VACC
Deep diving into the financials of Barinthus Biotherapeutics plc.'s Q3 2023 report, we spot a pool of assets capped at a decent $229.97 million USD. Considering the stock market's obsession with shiny, glossy growth, the Value Stock Investor in me finds comfort in the $195.60 million chunk of equity.1
A swift glance may overlook the intangible asset value of $25.89 million, and, our dear friend, the 'other current assets' category swimming generously at $166.55 million.2 Although these figures might escape the look of a novice investor, it's this underlying asset strength that paints a more holistic picture for us.
Moving towards liabilities and here's where it gets juicier. Total liabilities sit at $34.36 million, spreading across current liabilities at $18.56 million and non-current at $15.79 million.3 This disconnect between the assets and liabilities represents a pot of gold that's not always discernible on the surface. With sizeable assets and manageable liabilities, this stock teases an inviting equity profile.
Revenue-wise, the figures might stir some eyebrows at -$7,000 USD. But here's a plot twist – flipping the page to operating expenses takes us straight to a sum of $16.10 million, with research and development consuming $15.14 million of it.4 Clearly, the company has strapped its seatbelt for a long-term journey by focusing profoundly on R&D, indicative of potential future cash inflows.
The interesting part is net income loss whittling to $-14.11 million USD.5 Sure, the numbers are in red, but remember, it's the future potential earnings we’re assessing, not just present performance. Furthermore, the value investor in me takes note of the $-11.18 million net cash flow.6 Even though a negative figure often leads an investor to shudder, the discerning eye recognizes this as a sign of a company investing heavily towards its future. And that, my friends, certainly can't be categorized as weeping willows in the financial landscape!
Summarising Barinthus Biotherapeutics plc.'s report, it’s safe to say that the company not only nestles ample assets but also impresses with well-managed liabilities. The considerable investment in R&D, although weighing down current profits, lights up a promising tunnel end, signaling future earnings. So, crack open that spreadsheet, sharpen your financial pencils, and join me in recognizing potential value stocks that others may overlook.
1 Data source: Balance Sheet – Equity = $195.60 million
2 Data source : Balance Sheet - Intangible Assets = $25.89 million, Other Current Assets = $166.55 million
3 Data source: Balance Sheet – Liabilities = $34.36 million, Current Liabilities = $18.56 million, Noncurrent Liabilities = $15.79 million
4 Data source: Income Statement - Revenues = $-7000, Operating Expenses = $16.10 million, Research and Development = $15.14 million
5 Data source: Income Statement - Net Income/Loss = $-14.11 million
6 Data source: Cash Flow Statement - Net Cash Flow = $-11.18 million