FMP
Jun 4, 2025 11:00 AM - Alex Lavoie
Image credit: Google Images
PTC Therapeutics, Inc. (NASDAQ:PTCT) is a biopharmaceutical company that focuses on the discovery, development, and commercialization of clinically differentiated medicines. The company primarily targets rare genetic disorders, aiming to provide innovative treatments for patients with unmet medical needs. In the competitive landscape, PTC Therapeutics stands alongside companies like Ultragenyx Pharmaceutical Inc., Agios Pharmaceuticals, Inc., Amicus Therapeutics, Inc., and Blueprint Medicines Corporation.
In evaluating PTC Therapeutics' financial performance, the Return on Invested Capital (ROIC) and Weighted Average Cost of Capital (WACC) are crucial metrics. PTCT boasts a ROIC of 31.66% and a WACC of 9.69%, resulting in a ROIC to WACC ratio of 3.27. This indicates that PTC Therapeutics is effectively using its capital to generate returns, surpassing its cost of capital significantly.
When comparing PTCT to its peers, Ultragenyx Pharmaceutical Inc. (RARE) shows a negative ROIC of -50.05% against a WACC of 7.01%, leading to a ROIC to WACC ratio of -7.14. This suggests that Ultragenyx is not efficiently using its capital, as its returns are far below its cost of capital. Similarly, Agios Pharmaceuticals, Inc. (AGIO) has a ROIC of -27.16% and a WACC of 7.33%, resulting in a ROIC to WACC ratio of -3.71, indicating inefficiency in capital utilization.
Amicus Therapeutics, Inc. (FOLD) stands out with a ROIC of 55.32% and a WACC of 7.39%, achieving a ROIC to WACC ratio of 7.49. This highlights Amicus Therapeutics as the leader in capital efficiency among its peers, as it generates substantial returns on its invested capital relative to its cost. Blueprint Medicines Corporation (BPMC), on the other hand, has a ROIC of -17.59% and a WACC of 8.33%, resulting in a ROIC to WACC ratio of -2.11, indicating less efficient capital use.
In summary, while PTC Therapeutics demonstrates strong capital efficiency with a positive ROIC to WACC ratio, Amicus Therapeutics leads the peer group with the highest ratio, showcasing its superior ability to generate returns on invested capital.
Nov 22, 2024 5:08 AM - Parth Sanghvi
Fundamental analysis is one of the most essential tools for investors and analysts alike, helping them assess the intrinsic value of a stock, company, or even an entire market. It focuses on the financial health and economic position of a company, often using key data such as earnings, expenses, ass...
Dec 17, 2024 8:58 AM - Sanzhi Kobzhan
Tesla, one of the world’s most talked-about electric vehicle manufacturers, attracts a lot of attention from investors and market watchers. By examining a snapshot of Tesla’s financial ratios—such as those provided by FinancialModelingPrep’s Ratios API—we can get a clearer picture of the company’s f...
Dec 22, 2024 7:59 AM - Sanzhi Kobzhan
When it comes to cutting-edge software and data analytics, Palantir Technologies (NYSE: PLTR) is often front and center. But for many investors, it’s important to consider alternative or complementary stocks in the same sector that may offer robust growth potential. As PLTR looks expensive (overvalu...