ASX:PXS

Stock Analysis Report

Executive Summary

Pharmaxis Ltd engages in the research, development, and commercialization of healthcare products for the treatment of fibrotic and inflammatory diseases worldwide.

Rewards

Revenue is forecast to grow 9.67% per year

Earnings have grown 2.6% per year over the past 5 years

Risk Analysis

Currently unprofitable and not forecast to become profitable over the next 3 years

Highly volatile share price over past 3 months

Shareholders have been diluted in the past year

Does not have a meaningful market cap (A$57M)



Snowflake Analysis

Adequate balance sheet with concerning outlook.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-13.8%

PXS

2.9%

AU Pharmaceuticals

0.6%

AU Market


1 Year Return

-51.0%

PXS

-10.8%

AU Pharmaceuticals

20.2%

AU Market

Return vs Industry: PXS underperformed the Australian Pharmaceuticals industry which returned -12.8% over the past year.

Return vs Market: PXS underperformed the Australian Market which returned 19.4% over the past year.


Shareholder returns

PXSIndustryMarket
7 Day-13.8%2.9%0.6%
30 Day-16.7%17.4%4.3%
90 Day-37.5%4.9%4.9%
1 Year-51.0%-51.0%-10.6%-10.8%25.6%20.2%
3 Year-54.5%-54.5%-26.2%-27.0%39.4%20.7%
5 Year19.0%19.0%-13.4%-20.2%60.8%24.6%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

5.14x

Price to Book (PB) ratio


Share Price vs. Fair Value

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

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


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: PXS is overvalued based on its PB Ratio (6x) compared to the AU Pharmaceuticals industry average (3.1x).


Next Steps

Future Growth

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

30.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

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

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

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

Revenue vs Market: PXS's revenue (9.7% per year) is forecast to grow faster than the Australian market (3.8% per year).

High Growth Revenue: PXS's revenue (9.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if PXS's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Pharmaxis performed over the past 5 years?

2.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PXS is currently unprofitable.

Growing Profit Margin: PXS is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: PXS is unprofitable, but has reduced losses over the past 5 years at a rate of 2.6% per year.

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

Earnings vs Industry: PXS is unprofitable, making it difficult to compare its past year earnings growth to the Pharmaceuticals industry (8.1%).


Return on Equity

High ROE: PXS has a negative Return on Equity (-190.56%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Pharmaxis's financial position?


Financial Position Analysis

Short Term Liabilities: PXS's short term assets (A$33.7M) exceed its short term liabilities (A$2.0M).

Long Term Liabilities: PXS's short term assets (A$33.7M) do not cover its long term liabilities (A$36.7M).


Debt to Equity History and Analysis

Debt Level: PXS is debt free.

Reducing Debt: PXS has no debt compared to 5 years ago when its debt to equity ratio was 1%.


Balance Sheet

Inventory Level: PXS has a high level of physical assets or inventory.

Debt Coverage by Assets: PXS's debt is not covered by short term assets (assets are -28x 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: PXS has sufficient cash runway for more than a year based on its current free cash flow.

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


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%2.3%markettop25%5.6%industryaverage2.4%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

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

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

7.1yrs

Average management tenure


CEO

Gary Phillips (58yo)

6.8yrs

Tenure

AU$613,487

Compensation

Mr. Gary Jonathan Phillips, BPharm, MBA has been Chief Executive Officer and Managing Director of Pharmaxis Ltd. since March 12, 2013 and served as its Chief Operating Officer from November 2003 to March 2 ...


CEO Compensation Analysis

Compensation vs Market: Gary's total compensation ($USD423.39K) is above average for companies of similar size in the Australian market ($USD262.68K).

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


Management Age and Tenure

7.1yrs

Average Tenure

56.5yo

Average Age

Experienced Management: PXS's management team is seasoned and experienced (7.1 years average tenure).


Board Age and Tenure

4.5yrs

Average Tenure

63yo

Average Age

Experienced Board: PXS's board of directors are considered experienced (4.5 years average tenure).


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

BuyAU$126,89720 Dec 19
Orbis Investment Management Limited
EntityCompany
Shares463,278
Max PriceAU$0.29
SellAU$465,83420 Dec 19
Orbis Investment Management Limited
EntityCompany
Shares2,409,311
Max PriceAU$0.22
SellAU$1,196,19929 May 19
BVF Partners LP
EntityCompany
Shares4,366,406
Max PriceAU$0.29

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 18.8%.


