One-glance verdict
Undervalued
$5.24 our estimate vs market $1.31
Wall Street consensus: $7.78 (48.4% higher than our fair-value estimate)
75% below our estimate, below the bear case
Fundamentals snapshot
ProQR Therapeutics N.V.
PRQR · NCM · Healthcare · Biotechnology
Current price
$1.31
52-week range
$1.20 - $2.48
Market cap
$184.87M
Balance sheet
Healthy
-46.77x Concerning
Net cash $113.73M. Interest coverage shows how many times profit covers the interest bill.
What stands out
1 Reward
1 Risk
1 rewards · 1 risks
- Reward Free cash flow was positive in 1/10 years.
- Risk Return on equity was -57.4% last year — the company lost money on shareholders' equity.
What this company does
ProQR Therapeutics N.V.
ProQR Therapeutics N.V. is a company that creates new medicines for genetic diseases using a special technology called Axiomer. Their main focus is on treatments for liver diseases and other genetic conditions, with one promising medicine already being tested for a type of liver problem. They also have partnerships with larger drug companies, like Eli Lilly, which helps them fund their research and development.
How the company got here
ProQR Therapeutics was founded in 2012 with a mission to develop new medicines for genetic diseases. The company's journey has been shaped by its focus on a specific type of technology called RNA editing, which aims to correct the underlying genetic causes of diseases. A key development was the creation of their proprietary Axiomer RNA editing technology, designed to precisely alter RNA molecules within cells. This platform technology has been central to their strategy, enabling them to target a range of genetic disorders. Their progress has also involved strategic partnerships, such as the one with Eli Lilly and Company, to advance the development of potential new treatments.
What it actually does
ProQR Therapeutics is a biotechnology company that works on creating new medicines, particularly for genetic disorders. Instead of traditional drug development, they focus on a cutting-edge approach using RNA editing. Think of RNA as a temporary copy of DNA instructions that tells cells what to do. ProQR's technology aims to fix errors in these RNA copies, thereby addressing the root cause of certain genetic diseases. Their work is in the clinical stage, meaning their potential medicines are being tested in human trials.
RNA Editing Therapies
This is ProQR's core business, focused on developing therapies that use their Axiomer RNA editing technology. This technology is designed to make precise changes to RNA molecules, which are the messengers carrying genetic instructions from DNA to the cell's machinery. By correcting errors in these RNA messages, ProQR aims to treat genetic diseases at their source. Their lead candidate, AX-0810, is being developed for liver diseases caused by bile acid buildup, while other candidates target conditions like Rett syndrome and fatty liver disease. This segment represents the entirety of ProQR's current development efforts.
What management is betting on now
ProQR's management is primarily focused on advancing its pipeline of RNA-edited medicines through clinical trials. Their main strategic priority is to successfully develop and potentially bring to market therapies for severe genetic disorders that currently have limited treatment options. This involves progressing their lead candidates, like AX-0810 for cholestatic diseases, through the necessary stages of testing to demonstrate safety and efficacy. The company is also leveraging its Axiomer technology platform to explore new therapeutic targets and expand its portfolio of potential treatments for a range of genetic conditions.
Price history
How the share price has moved
—
Loading price history…
Is it cheap or expensive?
Fair value $5.24 vs current price $1.31
Wall Street consensus is the average analyst price target: $7.78 (48.4% higher than our fair-value estimate).
Our most-likely fair value is $5.24 a share — about 300.2% above today's price of $1.31, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Healthy
Net cash $113.7M - more cash than debt. Interest coverage -46.8x.
Net debt
$-113.73M
Interest coverage
-46.77x
ProQR Therapeutics 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
PRQR
BASELINE
ProQR Therapeutics N.V.
Total debt $17.10M Interest coverage -46.77x This is the baseline the peer rows are being compared against.
Total debt $1.38B Interest coverage 1.10x This peer still has a real interest-payment cushion, while PRQR does not.
Total debt $3.00B Interest coverage 1.99x This peer still has a real interest-payment cushion, while PRQR does not.
Total debt $2.17B Interest coverage -4.53x Neither company has much profit cushion over interest right now.
Total debt $230.14M Interest coverage -15.10x Neither company has much profit cushion over interest right now.
Total debt $243.87M Interest coverage -8.77x Neither company has much profit cushion over interest right now.
What you should know
The case for and against PRQR
1 Reward
1 Risk
Rewards
-
Free cash flow was positive in 1/10 years.
Risks
-
Return on equity was -57.4% 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
-2.83x
P/B
2.07x
P/S
10.03x
EV/EBITDA
-1.98x
PEG ratio
—
Profitability
How much profit each dollar creates
Gross margin
100.0%
Operating margin
-100.7%
Net margin
-228.2%
ROE
-57.4%
ROA
-19.8%
Health
Liquidity and balance-sheet strength
Debt / equity
0.19x
Current ratio
3.49x
Quick ratio
3.41x
Total debt
$17.10M
Total cash
$130.84M
Growth
How the business has been compounding
Revenue TTM
$20.58M
Revenue 5Y CAGR
64.2%
EPS TTM
-0.45
EPS 5Y CAGR
—
Cash flow
How much cash the business throws off
Operating CF TTM
$-58.97M
Free CF TTM
$-60.11M
FCF margin
-292.1%
Dividend
Shareholder payout
Yield
0.0%
Payout ratio
—
Last ex-div date
—