ASX:NEU

Stock Analysis Report

Executive Summary

Neuren Pharmaceuticals Limited, a biopharmaceutical company, engages in the development of drugs for the treatment of chronic neurodevelopmental and neurodegenerative disorders, and acute traumatic brain injury.

Snowflake

Fundamentals

Flawless balance sheet with weak fundamentals.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-2.3%

NEU

-3.6%

AU Pharmaceuticals

0.7%

AU Market


1 Year Return

85.2%

NEU

-28.7%

AU Pharmaceuticals

17.7%

AU Market

Return vs Industry: NEU exceeded the Australian Pharmaceuticals industry which returned -28.7% over the past year.

Return vs Market: NEU exceeded the Australian Market which returned 17.7% over the past year.


Shareholder returns

NEUIndustryMarket
7 Day-2.3%-3.6%0.7%
30 Day2.0%-12.1%2.0%
90 Day74.2%-1.2%4.9%
1 Year85.2%85.2%-28.5%-28.7%24.5%17.7%
3 Year101.6%101.6%-38.8%-39.3%40.5%21.3%
5 Year8.7%8.7%-13.1%-20.6%57.1%22.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

14.93x

Price to Book (PB) ratio


Share Price vs. Fair Value

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

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


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: NEU is overvalued based on its PB Ratio (14.9x) compared to the AU Pharmaceuticals industry average (2.5x).


Next Steps

Future Growth

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

0.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

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

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

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

Revenue vs Market: NEU's revenue is expected to decline over the next 3 years (-14.5% per year).

High Growth Revenue: NEU's revenue is forecast to decline over the next 3 years (-14.5% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: NEU is forecast to be unprofitable in 3 years.


Next Steps

Past Performance

How has Neuren Pharmaceuticals performed over the past 5 years?

42.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NEU has large one-off items impacting its financial results.

Growing Profit Margin: NEU is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: NEU is unprofitable, but has reduced losses over the past 5 years at a rate of 42.7% per year.

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

Earnings vs Industry: NEU is unprofitable, making it difficult to compare its past year earnings growth to the Pharmaceuticals industry (7.9%).


Return on Equity

High ROE: NEU has a negative Return on Equity (-4.27%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Neuren Pharmaceuticals's financial position?


Financial Position Analysis

Short Term Liabilities: NEU's short term assets (A$18.1M) exceeds its short term liabilities (A$1.3M)

Long Term Liabilities: NEU has no long term liabilities


Debt to Equity History and Analysis

Debt Level: NEU is debt free.

Reducing Debt: NEU has not had any debt for past 5 years.


Balance Sheet

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

Debt Coverage by Assets: Insufficient data to determine if NEU'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: Whilst unprofitable NEU has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: NEU is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 92.5% per year.


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%2.3%markettop25%5.6%industryaverage2.5%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

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

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

1.3yrs

Average board tenure


CEO

Neuren Pharmaceuticals has no CEO, or we have no data on them.


Board Age and Tenure

1.3yrs

Average Tenure

Experienced Board: NEU's board of directors are not considered experienced ( 1.3 years average tenure), which suggests a new board.


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

SellAU$21,07330 Dec 18
Lanstead Investors Ltd.
EntityCompany
Shares7,645
Max PriceAU$3.27
SellAU$5,829,91230 Dec 18
Lanstead Investors Ltd.
EntityCompany
Shares4,164,223
Max PriceAU$1.40

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 3.2%.


Management Team

  • Larry Glass

    Chief Science Officer

    • Tenure: 15.8yrs
  • Jon Pilcher

    CFO & Company Secretary

    • Tenure: 6.3yrs
  • Richard Treagus

    Executive Chairman

    • Tenure: 6.8yrs

Board Members

  • Dianne Angus (59yo)

    Independent Non-Executive Director

    • Tenure: 1.3yrs
  • Trevor Scott

    Independent Non-Executive Director

    • Tenure: 17.7yrs
  • Jenny Harry

    Independent Non-Executive Director

    • Tenure: 1.3yrs
  • Richard Treagus

    Executive Chairman

    • Tenure: 6.8yrs
  • Patrick Davies

    Independent Non-Executive Director

    • Tenure: 1.3yrs

Company Information

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


Key Information

  • Name: Neuren Pharmaceuticals Limited
  • Ticker: NEU
  • Exchange: ASX
  • Founded: 1993
  • Industry: Pharmaceuticals
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: AU$250.421m
  • Shares outstanding: 100.17m
  • Website: https://www.neurenpharma.com

Number of Employees


Location

  • Neuren Pharmaceuticals Limited
  • 697 Burke Road
  • Suite 201
  • Camberwell
  • Victoria
  • 3124
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NEUASX (Australian Securities Exchange)YesOrdinary SharesAUAUDFeb 2005
NURP.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDFeb 2005
NEUCHIA (Chi-X Australia)YesOrdinary SharesAUAUDFeb 2005
NEUCHIA (Chi-X Australia)YesOrdinary SharesAUAUDFeb 2005

Biography

Neuren Pharmaceuticals Limited, a biopharmaceutical company, engages in the development of drugs for the treatment of chronic neurodevelopmental and neurodegenerative disorders, and acute traumatic brain i ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/20 10:31
End of Day Share Price2019/11/20 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.