ASX:KZA

Stock Analysis Report

Executive Summary

Kazia Therapeutics Limited, an oncology-focused biotechnology company, develops anti-cancer drugs.

Risk Analysis

Earnings are forecast to decline by an average of -8.5% per year for the next 3 years

Has less than 1 year of cash runway

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

Highly volatile share price over past 3 months

+ 3 more risks


Snowflake Analysis

Adequate balance sheet and overvalued.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: KZA's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-3.2%

KZA

3.5%

AU Biotechs

0.4%

AU Market


1 Year Return

25.0%

KZA

57.9%

AU Biotechs

19.5%

AU Market

Return vs Industry: KZA underperformed the Australian Biotechs industry which returned 54.8% over the past year.

Return vs Market: KZA exceeded the Australian Market which returned 20.2% over the past year.


Shareholder returns

KZAIndustryMarket
7 Day-3.2%3.5%0.4%
30 Day0.8%10.4%4.4%
90 Day29.0%20.4%5.0%
1 Year25.0%25.0%59.8%57.9%24.9%19.5%
3 Year-29.4%-29.4%181.6%171.5%38.6%19.9%
5 Year-49.6%-50.0%257.6%234.2%60.0%24.0%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

2.63x

Price to Book (PB) ratio


Share Price vs. Fair Value

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

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


Price To Earnings Ratio

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

PE vs Market: KZA 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 KZA's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: KZA is good value based on its PB Ratio (2.9x) compared to the AU Biotechs industry average (3x).


Next Steps

Future Growth

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

-8.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: KZA is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: KZA is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: KZA is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: KZA's revenue is expected to decline over the next 3 years (-1.3% per year).

High Growth Revenue: KZA's revenue is forecast to decline over the next 3 years (-1.3% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

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


Next Steps

Past Performance

How has Kazia Therapeutics performed over the past 5 years?

-5.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: KZA is currently unprofitable.

Growing Profit Margin: KZA is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: KZA is unprofitable, and losses have increased over the past 5 years at a rate of -5.4% per year.

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

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


Return on Equity

High ROE: KZA has a negative Return on Equity (-72.35%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Kazia Therapeutics's financial position?


Financial Position Analysis

Short Term Liabilities: KZA's short term assets (A$7.5M) exceed its short term liabilities (A$1.9M).

Long Term Liabilities: KZA's short term assets (A$7.5M) exceed its long term liabilities (A$5.1M).


Debt to Equity History and Analysis

Debt Level: KZA is debt free.

Reducing Debt: KZA has no debt compared to 5 years ago when its debt to equity ratio was 181.6%.


Balance Sheet

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

Debt Coverage by Assets: Insufficient data to determine if KZA'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: KZA has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: KZA has less than a year of cash runway if free cash flow continues to grow at historical rates of 25.6% each year.


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%2.3%markettop25%5.5%industryaverage2.1%forecastin3Years0%

Current dividend yield vs market & industry

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

High Dividend: Unable to evaluate KZA'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 KZA's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if KZA'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 KZA'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 Kazia Therapeutics's salary, the management and board of directors tenure and is there insider trading?

3.3yrs

Average management tenure


CEO

James Garner (46yo)

3.9yrs

Tenure

AU$691,085

Compensation

Dr. James Garner, MA, MBA, MBBS, BSC (Hons), MAICD, has been the Chief Executive Officer, Managing Director and Executive Director of Kazia Therapeutics Limited (formerly Novogen Limited) since February 1, ...


CEO Compensation Analysis

Compensation vs Market: James's total compensation ($USD476.94K) is above average for companies of similar size in the Australian market ($USD262.68K).

Compensation vs Earnings: James's compensation has increased whilst the company is unprofitable.


Management Age and Tenure

3.3yrs

Average Tenure

Experienced Management: KZA's management team is considered experienced (3.3 years average tenure).


Board Age and Tenure

3.3yrs

Average Tenure

63yo

Average Age

Experienced Board: KZA's board of directors are considered experienced (3.3 years average tenure).


