One-glance verdict
Undervalued
$23.26 our estimate vs market $6.42
Wall Street consensus: $16.40 (-29.5% lower than our fair-value estimate)
72% below our estimate, below the bear case
Fundamentals snapshot
Immatics N.V.
IMTX · NCM · Healthcare · Biotechnology
Current price
$6.42
52-week range
$6.09 - $12.41
Market cap
$977.28M
Balance sheet
Healthy
-192.41x Concerning
Net cash $423.04M. Interest coverage shows how many times profit covers the interest bill.
What stands out
1 Reward
2 Risks
1 rewards · 2 risks
- Reward Free cash flow was positive in 1/10 years.
- Risk Operating margin compressed from 17.3% to -735.0% over 3 years.
- Risk Return on equity was -47.8% last year — the company lost money on shareholders' equity.
What this company does
Immatics N.V.
Immatics N.V. is a company developing a new kind of cancer treatment that uses a patient's own immune cells, called T cells, to fight tumors. Their main money comes from partnerships with larger pharmaceutical companies to develop these experimental therapies, which is important because these treatments are still in the early stages of testing and haven't generated significant sales yet.
How the company got here
Immatics N.V. was founded in 2000 as a spin-off from a university laboratory in Tübingen, Germany. The company's journey began with a focus on discovering targets for cancer immunotherapies and developing T cell receptors to activate the immune system against cancer cells. A significant development was the launch of Immatics US, Inc. in Houston, Texas, in 2015, in collaboration with MD Anderson Cancer Center. Immatics went public on the Nasdaq Global Market in July 2020, marking a key turning point that provided capital for further research and development. Over the years, Immatics has established strategic collaborations with major pharmaceutical companies, which have provided external validation for its scientific approach.
What it actually does
Immatics is a clinical-stage biopharmaceutical company focused on developing innovative immunotherapies to treat cancer, particularly solid tumors. Instead of directly attacking cancer cells with traditional drugs, Immatics aims to harness the patient's own immune system, specifically T cells, to fight the disease. They achieve this through two main approaches: adoptive cell therapies (ACT) and TCR Bispecifics. These therapies are designed to target specific molecules (antigens) found on cancer cells that are not typically present on healthy cells, aiming for a precise and effective immune response.
Adoptive Cell Therapies (ACT)
Adoptive Cell Therapies (ACT) involve collecting a patient's T cells, genetically modifying them in a lab to better recognize and attack cancer cells, and then infusing them back into the patient. Immatics is developing personalized cell therapies, meaning they are tailored to an individual patient's cancer. A key product in this area is Anzu-cel (IMA203), a one-time infusion therapy currently in Phase 2 clinical trials. Another related therapy, IMA203CD8, is in Phase 1 clinical trials. These therapies represent a significant portion of Immatics' development efforts, aiming to provide a powerful, personalized approach to cancer treatment.
TCR Bispecifics
TCR Bispecifics are a type of immunotherapy that acts like a bridge, connecting a patient's T cells to cancer cells. These are 'off-the-shelf' therapies, meaning they are not personalized for each patient and can be manufactured in advance. Immatics' TCR Bispecifics, known as TCER® (T Cell Engaging Receptor) molecules, are engineered to have two binding regions: one that attaches to the T cell and another that attaches to a specific target on the cancer cell. This dual action redirects the T cell to attack the cancer. Products like IMA401 and IMA402 are currently in Phase 1 clinical trials within this category.
What management is betting on now
Immatics' core strategy revolves around advancing its T cell redirecting therapies through clinical development and towards potential commercialization. Management is focused on leveraging its proprietary TCR-based platform to target cancer-specific antigens, particularly those broadly expressed across solid tumors. A key priority is the progression of its lead candidates, Anzu-cel and IMA203CD8, through late-stage clinical trials, with the goal of submitting for regulatory approval. The company is also investing in its TCR Bispecifics pipeline, aiming to develop 'off-the-shelf' therapies that can reach a wider patient population. Strategic collaborations with pharmaceutical partners are crucial for sharing development risks and expanding the reach of their innovative therapies.
Price history
How the share price has moved
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Is it cheap or expensive?
Fair value $23.26 vs current price $6.42
Wall Street consensus is the average analyst price target: $16.40 (-29.5% lower than our fair-value estimate).
Our most-likely fair value is $23.26 a share — about 262.4% above today's price of $6.42, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Healthy
Net cash $423.0M - more cash than debt. Interest coverage -192.4x.
Net debt
$-423.04M
Interest coverage
-192.41x
Immatics N.V.'s profit covers its interest bill about 0.0 times over. which is weaker than most peers shown here and 3 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Healthy
Worse cushion
Baseline
Better cushion
IMTX
BASELINE
Immatics N.V.
Total debt $16.31M Interest coverage -192.41x This is the baseline the peer rows are being compared against.
Total debt $45.21M Interest coverage -38.64x Neither company has much profit cushion over interest right now.
Total debt $76.94M Interest coverage -192.50x Neither company has much profit cushion over interest right now.
Total debt $2.81M Interest coverage -63.33x Neither company has much profit cushion over interest right now.
What you should know
The case for and against IMTX
1 Reward
2 Risks
Rewards
-
Free cash flow was positive in 1/10 years.
Risks
-
Operating margin compressed from 17.3% to -735.0% over 3 years.
-
Return on equity was -47.8% last year — the company lost money on shareholders' equity.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
—
Forward P/E
-3.15x
P/B
1.95x
P/S
23.43x
EV/EBITDA
-2.29x
PEG ratio
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Profitability
How much profit each dollar creates
Gross margin
0.0%
Operating margin
-735.0%
Net margin
0.0%
ROE
-47.8%
ROA
-26.9%
Health
Liquidity and balance-sheet strength
Debt / equity
0.04x
Current ratio
7.54x
Quick ratio
7.02x
Total debt
$16.31M
Total cash
$439.35M
Growth
How the business has been compounding
Revenue TTM
$46.58M
Revenue 5Y CAGR
-34.6%
EPS TTM
-1.87
EPS 5Y CAGR
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Cash flow
How much cash the business throws off
Operating CF TTM
$-197.28M
Free CF TTM
$-204.88M
FCF margin
-439.8%
Dividend
Shareholder payout
Yield
0.0%
Payout ratio
0.0%
Last ex-div date
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