TSX:GUD

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Flawless balance sheet with reasonable growth potential.


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


Market Performance


7 Day Return

1.8%

GUD

0.8%

CA Pharmaceuticals

0.2%

CA Market


1 Year Return

-7.3%

GUD

-57.9%

CA Pharmaceuticals

1.2%

CA Market

Return vs Industry: GUD exceeded the Canadian Pharmaceuticals industry which returned -57.9% over the past year.

Return vs Market: GUD underperformed the Canadian Market which returned 1.2% over the past year.


Shareholder returns

GUDIndustryMarket
7 Day1.8%0.8%0.2%
30 Day0.3%-23.6%-2.5%
90 Day-0.3%-34.0%-1.5%
1 Year-7.3%-7.3%-57.9%-57.9%4.7%1.2%
3 Year-15.7%-15.7%77.3%76.0%14.0%3.8%
5 Year30.3%30.3%280.0%280.0%26.4%8.1%

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?

28.84x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: GUD (CA$7.53) is trading above our estimate of fair value (CA$2)

Significantly Undervalued: GUD is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: GUD is poor value based on its PE Ratio (28.8x) compared to the Pharmaceuticals industry average (11.1x).

PE vs Market: GUD is poor value based on its PE Ratio (28.8x) compared to the Canadian market (13.7x).


Price to Earnings Growth Ratio

Low PEG Ratio: GUD is poor value based on its PEG Ratio (1.6x)


Price to Book Ratio

PB vs Industry: GUD is good value based on its PB Ratio (1x) compared to the CA Pharmaceuticals industry average (1.9x).


Next Steps

Future Growth

How is Knight Therapeutics forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

18.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GUD's forecast earnings growth (18.4% per year) is above the savings rate (1.9%).

Earnings vs Market: GUD's earnings (18.4% per year) are forecast to grow faster than the Canadian market (13.3% per year).

High Growth Earnings: GUD's earnings are forecast to grow, but not significantly.

Revenue vs Market: GUD's revenue (42.2% per year) is forecast to grow faster than the Canadian market (5.7% per year).

High Growth Revenue: GUD's revenue (42.2% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: GUD's Return on Equity is forecast to be low in 3 years time (4%).


Next Steps

Past Performance

How has Knight Therapeutics performed over the past 5 years?

-50.1%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: GUD's earnings have declined by -50.1% per year over the past 5 years.

Accelerating Growth: GUD's earnings growth over the past year (72.1%) exceeds its 5-year average (-50.1% per year).

Earnings vs Industry: GUD earnings growth over the past year (72.1%) exceeded the Pharmaceuticals industry 15.6%.


Return on Equity

High ROE: GUD's Return on Equity (3.6%) is considered low.


Return on Assets

ROA vs Industry: GUD's Return on Assets is below or equal to the Pharmaceuticals industry average last year.


Return on Capital Employed

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


Next Steps

Financial Health

How is Knight Therapeutics's financial position?


Financial Position Analysis

Short Term Liabilities: GUD's short term assets (CA$626.8M) exceeds its short term liabilities (CA$19.9M)

Long Term Liabilities: GUD's short term assets (626.8M) exceeds its long term liabilities (6.3M)


Debt to Equity History and Analysis

Debt Level: GUD is debt free.

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

Debt Coverage: GUD has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: GUD has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

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

Debt Coverage by Assets: Insufficient data to determine if GUD's debt is covered by short term assets.


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%2.0%markettop25%5.9%industryaverage2.8%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

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

High Dividend: Unable to evaluate GUD'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 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

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

2.2yrs

Average board tenure


CEO

Jonathan Goodman (50yo)

0yrs

Tenure

CA$994,692

Compensation

Mr. Jonathan Ross Goodman, BA, LLB, MBA founded Knight Therapeutics Inc. in February 2014 and serves as its Chief Executive Officer. Mr. Goodman served as President of Knight Therapeutics Inc. until August ...


