ASX:KZA

Stock Analysis Report

Executive Summary

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


Snowflake Analysis

Flawless balance sheet with weak fundamentals.

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

4.7%

KZA

8.8%

AU Biotechs

5.1%

AU Market


1 Year Return

-1.1%

KZA

51.8%

AU Biotechs

-19.0%

AU Market

Return vs Industry: KZA underperformed the Australian Biotechs industry which returned 52.1% over the past year.

Return vs Market: KZA exceeded the Australian Market which returned -18.9% over the past year.


Shareholder returns

KZAIndustryMarket
7 Day4.7%8.8%5.1%
30 Day-30.5%-4.9%-20.9%
90 Day-25.8%7.5%-25.6%
1 Year-1.1%-1.1%53.4%51.8%-15.4%-19.0%
3 Year-17.6%-17.6%136.7%128.6%-3.3%-16.6%
5 Year-83.7%-83.8%220.9%200.5%6.9%-17.3%

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?

2.62x

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 overvalued based on its PB Ratio (2.6x) compared to the AU Biotechs industry average (2.4x).


Next Steps

Future Growth

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

-13.8%

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 (4% per year) is forecast to grow slower than the Australian market (4% per year).

High Growth Revenue: KZA's revenue (4% per year) is forecast to grow slower than 20% 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?

-4.0%

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 -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 (2.3%).


Return on Equity

High ROE: KZA has a negative Return on Equity (-82.6%), as it is currently unprofitable.


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$3.1M).

Long Term Liabilities: KZA's short term assets (A$7.5M) exceed its long term liabilities (A$5.2M).


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 12.1%.


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 sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: KZA has sufficient cash runway for 1.2 years if free cash flow continues to reduce at historical rates of -2.6% each year.


Next Steps

Dividend

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


Dividend Yield vs Market

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

How experienced are the management team and are they aligned to shareholders interests?

3.6yrs

Average management tenure


CEO

James Garner (46yo)

4.17s

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 ($USD418.31K) is above average for companies of similar size in the Australian market ($USD239.28K).

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


Leadership Team

NamePositionTenureCompensationOwnership
James Garner
CEO, MD & Executive Director4.17yrsAU$691.09k0.28% A$89.0k
Gabrielle Heaton
Director of Finance & Administration3.08yrsAU$237.38kno data
Catherine Hill
Company Secretary3.58yrsAU$161.58k0.041% A$13.4k
Kym Robins
Director of Marketing & Communicationsno datano datano data

3.6yrs

Average Tenure

Experienced Management: KZA's management team is considered experienced (3.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
James Garner
CEO, MD & Executive Director4.17yrsAU$691.09k0.28% A$89.0k
Alex Matter
Member of Scientific Advisory Board3.58yrsno datano data
Murray Brennan
Member of Scientific Advisory Board3.58yrsno datano data
Iain Ross
Independent Chairman of the Board2.25yrsAU$130.27k0.83% A$267.0k
Bryce Carmine
Independent Non-Executive Director4.83yrsAU$82.13k0.26% A$85.1k
Steven Coffey
Independent Non-Executive Director7.42yrsAU$82.13k0.35% A$111.9k
Karen Jean Ferrante
Member of Scientific Advisory Board3.58yrsno datano data
Peter Gunning
Member of Scientific Advisory Board3.58yrsAU$13.84kno data

3.6yrs

Average Tenure

63yo

Average Age

Experienced Board: KZA's board of directors are considered experienced (3.6 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

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


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 25.9%.


Top Shareholders

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$32.225m
  • 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)SPON ADR EACH REP 10 ORD SHSUSUSDJan 1999
NV9MDB (Deutsche Boerse AG)SPON ADR EACH REP 10 ORD SHSDEEURJan 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 Analysis2020/04/05 11:09
End of Day Share Price2020/04/03 00:00
Earnings2019/12/30
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.