Newron Pharmaceuticals (SWX:NWRN) - Share price, News & Analysis

NWRN fundamental analysis
Snowflake Score
Valuation	2/6
Future Growth	6/6
Past Performance	0/6
Financial Health	2/6
Dividends	0/6

NWRN Stock Overview

Rewards

Trading at 98.5% below our estimate of its fair value

Earnings are forecast to grow 54.6% per year

Risk Analysis

Highly volatile share price over the past 3 months

Does not have a meaningful market cap (CHF24M)

Newron Pharmaceuticals Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Newron Pharmaceuticals
Historical stock prices
Current Share Price	CHF1.35
52 Week High	CHF2.75
52 Week Low	CHF1.20
Beta	0.80
1 Month Change	3.85%
3 Month Change	-6.90%
1 Year Change	-42.31%
3 Year Change	-78.81%
5 Year Change	-93.79%
Change since IPO	-97.46%

Recent News & Updates

Nov 06

We Think Newron Pharmaceuticals (VTX:NWRN) Has A Fair Chunk Of Debt

Legendary fund manager Li Lu (who Charlie Munger backed) once said, 'The biggest investment risk is not the volatility...

Shareholder Returns

	NWRN	CH Pharmaceuticals	CH Market
7D	-0.4%	1.8%	-1.0%
1Y	-42.3%	18.9%	-2.5%

Return vs Industry: NWRN underperformed the Swiss Pharmaceuticals industry which returned 19% over the past year.

Return vs Market: NWRN underperformed the Swiss Market which returned -2.1% over the past year.

Price Volatility

Is NWRN's price volatile compared to industry and market?
NWRN volatility
NWRN Average Weekly Movement	9.8%
Pharmaceuticals Industry Average Movement	6.3%
Market Average Movement	4.9%
10% most volatile stocks in CH Market	8.6%
10% least volatile stocks in CH Market	2.5%

Stable Share Price: NWRN is more volatile than 90% of Swiss stocks over the past 3 months, typically moving +/- 10% a week.

Volatility Over Time: NWRN's weekly volatility (10%) has been stable over the past year, but is still higher than 75% of Swiss stocks.

About the Company

Founded	Employees	CEO	Website
1999	25	Stefan Weber	https://www.newron.com

Newron Pharmaceuticals S.p.A., a clinical stage biopharmaceutical company, focuses on the research and development of therapies for the treatment of central and peripheral nervous system, and pain in Italy and the United States. The company offers Xadago (safinamide) for the treatment of Parkinson’s disease, as well as develops Xadago for the treatment of levodopa induced dyskinesia. It also develops Evenamide for Schizophrenia and treatment resistant schizophrenia; and Ralfinamide for orphan indication in neuropathic pain.

Newron Pharmaceuticals Fundamentals Summary

How do Newron Pharmaceuticals's earnings and revenue compare to its market cap?
NWRN fundamental statistics
Market Cap	€23.44m
Earnings (TTM)	-€14.90m
Revenue (TTM)	€5.76m

4.1x

P/S Ratio

-1.6x

P/E Ratio

Is NWRN overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
NWRN income statement (TTM)
Revenue	€5.76m
Cost of Revenue	€0
Gross Profit	€5.76m
Other Expenses	€20.66m
Earnings	-€14.90m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

Sep 15, 2022

Earnings per share (EPS)	-0.83
Gross Margin	100.00%
Net Profit Margin	-258.61%
Debt/Equity Ratio	1,369.2%

How did NWRN perform over the long term?

See historical performance and comparison

Valuation

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

Valuation Score

2/6

Valuation Score 2/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

>50%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: NWRN (CHF1.35) is trading below our estimate of fair value (CHF91.67)

Significantly Below Fair Value: NWRN is trading below fair value by more than 20%.

Price To Earnings Ratio

PE vs Industry: NWRN is unprofitable, so we can't compare its Price-To-Earnings Ratio to the European Pharmaceuticals industry average.

PE vs Market: NWRN is unprofitable, so we can't compare its Price-To-Earnings Ratio to the Swiss market.

Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate NWRN's PEG Ratio to determine if it is good value.

Price to Book Ratio

PB vs Industry: NWRN is overvalued based on its Price-To-Book Ratio (7.5x) compared to the XE Pharmaceuticals industry average (2.5x).

Future Growth

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

Future Growth Score

6/6

Future Growth Score 6/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

54.6%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: NWRN is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (-0.3%).

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

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

Revenue vs Market: NWRN's revenue (40.3% per year) is forecast to grow faster than the Swiss market (4.3% per year).

High Growth Revenue: NWRN's revenue (40.3% per year) is forecast to grow faster than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: NWRN's Return on Equity is forecast to be very high in 3 years time (2637.5%).

Past Performance

How has Newron Pharmaceuticals performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-15.4%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: NWRN is currently unprofitable.

Growing Profit Margin: NWRN is currently unprofitable.

Past Earnings Growth Analysis

Earnings Trend: NWRN is unprofitable, and losses have increased over the past 5 years at a rate of 15.4% per year.

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

Earnings vs Industry: NWRN is unprofitable, making it difficult to compare its past year earnings growth to the Pharmaceuticals industry (14.9%).

Return on Equity

High ROE: NWRN has a negative Return on Equity (-479.59%), as it is currently unprofitable.

Financial Health

How is Newron Pharmaceuticals's financial position?

Financial Health Score

2/6

Financial Health Score 2/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Stable Cash Runway
Forecast Cash Runway

Financial Position Analysis

Short Term Liabilities: NWRN's short term assets (€39.4M) exceed its short term liabilities (€3.7M).

Long Term Liabilities: NWRN's short term assets (€39.4M) do not cover its long term liabilities (€43.7M).

Debt to Equity History and Analysis

Debt Level: NWRN's net debt to equity ratio (255.8%) is considered high.

Reducing Debt: NWRN's debt to equity ratio has increased from 0.7% to 1369.2% over the past 5 years.

Balance Sheet

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: NWRN has sufficient cash runway for more than 3 years based on its current free cash flow.

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

Dividend

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

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

Dividend Yield vs Market

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

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

Growing Dividend: Insufficient data to determine if NWRN's dividend payments have been increasing.

Earnings Payout to Shareholders

Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as NWRN has not reported any payouts.

Discover strong dividend paying companies

Management

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

9.9yrs

Average management tenure

CEO

Stefan Weber (56 yo)

9.92yrs

Tenure

€510,000

Compensation

Mr. Stefan Weber serves as the Chief Financial Officer and Finances and Administration Director at Duktus S.A. Mr. Weber has been the Chief Executive Officer of Newron Pharmaceuticals SpA since June 1, 201...

CEO Compensation Analysis

Compensation vs Market: Stefan's total compensation ($USD544.58K) is about average for companies of similar size in the Swiss market ($USD491.72K).

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

Leadership Team

Experienced Management: NWRN's management team is seasoned and experienced (9.9 years average tenure).

Board Members

Experienced Board: NWRN's board of directors are seasoned and experienced ( 10.3 years average tenure).

Ownership

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

Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.

Ownership Breakdown

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

Data	Last Updated (UTC time)
Company Analysis	2022/05/25 00:00
End of Day Share Price	2022/05/25 00:00
Earnings	2021/12/31
Annual Earnings	2021/12/31