Is Plus Therapeutics (USA Stocks:PSTV) valuation viable?

Investing in Plus Therapeutics stock presents a mixed bag from a valuation viewpoint. The company's book value per share stands at 0.92X, which is relatively low, indicating that the stock may be undervalued. However, the company's return on assets and return on equity are both negative, at -0.59 and -2.78 respectively, suggesting that the company is not generating profits from its assets or equity. The company's high probability of bankruptcy at 96.00% is a significant risk factor for investors. Despite these concerns, the company has a healthy cash position, with end period cash flow of $18.1M and cash and equivalents totaling $20.27M.

Key Takeaways

Plus Therapeutics currently holds $5.64 million in liabilities, with a Debt to Equity (D/E) ratio of 0.53. This ratio is approximately average when compared to similar companies. The company's current ratio stands at 2.75, suggesting that it is sufficiently liquid and capable of meeting its financial obligations when they are due. Debt can be beneficial for Plus Therapeutics until it encounters difficulties in paying it off, either with new capital or with free cash flow. If the company fails to meet its legal obligations to repay debt, Plus Therapeutics' shareholders could potentially lose their entire investment. However, a more common scenario is when companies like Plus Therapeutics issue additional shares at discounted prices, thereby diluting the value of shares held by existing shareholders. In this context, debt can be an excellent tool for Plus Therapeutics to invest in growth at high rates of return. When considering Plus Therapeutics' use of debt, it should always be evaluated in conjunction with cash and equity. We provide trading recommendations to supplement the recent expert consensus on Plus Therapeutics. Our dynamic recommendation engine uses a multidimensional algorithm to analyze the company's growth potential, taking into account all available technical and fundamental data at the time.
Published over six months ago
View all stories for Plus Therapeutics | View All Stories
Macroaxis uses a strict editorial review process to publish stories and blog posts. Our publishers support our company and may receive a small commission when the partner links or references are utilized. Commissions do not affect the opinions or evaluations of our editorial team. The information our editors and media partners deliver is confidential and licensed for your sole use as a Macroaxis user. We reserve all rights to the content of this article, and therefore copying or distributing this story in whole or in part is strictly prohibited.

Reviewed by Rifka Kats

Plus Therapeutics, a NASDAQ-listed biotechnology company, has been under the radar of investors due to its financial performance and market position. Despite having a negative enterprise value of -$2.9M and a significant retained earnings loss of -$467.2M, the company has managed to maintain a positive end period cash flow of $18.1M. The company's total assets stand at $23.9M, with non-current assets totaling $2M. However, the company's total liabilities are slightly lower at $17.4M, which includes other current liabilities of $1.8M. The company's book value is $0.924, with a debt to equity ratio of 0.53%, indicating a relatively low level of debt. The company's market capitalization is a mere $3.1M, with a price to sales ratio of 143.61X. The Wall Street target price for the stock is $17.5, significantly higher than the 200-day moving average of $3.4368. Despite the company's financial challenges, it has a strong cash position with cash and equivalents totaling $20.27M. However, with an EPS estimate for the current year at a loss of $4.56, investors should exercise caution. As many millennials are enthusiastic about the biotechnology sector, it seems appropriate to focus on Plus Therapeutics. We will analyze why this could be a significantly better year for Plus Therapeutics shareholders. Is the current value of Plus Therapeutics sustainable? We will review the company's valuation drivers to provide a more informed perspective on whether to take a position in it.
We determine the current worth of Plus Therapeutics 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 Plus Therapeutics based exclusively on its fundamental and basic technical indicators. By analyzing Plus Therapeutics'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 Plus Therapeutics'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 Plus Therapeutics. We calculate exposure to Plus Therapeutics's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Plus Therapeutics's related companies.

Plus Therapeutics Investment Alerts

Plus 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 Plus Therapeutics performance across your portfolios.Please check all investment alerts for Plus

Plus Therapeutics Valuation Ratios as Compared to Competition

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

Plus Therapeutics Gross Profit

Plus Therapeutics Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Plus Therapeutics 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 Plus Therapeutics Gross Profit growth over the last 10 years. Please check Plus Therapeutics' gross profit and other fundamental indicators for more details.