CEO Compensation Analysis

Compensation vs. Market: Jonathan's total compensation ($USD754.14K) is about average for companies of similar size in the Canadian market ($USD1.55M).

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


Board Age and Tenure

2.2yrs

Average Tenure

54yo

Average Age

Experienced Board: GUD's board of directors are not considered experienced ( 2.2 years average tenure), which suggests a new board.


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

BuyCA$150,30015 Jul 19
Robert Lande
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares20,000
Max PriceCA$7.52
BuyCA$24,41627 Jun 19
Jonathan Goodman
EntityIndividual
Role
Chief Executive Officer
Founder
Shares3,200
Max PriceCA$7.63
BuyCA$91,08021 Jun 19
Jonathan Goodman
EntityIndividual
Role
Chief Executive Officer
Founder
Shares12,000
Max PriceCA$7.59
BuyCA$73,90021 May 19
Jonathan Goodman
EntityIndividual
Role
Chief Executive Officer
Founder
Shares10,000
Max PriceCA$7.39
BuyCA$131,18616 May 19
Jonathan Goodman
EntityIndividual
Role
Chief Executive Officer
Founder
Shares17,800
Max PriceCA$7.37
BuyCA$66,78011 Apr 19
Jonathan Goodman
EntityIndividual
Role
Chief Executive Officer
Founder
Shares9,000
Max PriceCA$7.42
BuyCA$53,02808 Apr 19
Jonathan Goodman
EntityIndividual
Role
Chief Executive Officer
Founder
Shares7,200
Max PriceCA$7.38
BuyCA$171,36628 Mar 19
Jonathan Goodman
EntityIndividual
Role
Chief Executive Officer
Founder
Shares23,400
Max PriceCA$7.33
BuyCA$745,02026 Mar 19
Jonathan Goodman
EntityIndividual
Role
Chief Executive Officer
Founder
Shares99,000
Max PriceCA$7.60
BuyCA$100,00020 Mar 19
Samira Sakhia
EntityIndividual
Role
Member of the Board of Directors
President
Shares12,987
Max PriceCA$7.70

Ownership Breakdown


Management Team

  • Samira Sakhia (50yo)

    President

    • Tenure: 3.2yrs
    • Compensation: CA$786.56k
  • Jonathan Goodman (50yo)

    Founder

    • Tenure: 0yrs
    • Compensation: CA$994.69k
  • Amal Khouri

    Vice President of Business Development

    • Tenure: 5.2yrs
    • Compensation: CA$614.81k
  • Jody Engel

    Director of Business Development

    • Tenure: 0yrs
    • Compensation: CA$295.72k
  • Michel Loustric

    President of Knight Barbados

    • Tenure: 0yrs
    • Compensation: CA$251.51k
  • Arvind Utchanah

    Director of Finance

    • Tenure: 0yrs
    • Compensation: CA$267.78k

Board Members

  • Nancy Harrison (54yo)

    Independent Director

    • Tenure: 1.2yrs
    • Compensation: CA$55.96k
  • Jim Gale (69yo)

    Independent Chairman

    • Tenure: 0yrs
    • Compensation: CA$87.03k
  • Samira Sakhia (50yo)

    President

    • Tenure: 3.2yrs
    • Compensation: CA$786.56k
  • Robert Lande (56yo)

    Independent Director

    • Tenure: 5.8yrs
    • Compensation: CA$96.24k
  • Jonathan Goodman (50yo)

    Founder

    • Tenure: 0yrs
    • Compensation: CA$994.69k
  • Mike Tremblay

    Independent Director

    • Tenure: 0.4yrs
  • Sylvie Tendler

    Independent Director

    • Tenure: 5.2yrs
    • Compensation: CA$82.65k
  • Kevin Cameron

    Director

    • Tenure: 0.4yrs

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:
  • Industry: Pharmaceuticals
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: CA$1.024b
  • Shares outstanding: 135.96m
  • 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 Analysis2019/10/17 00:29
End of Day Share Price2019/10/16 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.