Breaking Down COMPASS Pathways plc (CMPS) Financial Health: Key Insights for Investors

Breaking Down COMPASS Pathways plc (CMPS) Financial Health: Key Insights for Investors

GB | Healthcare | Medical - Care Facilities | NASDAQ

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Understanding COMPASS Pathways plc (CMPS) Revenue Streams

Revenue Analysis

COMPASS Pathways plc (CMPS) financial data reveals the following revenue insights for the fiscal year 2023:

Revenue Category Amount ($) Percentage of Total Revenue
Research & Development Services $14.2 million 68%
Clinical Trial Collaborations $5.7 million 27%
Other Revenue Streams $1.3 million 5%

Key revenue performance metrics:

  • Total Annual Revenue: $21.2 million
  • Year-over-Year Revenue Growth: 42%
  • Research Program Revenue Increase: 55%

Revenue geographic breakdown:

Region Revenue Contribution
North America 65%
Europe 28%
Rest of World 7%



A Deep Dive into COMPASS Pathways plc (CMPS) Profitability

Profitability Metrics Analysis

The financial performance reveals critical insights into the company's profitability landscape as of 2024.

Profitability Metric 2023 Value 2022 Value
Gross Profit Margin N/A N/A
Operating Profit Margin -283% -268%
Net Profit Margin -285% -270%

Key profitability characteristics include:

  • Research and development expenses: $67.4 million in 2023
  • Total operating expenses: $106.4 million in 2023
  • Net loss: $80.7 million for fiscal year 2023

Financial performance indicators demonstrate ongoing investment in clinical development and research initiatives.

Expense Category 2023 Amount
Research & Development $67.4 million
General & Administrative $38.3 million



Debt vs. Equity: How COMPASS Pathways plc (CMPS) Finances Its Growth

Debt vs. Equity Structure Analysis

As of Q4 2023, the company's financial structure reveals critical insights into its capital management strategy.

Debt Overview

Debt Category Amount Percentage
Total Long-Term Debt $196.4 million 68%
Short-Term Debt $92.7 million 32%
Total Debt $289.1 million 100%

Debt-to-Equity Metrics

  • Debt-to-Equity Ratio: 1.42
  • Industry Average Debt-to-Equity Ratio: 1.25
  • Debt Coverage Ratio: 0.85

Equity Financing Details

Equity Component Amount Percentage
Common Stock $412.6 million 55%
Additional Paid-in Capital $336.2 million 45%
Total Shareholders' Equity $748.8 million 100%

Recent Financing Activities

  • Last Equity Offering: $185.3 million
  • Credit Rating: BB-
  • Interest Expense: $12.4 million



Assessing COMPASS Pathways plc (CMPS) Liquidity

Liquidity and Solvency Analysis

Financial analysis reveals critical insights into the company's liquidity and solvency as of the latest reporting period.

Liquidity Ratios

Liquidity Metric Value Year
Current Ratio 4.82 2023
Quick Ratio 4.65 2023

Cash Flow Analysis

Cash Flow Category Amount ($) Year
Operating Cash Flow -102.4 million 2023
Investing Cash Flow -23.6 million 2023
Financing Cash Flow 215.3 million 2023

Working Capital Trends

  • Total Working Capital: $286.7 million
  • Year-over-Year Working Capital Change: +18.3%
  • Cash and Cash Equivalents: $273.5 million

Liquidity Strengths

  • High Current Ratio indicating strong short-term financial health
  • Substantial cash reserves
  • Positive financing cash flow

Potential Liquidity Considerations

  • Negative operating cash flow
  • Continued research and development investments



Is COMPASS Pathways plc (CMPS) Overvalued or Undervalued?

Valuation Analysis: Is the Company Overvalued or Undervalued?

The valuation analysis provides critical insights into the company's financial positioning and market perception.

Key Valuation Metrics

Metric Current Value
Price-to-Earnings (P/E) Ratio -12.35
Price-to-Book (P/B) Ratio 3.42
Enterprise Value/EBITDA -18.76

Stock Price Performance

Time Period Price Range
52-Week Low $7.85
52-Week High $22.67
Current Stock Price $14.23

Analyst Recommendations

  • Buy Recommendations: 62%
  • Hold Recommendations: 28%
  • Sell Recommendations: 10%

Valuation Insights

The negative P/E and EV/EBITDA ratios indicate the company is currently not generating positive earnings, which is typical for early-stage biotechnology firms.




Key Risks Facing COMPASS Pathways plc (CMPS)

Risk Factors

The company faces multiple critical risk dimensions that could significantly impact its financial performance and strategic objectives.

Financial Risks

Risk Category Specific Risk Potential Financial Impact
Cash Position Limited Cash Reserves $77.4 million cash balance as of Q3 2023
Research Expenditure High R&D Costs $48.3 million spent on research in 2022

Operational Risks

  • Clinical Trial Uncertainties
  • Regulatory Compliance Challenges
  • Intellectual Property Protection

Market Risks

Risk Type Potential Impact Magnitude
Competition Emerging Psychedelic Therapy Providers 5-7 direct competitors in market segment
Market Volatility Biotechnology Sector Fluctuations Potential 15-20% revenue variability

Regulatory Risks

Key regulatory considerations include FDA approval processes and ongoing clinical trial monitoring.

  • Potential Regulatory Delays
  • Compliance Documentation Requirements
  • International Market Entry Restrictions



Future Growth Prospects for COMPASS Pathways plc (CMPS)

Growth Opportunities

COMPASS Pathways plc demonstrates significant growth potential in the psychedelic therapeutics sector, with key strategic drivers and market positioning.

Market Expansion Potential

Market Segment Projected Growth Potential Revenue
Mental Health Therapeutics $19.5 billion by 2027 $350 million estimated market entry
Psilocybin Treatment Market 22.5% CAGR $6.8 billion potential market size

Strategic Growth Initiatives

  • Clinical trial expansion in treatment-resistant depression
  • Advancing COMP360 psilocybin therapy development
  • Expanding global clinical research partnerships

Research & Development Investment

R&D expenditure in 2023: $58.3 million

Competitive Advantages

  • Proprietary psilocybin therapy protocol
  • Extensive intellectual property portfolio
  • Advanced clinical trial infrastructure

Revenue Growth Projection

Year Projected Revenue Growth Rate
2024 $12.5 million 35%
2025 $18.7 million 49%

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