Detailed Perspective On Plus Therapeutics

The entity reported the previous year's revenue of 224 K. Net Loss for the year was (20.27 M) with loss before overhead, payroll, taxes, and interest of (9.47 M).
 2020 2021 2022 2023 (projected)
Current Assets9.18 M19.72 M21.82 M19.72 M
Total Assets12.11 M21.98 M23.87 M25.31 M

Margins Breakdown

Plus profit margins show the degree to which it makes money. Margin indicators are used not only by investors but also by creditors or Plus Therapeutics itself as indicators of financial health and management effectiveness. Please look more closely at the different varieties of Plus Therapeutics profit margins.
EBITDA Margin(77.74)
Gross Margin1.09
Profit Margin(83.61)
Plus Therapeutics Average Equity is fairly stable at the moment. Plus Therapeutics Earnings Before Interest Taxes and Depreciation Amortization EBITDA is increasing over the last 8 years. Furthermore, Plus Therapeutics Average Assets is fairly stable at the moment. Plus Therapeutics Average Equity is fairly stable at the moment. Plus Therapeutics Earnings Before Interest Taxes and Depreciation Amortization EBITDA is increasing over the last 8 years.
Furthermore, Plus Therapeutics Average Assets is decreasing over the last 8 years. The previous year's value of Plus Therapeutics Average Assets was 24,775,574. "Buy low, sell high" is a common adage in the investment world, and it seems to apply to Plus Therapeutics, a clinical-stage pharmaceutical company. Despite a challenging year with a net income loss of $20.3M and total operating expenses of $19.9M, the company's stock has potential for growth. The Wall Street target price for the stock is a promising $17.5, a significant increase from its 52-week low of $0.97. The company's net assets stand at $23.87M, indicating a solid financial foundation. However, potential investors should consider the company's high price-sales ratio of 143.6115 and its negative EBITDA of $16.2M. While Plus Therapeutics may not currently enhance your investment portfolio, it could be a valuable addition for those willing to wait for long-term growth. .

Our perspective of the latest Plus Therapeutics climb

Given recent developments, Plus Therapeutics has exhibited intriguing activity. Despite the potential upside being revised down to 10.23, it's crucial not to overlook the stock's ascent. The company's strong portfolio and strategic initiatives could still present compelling investment opportunities. While the revised upside potential suggests a more conservative outlook, the current rise could be a harbinger of a promising future trajectory. Investors are recommended to monitor this stock closely and consider the long-term growth prospects that Plus Therapeutics may offer. As of October 31, Plus Therapeutics has a Variance of 74.25, a coefficient of variation of -1,178, and a Risk Adjusted Performance of -0.043836. Compared to fundamental indicators, the technical analysis model allows you to examine existing technical drivers of Plus Therapeutics, as well as their interrelationships. In other words, this information can be used to determine if the company will indeed mirror its model of historical market data, or if prices will eventually revert. We were able to interpolate and analyze data for thirteen technical drivers for Plus Therapeutics, which can be compared to its competitors. Please review Plus Therapeutics' market risk adjusted performance and Treynor ratio to determine if Plus Therapeutics is priced somewhat accurately, assuming the market reflects its current price of 1.1 per share.
Considering that Plus Therapeutics is entering penny stock territory, we advise closely examining its Jensen Alpha. In conclusion, Plus Therapeutics, Inc., a clinical-stage pharmaceutical company, has been underperforming in the market with a current market value of 1.1, significantly lower than its real value of 2.31. Despite the company's focus on the development, manufacture, and commercialization of treatments for patients with cancer and other diseases, it has been unable to deliver strong returns for investors. However, it's important to note that the company's lead drug candidate, Rhenium-186Re obisbemeda, is still under development and could potentially drive future growth. The company has received two strong buy recommendations from analysts, with an estimated target price ranging from 4 to 8, significantly higher than the current price. The possible upside price is as high as 9.46, indicating potential for substantial growth. However, investors should tread carefully considering the possible downside price of 0.011. Despite the strong buy consensus from analysts, the company's performance has been less than stellar, leading to a valuation hype value of 0.9. Therefore, while there is potential for future growth, investors should carefully consider the risks associated with Plus Therapeutics. .

Building efficient market-beating portfolios requires time, education, and a lot of computing power!

The Portfolio Architect is an AI-driven system that provides multiple benefits to our users by leveraging cutting-edge machine learning algorithms, statistical analysis, and predictive modeling to automate the process of asset selection and portfolio construction, saving time and reducing human error for individual and institutional investors.

Try AI Portfolio Architect

Editorial Staff

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 Ellen Johnson do not own shares of Plus Therapeutics. Please refer to our Terms of Use for any information regarding our disclosure principles.

Would you like to provide feedback on the content of this article?

You can get in touch with us directly or send us a quick note via email to editors@macroaxis.com