Biotech Stock
CRBU Stock ,The healthcare sector has long been called recession-proof and with good reason: The majority of people get sick, whatever the economic situation may be doing to them.
Explore the business but the truth is a little more fluid. Providers, like hospitals and doctors tend to feel some financial pressure while other sectors like the pharmarmaceutical sector, have performed very well despite the market’s fluctuations.
Then there are biotechs. They manufacture medicines that are derived from or created using living organisms. While this industry has more risk than established pharmaceutical and medical facilities but it can also be very durable. If you choose the right company, it can provide an opportunity for growth that is solid in your business portfolio.
The trick is to identify businesses that can be able to withstand the difficulties that a recession could bring. Here’s the reason I believe Caribou Biosciences (CRBU 0.28%) has the right qualities.
A lot of possibilities
Let’s look at Caribou’s most important selling point that it fights cancer. Caribou utilizes allogeneic therapies which include CRISPR gene editing technology and CAR T cell therapies to fight both solid tumors as well as the hematologic malignancies (cancers which originate from blood-forming tissues like the bone marrow). This novel, off-the-shelf strategy makes use of edited cells taken from healthy donors, instead of cutting, editing, and reinserting the cells of the patient. This, in turn, allows the treatments to be made in large quantities and also with multiple edits.
Caribou Biosciences Returns vs. S&P
| 1 YEAR | 5 YEAR | 5 YEAR ANNUALIZED | SINCE IPO | |
|---|---|---|---|---|
| CRBU | -39.86% | -57% | ||
| S&P | -8.93% | +57.20% | +9.47% | -7% |
Assets
QUARTERLYANNUAL
| Q3 2022 | YOY CHANGE | |
|---|---|---|
| Net Cash | $82.09M | -81.1% |
| Accounts Receivable | $2.30M | -5.6% |
| Inventory | 0 | – |
Liabilities
QUARTERLYANNUAL
| Q3 2022 | YOY CHANGE | |
|---|---|---|
| Long Term Debt | $26.96M | – |
| Short Term Debt | $0.91M | +4.7% |
Ratios
QUARTERLYANNUAL
| Q3 2022 | YOY CHANGE | |
|---|---|---|
| Return On Assets | -21.1% | – |
| Return On Invested Capital | -82.6% | -28.3% |
Cash Flow
QUARTERLYANNUAL
| Q3 2022 | YOY CHANGE | |
|---|---|---|
| Free Cash Flow | -$23.73M | +49.3% |
| Operating Free Cash Flow | -$22.38M | +49.5% |
Valuation
QUARTERLYANNUAL
| Q4 2021 | Q1 2022 | Q2 2022 | Q3 2022 | YOY CHANGE | |
|---|---|---|---|---|---|
| Price to Earnings | – | – | – | – | – |
| Price to Book | 2.24 | 1.43 | 0.89 | 1.85 | – |
| Price to Sales | 94.75 | 52.06 | 24.64 | 50.51 | – |
| Price to Tangible Book Value | 2.24 | 1.43 | 0.89 | 1.85 | – |
| Price to Free Cash Flow TTM | – | – | – | – | – |
| Enterprise Value to EBITDA | -26.51 | -11.48 | -0.65 | -14.80 | -72.8% |
| Free Cash Flow Yield | – | – | – | – | – |
| Return on Equity | – | -43.4% | -56.8% | -25.0% | – |
| Total Debt | $0.26M | $28.06M | $27.97M | $27.87M | +3,099.8% |
