Unraveling the Future of TG Therapeutics Inc (TGTX): A Deep Dive into Key Metrics
Long-established in the Biotechnology industry, TG Therapeutics Inc (NASDAQ:TGTX) has enjoyed a stellar reputation. It has recently witnessed a surge of 4.45%, juxtaposed with a three-month change of -58.06%. However, fresh insights from the GuruFocus Score Rating hint at potential headwinds. Notably, its diminished rankings in financial strength, growth, and valuation suggest that the company might not live up to its historical performance. Join us as we dive deep into these pivotal metrics to unravel the evolving narrative of TG Therapeutics Inc.
Decoding the GF Score
The GF Score is a stock performance ranking system developed by GuruFocus using five aspects of valuation, which has been found to be closely correlated to the long-term performances of stocks by backtesting from 2006 to 2021. The stocks with a higher GF Score generally generate higher returns than those with a lower GF Score. Therefore, when picking stocks, investors should invest in companies with high GF Scores. The GF Score ranges from 0 to 100, with 100 as the highest rank.
1. Financial strength rank: 2/10
2. Profitability rank: 2/10
3. Growth rank: 8/10
4. GF Value rank: 0/10
5. Momentum rank: 8/10
Based on the above method, GuruFocus assigned TG Therapeutics Inc the GF Score of 52 out of 100, which signals poor future outperformance potential.
Understanding TG Therapeutics Inc's Business
TG Therapeutics Inc is a fully-integrated, commercial-stage, biopharmaceutical company focused on the acquisition, development, and commercialization of novel treatments for B-cell diseases. The company has received approval from the U.S. Food and Drug Administration (FDA) for BRIUMVI (ublituximab-xiiy) for the treatment of adult patients with relapsing forms of multiple sclerosis (RMS). The company is also developing TG-1701 (BTK inhibitor) and TG-1801 (anti-CD47/CD19 bispecific mAb) for B-cell disorders which are under Phase 1 trial. With a market cap of $1.68 billion and sales of $24.05 million, the company's operating margin stands at -701.39%.
Financial Strength Breakdown
TG Therapeutics Inc's financial strength indicators present some concerning insights about the company's balance sheet health. The company's interest coverage ratio of 0 positions it worse than 0% of 380 companies in the Biotechnology industry. This ratio highlights potential challenges the company might face when handling its interest expenses on outstanding debt. The company's Altman Z-Score is just -6.48, which is below the distress zone of 1.81. This suggests that the company may face financial distress over the next few years. The company's debt-to-equity ratio is 2.7, which is worse than 95.87% of 1041 companies in the Biotechnology industry. A high debt-to-equity ratio suggests over-reliance on borrowing and vulnerability to market fluctuations.
Profitability Breakdown
TG Therapeutics Inc's low Profitability rank can also raise warning signals. With a Piotroski F-Score of 2, TG Therapeutics Inc's financial health appears concerning. This score, rooted in Joseph Piotroski's nine-point scale, evaluates a firm's profitability, liquidity, and operating efficiency. Given its rating, TG Therapeutics Inc might be facing challenges in these areas.
Next Steps
Considering the company's financial strength, profitability, and growth metrics, the GuruFocus Score Rating highlights the firm's unparalleled position for potential underperformance. While TG Therapeutics Inc has made significant strides in the biotechnology industry, these metrics suggest that the company may face challenges in maintaining its historical performance. As value investors, it's crucial to consider these factors when making investment decisions.
GuruFocus Premium members can find more companies with strong GF Scores using the following screener link: GF Score Screen
This article first appeared on GuruFocus.
