ASX:IMC

Stock Analysis Report

Executive Summary

Immuron Limited, a biopharmaceutical company, researches and develops oral immunotherapy polyclonal antibodies for the treatment and prevention of infectious and immune modulated diseases in Australia, the United States, and internationally.

Risk Analysis

Earnings have declined by -5.91% per year over past 5 years

Currently unprofitable and not forecast to become profitable over the next 3 years

Shareholders have been diluted in the past year

Does not have meaningful revenue (A$2M)

+ 1 more risk


Snowflake Analysis

Flawless balance sheet and overvalued.

Share Price & News

How has Immuron's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: IMC has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

3.8%

IMC

2.7%

AU Biotechs

-1.1%

AU Market


1 Year Return

-46.0%

IMC

62.5%

AU Biotechs

18.4%

AU Market

Return vs Industry: IMC underperformed the Australian Biotechs industry which returned 51.5% over the past year.

Return vs Market: IMC underperformed the Australian Market which returned 19.4% over the past year.


Shareholder returns

IMCIndustryMarket
7 Day3.8%2.7%-1.1%
30 Day3.8%11.6%2.5%
90 Day8.0%21.8%4.2%
1 Year-46.0%-46.0%64.4%62.5%23.8%18.4%
3 Year-53.4%-53.4%184.2%174.0%38.7%20.1%
5 Year-31.9%-32.5%259.9%236.4%54.7%19.8%

Price Volatility Vs. Market

How volatile is Immuron's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Immuron undervalued compared to its fair value and its price relative to the market?

3x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate IMC's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate IMC's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: IMC is unprofitable, so we can't compare its PE Ratio to the Biotechs industry average.

PE vs Market: IMC is unprofitable, so we can't compare its PE Ratio to the Australian market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate IMC's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: IMC is good value based on its PB Ratio (3.1x) compared to the AU Biotechs industry average (3.1x).


Next Steps

Future Growth

How is Immuron forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

12.0%

Forecasted Pharmaceuticals & Biotech industry annual growth in earnings


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if IMC's forecast earnings growth is above the savings rate (1.1%).

Earnings vs Market: Insufficient data to determine if IMC's earnings are forecast to grow faster than the Australian market

High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: Insufficient data to determine if IMC's revenue is forecast to grow faster than the Australian market.

High Growth Revenue: Insufficient data to determine if IMC's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if IMC's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Immuron performed over the past 5 years?

-5.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: IMC is currently unprofitable.

Growing Profit Margin: IMC is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: IMC is unprofitable, and losses have increased over the past 5 years at a rate of -5.9% per year.

Accelerating Growth: Unable to compare IMC's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: IMC is unprofitable, making it difficult to compare its past year earnings growth to the Biotechs industry (11.9%).


Return on Equity

High ROE: IMC has a negative Return on Equity (-63.02%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Immuron's financial position?


Financial Position Analysis

Short Term Liabilities: IMC's short term assets (A$6.7M) exceed its short term liabilities (A$1.2M).

Long Term Liabilities: IMC's short term assets (A$6.7M) exceed its long term liabilities (A$15.0K).


Debt to Equity History and Analysis

Debt Level: IMC is debt free.

Reducing Debt: IMC had no debt 5 years ago.


Balance Sheet

Inventory Level: IMC has a low level of unsold assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if IMC's debt is covered by short term assets.


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: IMC has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: IMC has sufficient cash runway for 1.8 years if free cash flow continues to reduce at historical rates of -5.6% each year.


Next Steps

Dividend

What is Immuron's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%2.4%markettop25%5.6%industryaverage2.1%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate IMC's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate IMC's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if IMC's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if IMC's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of IMC's dividend in 3 years as they are not forecast to pay a notable one for the Australian market.


Next Steps

Management

What is the CEO of Immuron's salary, the management and board of directors tenure and is there insider trading?

6.7yrs

Average board tenure


CEO

Gary Jacob (72yo)

1.2yrs

Tenure

AU$1,286,195

Compensation

Dr. Gary S. Jacob, Ph.D., has been Chief Executive Officer of Immuron Limited since November 16, 2018 and has been its Director since April 17, 2019. He serves as Chairman of the Board of ContraVir Pharmac ...


CEO Compensation Analysis

Compensation vs Market: Gary's total compensation ($USD887.64K) is above average for companies of similar size in the Australian market ($USD262.68K).

Compensation vs Earnings: Insufficient data to compare Gary's compensation with company performance.


