Macroaxis Stories

Is Biocryst Pharma growth trend slowing down?

November 1, 2022  By Raphi Shpitalnik
Macroaxis Story
As many millenniums are trying to avoid healthcare space, it makes sense to break down Biocryst Pharma a little further and try to understand its current market patterns. Why are we still confident in anticipation of a complete recovery. Is the entity valuation sustainable? Here I will cover a perspective on valuation of Biocryst to give you a better outlook on taking a position in this stock.
Published over a year ago
View all stories for BioCryst Pharmaceuticals | View All Stories

Reviewed by Gabriel Shpitalnik

This firm currently holds 613 M in liabilities with Debt to Equity (D/E) ratio of 2.4, implying Biocryst Pharma greatly relies on financing operations through barrowing. The company has a current ratio of 6.19, suggesting that it is liquid enough and is able to pay its financial obligations when due. Debt can assist Biocryst Pharma until it has trouble settling it off, either with new capital or with free cash flow. So, Biocryst Pharma's shareholders could walk away with nothing if the company can't fulfill its legal obligations to repay debt. However, a more frequent occurrence is when companies like Biocryst Pharma sell additional shares at bargain prices, diluting existing shareholders. Debt, in this case, can be an excellent and much better tool for Biocryst to invest in growth at high rates of return. When we think about Biocryst Pharma's use of debt, we should always consider it together with cash and equity.
Our trade advice tool can cross-verify current analyst consensus on Biocryst Pharma and to analyze the company potential to grow in the current economic cycle.
We determine the current worth of BioCryst Pharmaceuticals using both absolute as well as relative valuation methodologies to arrive at its intrinsic value. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of BioCryst Pharmaceuticals based exclusively on its fundamental and basic technical indicators. By analyzing BioCryst Pharmaceuticals's financials, quarterly and monthly indicators, and related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of BioCryst Pharmaceuticals's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of BioCryst Pharmaceuticals. We calculate exposure to BioCryst Pharmaceuticals's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to BioCryst Pharmaceuticals's related companies.

BioCryst Pharmaceuticals Investment Alerts

BioCryst investment alerts and warnings help investors to get more proficient at understanding not only critical technical and fundamental signals but also the significant portfolio-centered indicators. These indicators include beta, alpha, and other risk-related measures that will help you in monitoring BioCryst Pharmaceuticals performance across your portfolios.Please check all investment alerts for BioCryst

BioCryst Pharmaceuticals Valuation Ratios as Compared to Competition

Our valuation model uses many indicators to compare BioCryst value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across BioCryst Pharmaceuticals competition to find correlations between indicators driving the intrinsic value of BioCryst.

BioCryst Pharmaceuticals Gross Profit

BioCryst Pharmaceuticals Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing BioCryst Pharmaceuticals previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show BioCryst Pharmaceuticals Gross Profit growth over the last 10 years. Please check BioCryst Pharmaceuticals' gross profit and other fundamental indicators for more details.

A Deeper Perspective

Biocryst Pharma reported the previous year's revenue of 188.03 M. Net Loss for the year was (193.97 M) with loss before overhead, payroll, taxes, and interest of (58.9 M).
 2019 2020 2021 2022 (projected)
Interest Expense11.89 M14.5 M59.29 M63.98 M
Gross Profit44.73 M16.14 M149.91 M161.74 M
Interest ExpenseGross Profit

Margins Breakdown

Biocryst profit margins show the degree to which it makes money. Margin indicators are used not only by investors but also by creditors or Biocryst Pharma itself as indicators of financial health and management effectiveness. Please look more closely at the different varieties of Biocryst Pharma profit margins.
Operating Margin(101.42)
EBITDA Margin(96.16)
Gross Margin105.42
Profit Margin(110.61)
Biocryst Pharma Earnings Before Interest Taxes and Depreciation Amortization USD is decreasing over the last 8 years. Also, Biocryst Pharma Average Assets is increasing over the last 8 years.

Will Biocryst Pharma instantly start a bounce-back?

The semi deviation is down to 2.41 as of today. Biocryst Pharma currently demonstrates below-average downside deviation. It has Information Ratio of 0.09 and Jensen Alpha of 0.36. However, we advise investors to further question Biocryst Pharma expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Biocryst Pharma's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Biocryst Pharma's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Our Final Perspective on Biocryst Pharma

While many other companies under the biotechnology industry are still a bit expensive, Biocryst Pharma may offer a potential longer-term growth to investors. In closing, as of the 1st of November 2022, we believe that at this point, Biocryst Pharma is somewhat reliable with very high chance of bankruptcy within the next 2 years. From a slightly different point of view, the entity appears to be undervalued. Our ongoing 90 days buy-hold-sell advice on the company is Strong Buy.

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Editorial Staff

Raphi Shpitalnik is a Junior Member of Macroaxis Editorial Board. Raphael is a young entrepreneur who joined Macroaxis on a part-time basis at the beginning of the pandemic and eventually acquired a real taste for investing and fintech. He likes to analyze different equity instruments across a wide range of industries, focusing primarily on consumer products, sports, fintech, cannabis, and AI. View Profile
This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Raphi Shpitalnik do not own shares of BioCryst Pharmaceuticals. Please refer to our Terms of Use for any information regarding our disclosure principles.

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