One-glance verdict
Overvalued
$-0.05 our estimate vs market $9.10
Wall Street consensus: $20.56 (-39,278.4% lower than our fair-value estimate)
17441% below our estimate, beyond the bull case
Fundamentals snapshot
Telix Pharmaceuticals Limited
TLX · NMS · Healthcare · Biotechnology
Current price
$9.10
52-week range
$6.28 - $13.11
Market cap
$3.09B
Balance sheet
Distressed
0.45x Concerning
Net debt $327.95M. Interest coverage shows how many times profit covers the interest bill.
What stands out
2 Rewards
1 Risk
2 rewards · 1 risks
- Reward Revenue grew 55.6% last year.
- Reward Free cash flow was positive in 2/10 years.
- Risk Insider ownership is only 0.1% (peer median: 1.7%).
What this company does
Telix Pharmaceuticals Limited
Telix Pharmaceuticals creates special medicines that use radioactive materials to find and treat cancer, like prostate and kidney cancer. Most of their money comes from selling these diagnostic tools, which help doctors see cancer better, and from moving their treatments through testing to eventually get them approved. This is important because if their cancer treatments get approved, they could make a lot more money and help patients in a new way.
How the company got here
Telix Pharmaceuticals Limited was founded in 2015 with a mission to develop innovative treatments using a specialized type of medicine called radiopharmaceuticals. These are drugs that combine a targeting molecule with a radioactive substance to either diagnose or treat diseases. The company has focused on building a pipeline of these drugs, particularly for cancer, and has advanced several key candidates into clinical trials. Telix has established a global presence, operating in countries like Australia, the United States, and the UK, to support its development and commercialization efforts.
What it actually does
Telix Pharmaceuticals develops and sells radiopharmaceuticals, which are drugs containing a small amount of radioactive material. These drugs are used in two main ways: for diagnosis, to help doctors see diseases like cancer more clearly using imaging scans, and for therapy, to directly treat diseases by targeting and destroying diseased cells. The company's focus is on creating highly targeted treatments, meaning the radioactive part of the drug is designed to go specifically to the diseased cells, minimizing harm to healthy ones. This approach aims to improve patient outcomes in areas like cancer care.
Precision Medicine
The Precision Medicine segment is focused on developing diagnostic tools that use radiopharmaceuticals to help doctors pinpoint diseases. A key product in this area is Illuccix, which is used to diagnose prostate cancer. This segment helps doctors identify the exact location and extent of a disease, allowing for more accurate and personalized treatment plans. This is crucial because understanding precisely where a disease is located helps doctors choose the best course of action for a patient.
Therapeutics
This segment is dedicated to creating radiopharmaceutical treatments for various cancers. Telix's lead therapeutic candidate is TLX591, a type of drug designed to treat advanced prostate cancer. They are also developing other therapies like TLX250 for kidney cancer and TLX101 for brain tumors. The goal here is to use the radioactive component of these drugs to directly attack and kill cancer cells, offering new treatment options for patients with difficult-to-treat conditions.
Manufacturing Solutions
The Manufacturing Solutions segment is responsible for the production and supply of the radiopharmaceuticals that Telix develops. This involves ensuring that the complex process of creating these radioactive drugs is done safely and efficiently. Having in-house manufacturing capabilities allows Telix to control the quality and availability of its products, which is critical for both clinical trials and eventual commercial sales. This segment underpins the company's ability to bring its innovative therapies and diagnostics to market.
What management is betting on now
Telix's management is currently focused on advancing its most promising drug candidates through late-stage clinical trials, particularly for prostate cancer. They are also working to expand the manufacturing capacity to support the commercial launch of their approved products. A key strategic priority is to secure regulatory approvals in major markets like the United States and Europe. By successfully navigating these clinical and regulatory pathways, Telix aims to become a leading provider of radiopharmaceuticals for both diagnosis and treatment.
Price history
How the share price has moved
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Is it cheap or expensive?
Fair value $-0.05 vs current price $9.10
Wall Street consensus is the average analyst price target: $20.56 (-39,278.4% lower than our fair-value estimate).
Our most-likely fair value is $-0.05 a share — about 100.6% below today's price of $9.10, so the stock currently looks expensive (overvalued).
Is it drowning in debt?
Distressed
Net debt $328.0M. Interest coverage 0.4x.
Net debt
$327.95M
Interest coverage
0.45x
Telix Pharmaceuticals Limited's profit covers its interest bill about 0.4 times over. which is weaker than most peers shown here.
Distressed
Worse cushion
Baseline
Better cushion
TLX
BASELINE
Telix Pharmaceuticals Limited
Total debt $579.86M Interest coverage 0.45x This is the baseline the peer rows are being compared against.
Total debt $624.96M Interest coverage 15.98x +3,477% vs TLX Carries about 35.8x more debt cushion than TLX.
What you should know
The case for and against TLX
2 Rewards
1 Risk
Rewards
-
Revenue grew 55.6% last year.
-
Free cash flow was positive in 2/10 years.
Risks
-
Insider ownership is only 0.1% (peer median: 1.7%).
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)
91.00x
Forward P/E
-340.70x
P/B
6.34x
P/S
3.47x
EV/EBITDA
48.99x
PEG ratio
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Profitability
How much profit each dollar creates
Gross margin
47.6%
Operating margin
9.7%
Net margin
3.8%
ROE
7.4%
ROA
2.7%
Health
Liquidity and balance-sheet strength
Debt / equity
1.19x
Current ratio
2.01x
Quick ratio
1.74x
Total debt
$579.86M
Total cash
$251.91M
Growth
How the business has been compounding
Revenue TTM
$890.79M
Revenue 5Y CAGR
94.7%
EPS TTM
0.10
EPS 5Y CAGR
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Cash flow
How much cash the business throws off
Operating CF TTM
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Free CF TTM
$-61.07M
FCF margin
-6.9%
Dividend
Shareholder payout
Yield
0.0%
Payout ratio
0.0%
Last ex-div date
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