TSX:GUD

Stock Analysis Report

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Executive Summary

Knight Therapeutics Inc. operates as a specialty pharmaceutical company in Canada and internationally. More Details


Snowflake Analysis

Fair value with acceptable track record.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: GUD is less volatile than 75% of Canadian stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: GUD's weekly volatility (3%) has been stable over the past year.


Market Performance


7 Day Return

5.0%

GUD

3.0%

CA Pharmaceuticals

0.7%

CA Market


1 Year Return

-29.3%

GUD

49.4%

CA Pharmaceuticals

2.1%

CA Market

Return vs Industry: GUD underperformed the Canadian Pharmaceuticals industry which returned 52.2% over the past year.

Return vs Market: GUD underperformed the Canadian Market which returned 2% over the past year.


Shareholder returns

GUDIndustryMarket
7 Day5.0%3.0%0.7%
30 Day3.1%32.8%4.6%
90 Day-0.7%71.2%13.5%
1 Year-29.3%-29.3%49.4%49.4%5.8%2.1%
3 Year-26.1%-26.1%-51.7%-52.4%13.9%3.1%
5 Year-15.3%-15.3%413.7%410.0%67.3%41.6%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

10.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: GUD (CA$5.69) is trading below our estimate of fair value (CA$6.34)

Significantly Below Fair Value: GUD is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: GUD is good value based on its PE Ratio (27.9x) compared to the CA Pharmaceuticals industry average (31x).

PE vs Market: GUD is poor value based on its PE Ratio (27.9x) compared to the Canadian market (16.8x).


Price to Earnings Growth Ratio

PEG Ratio: GUD's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: GUD is good value based on its PB Ratio (0.8x) compared to the CA Pharmaceuticals industry average (2.8x).


Next Steps

Future Growth

How is Knight Therapeutics forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

-1.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GUD's earnings are forecast to decline over the next 3 years (-1.2% per year).

Earnings vs Market: GUD's earnings are forecast to decline over the next 3 years (-1.2% per year).

High Growth Earnings: GUD's earnings are forecast to decline over the next 3 years.

Revenue vs Market: GUD's revenue (7.9% per year) is forecast to grow faster than the Canadian market (7.9% per year).

High Growth Revenue: GUD's revenue (7.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: GUD's Return on Equity is forecast to be low in 3 years time (5.7%).


Next Steps

Past Performance

How has Knight Therapeutics performed over the past 5 years?

-28.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GUD has high quality earnings.

Growing Profit Margin: GUD's current net profit margins (15%) are lower than last year .


Past Earnings Growth Analysis

Earnings Trend: GUD's earnings have declined by 28.3% per year over the past 5 years.

Accelerating Growth: GUD's earnings growth over the past year (27.3%) exceeds its 5-year average (-28.3% per year).

Earnings vs Industry: GUD earnings growth over the past year (27.3%) exceeded the Pharmaceuticals industry -61.1%.


Return on Equity

High ROE: GUD's Return on Equity (2.3%) is considered low.


Next Steps

  • Explore strong past performing companies in the Pharmaceuticals & Biotech industry.

Financial Health

How is Knight Therapeutics's financial position?


Financial Position Analysis

Short Term Liabilities: GUD's short term assets (CA$540.6M) exceed its short term liabilities (CA$99.0M).

Long Term Liabilities: GUD's short term assets (CA$540.6M) exceed its long term liabilities (CA$32.7M).


Debt to Equity History and Analysis

Debt Level: GUD's debt to equity ratio (4.9%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if GUD's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: GUD's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: Insufficient data to determine if GUD's interest payments on its debt are well covered by EBIT.


Balance Sheet


Next Steps

Dividend

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


Dividend Yield vs Market

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

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

Growing Dividend: Insufficient data to determine if GUD'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 GUD's dividend in 3 years as they are not forecast to pay a notable one for the Canadian market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.4yrs

Average management tenure


CEO

Jonathan Goodman (51 yo)

no data

Tenure

CA$1,125,744

Compensation

Mr. Jonathan Ross Goodman, BA, LLB, MBA founded Knight Therapeutics Inc. in February 2014 and serves as its Chief Executive Officer. Mr. Goodman has been Director at Endo International plc since December 2...


CEO Compensation Analysis

Compensation vs Market: Jonathan's total compensation ($USD890.42K) is about average for companies of similar size in the Canadian market ($USD790.55K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Jonathan Goodman
Founderno dataCA$1.13m17.05%
CA$ 126.1m
Samira Sakhia
President & Director4.42yrsCA$987.14k0.037%
CA$ 275.4k
Arvind Utchanah
Chief Financial Officer0.83yrCA$590.74k0.0054%
CA$ 39.7k
Amal Khouri
Vice President of Business Development6.42yrsCA$749.51k0.088%
CA$ 652.6k
Jody Engel
Senior Director of Business Developmentno dataCA$315.32kno data
Michel Loustric
President of Knight Barbadosno dataCA$251.51kno data

4.4yrs

Average Tenure

Experienced Management: GUD's management team is considered experienced (4.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Jonathan Goodman
Founderno dataCA$1.13m17.05%
CA$ 126.1m
Samira Sakhia
President & Director4.42yrsCA$987.14k0.037%
CA$ 275.4k
James Gale
Independent Chairmanno dataCA$95.34k0.039%
CA$ 290.5k
Robert Lande
Independent Director7yrsCA$93.62k0.051%
CA$ 373.9k
Nicolas Sujoy
Independent Director0.58yrno datano data
Janice Murray
Independent Director0.58yrno data0.0018%
CA$ 13.1k
Michael Tremblay
Independent Director1.67yrsCA$69.40kno data

3.0yrs

Average Tenure

52yo

Average Age

Experienced Board: GUD's board of directors are considered experienced (3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: GUD insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

Knight Therapeutics Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Knight Therapeutics Inc.
  • Ticker: GUD
  • Exchange: TSX
  • Founded: 2013
  • Industry: Pharmaceuticals
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: CA$739.924m
  • Shares outstanding: 130.04m
  • Website: https://www.gud-knight.com

Number of Employees


Location

  • Knight Therapeutics Inc.
  • 3400 De Maisonneuve Boulevard West
  • Suite 1055
  • Montreal
  • Quebec
  • H3Z 3B8
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
GUDTSX (The Toronto Stock Exchange)YesCommon SharesCACADMar 2014
KHTR.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDMar 2014
04KDB (Deutsche Boerse AG)YesCommon SharesDEEURMar 2014

Biography

Knight Therapeutics Inc. operates as a specialty pharmaceutical company in Canada and internationally. The company is involved in developing, acquiring, in-licensing, out-licensing, marketing, and distribu...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/01/21 23:52
End of Day Share Price2021/01/21 00:00
Earnings2020/09/30
Annual Earnings2019/12/31


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.