Board Age and Tenure

6.7yrs

Average Tenure

62yo

Average Age

Experienced Board: IMC's board of directors are considered experienced (6.7 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyAU$7,87520 Jun 19
Daniel Pollock
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares75,000
Max PriceAU$0.10
BuyAU$57,50020 Jun 19
Grandlodge Pty. Ltd.
EntityCompany
Shares500,000
Max PriceAU$0.12
BuyAU$9,53803 Jun 19
Daniel Pollock
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares70,000
Max PriceAU$0.14
BuyAU$77,50029 May 19
Grandlodge Pty. Ltd.
EntityCompany
Shares500,000
Max PriceAU$0.15

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 8.3%.


Management Team

  • Phillip Hains (60yo)

    CFO & Company Secretary

    • Gary Jacob (72yo)

      CEO & Non-Executive Director

      • Tenure: 1.2yrs
      • Compensation: AU$1.29m
    • David Lyon

      Head of Marketing

      • Peter Anastasiou (59yo)

        Executive Vice Chairman

        • Tenure: 4.7yrs
        • Compensation: AU$50.00k
      • Jerry Kanellos (58yo)

        Chief Operating Officer

        • Tenure: 4.5yrs
        • Compensation: AU$405.74k

      Board Members

      • Roger Aston (63yo)

        Independent Non-Executive Chairman

        • Tenure: 7.8yrs
        • Compensation: AU$76.65k
      • Gary Jacob (72yo)

        CEO & Non-Executive Director

        • Tenure: 1.2yrs
        • Compensation: AU$1.29m
      • Arun Sanyal

        Member of Advisory Board

        • Daniel Pollock (59yo)

          Independent Non-Executive Director

          • Tenure: 7.3yrs
          • Compensation: AU$65.70k
        • Stephen Anastasiou (62yo)

          Independent Non-Executive Director

          • Tenure: 6.7yrs
          • Compensation: AU$50.00k
        • Peter Anastasiou (59yo)

          Executive Vice Chairman

          • Tenure: 4.7yrs
          • Compensation: AU$50.00k
        • Gerhard Rogler

          Member of Advisory Board

          • Stephen Harrison

            Member of Advisory Board

            • Manal Abdelmalek

              Member of Advisory Board

              • Miriam Vos

                Member of Advisory Board

                Company Information

                Immuron Limited's company bio, employee growth, exchange listings and data sources


                Key Information

                • Name: Immuron Limited
                • Ticker: IMC
                • Exchange: ASX
                • Founded: 1994
                • Industry: Biotechnology
                • Sector: Pharmaceuticals & Biotech
                • Market Cap: AU$23.924m
                • Shares outstanding: 177.22m
                • Website: https://www.immuron.com.au

                Number of Employees


                Location

                • Immuron Limited
                • 62 Lygon Street
                • Level 3
                • Carlton South
                • Victoria
                • 3053
                • Australia

                Listings

                TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
                IMCASX (Australian Securities Exchange)YesOrdinary SharesAUAUDApr 1999
                IMCCHIA (Chi-X Australia)YesOrdinary SharesAUAUDApr 1999
                ANWDB (Deutsche Boerse AG)YesOrdinary SharesDEEURApr 1999
                IMRNNasdaqCM (Nasdaq Capital Market)SPONSORED ADRUSUSDJan 2008

                Biography

                Immuron Limited, a biopharmaceutical company, researches and develops oral immunotherapy polyclonal antibodies for the treatment and prevention of infectious and immune modulated diseases in Australia, the United States, and internationally. The company operates through Research and Development, and HyperImmune Products segments. The company markets Travelan for the prevention of travellers’ diarrhea. Its lead product candidates include IMM-124E that is in Phase II clinical trials for non-alcoholic steatohepatitis, severe alcoholic hepatitis, and non-alcoholic fatty liver disease; and IMM-529, a clinical stage product for clostridium difficile infections. The company has a research collaboration with the United States Department of Defense to develop and clinically evaluate a therapeutic against campylobacter. Immuron Limited was founded in 1994 and is based in Carlton South, Australia. 


                Company Analysis and Financial Data Status

                All financial data provided by Standard & Poor's Capital IQ.
                DataLast Updated (UTC time)
                Company Analysis2020/01/29 10:31
                End of Day Share Price2020/01/29 00:00
                Earnings2019/06/30
                Annual Earnings2019/06/30


                Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.