Immunocore Holdings plc (IMCR) Stock Analysis
Immunocore Holdings plc (IMCR) Stock Analysis
Overall Grade: F (Concerning)
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Immunocore Holdings plc faces challenges in financial performance that warrant careful analysis.
Key Metrics:
| Metric | Value | Context |
|---|---|---|
| ROIC | -9.9% | Below expectations |
| FCF Margin | -3.8% | Cash flow pressure |
| Debt/Equity | 1.0x | Moderate leverage |
Investment Thesis: Financial metrics indicate concerning business quality with areas requiring attention.
What is Immunocore Holdings plc's Profitability and ROIC?
Immunocore Holdings plc's return on invested capital of -9.9% is below the typical cost of capital. Gross margin of 98.7% with operating margin at -11.3% reflects the company's strong market position.
Key Metrics
| Metric | Value | Rating | Interpretation |
|---|---|---|---|
| Return on Invested Capital (ROIC) | -9.9% | Red flag | Below cost of capital |
| Return on Equity (ROE) | -9.3% | Red flag | Moderate equity returns |
| Gross Margin | 98.7% | Excellent | Strong pricing power |
| Operating Margin | -11.3% | Warning | Moderate operational efficiency |
How Strong is Immunocore Holdings plc's Cash Flow Quality?
Immunocore Holdings plc generated $-15.1M in free cash flow over the trailing twelve months, representing a -3.8% margin. FCF was positive in N/A of the last 8 quarters, indicating variable cash generation.
Key Metrics
| Metric | Value | Rating | Interpretation |
|---|---|---|---|
| Free Cash Flow Margin | -3.8% | Red flag | Thin cash margins |
| Free Cash Flow (TTM) | $-15.1M | Red flag | Cash burn |
| OCF/Net Income | 0.3x | Warning | Potential accrual concerns |
| FCF Consistency (8Q) | N/A | Warning | Variable cash flow |
What is Immunocore Holdings plc's Financial Health?
Immunocore Holdings plc maintains a net cash position of $471.0M, providing significant financial flexibility.
Key Metrics
| Metric | Value | Rating | Interpretation |
|---|---|---|---|
| Debt to Equity | 1.0x | Adequate | Moderate leverage |
| Net Cash Position | $471.0M | Excellent | Net cash positive |
Is Immunocore Holdings plc Stock Overvalued or Undervalued?
Immunocore Holdings plc trades at a P/E of -49.6x, representing a premium to the sector median of N/A. Free cash flow yield of -0.9% reflects market expectations for growth.
Key Metrics
| Metric | Value | Rating | Interpretation |
|---|---|---|---|
| P/E Ratio | -49.6x | Red flag | Reasonable valuation |
| EV/Sales | 3.2x | Good | Growth premium priced in |
| FCF Yield | -0.9% | Warning | Lower cash yield |
Sector Rankings
| Metric | Value | Percentile | vs Median |
|---|---|---|---|
| Return on Invested Capital (ROIC) | -9.9% | Bottom 50% | - |
| Free Cash Flow Margin | -3.8% | Bottom 10% | - |
| Gross Margin | 98.7% | Top 25% | 1.6x above |
| Operating Margin | -11.3% | Bottom 50% | -2.5x below |
| Return on Equity (ROE) | -9.3% | Top 50% | - |
Rating Thresholds
Return on Invested Capital (ROIC)
Measures how efficiently a company uses its debt and equity capital to generate profits. ROIC above 15% typically indicates a competitive moat.
| Rating | Range | Interpretation |
|---|---|---|
| Excellent | > 20% | Exceptional capital efficiency, strong competitive moat |
| Good | 12% - 20% | Above-average returns, sustainable competitive position |
| Adequate | 8% - 12% | Around cost of capital, moderate competitive position |
| Warning | 4% - 8% | Below cost of capital, value may be eroding |
| Red flag | < 4% | Significant capital destruction, fundamental issues |
Current: -9.9% (Red flag - Bottom 50% of sector (median: 0.0%))
Free Cash Flow Margin
The percentage of revenue converted to free cash flow. Higher margins indicate stronger cash generation and business quality.
