TSXV:ARCH

Stock Analysis Report

Executive Summary

Arch Biopartners Inc., a biotechnology company, develops technologies for improving the health of patients.

Risk Analysis

Earnings have declined by -34.8% per year over past 5 years

Has less than 1 year of cash runway

Makes less than USD$1m in revenue (CA$94K)

Currently unprofitable and not forecast to become profitable over the next 3 years

+ 2 more risks


Snowflake Analysis

Weak fundamentals or lack of information.

Share Price & News

How has Arch Biopartners's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

0%

ARCH

0.4%

CA Life Sciences

0.2%

CA Market


1 Year Return

-33.3%

ARCH

18.6%

CA Life Sciences

4.9%

CA Market

Return vs Industry: ARCH underperformed the Canadian Life Sciences industry which returned 18.6% over the past year.

Return vs Market: ARCH underperformed the Canadian Market which returned 4.9% over the past year.


Shareholder returns

ARCHIndustryMarket
7 Day0%0.4%0.2%
30 Day-12.8%-1.9%0.4%
90 Day-14.6%8.7%3.7%
1 Year-33.3%-33.3%18.8%18.6%8.2%4.9%
3 Year95.2%95.2%93.9%92.6%15.9%5.5%
5 Year115.8%115.8%122.1%119.0%33.8%14.3%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is Arch Biopartners undervalued compared to its fair value and its price relative to the market?


In this section, we usually try to help investors determine whether Arch Biopartners is trading at an attractive price based on the cash flow it is expected to produce in the future. But as Arch Biopartners 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

Future Growth

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

16.8%

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 Arch Biopartners 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 Arch Biopartners performed over the past 5 years?

-34.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ARCH is currently unprofitable.

Growing Profit Margin: ARCH is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: ARCH is unprofitable, and losses have increased over the past 5 years at a rate of -34.8% per year.

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

Earnings vs Industry: ARCH is unprofitable, making it difficult to compare its past year earnings growth to the Life Sciences industry (16.6%).


Return on Equity

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


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Arch Biopartners's financial position?


Financial Position Analysis

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

Long Term Liabilities: ARCH 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: ARCH has negative shareholder equity, which is a more serious situation than a high debt level.

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


Balance Sheet

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

Debt Coverage by Assets: ARCH 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: ARCH has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: ARCH has less than a year of cash runway if free cash flow continues to reduce at historical rates of -36.7% each year


Next Steps

Dividend

What is Arch Biopartners's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.9%markettop25%5.3%industryaverage0.3%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

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

Growing Dividend: Insufficient data to determine if ARCH'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 ARCH'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?

9.8yrs

Average board tenure


CEO

Richard Muruve (48yo)

10.5yrs

Tenure

CA$100,000

Compensation

Mr. Richard Gabriel Muruve is a Co-Founder of Arch Biopartners Inc. and has been its Chief Executive Officer since August 2009 and serves as its President May 12, 2010. Mr. Muruve served as Acting Chief Fi ...


CEO Compensation Analysis

Compensation vs Market: Richard's total compensation ($USD75.42K) is below average for companies of similar size in the Canadian market ($USD154.66K).

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


Board Members

NamePositionTenureCompensationOwnership
Richard Muruve
Co-Founder10.5yrsCA$100.00k14.92% CA$7.3m
Daniel Muruve
Co-Founder0yrsno datano data
Andrew Bishop
Acting CFO & Director9.8yrsno data0.63% CA$309.1k
Claude Allary
Independent Director5.8yrsno data0.18% CA$87.0k
Richard Rossman
Director9.8yrsno data3.67% CA$1.8m
Adrian Haigh
Independent Director5.5yrsno data0.13% CA$65.1k
Robert Hodges
Member of Scientific Advisory Board0yrsno datano data
Hindrik Mulder
Member of Scientific Advisory Board0yrsno datano data

9.8yrs

Average Tenure

56.5yo

Average Age

Experienced Board: ARCH's board of directors are considered experienced (9.8 years average tenure).


Ownership

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


Insider Trading Volume

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


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 2.8%.


Top Shareholders

Company Information

Arch Biopartners Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Arch Biopartners Inc.
  • Ticker: ARCH
  • Exchange: TSXV
  • Founded:
  • Industry: Life Sciences Tools and Services
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: US$36.828m
  • Listing Market Cap: US$48.705m
  • Shares outstanding: 59.88m
  • Website: https://www.archbiopartners.com

Location

  • Arch Biopartners Inc.
  • 545 King Street West
  • Toronto
  • Ontario
  • M5V 1M1
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ACHF.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDMay 2010
ARCHTSXV (TSX Venture Exchange)YesCommon SharesCACADMay 2010

Biography

Arch Biopartners Inc., a biotechnology company, develops technologies for improving the health of patients. The company develops AB569, a drug candidate for the treatment of antibiotic resistant bacterial infections, primarily in the lungs and wounds, as well as to treat pseudomonas aeruginosa infections in the respiratory tracts of patients with cystic fibrosis. It also develops MetaBlok, a drug candidate for the treatment of sepsis, cancer metastasis, and inflammation based diseases. In addition, the company develops Borg, a Peptide-solid surface interface to inhibit biofilm formation and reduce corrosion; and MetaMx, which are synthetic molecules target brain tumor initiating cells and invasive glioma cells. Arch Biopartners Inc. is headquartered in Toronto, Canada. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/20 01:57
End of Day Share Price2020/02/13 00:00
Earnings2019/09/30
Annual Earnings2019/09/30


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.