ASX:PAR

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

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


Snowflake Analysis

Exceptional growth potential with excellent balance sheet.

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 is not significantly more volatile than the rest of Australian stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: PAR's weekly volatility (8%) has been stable over the past year.


Market Performance


7 Day Return

-2.3%

PAR

2.8%

AU Biotechs

2.3%

AU Market


1 Year Return

-18.3%

PAR

14.1%

AU Biotechs

-0.3%

AU Market

Return vs Industry: PAR underperformed the Australian Biotechs industry which returned 15.9% over the past year.

Return vs Market: PAR underperformed the Australian Market which returned -1% over the past year.


Shareholder returns

PARIndustryMarket
7 Day-2.3%2.8%2.3%
30 Day6.0%8.5%7.2%
90 Day12.4%9.2%8.7%
1 Year-18.3%-18.3%15.2%14.1%3.1%-0.3%
3 Year959.5%934.5%124.9%117.5%24.2%8.8%
5 Year875.4%852.4%228.6%208.9%55.4%24.4%

Long-Term 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?

24.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: PAR (A$3) is trading below our estimate of fair value (A$3.95)

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


Price To Earnings Ratio

PE vs Industry: PAR is unprofitable, so we can't compare its PE Ratio to the XX 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 good value based on its PB Ratio (6.2x) compared to the AU Biotechs industry average (6.5x).


Next Steps

Future Growth

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

40.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

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

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

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

Revenue vs Market: PAR's revenue (94.5% per year) is forecast to grow faster than the Australian market (5.2% per year).

High Growth Revenue: PAR's revenue (94.5% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: PAR's Return on Equity is forecast to be very high in 3 years time (54.2%).


Next Steps

Past Performance

How has Paradigm Biopharmaceuticals performed over the past 5 years?

-40.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PAR is currently unprofitable.

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 40.8% 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 (8.7%).


Return on Equity

High ROE: PAR has a negative Return on Equity (-11.37%), as it is currently unprofitable.


Next Steps

Financial Health

How is Paradigm Biopharmaceuticals's financial position?


Financial Position Analysis

Short Term Liabilities: PAR's short term assets (A$108.4M) exceed its short term liabilities (A$3.4M).

Long Term Liabilities: PAR's short term assets (A$108.4M) exceed its long term liabilities (A$817.4K).


Debt to Equity History and Analysis

Debt Level: PAR's debt to equity ratio (0.03%) is considered satisfactory.

Reducing Debt: PAR's debt to equity ratio has reduced from 19.4% to 0.03% over the 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: PAR has sufficient cash runway for more than 3 years based on its current free cash flow.

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


Next Steps

Dividend

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


Dividend Yield vs Market

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

High Dividend: Unable to evaluate PAR'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 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

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

0.4yrs

Average management tenure


CEO

Paul Rennie (61 yo)

no data

Tenure

AU$632,363

Compensation

Mr. Paul John Rennie, BSc, MBM, Grad Dip Commercial Law, MSTC, serves as Interim Executive Chairman of Paradigm BioPharmaceuticals Ltd. since June 2020. He has been an Executive Director of Paradigm BioPha...


CEO Compensation Analysis

Compensation vs Market: Paul's total compensation ($USD460.20K) is below average for companies of similar size in the Australian market ($USD694.70K).

Compensation vs Earnings: Paul's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Paul Rennie
CEO, MD & Interim Executive Chairmanno dataAU$632.36k8.56%
A$ 59.5m
Justin Cahill
Chief Financial Officer0.083yrno datano data
Jeannette Joughin
Chief Operating Officer0.42yrno datano data
Ravi Krishnan
Chief Scientific Officer5.17yrsno datano data
Simon White
Director of Investor Relationsno datano datano data
Michael Imperiale
Global Head of Safety0.42yrno datano data
Donna Skerrett
Chief Medical Officer & Executive Director0.33yrno data0.096%
A$ 668.8k
Beverley Huttmann
Commercial Head0.083yrno datano data
Kevin Hollingsworth
Company Secretary6.5yrsAU$60.23kno data

0.4yrs

Average Tenure

63yo

Average Age

Experienced Management: PAR's management team is not considered experienced ( 0.4 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Paul Rennie
CEO, MD & Interim Executive Chairmanno dataAU$632.36k8.56%
A$ 59.5m
Donna Skerrett
Chief Medical Officer & Executive Director0.33yrno data0.096%
A$ 668.8k
John Gaffney
Independent Non-Executive Director6.17yrsAU$60.23k0.26%
A$ 1.8m

0.4yrs

Average Tenure

Experienced Board: PAR's board of directors are not considered experienced ( 0.4 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: Insufficient data to determine if 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 17.2%.


Top Shareholders

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$695.460m
  • Shares outstanding: 228.02m
  • 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 Analysis2020/11/24 10:42
End of Day Share Price2020/11/24 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.