* Note: Prices are in Million (M) USD.
Description:
Insmed Inc. is a biopharmaceutical company headquartered in Bridgewater, New Jersey, dedicated to developing innovative therapies for rare and serious diseases, with a primary focus on pulmonary and infectious conditions. Its flagship product, ARIKAYCE, targets treatment-refractory Mycobacterium avium complex lung disease, addressing significant unmet medical needs in this area. With a strong commitment to research and development, Insmed is enhancing treatment options and health outcomes for patients, positioning itself as a leader in the rare disease sector. The company's robust pipeline reflects its dedication to addressing critical challenges in biopharmaceutical care, suggesting a promising trajectory for growth and innovation in the market.
These criteria used Company's Cash, EBITDA and Debt balance to determines its fair value:
Cash : $335 M
Debt : $7 M
EBITDA : $-1,086 M
Since Ebitda is less than 0, 0 points assigned.
This criteria used industry in which company operates:
Sector: Health care
Industry: Biotechnology
Biotechnology detected → treating as non-Technology. 3 points assigned.
This criteria used Company's Price To Earning (P/E) Ratio to determines its fair value:
Message: Cannot calculate PE Ratio since EPS is either 0 or negative.
Using default values for calculation.
Forward PE Ratio (using default values): 20.00
Since Forward PE Ratio is between 20 - 25, 2 points assigned.
This criteria used Company's ability to convert Sales into free cash flow to determine fair value:
Using last 20 overlapping fiscal years (max 20).Average Free Cash Flow: $-178 M
Average Revenue: $74 M
Revenue Converted To Free Cash Flow (%): -241.0%
Since Free Cash Flow (FCF) to Revenue percentage is non-positive, 0 point assigned.
This criteria used company's growth potential to calculate its fair value:
Latest Revenue (2024-12-31): $364 M
Revenue 5 Years Ago (2019-12-31): $136 M
Total Growth over 5 Years: 166.5%
5-Year Revenue CAGR (Historical): 21.7%
Forward 5-Year CAGR (Tapered): 15.2%
Since historical Revenue CAGR is greater than 20, 5 points assigned.
This criteria used Company's ability to buy back its own share:
Latest Share Count (2024-12-31): $164 M
Share Count 5 Years Ago (2020-12-31): $98 M
Company is not buying back its own shares, 0 points assigned.
This criteria used Company's dividend payout ratio to determine its fair value:
Next Year Earnings Per Share (EPS): $-3.66
Trailing 12-Month Earnings Per Share (EPS): $0.00
Average Earnings Per Share (EPS): $0.00
Dividend Per Share (DPS): $0
Payout Ratio: 0%
Dividend Yield: 0.00%
⚠️ Caution: Negative earnings detected — Further research is recommended - Next Fiscal Yr EPS: $-3.66
Since Dividend Per Share is less than or equal to 0, 0 point assigned.
Since Dividend Yield is less than 1, 0 point assigned.
This criteria used Company's Return On Equity (ROE%) to determine its fair value:
Using last 18 valid ROE years (max 20).Average ROE: -143.0%
Since Average ROE is non-positive, 0 point assigned.
This criteria used Company's current price to its 52 week low price to determines its fair value:
Current Price: $189.6
52-Week Low: $60.40
Threshold Price (15% Above 52-Week Low): $69.46
Since Current price is not within 15% threshold, 0 point assigned.
This criteria used Company's Market Cap to determines its fair value:
Market Capitalization: $40,437 M
Since Market Cap is between 10B - 100B, 2 points assigned.
% Exposure to Total Portfolio
Based on the market cap, we recommend do not exceed 3% exposure of Total Portfolio.
Warren Buffett's Owners' Earnings:
No positive free cash flow found (TTM or annual) to compute Owners' Earnings per share.
Note: Many fast-growing companies reinvest heavily, so Owners' Earnings may appear low.
Consider other factors in your valuation.
Value-Trade has assigned 12 points to above Insmed Inc (INSM) stock.
Fair Value PE 12, Industry Based PE 15, Growth Based PE 15.16, Risk-Free Anchored PE (25% MoS) 18.2. Based on these 4 values, average assigned is 15.09. The fair value of Insmed Inc (INSM) stock cannot be calculated since EBITDA and EPS are either 0 or negative.
