total risk alpha of -0.14 signal a higher level of risk associated with the stock. However, these risks could be offset by the potential upside, given the company's solid liquidity position and the industry's growth prospects. The decision to buy, sell, or hold Vyne Therapeutics stock should be based on an investor's risk tolerance and investment horizon.
Further analysis
The company, Vyne Therapeutics, currently has liabilities amounting to 349K. The asset utilization indicator is a measure of the revenue generated for every dollar of assets reported by a company. At present, Vyne Therapeutics has an asset utilization ratio of 1.17 percent. This suggests that the company generates $0.0117 for each dollar of assets. An increase in asset utilization indicates that Vyne Therapeutics is becoming more efficient in using each dollar of assets for its daily operations.Vyne Therapeutics financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of Vyne Therapeutics, including all of Vyne Therapeutics's outstanding debt obligations, and compares it with the equity. In simple terms, the high financial leverage means the cost of production, together with running the business day-to-day, is high, whereas, lower financial leverage implies lower fixed cost investment in the business and generally considered by investors to be a good sign. So if creditors own a majority of Vyne Therapeutics assets, the company is considered highly leveraged. Understanding the composition and structure of overall Vyne Therapeutics debt and outstanding corporate bonds gives a good idea of how risky the capital structure of a business is and if it is worth investing in it. Please read more on our technical analysis page.Understanding Vyne Total Liabilities
Vyne Therapeutics liabilities are broken down into two parts on the balance sheet. These are short-term (or current) obligations and long-term debt. Vyne Therapeutics has to fulfill its short-term liabilities in this reporting year and should be no more than 12 months old. Long-term debt, on the other hand, is anything beyond the 12-month payment timeframe. Common short-term liabilities found on Vyne Therapeutics balance sheet include debt obligations and money owed to different Vyne Therapeutics vendors, workers, and loan providers. Below is the chart of Vyne short long-term liabilities accounts currently reported on its balance sheet. You can use Vyne Therapeutics financial leverage analysis tool to get a better grip on understanding its financial positionHow important is Vyne Therapeutics's Liquidity
Vyne Therapeutics financial leverage refers to using borrowed capital as a funding source to finance Vyne Therapeutics ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Vyne Therapeutics financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to Vyne Therapeutics' owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Vyne Therapeutics' financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the breakdown between Vyne Therapeutics's total debt and its cash.
Breaking it down a bit more
Vyne Therapeutics reported the previous year's revenue of 477 K. Net Loss for the year was (23.21 M) with profit before overhead, payroll, taxes, and interest of 477 K.
Vyne Therapeutics (VYNE), a player in the Biotechnology industry, presents a mixed bag of financial indicators for potential investors. The company's Price to Book ratio is a low 0.24X, suggesting that the company is currently undervalued. However, the company's operating income and EBIT reflect a loss of $34.3 million, pointing to some financial instability. This is further underscored by the company's high Probability of Bankruptcy at 96.00%.On the positive side, Vyne's Net Working Capital stands at a robust $28.9 million, indicating that the firm has enough short-term assets to cover its short-term liabilities. The company also has a substantial amount of cash on hand, with Cash and Equivalents totaling $42.81 million. However, the company's financial health is marred by a significant retained earnings deficit of $662.7 million. The Risk Adjusted Performance of 0.0415 and a negative Treynor Ratio of -0.53 also suggest that the stock carries a high level of risk for the level of returns it provides. In conclusion, while Vyne Therapeutics has some positive attributes, the company's financial health is questionable. Potential investors should weigh these factors carefully when deciding whether to buy, sell, or hold this stock. .
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