Corbus Pharmaceuticals Holdings, Inc. – Value Analysis (NASDAQ:CRBP) : October 26, 2017

Capitalcube gives Corbus Pharmaceuticals Holdings, Inc. a score of 25.

Our analysis is based on comparing Corbus Pharmaceuticals Holdings, Inc. with the following peers – Vanda Pharmaceuticals Inc., Viking Therapeutics, Inc., Fate Therapeutics, Inc. and Fortress Biotech, Inc. (VNDA-US, VKTX-US, FATE-US and FBIO-US).

Investment Outlook

Corbus Pharmaceuticals Holdings, Inc. has a fundamental score of 25 and has a relative valuation of OVERVALUED.

Fundamental Score

Access our research and ratings on Corbus Pharmaceuticals Holdings, Inc.

Company Overview

  • From a peer analysis angle, relative underperformance over the last year has improved more recently.
  • It currently trades at a Price/Book ratio of (10.07).
  • CRBP-US‘s earnings and EBITDA are both negative which suggest that P/E or Price/EBITDA are not meaningful to make this analysis between operating advantage (ROE) and growth expectations (as suggested by P/E or P/EBITDA).
  • CRBP-US has relatively low profit margins and median asset efficiency.
  • Changes in annual revenues (relative to peers) are better than the change in its earnings (relative to peers), implying the company is focused more on revenues.
  • CRBP-US‘s return on assets currently and over the past five years has trailed the peer median and suggests the company might be operationally challenged relative to its peers.
  • CRBP-US‘s operating performance may not allow it to raise additional debt.

Access our research and ratings on Corbus Pharmaceuticals Holdings, Inc.

Leverage & Liquidity

CRBP-US would seem to have a hard time raising additional debt.

  • With debt at a relatively low 0.01% of its enterprise value compared to an overall benchmark of 25% (Note: The peer median is currently 9.56%), and relatively tight interest coverage level of -10,469.64x, CRBP-US would have a hard time raising much additional debt. Thus, the company is classified as having Limited Flexibility when it comes to raising more debt.
  • Of the 4 chosen peers for the company, only 3 of the stocks have an outstanding debt balance. Companies with no debt include VNDA-US.

CRBP-US has maintained its Constrained profile from the recent year-end.

  • CRBP-US‘s interest coverage is its lowest relative to the last five years and compares to a high of -110.20x in 2014.
  • While its interest coverage decreased to -10,469.64x from -4,541.03x (in 2016), its peer median increased during this period to -16.47x from -17.80x.
  • Interest coverage fell 5,929.94 points relative to peers.
  • CRBP-US‘s debt-EV is its lowest relative to the last five years and compares to a high of 0.32% in 2015.
  • Though its debt-EV has remained relatively stable at 0.01% compared to 2016, its peer median has decreased to 9.56% from 21.94% during this period.
  • Relative to peers, debt-EV rose 12.33 percentage points.

Access the detailed analysis for Corbus Pharmaceuticals Holdings, Inc.

Key Liquidity Items

Company Debt/Enterprise Value (%) Current Ratio Interest Coverage (x) Cash Flow To Total Debt (%)
Vanda Pharmaceuticals Inc. 0 2.31 No interest exp 999
Viking Therapeutics, Inc. 14.61 1.85 -7.1 -444.15
Fate Therapeutics, Inc. 9.56 8.92 -29.85 -431.98
Fortress Biotech, Inc. 23.94 3.56 -16.47 -136.3
Corbus Pharmaceuticals Holdings Inc 0.02 6.37 -10469.64 -21160.66
Peer Median 9.56 3.56 -16.47 -431.98
Best In Class 0.02 8.92 No interest exp 999

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Company Profile

Corbus Pharmaceuticals Holdings, Inc. engages in the development and commercialization of novel therapeutics to treat rare or uncommon chronic and serious inflammatory and fibrotic diseases with clear unmet medical needs. Its produc, JBT-101 is a novel synthetic oral endocannabinoid-mimetic drug that is intended to resolve chronic inflammation and halt fibrotic processes without causing immunosuppression. The company was founded in December 2013 and is headquartered in Norwood, MA.

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