Management Team

  • David McGarvey (63yo)

    CFO & Company Secretary

    • Tenure: 17.1yrs
    • Compensation: AU$494.95k
  • Gary Phillips (58yo)

    CEO, MD & Director

    • Tenure: 6.8yrs
    • Compensation: AU$613.49k
  • Cameron Billingsley (42yo)

    General Counsel

    • Wolfgang Jarolimek (55yo)

      Head of Drug Discovery

      • Tenure: 7.4yrs
      • Compensation: AU$485.99k
    • Dieter Hamprecht

      Head of Chemistry for Drug Discovery

      • Tenure: 2.3yrs

    Board Members

    • Malcolm McComas (64yo)

      Independent Chairman of the Board

      • Tenure: 7.7yrs
      • Compensation: AU$100.00k
    • Gary Phillips (58yo)

      CEO, MD & Director

      • Tenure: 6.8yrs
      • Compensation: AU$613.49k
    • Alan Robertson (63yo)

      Member of Scientific Advisory Board

      • Compensation: AU$711.06k
    • Will Delaat (68yo)

      Non Executive Director

      • Tenure: 11.6yrs
      • Compensation: AU$70.00k
    • Darren Kelly

      Member of Scientific Advisory Board

      • Tenure: 2.3yrs
    • Kathleen Metters (62yo)

      Non Executive Director & Member of Scientific Advisory Board

      • Tenure: 2.3yrs
      • Compensation: AU$70.00k
    • Ed Rayner

      Non-Executive Director

      • Tenure: 1.3yrs
    • Andrew Boyle

      Member of Scientific Advisory Board

      • Jacob George

        Member of Scientific Advisory Board

        • Carol Pollock

          Member of Scientific Advisory Board

          Company Information

          Pharmaxis Ltd's company bio, employee growth, exchange listings and data sources


          Key Information

          • Name: Pharmaxis Ltd
          • Ticker: PXS
          • Exchange: ASX
          • Founded: 1998
          • Industry: Pharmaceuticals
          • Sector: Pharmaceuticals & Biotech
          • Market Cap: AU$49.334m
          • Shares outstanding: 394.67m
          • Website: https://www.pharmaxis.com.au

          Number of Employees


          Location

          • Pharmaxis Ltd
          • 20 Rodborough Road
          • Frenchs Forest
          • New South Wales
          • 2086
          • Australia

          Listings

          TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
          PMXS.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDNov 2003
          PXSASX (Australian Securities Exchange)YesOrdinary SharesAUAUDNov 2003
          UUDDB (Deutsche Boerse AG)YesOrdinary SharesDEEURNov 2003
          PXSCHIA (Chi-X Australia)YesOrdinary SharesAUAUDNov 2003
          UUDBRSE (Berne Stock Exchange)YesOrdinary SharesCHCHFNov 2003
          PXSL.YOTCPK (Pink Sheets LLC)SPON ADRUSUSDJul 2004

          Biography

          Pharmaxis Ltd engages in the research, development, and commercialization of healthcare products for the treatment of fibrotic and inflammatory diseases worldwide. The company operates through two segments, Bronchitol and Aridol Business, and New Drug Development. It offers Bronchitol, an inhaled dry powder for the treatment of cystic fibrosis; and Aridol, a lung function test used to diagnose and manage asthma by detecting active airway inflammation through measuring airway hyper-responsiveness. The company’s drug discovery programs include amine oxidase drug platform programs, such as semicarbazide-sensitive amine oxidase (SSAO) inhibitor BI 1467335 for the treatment of inflammation; selective LOXL2 inhibitor for NASH, pulmonary fibrosis, liver, and kidney fibrosis; LOX inhibitor for scaring and cancer; and other SSAO/MPO inhibitor programs. It is also developing Orbital, a dry powder inhaler to deliver high drug doses to lungs. Pharmaxis Ltd was founded in 1998 and is headquartered in Frenchs Forest, Australia. 


          Company Analysis and Financial Data Status

          All financial data provided by Standard & Poor's Capital IQ.
          DataLast Updated (UTC time)
          Company Analysis2020/01/24 10:32
          End of Day Share Price2020/01/24 00:00
          Earnings2019/09/30
          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.