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 moderate growth potential.

Risks

  • Neuren Pharmaceuticals has significant price volatility in the past 3 months.
  • Neuren Pharmaceuticals is covered by less than 3 analysts.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

0.3%

NEU

0.1%

AU Pharmaceuticals

1.0%

AU Market


1 Year Return

64.1%

NEU

-36.7%

AU Pharmaceuticals

6.9%

AU Market

NEU outperformed the Pharmaceuticals industry which returned -36.7% over the past year.

NEU outperformed the Market in Australia which returned 6.9% over the past year.


Share holder returns

NEUIndustryMarket
7 Day0.3%0.1%1.0%
30 Day33.7%4.9%3.9%
90 Day75.7%8.1%1.6%
1 Year64.1%64.1%-36.6%-36.7%13.1%6.9%
3 Year98.5%98.5%-52.8%-53.2%39.5%20.7%
5 Year24.1%24.1%-24.3%-31.7%52.8%18.7%

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 based on future cash flows and its price relative to the stock market?

11.85x

Price to Book (PB) ratio


Intrinsic Value Based on Future Cash Flows

Unable to calculate intrinsic value for Neuren Pharmaceuticals to establish if it is available at moderate discount.

Unable to calculate intrinsic value for Neuren Pharmaceuticals to establish if it is available at substantial discount.


Price Based on Earnings

Neuren Pharmaceuticals is loss making, we can't compare its value to the AU Pharmaceuticals industry average.

Neuren Pharmaceuticals is loss making, we can't compare the value of its earnings to the Australia market.


Price Based on Expected Growth

Unable to calculate PEG ratio for Neuren Pharmaceuticals, we can't assess if its growth is good value.


Price Based on Value of Assets

Neuren Pharmaceuticals is overvalued based on assets compared to the AU Pharmaceuticals industry average.


Next Steps

Future Growth

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

40.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Neuren Pharmaceuticals's revenue is expected to decrease over the next 1-3 years, this is not considered high growth.

Neuren Pharmaceuticals's earnings are expected to grow significantly at over 20% yearly.

Neuren Pharmaceuticals's revenues are expected to decrease over the next 1-3 years, this is below the Australia market average.

Neuren Pharmaceuticals's earnings growth is expected to exceed the Australia market average.

Neuren Pharmaceuticals's earnings growth is expected to exceed the low risk savings rate of 2.3%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Neuren Pharmaceuticals will efficiently use shareholders’ funds in the future (Return on Equity greater than 20%) as it is not expected to be profitable.


Next Steps

Past Performance

How has Neuren Pharmaceuticals performed over the past 5 years?

42.7%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Neuren Pharmaceuticals does not make a profit even though their year on year earnings growth rate was positive over the past 5 years.

Unable to compare Neuren Pharmaceuticals's 1-year earnings growth to the 5-year average as it is not currently profitable.

Unable to compare Neuren Pharmaceuticals's 1-year growth to the Global Pharmaceuticals industry average as it is not currently profitable.


Return on Equity

It is difficult to establish if Neuren Pharmaceuticals has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.


Return on Assets

It is difficult to establish if Neuren Pharmaceuticals has efficiently used its assets last year compared to the AU Pharmaceuticals industry average (Return on Assets) as it is loss-making.


Return on Capital Employed

It is difficult to establish if Neuren Pharmaceuticals improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.


Next Steps

Financial Health

How is Neuren Pharmaceuticals's financial position?


Financial Position Analysis

Neuren Pharmaceuticals is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Neuren Pharmaceuticals has no long term commitments.


Debt to Equity History and Analysis

Neuren Pharmaceuticals has no debt.

Neuren Pharmaceuticals has not taken on any debt in the past 5 years.


Balance Sheet

Low level of unsold assets.

Neuren Pharmaceuticals has no debt, it does not need to be 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.

Whilst loss making Neuren Pharmaceuticals has sufficient cash runway for more than 3 years if it maintains the current positive free cash flow level.

Whilst loss making Neuren Pharmaceuticals has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by -92.5% per year.


Next Steps

Dividend

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


Dividend Yield and Payments Analysis

Unable to evaluate Neuren Pharmaceuticals's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate Neuren Pharmaceuticals's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as Neuren Pharmaceuticals has not reported any payouts.

Unable to verify if Neuren Pharmaceuticals's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as Neuren Pharmaceuticals has not reported any payouts.


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

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

1.2yrs

Average board tenure


CEO

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


Board Age and Tenure

1.2yrs

Average Tenure

The average tenure for the Neuren Pharmaceuticals board of directors is less than 3 years, this suggests a new board.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

SellAU$5,829,91230 Dec 18
Lanstead Capital Limited Partnership
EntityCompany
Shares4,164,223
Max PriceAU$1.40
SellAU$21,07330 Dec 18
Lanstead Capital Limited Partnership
EntityCompany
Shares7,645
Max PriceAU$3.27
BuyAU$19,84030 Sep 18
Richard Treagus
EntityIndividual
Role
Chairman of the Board
Executive Chairman
Shares16,000
Max PriceAU$1.24

Ownership Breakdown


Management Team

  • Larry Glass

    Chief Science Officer

    • Tenure: 15.7yrs
  • Jon Pilcher

    CFO & Company Secretary

    • Tenure: 6.1yrs
  • Richard Treagus

    Executive Chairman

    • Tenure: 6.7yrs

Board Members

  • Dianne Angus (59yo)

    Independent Non-Executive Director

    • Tenure: 1.2yrs
  • Trevor Scott

    Independent Non-Executive Director

    • Tenure: 17.5yrs
  • Jenny Harry

    Independent Non-Executive Director

    • Tenure: 1.2yrs
  • Richard Treagus

    Executive Chairman

    • Tenure: 6.7yrs
  • Patrick Davies

    Independent Non-Executive Director

    • Tenure: 1.2yrs

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$198.834m
  • 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

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 Analysis2019/09/23 10:32
End of Day Share Price2019/09/20 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.