ASX:SPL

Stock Analysis Report

Executive Summary

Starpharma Holdings Limited engages in the research, development, and commercialization of dendrimer products for pharmaceutical, life-science, and other applications worldwide.


Snowflake Analysis

Exceptional growth potential with excellent balance sheet.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: SPL has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-3.0%

SPL

-6.4%

AU Pharmaceuticals

-1.8%

AU Market


1 Year Return

-9.4%

SPL

-27.7%

AU Pharmaceuticals

20.0%

AU Market

Return vs Industry: SPL exceeded the Australian Pharmaceuticals industry which returned -27.7% over the past year.

Return vs Market: SPL underperformed the Australian Market which returned 20% over the past year.


Shareholder returns

SPLIndustryMarket
7 Day-3.0%-6.4%-1.8%
30 Day6.1%-13.9%-0.3%
90 Day15.6%-17.3%1.1%
1 Year-9.4%-9.4%-27.5%-27.7%25.9%20.0%
3 Year81.1%81.1%-40.4%-40.9%36.0%17.4%
5 Year191.0%191.0%-17.4%-24.7%62.5%25.9%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

11.35x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: SPL (A$1.3) is trading above our estimate of fair value (A$0)

Significantly Below Fair Value: SPL is trading above our estimate of fair value.


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: SPL is overvalued based on its PB Ratio (11.4x) compared to the AU Pharmaceuticals industry average (2.8x).


Next Steps

Future Growth

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

72.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SPL is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.1%).

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

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

Revenue vs Market: SPL's revenue (67.6% per year) is forecast to grow faster than the Australian market (3.6% per year).

High Growth Revenue: SPL's revenue (67.6% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SPL's Return on Equity is forecast to be very high in 3 years time (82.7%).


Next Steps

Past Performance

How has Starpharma Holdings performed over the past 5 years?

9.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SPL is currently unprofitable.

Growing Profit Margin: SPL is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: SPL is unprofitable, but has reduced losses over the past 5 years at a rate of 9.6% per year.

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

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


Return on Equity

High ROE: SPL has a negative Return on Equity (-33.62%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Starpharma Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: SPL's short term assets (A$47.8M) exceed its short term liabilities (A$6.4M).

Long Term Liabilities: SPL's short term assets (A$47.8M) exceed its long term liabilities (A$38.0K).


Debt to Equity History and Analysis

Debt Level: SPL is debt free.

Reducing Debt: SPL has not had any debt for past 5 years.


Balance Sheet

Inventory Level: SPL has a low level of unsold assets or inventory.

Debt Coverage by Assets: SPL's debt is not covered by short term assets (assets are -4346.3x 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: SPL has sufficient cash runway for more than 3 years based on its current free cash flow.

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


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%2.4%markettop25%5.6%industryaverage2.6%forecastin3Years0%

Current dividend yield vs market & industry

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

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

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

8.2yrs

Average board tenure


CEO

Jackie Fairley (56yo)

13.4yrs

Tenure

AU$1,743,377

Compensation

Dr. Jacinth K. Fairley, also known as Jackie, B.Sc., B.V.Sc.(Hons), MBA, GAICD, FTSE has been the Chief Executive Officer of Starpharma Holdings Limited since July 1, 2006 and serves as its Managing Direct ...


CEO Compensation Analysis

Compensation vs Market: Jackie's total compensation ($USD1.19M) is above average for companies of similar size in the Australian market ($USD699.00K).

Compensation vs Earnings: Jackie's compensation has increased whilst the company is unprofitable.


Board Age and Tenure

8.2yrs

Average Tenure

65yo

Average Age

Experienced Board: SPL's board of directors are considered experienced (8.2 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$23,331,09811 Nov 19
ICM Limited
EntityCompany
Shares19,046,000
Max PriceAU$1.25
SellAU$2,821,75409 Sep 19
Orbis Investment Management Limited
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Shares2,247,594
Max PriceAU$1.67
BuyAU$7,861,13609 Sep 19
Orbis Investment Management Limited
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Shares6,638,250
Max PriceAU$4.01
BuyAU$846,45830 Apr 19
FIL Limited
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Shares737,642
Max PriceAU$1.15
SellAU$1,271,54030 Apr 19
FIL Limited
EntityCompany
Shares956,045
Max PriceAU$1.33
BuyAU$192,62613 Jan 19
FIL Limited
EntityCompany
Shares172,604
Max PriceAU$1.12
BuyAU$28,80028 Dec 18
Peter Turvey
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares30,000
Max PriceAU$0.96
BuyAU$28,03528 Dec 18
Jacinth Fairley
EntityIndividual
Role
Chief Executive Officer
CEO, MD & Executive Director
Shares30,000
Max PriceAU$0.93
BuyAU$48,00028 Dec 18
Robert Thomas
EntityIndividual
Role
Chairman of the Board
Independent Chairman
Shares50,000
Max PriceAU$0.96
SellAU$418,33926 Dec 18
FIL Limited
EntityCompany
Shares298,792
Max PriceAU$1.40

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Jackie Fairley (56yo)

    CEO, MD & Executive Director

    • Tenure: 13.4yrs
    • Compensation: AU$1.74m
  • Nigel Baade

    CFO & Company Secretary

    • Tenure: 10.9yrs
    • Compensation: AU$551.37k

Board Members

  • Jackie Fairley (56yo)

    CEO, MD & Executive Director

    • Tenure: 13.4yrs
    • Compensation: AU$1.74m
  • Dick Hazleton (77yo)

    Independent Non-Executive Director

    • Tenure: 13yrs
    • Compensation: AU$74.50k
  • Peter Turvey

    Independent Non-Executive Director

    • Tenure: 7.8yrs
    • Compensation: AU$75.50k
  • Rob Thomas (74yo)

    Independent Chairman

    • Tenure: 5.5yrs
    • Compensation: AU$130.00k
  • Zita Peach (54yo)

    Independent Non Executive Director

    • Tenure: 8.2yrs
    • Compensation: AU$75.50k

Company Information

Starpharma Holdings Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Starpharma Holdings Limited
  • Ticker: SPL
  • Exchange: ASX
  • Founded: 1996
  • Industry: Pharmaceuticals
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: AU$482.366m
  • Shares outstanding: 372.48m
  • Website: https://starpharma.com

Location

  • Starpharma Holdings Limited
  • 4-6 Southampton Crescent
  • Abbotsford
  • Victoria
  • 3067
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SPHR.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDSep 2000
SPLASX (Australian Securities Exchange)YesOrdinary SharesAUAUDSep 2000
PQ6DB (Deutsche Boerse AG)YesOrdinary SharesDEEURSep 2000
SPLCHIA (Chi-X Australia)YesOrdinary SharesAUAUDSep 2000
SPHR.YOTCPK (Pink Sheets LLC)SPONSORED ADRUSUSDJan 2005

Biography

Starpharma Holdings Limited engages in the research, development, and commercialization of dendrimer products for pharmaceutical, life-science, and other applications worldwide. The company focuses on the  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/10 10:32
End of Day Share Price2019/12/10 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.