| Rating | Range | Interpretation |
|---|---|---|
| Excellent | > 20% | Strong cash generation, high-quality business |
| Good | 10% - 20% | Healthy cash conversion |
| Adequate | 5% - 10% | Moderate cash generation |
| Warning | 0% - 5% | Thin cash margins, capital intensive |
| Red flag | < 0% | Cash burn, potential liquidity concerns |
Current: -3.8% (Red flag)
Gross Margin
Revenue minus cost of goods sold as a percentage. Higher gross margins indicate pricing power and competitive advantage.
| Rating | Range | Interpretation |
|---|---|---|
| Excellent | > 50% | Strong pricing power and competitive moat |
| Good | 30% - 50% | Healthy margins, differentiated product |
| Adequate | 20% - 30% | Moderate margins, competitive industry |
| Warning | 10% - 20% | Thin margins, commodity-like business |
| Red flag | < 10% | Very thin margins, structural challenges |
Current: 98.7% (Excellent - Top 25% of sector (median: 61.4%))
Debt to Equity Ratio
Total debt divided by shareholders' equity. Lower ratios indicate more conservative financing and reduced financial risk.
| Rating | Range | Interpretation |
|---|---|---|
| Excellent | < 0.3x | Conservative leverage, strong balance sheet |
| Good | 0.3x - 0.7x | Moderate leverage, healthy financial position |
| Adequate | 0.7x - 1.5x | Elevated leverage, monitor closely |
| Warning | 1.5x - 3.0x | High leverage, increased financial risk |
| Red flag | > 3.0x | Excessive leverage, potential distress risk |
Current: 103.2% (Adequate)
Free Cash Flow Yield
Free cash flow per share divided by stock price. Higher FCF yield indicates better cash return relative to valuation.
| Rating | Range | Interpretation |
|---|---|---|
| Excellent | > 8% | High cash return, potential value opportunity |
| Good | 5% - 8% | Solid cash yield |
| Adequate | 3% - 5% | Moderate cash return |
| Warning | 1% - 3% | Low cash yield, growth expectations |
| Red flag | < 1% | Minimal cash return to shareholders |
Current: -0.9% (Red flag)
Frequently Asked Questions
Q: What is Immunocore Holdings plc's Return on Invested Capital (ROIC)?
Immunocore Holdings plc (IMCR) has a trailing twelve-month Return on Invested Capital (ROIC) of -9.9%. This compares below the sector median of 0.0%. An ROIC below 8% suggests the company may be destroying shareholder value.
Q: What is Immunocore Holdings plc's Free Cash Flow Margin?
Immunocore Holdings plc (IMCR) has a free cash flow margin of -3.8%, generating $-15.1 million in free cash flow over the trailing twelve months. Negative free cash flow means the company is consuming cash, which may require financing.
Q: Is Immunocore Holdings plc stock overvalued or undervalued?
Immunocore Holdings plc (IMCR) trades at a P/E ratio of -49.6x, which is above the sector median of N/A. The EV/Sales multiple is 3.2x.
Q: How much debt does Immunocore Holdings plc have?
Immunocore Holdings plc (IMCR) has a debt-to-equity ratio of 1.0x with total debt of $393.1 million. Despite carrying debt, the company maintains a net cash position of $471.0 million.
Q: What is Immunocore Holdings plc's revenue and earnings growth?
Immunocore Holdings plc (IMCR) grew revenue by 29.0% year-over-year. Earnings per share increased by 31.4% compared to the prior year. Double-digit revenue growth indicates strong demand and market share gains.
Q: How does Immunocore Holdings plc compare to competitors in Healthcare?
Compared to other companies in Healthcare, Immunocore Holdings plc (IMCR) shows: ROIC of -9.9% is below the sector median of 0.0% (Bottom 39%). FCF margin of -3.8% trails the sector median of 0.0%. Gross margin at 98.7% is 37.4 percentage points higher than sector peers. These rankings are based on MetricDuck's analysis of all Healthcare companies with available SEC filings.
Q: What warning signs should I watch for with Immunocore Holdings plc?
Investors in Immunocore Holdings plc (IMCR) should monitor these potential warning signs: 1) FCF margin is thin at -3.8%, leaving limited buffer for economic downturns. Regular monitoring of SEC filings and quarterly trends is recommended.
Data Source: Data sourced from 10-Q filed 2025-11-06. TTM metrics as of Q4 2025.
Methodology: Financial metrics calculated from SEC 10-K and 10-Q filings using standardized formulas. Sector comparisons use peer group based on SIC code.
This analysis is for informational purposes only and does not constitute investment advice.