MYOS Corp. – Value Analysis (NASDAQ:MYOS) : November 3, 2015

Capitalcube gives MYOS Corp. a score of 25.

Our analysis is based on comparing MYOS Corp. with the following peers – GTx, Inc., XOMA Corporation, Xencor, Inc. and Omeros Corporation (GTXI-US, XOMA-US, XNCR-US and OMER-US).

Investment Outlook

MYOS Corp. has a fundamental score of 25 and has a relative valuation of UNDERVALUED.

Fundamental Score

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Company Overview

  • Considering peers, relative underperformance over the last year and the last month suggest a lagging position.
  • MYOS Corporation trades at a lower Price/Book multiple (1.57) than its peer median (35.81).
  • MYOS-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).
  • MYOS-US‘s relatively low net margins and poor asset turns suggest a problematic operating strategy.
  • Change in the company’s annual revenues seems to be coming at the expense of earnings.
  • MYOS-US‘s return on assets has improved from below median to about median among its peers over the last five years.
  • MYOS-US‘s earnings and EBITDA are both negative which suggest that P/E or Price/EBITDA are not meaningful for an analysis between historical growth (using annualized three-year revenue growth) and investor growth expectations (as suggested by P/E or Price/EBITDA) .
  • MYOS-US‘s operating performance may not allow it to raise additional debt.

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Leverage & Liquidity

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

  • With debt at a relatively low 4.47% of its enterprise value compared to an overall benchmark of 25% (Note: The peer median is currently 4.47%), and relatively tight interest coverage level of -1,310.50x, MYOS-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 2 of the stocks have an outstanding debt balance. Companies with no debt include GTXI-US and XNCR-US.

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

  • MYOS-US‘s interest coverage is greater than (but within one standard deviation of) its five-year average interest coverage of -85,657.50x.
  • Though its interest coverage has remained relatively stable at -1,310.50x compared to 2014, its peer median has decreased to -666.47x from -665.34x during this period.
  • Interest coverage rose 1.13 points relative to peers.
  • MYOS-US‘s debt-EV has increased 4.47 percentage points from last year’s low but is still below its five-year average debt-EV of 5.73.
  • The increase in its debt-EV to 4.47% from 0% (in 2014) was also accompanied by an increase in its peer median during this period to 4.47% from 0%.

Access the detailed analysis for MYOS Corp.

Key Liquidity Items

Company Debt/Enterprise Value (%) Current Ratio Interest Coverage (x) Cash Flow To Total Debt (%)
GTx, Inc. 0 1.1 0 999
XOMA Corporation 10.56 1.88 -22.43 -151.58
Xencor, Inc. 0 8.29 -1925.08 999
Omeros Corporation 4.66 2.82 -18.92 -196.12
MYOS Corporation 4.47 3.76 -1310.5 -1279.6
Peer Median 4.47 2.82 -666.47 -151.58
Best In Class 4.47 8.29 -18.92 999

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Company Profile

MYOS Corp. operates as a development stage company, which focuses on discovery, development and commercialization of therapeutic products, nutritional supplements and other technologies aimed at improving the health and performance of muscle tissue. The company’s initial core brand product is MYO-T12, a myostatin-inhibiting product reduces serum myostatin levels. MYOS was founded on April 11, 2007 and is headquartered in Cedar Knolls, NJ.

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