Investment Thesis
Atara Biotherapeutics exhibits severe financial distress with negative stockholders' equity of -$38.5M despite profitable income statement metrics, indicating balance sheet insolvency. The company burns $50.9M in operating cash flow annually while generating only $120.8M in revenue, creating an unsustainable cash burn rate that threatens operational continuity without external financing.
Strengths
- High operating margin of 29.7% and net margin of 27.1% demonstrate operational profitability on reported earnings
- Positive net income of $32.7M and operating income of $35.9M show business can generate earnings
- Interest coverage ratio of 9.5x indicates ability to service debt obligations from operations
Risks
- Negative stockholders' equity of -$38.5M signals balance sheet insolvency and technical bankruptcy status
- Operating cash flow of -$50.9M vastly exceeds net income, indicating earnings quality issues and cash burn fundamentally unsustainable
- Current ratio of 0.82x and quick ratio of 0.82x show insufficient liquid assets to cover short-term liabilities; immediate liquidity crisis risk
- Total liabilities of $58.7M exceed total assets of $20.2M by nearly 3x, representing structural financial distress
- FCF margin of -42.2% demonstrates business model cannot sustain operations without external capital raises
Key Metrics to Watch
- Operating cash flow trend and path to cash flow breakeven
- Stockholders' equity recovery and balance sheet recapitalization
- Cash burn rate and months of liquidity remaining
- Revenue growth sustainability and operating leverage improvement
Financial Metrics
Revenue
120.8M
Net Income
32.7M
EPS (Diluted)
$2.57
Free Cash Flow
-50.9M
Total Assets
20.2M
Cash
8.5M
Profitability Ratios
Gross Margin
N/A
Operating Margin
29.7%
Net Margin
27.1%
ROE
N/A
ROA
161.5%
FCF Margin
-42.2%
Balance Sheet & Liquidity
Current Ratio
0.82x
Quick Ratio
0.82x
Debt/Equity
N/A
Debt/Assets
290.3%
Interest Coverage
9.46x
Long-term Debt
N/A
Disclaimer: This analysis is generated by AI based on publicly available SEC EDGAR filings.
It does not include stock price data and should not be considered financial advice.
All fundamental data is sourced from SEC public domain filings.
Always conduct your own research before making investment decisions.
Data Source: SEC EDGAR |
Analysis Date: 2026-03-20T09:22:11.898217 |
Data as of: 2025-12-31 |
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