Company Overview
Fortress Biotech, Inc. operates as a biopharmaceutical company dedicated to the development and commercialization of biopharmaceutical products, specifically targeting dermatology solutions. The company functions within the broader healthcare sector and the specialized biotechnology industry, a landscape characterized by high research intensity and the pursuit of novel therapeutic modalities for specific patient populations. In terms of scale, the organization maintains a market capitalization of $85.66M, generates annual revenue of $62.30M, and employs a workforce of 101 individuals. These valuation and revenue figures indicate a mid-cap entity that has established a foothold in the market but remains in a phase where capital efficiency and product commercialization are critical for sustaining operations. The current employee count suggests an organization that is likely scaling its operations to support its pipeline of dermatology products, including Emrosi and Qbrexza.
Financial Health
The company reported revenue of $62.30M for the trailing twelve months, while net income stands at -$5,336,000 and EBITDA is -$79,903,000. The significant gap between the positive revenue of $62.30M and the negative net income of -$5,336,000 reveals a cost structure where operating expenses, likely including research and development and commercialization costs, substantially exceed gross profits. Free cash flow for the period was -$53,357,124, which indicates a consumption of cash rather than generation, suggesting that the company is currently relying on its cash reserves to fund its growth initiatives and operational burn. Gross margin is recorded at 32.0%, which reflects the pricing power and production efficiency on the sales of its dermatology products before accounting for operating expenses. Operating margin is -38.6%, a figure that highlights the substantial overhead required to run a biotechnology business, while profit margin is listed at 6.4%, a metric that appears inconsistent with the negative net income but is a reported figure for the period. Total cash on hand is $86.22M, whereas total debt is $68.29M, resulting in a debt-to-equity ratio of 104.77. This leverage ratio indicates that the company is currently more leveraged than it is equity-financed, though the positive cash balance provides a buffer against this debt load. The current ratio is 2.19, which suggests that the company possesses more than double the current assets needed to cover its short-term liabilities, pointing to adequate short-term liquidity despite the negative cash flow. Return on Equity is -205.3% and Return on Assets is -34.3%, metrics that reveal that management has not yet generated positive returns on the capital invested by shareholders or utilized in assets, reflecting the typical pre-profitability stage of many biotechnology firms.
Valuation Assessment
The trailing twelve-month P/E ratio is N/A due to the lack of earnings, while the forward P/E is -1.57. The absence of a trailing P/E and the negative forward P/E imply that the market is currently pricing the stock based on non-earnings fundamentals, as the company is not yet profitable and the forward earnings projection remains negative. The price-to-book ratio is 1.53, which indicates that the market values the company at a premium of 53% over its book value, a common occurrence in biotechnology where intellectual property and pipeline potential are valued higher than historical asset balances. The price-to-sales ratio is 1.37, and the EV/EBITDA is -0.96; these alternative valuation metrics suggest that investors are focusing on revenue generation and potential future profitability rather than current earnings power. The 52-week high is $4.53 and the 52-week low is $1.33. Without the specific current stock price provided in the facts, the relative position cannot be calculated, but the wide range between the high and low suggests significant price volatility typical of smaller biotechnology stocks. The beta is 1.41, which means the stock is expected to be 41% more volatile than the broader market, indicating that price movements will likely exceed those of the overall index during periods of market fluctuation.
Growth & Income
Revenue growth year-over-year is 20.5%, while earnings growth year-over-year is N/A. The fact that revenue is growing at a substantial rate of 20.5% while earnings growth is not applicable due to negative earnings implies that the company is successfully expanding its top line but has not yet achieved profitability, meaning earnings are not growing faster than revenue because they are currently negative. As a non-dividend payer with a dividend yield of N/A and a payout ratio of 0.0%, the company does not distribute cash to shareholders, which is a standard practice for biotechnology companies that reinvest all available capital into research, development, and commercialization efforts. This reinvestment strategy is necessary to fund the development of its dermatology pipeline and sustain operations given the negative free cash flow. The overall growth and income profile is characterized by strong top-line expansion coupled with a lack of current profitability and no dividend income, requiring investors to rely entirely on potential future value creation from the company's product portfolio.