ASX:RCE

Stock Analysis Report

Executive Summary

Recce Pharmaceuticals Ltd, a biotechnology company, researches and develops antibiotic drugs in Australia.

Snowflake

Fundamentals

Weak fundamentals or lack of information.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

-5.5%

RCE

0.9%

AU Pharmaceuticals

0.4%

AU Market


1 Year Return

48.6%

RCE

-35.5%

AU Pharmaceuticals

9.8%

AU Market

Return vs Industry: RCE exceeded the Australian Pharmaceuticals industry which returned -35.5% over the past year.

Return vs Market: RCE exceeded the Australian Market which returned 9.8% over the past year.


Shareholder returns

RCEIndustryMarket
7 Day-5.5%0.9%0.4%
30 Day-7.1%2.2%-0.7%
90 Day18.2%-2.3%-0.6%
1 Year48.6%48.6%-35.3%-35.5%16.1%9.8%
3 Year36.8%36.8%-44.1%-44.6%36.1%17.9%
5 Yearn/a-16.7%-24.3%49.4%15.8%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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


In this section, we usually try to help investors determine whether Recce Pharmaceuticals is trading at an attractive price based on the cash flow it is expected to produce in the future. But as Recce Pharmaceuticals has not provided consistent financial data, and the stock also has no analyst forecast or coverage, its intrinsic value cannot be reliably calculated by extrapolating past data or using analyst consensus cash flow predictions.

This is quite a rare situation as 89% of companies covered by Simply Wall St do have a valuation analysis.


Next Steps

  • Take a look at our analysis of RCE’s management and see if the CEO’s compensation is within a reasonable range, who is on the board and if insiders have been trading lately.
  • When valuing a company like this, investors focus more on how they perceive the size of the opportunity, the company's ability to deliver and scale, and the strength of the team. While we are not analysing this type of data at the moment, if you don’t know where to start, we recommend reading through Recce Pharmaceuticals regulatory filings.
  • Explore potentially undervalued companies in the Pharmaceuticals & Biotech industry.

Future Growth

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

69.9%

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 Recce Pharmaceuticals 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 Recce Pharmaceuticals performed over the past 5 years?

-0.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: RCE is unprofitable, and losses have increased over the past 5 years at a rate of -0.2% per year.

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

Earnings vs Industry: RCE is unprofitable, making it difficult to compare its past year earnings growth to the Pharmaceuticals industry (6%).


Return on Equity

High ROE: RCE's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.


Return on Assets

ROA vs Industry: RCE is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: RCE is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is Recce Pharmaceuticals's financial position?


Financial Position Analysis

Short Term Liabilities: RCE has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.

Long Term Liabilities: RCE has negative shareholder equity, which is a more serious situation than short term assets not covering long term liabilities.


Debt to Equity History and Analysis

Debt Level: RCE has negative shareholder equity, which is a more serious situation than a high debt level.

Reducing Debt: RCE's has negative shareholder equity, so we do not need to check if its debt has reduced over time.


Balance Sheet

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

Debt Coverage by Assets: RCE has negative shareholder equity (liabilities exceed assets) therefore debt is not 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.

Stable Cash Runway: RCE has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: RCE has less than a year of cash runway if free cash flow continues to grow at historical rates of 0.9% each year.


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%2.4%markettop25%5.6%industryaverage2.6%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

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

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

Stable Dividend: Insufficient data to determine if RCE's dividends per share have been stable in the past.

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

0.3yrs

Average board tenure


CEO

Recce Pharmaceuticals has no CEO, or we have no data on them.


Board Age and Tenure

0.3yrs

Average Tenure

Experienced Board: RCE's board of directors are not considered experienced ( 0.3 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: RCE insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellAU$9,97514 Aug 19
Michele Dilizia
EntityIndividual
Role
Member of the Board of Directors
Executive Director and Executive Director of Regulatory Affairs & Microbiology
Shares45,000
Max PriceAU$0.22
SellAU$60,18008 Aug 19
Michele Dilizia
EntityIndividual
Role
Member of the Board of Directors
Executive Director and Executive Director of Regulatory Affairs & Microbiology
Shares277,000
Max PriceAU$0.22
BuyAU$100,49006 Mar 19
James Graham
EntityIndividual
Role
Member of the Board of Directors
Executive Director and Executive Director of Marketing & Business Development
Shares650,000
Max PriceAU$0.15

Ownership Breakdown


Management Team

  • Graham John Melrose (85yo)

    Founder

    • Tenure: 0yrs
    • Compensation: AU$264.43k
  • Alistair McKeough

    Company Secretary

    • Tenure: 1.9yrs
  • Michele Dilizia

    Executive Director and Executive Director of Regulatory Affairs & Microbiology

    • Tenure: 4.3yrs
    • Compensation: AU$184.28k
  • James Graham

    Executive Director and Executive Director of Marketing & Business Development

    • Tenure: 4.3yrs
    • Compensation: AU$176.98k
  • Justin Ward

    Executive Director & Principal Quality Chemist

    • Tenure: 0.3yrs
    • Compensation: AU$149.03k
  • Justin Reynolds

    Chief Financial Officer

    • Tenure: 1.9yrs
  • Arthur Kollaras

    Principal Engineer & Head of Manufacturing

    • Tenure: 0yrs

Board Members

  • John K. Prendergast (65yo)

    Independent Non-Executive Chairman

    • Tenure: 0.3yrs
    • Compensation: AU$50.00k
  • Graham John Melrose (85yo)

    Founder

    • Tenure: 0yrs
    • Compensation: AU$264.43k
  • Michele Dilizia

    Executive Director and Executive Director of Regulatory Affairs & Microbiology

    • Tenure: 4.3yrs
    • Compensation: AU$184.28k
  • James Graham

    Executive Director and Executive Director of Marketing & Business Development

    • Tenure: 4.3yrs
    • Compensation: AU$176.98k
  • Justin Ward

    Executive Director & Principal Quality Chemist

    • Tenure: 0.3yrs
    • Compensation: AU$149.03k
  • David Bowers

    Chairman of Clinical Advisory Committee

    • Tenure: 0.3yrs

Company Information

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


Key Information

  • Name: Recce Pharmaceuticals Ltd
  • Ticker: RCE
  • Exchange: ASX
  • Founded: 2007
  • Industry: Pharmaceuticals
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: AU$34.792m
  • Shares outstanding: 133.81m
  • Website: https://www.recce.com.au

Location

  • Recce Pharmaceuticals Ltd
  • Gateway Tower
  • Level 36
  • Sydney
  • New South Wales
  • 2000
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
RCEASX (Australian Securities Exchange)YesOrdinary SharesAUAUDJan 2016
RCECHIA (Chi-X Australia)YesOrdinary SharesAUAUDJan 2016

Biography

Recce Pharmaceuticals Ltd, a biotechnology company, researches and develops antibiotic drugs in Australia. The company focuses on the development of RECCE 327 that helps to address the problem of antibioti ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/19 10:40
End of Day Share Price2019/10/18 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.