PTC Therapeutics, Inc. Fundamental Analysis (NASDAQ: PTCT)
PTC Therapeutics, Inc. (NASDAQ: PTCT) shows moderate financial fundamentals with a PE ratio of -49.43, profit margin of -9.17%, and ROE of 57.10%. The company generates $1.2B in annual revenue with weak year-over-year growth of 1.15%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 95.7/100 based on profitability, valuation, growth, and balance sheet metrics. The A grade reflects excellent fundamentals and strong overall stability.
Fundamental Health Score
We analyze PTCT's fundamental strength across five key dimensions:
Efficiency Score
WeakPTCT struggles to generate sufficient returns from assets.
Valuation Score
ExcellentPTCT trades at attractive valuation levels.
Growth Score
WeakPTCT faces weak or negative growth trends.
Financial Health Score
ExcellentPTCT maintains a strong and stable balance sheet.
Profitability Score
WeakPTCT struggles to sustain strong margins.
Key Financial Metrics
Is PTCT Expensive or Cheap?
P/E Ratio
PTCT trades at -49.43 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, PTCT's PEG of 0.70 indicates potential undervaluation.
Price to Book
The market values PTC Therapeutics, Inc. at -28.27 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 30.28 times EBITDA. This signals the market has high growth expectations.
How Well Does PTCT Make Money?
Net Profit Margin
For every $100 in sales, PTC Therapeutics, Inc. keeps $-9.17 as profit after all expenses.
Operating Margin
Core operations generate 11.97 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $57.10 in profit for every $100 of shareholder equity.
ROA
PTC Therapeutics, Inc. generates $-3.30 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
PTC Therapeutics, Inc. generates limited operating cash flow of $10.50M, signaling weaker underlying cash strength.
Free Cash Flow
PTC Therapeutics, Inc. generates weak or negative free cash flow of $-37.99M, restricting financial flexibility.
FCF Per Share
Each share generates $-0.45 in free cash annually.
FCF Yield
PTCT converts -0.70% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
-49.43
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.70
vs 25 benchmark
P/B Ratio
Price to book value ratio
-28.27
vs 25 benchmark
P/S Ratio
Price to sales ratio
4.68
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
-3.33
vs 25 benchmark
Current Ratio
Current assets to current liabilities
3.27
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.57
vs 25 benchmark
ROA
Return on assets percentage
-0.03
vs 25 benchmark
ROCE
Return on capital employed
0.06
vs 25 benchmark
How PTCT Stacks Against Its Sector Peers
| Metric | PTCT Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | -49.43 | 31.66 | Better (Cheaper) |
| ROE | 57.10% | 501.00% | Weak |
| Net Margin | -9.17% | -3647.00% (disorted) | Weak |
| Debt/Equity | -3.33 | -0.30 (disorted) | Distorted |
| Current Ratio | 3.27 | 5.78 | Strong Liquidity |
| ROA | -3.30% | -262.00% (disorted) | Weak |
PTCT outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews PTC Therapeutics, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
277.33%
Industry Style: Defensive, Growth, Innovation
High GrowthEPS CAGR
229.34%
Industry Style: Defensive, Growth, Innovation
High GrowthFCF CAGR
404.23%
Industry Style: Defensive, Growth, Innovation
High Growth