ASX:RAC

Stock Analysis Report

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Executive Summary

Race Oncology Limited operates as a specialty pharmaceutical company in Australia.


Snowflake Analysis

Flawless balance sheet with weak fundamentals.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-5.3%

RAC

1.2%

AU Biotechs

0.3%

AU Market


1 Year Return

1,248.5%

RAC

25.1%

AU Biotechs

-7.8%

AU Market

Return vs Industry: RAC exceeded the Australian Biotechs industry which returned 25.1% over the past year.

Return vs Market: RAC exceeded the Australian Market which returned -7.8% over the past year.


Shareholder returns

RACIndustryMarket
7 Day-5.3%1.2%0.3%
30 Day14.8%-4.1%1.3%
90 Day169.7%-7.2%13.4%
1 Year1,248.5%1,248.5%26.4%25.1%-4.0%-7.8%
3 Year178.1%178.1%124.2%116.6%18.5%2.8%
5 Yearn/a203.9%184.8%39.1%9.0%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

17.79x

Price to Book (PB) ratio


Share Price vs. Fair Value

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

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


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: RAC is overvalued based on its PB Ratio (17.8x) compared to the AU Biotechs industry average (3.6x).


Next Steps

Future Growth

How is Race Oncology forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

14.2%

Forecasted Pharmaceuticals & Biotech industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Race Oncology has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Race Oncology performed over the past 5 years?

-35.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RAC is currently unprofitable.

Growing Profit Margin: RAC is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: RAC is unprofitable, and losses have increased over the past 5 years at a rate of 35.7% per year.

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

Earnings vs Industry: RAC is unprofitable, making it difficult to compare its past year earnings growth to the Biotechs industry (-5.6%).


Return on Equity

High ROE: RAC has a negative Return on Equity (-57.41%), as it is currently unprofitable.


Next Steps

Financial Health

How is Race Oncology's financial position?


Financial Position Analysis

Short Term Liabilities: RAC's short term assets (A$1.6M) exceed its short term liabilities (A$221.3K).

Long Term Liabilities: RAC has no long term liabilities.


Debt to Equity History and Analysis

Debt Level: RAC is debt free.

Reducing Debt: RAC had no debt 5 years ago.


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: RAC has sufficient cash runway for 10 months based on last reported free cash flow, but has since raised additional capital.

Forecast Cash Runway: RAC is forecast to have sufficient cash runway for 8 months based on free cash flow estimates, but has since raised additional capital.


Next Steps

Dividend

What is Race Oncology current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

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

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

Growing Dividend: Insufficient data to determine if RAC'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 RAC'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?

0.9yrs

Average board tenure


CEO

Race Oncology has no CEO, or we have no data on them.


Board Members

NamePositionTenureCompensationOwnership
John Cullity
Executive Chairman0.42yrAU$129.53k3.09%
A$ 3.4m
Daniel Tillett
COO & Non-Executive Director0.92yrno data7.49%
A$ 8.1m
William Garner
Non Executive Director4.08yrsAU$121.00k11.35%
A$ 12.3m
Christopher Ntoumenopoulos
Non-Executive Director4.33yrsAU$48.00k0.85%
A$ 919.4k
Martin Tallman
Member of Scientific Advisory Board3.67yrsno datano data
Phillip Lynch
Independent Non-Executive Director0.17yrno data0.34%
A$ 370.9k
Douglas Smith
Member of Scientific Advisory Boardno datano datano data
Roland Walter
Member of Scientific Advisory Boardno datano datano data
Borje Andersson
Chairman of Clinical Advisory Board & Non-Executive Director0.83yrno datano data
Jaap-Jan Boelens
Member of Clinical Advisory Board0.50yrno datano data

0.9yrs

Average Tenure

Experienced Board: RAC's board of directors are not considered experienced ( 0.9 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: RAC 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 40.7%.


Top Shareholders

Company Information

Race Oncology Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Race Oncology Limited
  • Ticker: RAC
  • Exchange: ASX
  • Founded: 2011
  • Industry: Biotechnology
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: AU$108.650m
  • Shares outstanding: 122.77m
  • Website: https://www.raceoncology.com

Location

  • Race Oncology Limited
  • 140 William Street
  • Level 40
  • Melbourne
  • Victoria
  • 3000
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
RACCHIA (Chi-X Australia)YesCommon SharesAUAUDJul 2016
RACASX (Australian Securities Exchange)YesCommon SharesAUAUDJul 2016

Biography

Race Oncology Limited operates as a specialty pharmaceutical company in Australia. It is developing Bisantrene, a small molecule cancer chemotherapy drug that is used for the treatment of acute myeloid leu ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/07 10:32
End of Day Share Price2020/08/07 00:00
Earnings2019/12/31
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.