PTC Therapeutics, Inc.
PTC Therapeutics, Inc. Fundamental Analysis
PTC Therapeutics, Inc. (PTCT) shows moderate financial fundamentals with a PE ratio of 8.01, profit margin of 39.44%, and ROE of -3.62%. The company generates $1.8B in annual revenue with weak year-over-year growth of -13.97%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of -294.4/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze PTCT's fundamental strength across five key dimensions:
Efficiency Score
ExcellentPTCT demonstrates superior asset utilization.
Valuation Score
ExcellentPTCT trades at attractive valuation levels.
Growth Score
ModeratePTCT shows steady but slowing expansion.
Financial Health Score
ExcellentPTCT maintains a strong and stable balance sheet.
Profitability Score
ModeratePTCT maintains healthy but balanced margins.
Key Financial Metrics
Is PTCT Expensive or Cheap?
P/E Ratio
PTCT trades at 8.01 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, PTCT's PEG of -0.94 indicates potential undervaluation.
Price to Book
The market values PTC Therapeutics, Inc. at -26.63 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 6.87 times EBITDA. This is generally considered low.
How Well Does PTCT Make Money?
Net Profit Margin
For every $100 in sales, PTC Therapeutics, Inc. keeps $39.44 as profit after all expenses.
Operating Margin
Core operations generate 49.50 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-3.62 in profit for every $100 of shareholder equity.
ROA
PTC Therapeutics, Inc. generates $23.45 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
PTC Therapeutics, Inc. generates strong operating cash flow of $729.57M, reflecting robust business health.
Free Cash Flow
PTC Therapeutics, Inc. generates strong free cash flow of $716.91M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $8.66 in free cash annually.
FCF Yield
PTCT converts 12.46% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
8.01
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.94
vs 25 benchmark
P/B Ratio
Price to book value ratio
-26.63
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.24
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
-2.40
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.35
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-3.62
vs 25 benchmark
ROA
Return on assets percentage
0.23
vs 25 benchmark
ROCE
Return on capital employed
0.44
vs 25 benchmark
How PTCT Stacks Against Its Sector Peers
| Metric | PTCT Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 8.01 | 28.45 | Better (Cheaper) |
| ROE | -362.44% | 763.00% | Weak |
| Net Margin | 39.44% | -45265.00% (disorted) | Strong |
| Debt/Equity | -2.40 | 0.34 | Strong (Low Leverage) |
| Current Ratio | 2.35 | 2795.60 | Strong Liquidity |
| ROA | 23.45% | -16588.00% (disorted) | Strong |
PTCT outperforms its industry in 5 out of 6 key metrics, particularly excelling in Net Margin, 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
101.31%
Industry Style: Defensive, Growth, Innovation
High GrowthEPS CAGR
-10.62%
Industry Style: Defensive, Growth, Innovation
DecliningFCF CAGR
16.37%
Industry Style: Defensive, Growth, Innovation
High Growth