ImmunityBio, Inc. (NASDAQ:IBRX) Financial Overview

  • ImmunityBio's Return on Invested Capital (ROIC) is an impressive 319.64%, significantly higher than its peers.
  • The company's Weighted Average Cost of Capital (WACC) stands at 8.13%, leading to a ROIC to WACC ratio of 39.30.
  • Compared to its peers, ImmunityBio is generating returns well above its cost of capital, indicating efficient capital use and value creation for investors.

ImmunityBio, Inc. (NASDAQ:IBRX) is a biotechnology company focused on developing innovative therapies to treat cancer and infectious diseases. The company aims to harness the power of the immune system to combat these diseases. In the competitive landscape, ImmunityBio stands out due to its impressive financial metrics, particularly its Return on Invested Capital (ROIC) and Weighted Average Cost of Capital (WACC).

ImmunityBio's ROIC is an impressive 319.64%, while its WACC is 8.13%. This results in a ROIC to WACC ratio of 39.30, indicating that the company is generating returns significantly above its cost of capital. This high ratio suggests that ImmunityBio is using its capital efficiently, creating value for its investors.

In contrast, ImmunityBio's peers, such as BridgeBio Pharma, Inc. (BBIO) and Sana Biotechnology, Inc. (SANA), show negative ROIC figures of -114.85% and -105.16%, respectively. Their ROIC to WACC ratios are -14.58 and -10.70, indicating that these companies are not currently generating returns above their cost of capital. This is a common scenario for clinical-stage biotechnology companies, which often face high research and development expenses.

Other peers like Nkarta, Inc. (NKTX) and Allogene Therapeutics, Inc. (ALLO) also report negative ROICs of -31.74% and -61.02%, respectively. Their ROIC to WACC ratios are -4.87 and -8.29, further highlighting the challenges these companies face in generating returns above their cost of capital. Despite these challenges, ImmunityBio's strong financial performance sets it apart in the biotechnology sector.

Recursion Pharmaceuticals, Inc. (RXRX) also struggles with a negative ROIC of -72.55% and a ROIC to WACC ratio of -9.14. This further emphasizes ImmunityBio's superior ability to generate returns on its invested capital relative to its cost. ImmunityBio's strong capital efficiency positions it as a potentially attractive investment within its peer group, assuming other factors such as market conditions and company-specific risks are favorable.
ImmunityBio, Inc. View
Symbol Price %chg
207940.KS 1000000 0.9
068270.KS 154300 1.62
196170.KQ 348000 3.45
091990.KQ 75900 0
IBRX Ratings Summary
IBRX Quant Ranking
Related Analysis

ImmunityBio, Inc. (NASDAQ:IBRX) Outperforms in Biotech Sector with Impressive Capital Efficiency

  • ImmunityBio's Return on Invested Capital (ROIC) is an impressive 300.81%, far exceeding its Weighted Average Cost of Capital (WACC) of 7.85%.
  • The company's ROIC to WACC ratio stands at 38.30, indicating significant value creation and capital efficiency.
  • Competitors like BridgeBio Pharma, Inc., and Sana Biotechnology, Inc., show negative ROIC figures, highlighting the challenges in the biotech sector.

ImmunityBio, Inc. (NASDAQ:IBRX) is a biotechnology company focused on developing innovative therapies to treat cancer and infectious diseases. The company aims to harness the power of the immune system to fight these diseases, setting it apart in the competitive biotech industry. Key competitors include BridgeBio Pharma, Inc., Sana Biotechnology, Inc., Nkarta, Inc., Allogene Therapeutics, Inc., and Recursion Pharmaceuticals, Inc.

ImmunityBio's Return on Invested Capital (ROIC) is an impressive 300.81%, far exceeding its Weighted Average Cost of Capital (WACC) of 7.85%. This results in a ROIC to WACC ratio of 38.30, indicating that the company is generating returns significantly above its cost of capital. This high ratio suggests that ImmunityBio is using its capital efficiently to create value.

In contrast, ImmunityBio's peers are struggling with negative ROIC figures. For instance, BridgeBio Pharma has a ROIC of -114.85% against a WACC of 7.84%, resulting in a ROIC to WACC ratio of -14.65. Similarly, Sana Biotechnology's ROIC is -105.16% with a WACC of 9.73%, leading to a ratio of -10.81. These figures highlight the challenges faced by these companies in generating returns above their cost of capital.

Nkarta, Inc. has the least negative ROIC to WACC ratio among the peers at -4.97, with a ROIC of -32.24% and a WACC of 6.49%. While still negative, this suggests Nkarta is closer to achieving positive returns compared to its peers. However, it remains far behind ImmunityBio's strong performance.

Overall, ImmunityBio's ability to generate returns well above its cost of capital makes it a standout in the biotechnology sector. Its high ROIC to WACC ratio indicates strong capital efficiency, which could be attractive to investors seeking value creation in this industry.