Insider Trading

Insider Buying: KZA insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyAU$41,35903 Dec 19
Iain Ross
EntityIndividual
Role
Chairman of the Board
Independent Chairman of the Board
Shares125,000
Max PriceAU$0.33
BuyAU$21,50703 Dec 19
James Garner
EntityIndividual
Role
Chief Executive Officer
CEO, MD & Executive Director
Shares65,000
Max PriceAU$0.33
BuyAU$19,85226 Nov 19
Steven Coffey
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares60,000
Max PriceAU$0.33
BuyAU$19,85226 Nov 19
Bryce Carmine
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares60,000
Max PriceAU$0.33
BuyAU$9,90925 Nov 19
Credit Suisse, Investment Banking and Securities Investments
EntityCompany
Shares21,541
Max PriceAU$0.46
SellAU$588,08125 Nov 19
Credit Suisse, Investment Banking and Securities Investments
EntityCompany
Shares1,306,850
Max PriceAU$0.45
BuyAU$3,77104 Sep 19
James Garner
EntityIndividual
Role
Chief Executive Officer
CEO, MD & Executive Director
Shares10,000
Max PriceAU$0.38
BuyAU$20,84509 Jul 19
Hishenk Pty Ltd.
EntityCompany
Shares55,000
Max PriceAU$0.38
BuyAU$41,35903 Jul 19
Iain Ross
EntityIndividual
Role
Chairman of the Board
Independent Chairman of the Board
Shares125,000
Max PriceAU$0.33
BuyAU$19,85203 Jul 19
Steven Coffey
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares60,000
Max PriceAU$0.33
BuyAU$21,50703 Jul 19
James Garner
EntityIndividual
Role
Chief Executive Officer
CEO, MD & Executive Director
Shares65,000
Max PriceAU$0.33
BuyAU$19,85203 Jul 19
Bryce Carmine
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares60,000
Max PriceAU$0.33
BuyAU$301,46803 Jul 19
Hishenk Pty Ltd.
EntityCompany
Shares662,981
Max PriceAU$0.45
SellAU$3,42003 Jul 19
Hishenk Pty Ltd.
EntityCompany
Shares9,000
Max PriceAU$0.38
BuyAU$4,63805 Apr 19
James Garner
EntityIndividual
Role
Chief Executive Officer
CEO, MD & Executive Director
Shares10,000
Max PriceAU$0.47
BuyAU$30,77202 Apr 19
Iain Ross
EntityIndividual
Role
Chairman of the Board
Independent Chairman of the Board
Shares65,527
Max PriceAU$0.47

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 18.9%.


Management Team

  • James Garner (46yo)

    CEO, MD & Executive Director

    • Tenure: 3.9yrs
    • Compensation: AU$691.09k
  • Kym Robins

    Director of Marketing & Communications

    • Kate Hill (60yo)

      Company Secretary

      • Tenure: 3.3yrs
      • Compensation: AU$161.58k
    • Gabrielle Heaton

      Director of Finance & Administration

      • Tenure: 2.8yrs
      • Compensation: AU$237.38k

    Board Members

    • Alex Matter

      Member of Scientific Advisory Board

      • Tenure: 3.3yrs
    • Murray Brennan (79yo)

      Member of Scientific Advisory Board

      • Tenure: 3.3yrs
    • Iain Ross (65yo)

      Independent Chairman of the Board

      • Tenure: 2yrs
      • Compensation: AU$130.27k
    • Bryce Carmine (67yo)

      Independent Non-Executive Director

      • Tenure: 4.6yrs
      • Compensation: AU$82.13k
    • James Garner (46yo)

      CEO, MD & Executive Director

      • Tenure: 3.9yrs
      • Compensation: AU$691.09k
    • Steve Coffey (58yo)

      Independent Non-Executive Director

      • Tenure: 7.2yrs
      • Compensation: AU$82.13k
    • Karen Jean Ferrante (61yo)

      Member of Scientific Advisory Board

      • Tenure: 3.3yrs
    • Peter Gunning

      Member of Scientific Advisory Board

      • Tenure: 3.3yrs
      • Compensation: AU$13.84k

    Company Information

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


    Key Information

    • Name: Kazia Therapeutics Limited
    • Ticker: KZA
    • Exchange: ASX
    • Founded: 1994
    • Industry: Biotechnology
    • Sector: Pharmaceuticals & Biotech
    • Market Cap: AU$43.450m
    • Shares outstanding: 72.42m
    • Website: https://www.kaziatherapeutics.com

    Location

    • Kazia Therapeutics Limited
    • Three International Towers
    • Level 24
    • Sydney
    • New South Wales
    • 2000
    • Australia

    Listings

    TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
    NVGN.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDSep 1994
    KZAASX (Australian Securities Exchange)YesOrdinary SharesAUAUDSep 1994
    NV9DB (Deutsche Boerse AG)YesOrdinary SharesDEEURSep 1994
    KZACHIA (Chi-X Australia)YesOrdinary SharesAUAUDSep 1994
    KZIANasdaqCM (Nasdaq Capital Market)SPONSORED ADRUSUSDJan 1999
    NV9MDB (Deutsche Boerse AG)SPONSORED ADRDEEURJan 1999

    Biography

    Kazia Therapeutics Limited, an oncology-focused biotechnology company, develops anti-cancer drugs. Its lead development candidate is GDC-0084, a small molecule, brain-penetrant inhibitor of the PI3K/AKT/mTOR pathway, which is developed as a potential therapy for glioblastoma. The company is also developing Cantrixil, which is being developed for the treatment of ovarian cancer and is in hospitals across Australia and the United States under an Investigational New Drug application. Kazia Therapeutics Limited has collaboration agreements St Jude Childrens Hospital; Dana-Farber Cancer Institute; Alliance for Clinical Trials in Oncology; Memorial Sloan Kettering Cancer Centre; and University of Newcastle. The company was formerly known as Novogen Limited and changed its name to Kazia Therapeutics Limited in November 2017. Kazia Therapeutics Limited was founded in 1994 and is headquartered in Sydney, Australia. 


    Company Analysis and Financial Data Status

    All financial data provided by Standard & Poor's Capital IQ.
    DataLast Updated (UTC time)
    Company Analysis2020/01/25 10:35
    End of Day Share Price2020/01/24 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.