ASX:PAR

Stock Analysis Report

Executive Summary

Paradigm Biopharmaceuticals Limited, a biopharmaceutical company, engages in the research and development of therapeutic products for human use in Australia.

Snowflake

Flawless balance sheet with weak fundamentals.

Share Price & News

How has Paradigm Biopharmaceuticals's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

12.4%

PAR

-1.0%

AU Biotechs

-1.0%

AU Market


1 Year Return

271.6%

PAR

46.2%

AU Biotechs

16.2%

AU Market

Return vs Industry: PAR exceeded the Australian Biotechs industry which returned 46.2% over the past year.

Return vs Market: PAR exceeded the Australian Market which returned 16.2% over the past year.


Shareholder returns

PARIndustryMarket
7 Day12.4%-1.0%-1.0%
30 Day32.2%5.7%-0.2%
90 Day154.0%12.4%2.2%
1 Year280.6%271.6%47.9%46.2%21.9%16.2%
3 Year750.7%730.6%174.3%164.4%36.3%17.7%
5 Yearn/a222.1%201.2%52.7%18.3%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Paradigm Biopharmaceuticals undervalued compared to its fair value and its price relative to the market?

8.19x

Price to Book (PB) ratio


Share Price vs. Fair Value

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

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


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: PAR is overvalued based on its PB Ratio (8.2x) compared to the AU Biotechs industry average (3.4x).


Next Steps

Future Growth

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

-28.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

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

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

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

Revenue vs Market: PAR's revenue (0.2% per year) is forecast to grow slower than the Australian market (3.6% per year).

High Growth Revenue: PAR's revenue (0.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

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


Next Steps

Past Performance

How has Paradigm Biopharmaceuticals performed over the past 5 years?

-44.2%

Historical annual earnings growth


Earnings and Revenue History

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

Growing Profit Margin: PAR is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: PAR is unprofitable, and losses have increased over the past 5 years at a rate of -44.2% per year.

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

Earnings vs Industry: PAR is unprofitable, making it difficult to compare its past year earnings growth to the Biotechs industry (13.5%).


Return on Equity

High ROE: PAR has a negative Return on Equity (-18.87%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Paradigm Biopharmaceuticals's financial position?


Financial Position Analysis

Short Term Liabilities: PAR's short term assets (A$82.5M) exceeds its short term liabilities (A$2.7M)

Long Term Liabilities: PAR has no long term liabilities


Debt to Equity History and Analysis

Debt Level: PAR's debt to equity ratio (0.04%) is considered satisfactory.

Reducing Debt: PAR had negative shareholder equity 5 years ago, but is now positive and has therefore improved.


Balance Sheet

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

Debt Coverage by Assets: PAR's debt is covered by short term assets (assets are 2254.9x debt).


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: PAR has sufficient cash runway for more than 3 years based on its current free cash flow.

Forecast Cash Runway: PAR has sufficient cash runway for more than 3 years if free cash flow continues to reduce at historical rates of -3.9% each year


Next Steps

Dividend

What is Paradigm Biopharmaceuticals's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%2.4%markettop25%5.6%industryaverage2.1%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

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

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

4.2yrs

Average management tenure


CEO

Paul Rennie (60yo)

0yrs

Tenure

AU$1,067,388

Compensation

Mr. Paul Rennie, BSc, MBM, Grad Dip Commercial Law, MSTC, has been an Executive Director of Paradigm BioPharmaceuticals Ltd. since May 2, 2014 and serves as its Chief Executive Officer and Managing Directo ...


CEO Compensation Analysis

Compensation vs Market: Paul's total compensation ($USD724.78K) is about average for companies of similar size in the Australian market ($USD705.75K).

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


Management Age and Tenure

4.2yrs

Average Tenure

Experienced Management: PAR's management team is considered experienced (4.2 years average tenure).


Board Age and Tenure

5.3yrs

Average Tenure

68yo

Average Age

Experienced Board: PAR's board of directors are considered experienced (5.3 years average tenure).


Insider Trading

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


Recent Insider Transactions

BuyAU$301,04519 Nov 19
Christopher Fullerton
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares100,000
Max PriceAU$3.01
BuyAU$14,84002 Jul 19
Christopher Fullerton
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares10,000
Max PriceAU$1.48
BuyAU$49,00001 Jul 19
Paul Rennie
EntityIndividual
Role
Chief Executive Officer
CEO, MD & Executive Director
Shares35,000
Max PriceAU$1.40
BuyAU$32,13023 Apr 19
Christopher Fullerton
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares19,500
Max PriceAU$1.65
BuyAU$118,11608 Mar 19
Christopher Fullerton
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares100,000
Max PriceAU$1.18
BuyAU$201,08713 Dec 18
Paul Rennie
EntityIndividual
Role
Chief Executive Officer
CEO, MD & Executive Director
Shares480,392
Max PriceAU$0.69

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 26.1%.


Management Team

  • Kevin Hollingsworth (66yo)

    CFO & Company Secretary

    • Tenure: 5.5yrs
    • Compensation: AU$60.23k
  • Paul Rennie (60yo)

    CEO, MD & Executive Director

    • Tenure: 0yrs
    • Compensation: AU$1.07m
  • Ravi Krishnan

    Chief Scientific Officer

    • Tenure: 4.2yrs
  • Claire Kaufman

    Chief Operations Officer

    • Tenure: 4.2yrs

Board Members

  • Chris Fullerton (68yo)

    Independent Non-Executive Director

    • Tenure: 5.2yrs
    • Compensation: AU$60.23k
  • Graeme Kaufman (70yo)

    Non-Executive Chairman

    • Tenure: 5.5yrs
    • Compensation: AU$120.45k
  • Paul Rennie (60yo)

    CEO, MD & Executive Director

    • Tenure: 0yrs
    • Compensation: AU$1.07m
  • John Gaffney

    Independent Non-Executive Director

    • Tenure: 5.2yrs
    • Compensation: AU$60.23k

Company Information

Paradigm Biopharmaceuticals Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Paradigm Biopharmaceuticals Limited
  • Ticker: PAR
  • Exchange: ASX
  • Founded: 2014
  • Industry: Biotechnology
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: AU$686.502m
  • Shares outstanding: 194.48m
  • Website: https://www.paradigmbiopharma.com

Location

  • Paradigm Biopharmaceuticals Limited
  • 500 Collins Street
  • Level 15
  • Melbourne
  • Victoria
  • 3000
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PARASX (Australian Securities Exchange)YesOrdinary SharesAUAUDAug 2015
PARCHIA (Chi-X Australia)YesOrdinary SharesAUAUDAug 2015
PBIG.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDAug 2015

Biography

Paradigm Biopharmaceuticals Limited, a biopharmaceutical company, engages in the research and development of therapeutic products for human use in Australia. It offers pentosan polysulphate sodium drugs in ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/22 10:40
End of Day Share Price2019/11/22 00:00
Earnings2019/06/30
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.