ASX:NEU

Stock Analysis Report

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Executive Summary

Neuren Pharmaceuticals Limited, a biopharmaceutical company, develops drugs for the treatment of neurological disorders.


Snowflake Analysis

Exceptional growth potential with adequate balance sheet.

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

0.4%

NEU

3.7%

AU Pharmaceuticals

2.3%

AU Market


1 Year Return

-7.6%

NEU

-28.0%

AU Pharmaceuticals

-8.1%

AU Market

Return vs Industry: NEU exceeded the Australian Pharmaceuticals industry which returned -28% over the past year.

Return vs Market: NEU matched the Australian Market which returned -8.1% over the past year.


Shareholder returns

NEUIndustryMarket
7 Day0.4%3.7%2.3%
30 Day-4.1%-7.5%2.8%
90 Day-25.3%-5.9%13.5%
1 Year-7.6%-7.6%-27.8%-28.0%-4.3%-8.1%
3 Year2.0%2.0%-26.8%-27.9%19.3%3.6%
5 Year-30.2%-30.2%-38.1%-42.1%40.0%9.8%

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?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: NEU (A$1.29) is trading below our estimate of fair value (A$24.65)

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


Price To Earnings Ratio

PE vs Industry: NEU is unprofitable, so we can't compare its PE Ratio to the AU 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 (9.3x) compared to the AU Pharmaceuticals industry average (2.1x).


Next Steps

Future Growth

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

78.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

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

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

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

Revenue vs Market: NEU's revenue (114.9% per year) is forecast to grow faster than the Australian market (4.2% per year).

High Growth Revenue: NEU's revenue (114.9% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: NEU's Return on Equity is forecast to be very high in 3 years time (77%).


Next Steps

Past Performance

How has Neuren Pharmaceuticals performed over the past 5 years?

34.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NEU is currently unprofitable.

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 34% 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 (28.6%).


Return on Equity

High ROE: NEU has a negative Return on Equity (-78.11%), as it is currently unprofitable.


Next Steps

Financial Health

How is Neuren Pharmaceuticals's financial position?


Financial Position Analysis

Short Term Liabilities: NEU's short term assets (A$14.4M) exceed its short term liabilities (A$559.0K).

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


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: Insufficient data to determine if NEU has enough cash runway based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if NEU has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

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


Dividend Yield vs Market

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

High Dividend: Unable to evaluate NEU'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 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

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

2.1yrs

Average board tenure


CEO

Jon Pilcher

0.25

Tenure

Mr. Jonathan Charles Pilcher, also known as Jon, BSc (Hons), ACA had been a Company Secretary at Neuren Pharmaceuticals Limited since August 19, 2013 until August 01, 2020. Mr. Pilcher serves as Chief Exec ...


Board Members

NamePositionTenureCompensationOwnership
Dianne Angus
Independent Non-Executive Director2.08yrsAU$60.00kno data
Trevor Scott
Independent Non-Executive Director18.42yrsAU$72.00k3.48%
A$ 5.2m
Jenny Harry
Independent Non-Executive Director2.08yrsAU$60.00k0.017%
A$ 26.2k
Patrick Donald Davies
Independent Non-Executive Chairman0.25yrAU$60.00k0.15%
A$ 225.0k

2.1yrs

Average Tenure

Experienced Board: NEU's board of directors are not considered experienced ( 2.1 years average tenure), which suggests a new board.


Ownership

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


Insider Trading Volume

Insider Buying: NEU 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 14.4%.


Top Shareholders

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$150.710m
  • Shares outstanding: 114.61m
  • 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, develops drugs for the treatment of neurological disorders. Its lead product is trofinetide, which is in Phase III clinical trial for the treatm ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/11 10:35
End of Day Share Price2020/08/11 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.