ASX:RAC

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Adequate balance sheet and overvalued.

Risks

  • Race Oncology has significant price volatility in the past 3 months.
  • Race Oncology is not covered by any analysts.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

46.2%

ASX:RAC

5.3%

AU Biotechs

1.4%

AU Market


1 Year Return

-26.9%

ASX:RAC

10.7%

AU Biotechs

1.9%

AU Market

RAC underperformed the Biotechs industry which returned 10.7% over the past year.

RAC underperformed the Market in Australia which returned 1.9% over the past year.


Share holder returns

RACIndustryMarket
7 Day46.2%5.3%1.4%
30 Day111.1%6.8%-3.3%
90 Day35.7%15.1%0.8%
1 Year-26.9%-26.9%12.0%10.7%7.6%1.9%
3 Year-55.8%-55.8%124.6%115.9%31.7%14.6%
5 Yearn/a212.4%191.7%38.9%8.0%

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 based on future cash flows and its price relative to the stock market?

1.21x

Price to Book (PB) ratio


Intrinsic Value Based on Future Cash Flows

Unable to calculate intrinsic value for Race Oncology to establish if it is available at moderate discount.

Unable to calculate intrinsic value for Race Oncology to establish if it is available at substantial discount.


Price Based on Earnings

Race Oncology is loss making, we can't compare its value to the Global Biotechs industry average.

Race Oncology is loss making, we can't compare the value of its earnings to the Australia market.


Price Based on Expected Growth

Unable to calculate PEG ratio for Race Oncology, we can't assess if its growth is good value.


Price Based on Value of Assets

Race Oncology is good value based on assets compared to the AU Biotechs industry average.


Next Steps

Future Growth

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

11.3%

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?

-62.4%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Race Oncology does not make a profit and their year on year earnings growth rate was negative over the past 5 years.

Unable to compare Race Oncology's 1-year earnings growth to the 5-year average as it is not currently profitable.

Unable to compare Race Oncology's 1-year growth to the Global Biotechs industry average as it is not currently profitable.


Return on Equity

It is difficult to establish if Race Oncology has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.


Return on Assets

It is difficult to establish if Race Oncology has efficiently used its assets last year compared to the Global Biotechs industry average (Return on Assets) as it is loss-making.


Return on Capital Employed

It is difficult to establish if Race Oncology improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.


Next Steps

Financial Health

How is Race Oncology's financial position?


Financial Position Analysis

Race Oncology is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Race Oncology has no long term commitments.


Debt to Equity History and Analysis

Race Oncology has no debt.

Race Oncology currently has no debt however we can't compare to 5 years ago as we have no data for that period.


Balance Sheet

Low level of unsold assets.

Race Oncology has no debt, it does not need to be covered by short term assets.


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.

Race Oncology has less than a year of cash runway based on current free cash flow.

Race Oncology has less than a year of cash runway if free cash flow continues to grow at historical rates of 63.1% each year.


Next Steps

Dividend

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


Dividend Yield and Payments Analysis

Unable to evaluate Race Oncology's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate Race Oncology's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as Race Oncology has not reported any payouts.

Unable to verify if Race Oncology's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as Race Oncology has not reported any payouts.


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

What is the CEO of Race Oncology's salary, the management and board of directors tenure and is there insider trading?

3.0yrs

Average management tenure


CEO

Peter Molloy (65yo)

3.1yrs

Tenure

AU$447,882

Compensation

Mr. Peter Laurence Molloy, BSc, MBA, FAICD has been Managing Director and Chief Executive Officer of Race Oncology Ltd since July 8, 2017. Mr. Molloy served as the Managing Director, President and Chief Ex ...


CEO Compensation Analysis

Peter's remuneration is about average for companies of similar size in Australia.

Peter's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

3.0yrs

Average Tenure

The tenure for the Race Oncology management team is about average.


Board Age and Tenure

3.1yrs

Average Tenure

The tenure for the Race Oncology board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

BuyAU$47,26212 Nov 18
William Garner
EntityIndividual
Role
Chairman of the Board
Non Executive Chairman
Shares350,000
Max PriceAU$0.14
BuyAU$7,18529 Aug 18
William Garner
EntityIndividual
Role
Chairman of the Board
Non Executive Chairman
Shares50,000
Max PriceAU$0.14
BuyAU$6,37427 Aug 18
Peter Molloy
EntityIndividual
Role
Chief Executive Officer
MD, CEO & Director
Shares45,000
Max PriceAU$0.14

Ownership Breakdown


Management Team

  • Peter Molloy (65yo)

    MD, CEO & Director

    • Tenure: 3.1yrs
    • Compensation: AU$447.88k
  • Gordon Beck

    Senior Vice President of Business Development

    • Tenure: 3.0yrs
    • Compensation: AU$374.59k
  • Peter Webse (56yo)

    Company Secretary

    • Tenure: 3.3yrs
  • Samar Al-Behaisi

    Chief Medical Officer & VP of Medical Affairs

    • Tenure: 1.3yrs
    • Compensation: AU$276.05k

Board Members

  • Peter Molloy (65yo)

    MD, CEO & Director

    • Tenure: 3.1yrs
    • Compensation: AU$447.88k
  • Bill Garner (53yo)

    Non Executive Chairman

    • Tenure: 3.1yrs
    • Compensation: AU$118.25k
  • Chris Ntoumenopoulos

    Non-Executive Director

    • Tenure: 3.3yrs
    • Compensation: AU$300.90k
  • Martin Tallman

    Member of Scientific Advisory Board

    • Tenure: 2.7yrs
  • Douglas Smith

    Member of Scientific Advisory Board

    • Tenure: 0.0yrs
  • Roland Walter

    Member of Scientific Advisory Board

    • Tenure: 0.0yrs
  • John Cullity

    Non-Executive Director

    • Tenure: 1.3yrs
    • Compensation: AU$11.20k

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: 1993
  • Industry: Biotechnology
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: AU$8.549m
  • Shares outstanding: 87.24m
  • 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 develops Bisantrene, a small molecule cancer chemotherapy drug that is used for the treatment of acute myeloid leukaemi ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/23 10:39
End of Day Share Price2019/08/23 00:00
Earnings2018/12/31
Annual Earnings2018/06/30


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.