ASX:KZA

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

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


Snowflake Analysis

Exceptional growth potential with adequate balance sheet.

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

5.0%

KZA

0.7%

AU Biotechs

0.01%

AU Market


1 Year Return

80.6%

KZA

18.9%

AU Biotechs

-5.7%

AU Market

Return vs Industry: KZA exceeded the Australian Biotechs industry which returned 18.9% over the past year.

Return vs Market: KZA exceeded the Australian Market which returned -5.7% over the past year.


Shareholder returns

KZAIndustryMarket
7 Day5.0%0.7%0.01%
30 Day-11.1%5.4%5.4%
90 Day49.3%6.4%4.0%
1 Year88.5%80.6%20.0%18.9%-2.4%-5.7%
3 Year94.8%86.7%121.0%113.8%18.0%3.0%
5 Year-41.6%-44.0%228.5%209.1%42.1%13.2%

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?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: KZA (A$0.84) is trading below our estimate of fair value (A$10.22)

Significantly Below Fair Value: KZA is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: KZA is unprofitable, so we can't compare its PE Ratio to the XX 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 (5.6x) compared to the AU Biotechs industry average (5.9x).


Next Steps

Future Growth

How is Kazia Therapeutics forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

62.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: KZA is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2.3%).

Earnings vs Market: KZA is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: KZA's is expected to become profitable in the next 3 years.

Revenue vs Market: KZA's revenue (79.4% per year) is forecast to grow faster than the Australian market (4.7% per year).

High Growth Revenue: KZA's revenue (79.4% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: KZA's Return on Equity is forecast to be very high in 3 years time (74%).


Next Steps

Past Performance

How has Kazia Therapeutics performed over the past 5 years?

-3.2%

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 3.2% 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 (7.3%).


Return on Equity

High ROE: KZA has a negative Return on Equity (-88.26%), 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$10.7M) exceed its short term liabilities (A$5.1M).

Long Term Liabilities: KZA's short term assets (A$10.7M) exceed its long term liabilities (A$3.9M).


Debt to Equity History and Analysis

Debt Level: KZA is debt free.

Reducing Debt: KZA had no debt 5 years ago.


Balance Sheet


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 2% 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 recent payouts.

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

4.1yrs

Average management tenure


CEO

James Garner (47 yo)

4.67yrs

Tenure

AU$944,923

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 ($USD666.38K) is above average for companies of similar size in the Australian market ($USD275.98K).

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


Leadership Team

NamePositionTenureCompensationOwnership
James Garner
CEO, MD & Executive Director4.67yrsAU$944.92k0.31%
A$ 291.8k
Gabrielle Heaton
Director of Finance & Administration3.58yrsAU$250.71k0.0087%
A$ 8.0k
Catherine Hill
Company Secretary4.08yrsAU$155.70k0.026%
A$ 24.1k
Kym Robins
Director of Marketing & Communicationsno datano datano data

4.1yrs

Average Tenure

Experienced Management: KZA's management team is considered experienced (4.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
James Garner
CEO, MD & Executive Director4.67yrsAU$944.92k0.31%
A$ 291.8k
Alex Matter
Member of Scientific Advisory Board4.08yrsno datano data
Murray Brennan
Member of Scientific Advisory Board4.08yrsno datano data
Iain Ross
Independent Chairman of the Board2.75yrsAU$135.27k0.82%
A$ 760.7k
Bryce Carmine
Independent Non-Executive Director5.33yrsAU$82.13k0.31%
A$ 283.9k
Steven Coffey
Independent Non-Executive Director7.92yrsAU$82.13k0.35%
A$ 324.0k
Karen Jean Ferrante
Member of Scientific Advisory Board4.08yrsno datano data
Peter Gunning
Member of Scientific Advisory Board4.08yrsAU$13.84kno data

4.1yrs

Average Tenure

64yo

Average Age

Experienced Board: KZA's board of directors are considered experienced (4.1 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 substantially diluted in the past year, with total shares outstanding growing by 85.2%.


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$92.695m
  • Shares outstanding: 115.15m
  • 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
KZAAMASX (Australian Securities Exchange)NPV DFD 27/10/20(EX-RIGHTS)AUAUDNo data
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/mT ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/21 10:50
End of Day Share Price2020/10/21 00:00
Earnings2020/06/30
Annual Earnings2020/06/30


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.