One-glance verdict
Undervalued
$38.95 our estimate vs market $8.37
Wall Street consensus: $17.63 (-54.7% lower than our fair-value estimate)
79% below our estimate, below the bear case
Fundamentals snapshot
Immatics N.V.
IMTX · NCM · Healthcare · Biotechnology
Current price
$8.37
52-week range
$7.73 - $12.41
Market cap
$1.27B
Balance sheet
Healthy
-192.41x Concerning
Net cash $431.81M. 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 is a healthcare company developing advanced treatments that help a patient's own immune system fight difficult-to-treat cancers. Because its potential drugs are still in clinical trials (the required process of testing new medicines on people for safety and effectiveness), the company doesn't yet have a product to sell to the public. Therefore, its money currently comes from investors and collaboration agreements (partnerships with larger drug companies to fund its research) who are betting on its science becoming a successful new therapy.
How the company got here
Immatics was founded in 2000 as a spin-off from the University of Tübingen in Germany. For years, it focused on identifying cancer-specific targets. A key turning point was in 2015 when it partnered with the MD Anderson Cancer Center in Houston, Texas, to create Immatics US, Inc., focusing on developing treatments. The company went public on the Nasdaq stock exchange on July 2, 2020. Today, Immatics is recognized as a leader in developing immunotherapies that target a protein called PRAME, which is found in many types of cancers.
What it actually does
Immatics is a biotechnology company working on new ways to treat cancer by using the body's own immune system. Think of it like training a person's own defense system (specifically, T cells) to recognize and fight cancer cells. They don't sell products you'd find in a store; instead, they are in the clinical stage, meaning their potential treatments are currently being tested in studies with patients to see if they are safe and effective. The company's main focus is on treating solid tumors, which are the types of cancers that form lumps, like in the lung or skin.
Adoptive Cell Therapies (ACT)
This is one of the two main ways Immatics is developing cancer treatments. It involves taking a patient's own T cells (a type of white blood cell that fights infection and disease), genetically engineering them in a lab to recognize specific cancer targets, and then infusing them back into the patient to attack the tumor. This is a highly personalized form of medicine. This segment includes their leading drug candidate, Anzu-cel, which is in advanced testing for treating melanoma.
TCR Bispecifics
This is the company's second major approach to fighting cancer. Instead of modifying a patient's cells, this method uses antibody-like molecules designed to act as a bridge, connecting a patient's existing T cells to the cancer cells to trigger an attack. These are considered "off-the-shelf" treatments because they can be manufactured in larger batches and are not personalized for each patient. This part of the business includes drug candidates like IMA401 and IMA402, which are in earlier stages of testing.
Collaborations and Partnerships
Immatics doesn't currently sell its own approved drugs, so a major way it operates and makes money is by partnering with large pharmaceutical and biotechnology companies. These partners, such as Bristol Myers Squibb and Moderna, pay Immatics upfront fees, payments for reaching certain research and development goals (called milestone payments), and will owe a percentage of future sales (called royalties) if a co-developed drug is successful. These collaborations provide the company with funding and access to the expertise of larger, more established players in the industry.
What management is betting on now
The company's main focus is on its PRAME franchise, a group of treatments targeting a protein found in over 50 different types of cancer. They are heavily invested in getting their lead cell therapy drug, anzu-cel, through the final stages of testing and approved for sale, with a potential launch planned for 2027. Management is also expanding the testing of its "off-the-shelf" bispecific drugs, both alone and in combination with other cancer treatments, to treat cancers in earlier stages. The overall strategy is to use their specialized technology to create multiple types of therapies that can fight a wide range of cancers.
Price history
How the share price has moved
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Is it cheap or expensive?
Fair value $38.95 vs current price $8.37
Wall Street consensus is the average analyst price target: $17.63 (-54.7% lower than our fair-value estimate).
Our most-likely fair value is $38.95 a share — about 365.4% above today's price of $8.37, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Healthy
Net cash $431.8M - more cash than debt. Interest coverage -192.4x.
Net debt
$-431.81M
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 $16.65M Interest coverage -192.41x This is the baseline the peer rows are being compared against.
Total debt $46.00M Interest coverage -38.64x Neither company has much profit cushion over interest right now.
Total debt $79.01M Interest coverage -192.50x Neither company has much profit cushion over interest right now.
Total debt $2.88M 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
-4.05x
P/B
2.50x
P/S
30.55x
EV/EBITDA
-3.51x
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
$16.65M
Total cash
$448.47M
Growth
How the business has been compounding
Revenue TTM
$47.55M
Revenue 5Y CAGR
-34.6%
EPS TTM
-1.82
EPS 5Y CAGR
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Cash flow
How much cash the business throws off
Operating CF TTM
$-201.37M
Free CF TTM
$-209.13M
FCF margin
-439.8%
Dividend
Shareholder payout
Yield
—
Payout ratio
0.0%
Last ex-div date
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