Ultragenyx Pharmaceutical Inc. Fundamental Analysis
Ultragenyx Pharmaceutical Inc. (RARE) shows moderate financial fundamentals with a PE ratio of -3.60, profit margin of -91.03%, and ROE of 15.67%. The company generates $0.7B in annual revenue with strong year-over-year growth of 20.13%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 41.0/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze RARE's fundamental strength across five key dimensions:
Efficiency Score
WeakRARE struggles to generate sufficient returns from assets.
Valuation Score
ExcellentRARE trades at attractive valuation levels.
Growth Score
ModerateRARE shows steady but slowing expansion.
Financial Health Score
ExcellentRARE maintains a strong and stable balance sheet.
Profitability Score
WeakRARE struggles to sustain strong margins.
Key Financial Metrics
Is RARE Expensive or Cheap?
P/E Ratio
RARE trades at -3.60 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, RARE's PEG of 0.74 indicates potential undervaluation.
Price to Book
The market values Ultragenyx Pharmaceutical Inc. at -9.30 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -2.18 times EBITDA. This is generally considered low.
How Well Does RARE Make Money?
Net Profit Margin
For every $100 in sales, Ultragenyx Pharmaceutical Inc. keeps $-91.03 as profit after all expenses.
Operating Margin
Core operations generate -83.92 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $15.67 in profit for every $100 of shareholder equity.
ROA
Ultragenyx Pharmaceutical Inc. generates $-47.02 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Ultragenyx Pharmaceutical Inc. generates limited operating cash flow of $-486.11M, signaling weaker underlying cash strength.
Free Cash Flow
Ultragenyx Pharmaceutical Inc. generates weak or negative free cash flow of $-476.98M, restricting financial flexibility.
FCF Per Share
Each share generates $-4.84 in free cash annually.
FCF Yield
RARE converts -22.56% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
-3.60
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.74
vs 25 benchmark
P/B Ratio
Price to book value ratio
-9.30
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.21
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
-5.08
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.02
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
15.67
vs 25 benchmark
ROA
Return on assets percentage
-0.47
vs 25 benchmark
ROCE
Return on capital employed
-0.58
vs 25 benchmark
How RARE Stacks Against Its Sector Peers
| Metric | RARE Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | -3.60 | 29.20 | Better (Cheaper) |
| ROE | 1566.94% | 729.00% | Excellent |
| Net Margin | -91.03% | -52856.00% (disorted) | Weak |
| Debt/Equity | -5.08 | 0.49 | Strong (Low Leverage) |
| Current Ratio | 2.02 | 4.43 | Strong Liquidity |
| ROA | -47.02% | -20711.00% (disorted) | Weak |
RARE outperforms its industry in 4 out of 6 key metrics, particularly excelling in ROE, but lagging in Net Margin.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Ultragenyx Pharmaceutical Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
53.23%
Industry Style: Defensive, Growth, Innovation
High GrowthEPS CAGR
-90.19%
Industry Style: Defensive, Growth, Innovation
DecliningFCF CAGR
-117.49%
Industry Style: Defensive, Growth, Innovation
Declining