SWX:NWRN

Stock Analysis Report

Executive Summary

Newron Pharmaceuticals S.p.A., a clinical stage biopharmaceutical company, focuses on the research and development, manufacture, and distribution of therapies for the treatment of central and peripheral nervous system in Italy and internationally.

Snowflake

Fundamentals

Exceptional growth potential with adequate balance sheet.

Share Price & News

How has Newron Pharmaceuticals's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

0%

NWRN

1.4%

CH Pharmaceuticals

1.7%

CH Market


1 Year Return

-27.3%

NWRN

14.2%

CH Pharmaceuticals

11.8%

CH Market

Return vs Industry: NWRN underperformed the Swiss Pharmaceuticals industry which returned 14.2% over the past year.

Return vs Market: NWRN underperformed the Swiss Market which returned 11.8% over the past year.


Share holder returns

NWRNIndustryMarket
7 Day0%1.4%1.7%
30 Day0.8%3.9%-0.3%
90 Day-8.5%4.7%2.8%
1 Year-27.3%-27.3%24.5%14.2%17.8%11.8%
3 Year-71.0%-71.0%39.0%19.2%34.1%20.7%
5 Year-61.9%-61.9%33.8%7.7%43.5%21.0%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Newron Pharmaceuticals undervalued based on future cash flows and its price relative to the stock market?

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Undervalued: NWRN (CHF5.95) is trading below our estimate of fair value (CHF353.45)

Significantly Undervalued: NWRN is trading below fair value by more than 20%.


Price Based on Earnings

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

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


Price Based on Expected Growth

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


Price Based on Value of Assets

PB vs Industry: NWRN is good value based on its PB Ratio (2.3x) compared to the CH Pharmaceuticals industry average (3.6x).


Next Steps

Future Growth

How is Newron Pharmaceuticals expected to perform in the next 1 to 3 years based on estimates from 4 analysts?

71.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Earnings vs Savings Rate: NWRN is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (3.3%).

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

High Growth Earnings: NWRN's loss is forecast to worsen by 0% next year.

Revenue vs Market: NWRN's revenue (74.2% per year) is forecast to grow faster than the Swiss market (3.6% per year).

High Growth Revenue: NWRN's revenue (74.2% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Estimates


Future Return on Equity

High Future ROE: NWRN's Return on Equity is forecast to be very high in 3 years time (93.4%).


Next Steps

Past Performance

How has Newron Pharmaceuticals performed over the past 5 years?

-2.3%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: NWRN is unprofitable, and losses have increased over the past 5 years at a rate of -2.3% 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 (5.7%).


Return on Equity

High ROE: NWRN has a negative Return on Equity (-51.21%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: NWRN is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

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


Next Steps

Financial Health

How is Newron Pharmaceuticals's financial position?


Financial Position Analysis

Short Term Liabilities: NWRN's short term assets (€59.4M) exceeds its short term liabilities (€7.2M)

Long Term Liabilities: NWRN's short term assets (59.4M) exceeds its long term liabilities (10.7M)


Debt to Equity History and Analysis

Debt Level: NWRN's debt to equity ratio (22.3%) is considered satisfactory

Reducing Debt: NWRN's debt to equity ratio has increased from 3.7% to 22.3% over the past 5 years.


Balance Sheet

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

Debt Coverage by Assets: NWRN's debt is covered by short term assets (assets are 6.355900x 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: NWRN has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: NWRN has less than a year of cash runway if free cash flow continues to reduce at historical rates of -4.2% each year


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.9%markettop25%3.7%industryaverage2.0%forecastin3Years0%

Current dividend yield vs market & industry


Dividend Yield and Payments Analysis

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

High Dividend: Unable to evaluate NWRN'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 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.


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 NWRN's dividend in 3 years as they are not forecast to pay a notable one for the Swiss market.


Next Steps

Management

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

7.3yrs

Average management tenure


CEO

Stefan Weber (54yo)

7.3yrs

Tenure

€647,000

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 ($USD714.92K) is about average for companies of similar size in the Swiss market ($USD676.75K).

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


Management Age and Tenure

7.3yrs

Average Tenure

62yo

Average Age

Experienced Management: NWRN's management team is seasoned and experienced (7.3 years average tenure).


Board Age and Tenure

7.1yrs

Average Tenure

62.5yo

Average Age

Experienced Board: NWRN's board of directors are considered experienced (7.1 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.


Ownership Breakdown


Management Team

  • Stefan Weber (54yo)

    CEO & Executive Director

    • Tenure: 7.3yrs
    • Compensation: €647.00k
  • Marco Caremi (62yo)

    Executive Vice President of Business Development

    • Tenure: 7.3yrs
  • Ravi Anand (62yo)

    Chief Medical Officer

    • Tenure: 14.4yrs
    • Compensation: €1.07m
  • Dennis Dionne (69yo)

    Vice President of Commercial Affairs

    • Tenure: 4.8yrs
  • Roberto Galli

    Vice President of Finance

    • Tenure: 7.3yrs

Board Members

  • Patrick Langlois (74yo)

    Non-Executive Director

    • Tenure: 11.3yrs
    • Compensation: €98.00k
  • Don deBethizy (69yo)

    Non-Executive Director

    • Tenure: 5.6yrs
    • Compensation: €95.00k
  • Stefan Weber (54yo)

    CEO & Executive Director

    • Tenure: 7.3yrs
    • Compensation: €647.00k
  • Ulrich Köstlin (67yo)

    Non-Executive Chairman

    • Tenure: 6.5yrs
    • Compensation: €118.00k
  • Luca Benatti (58yo)

    Non-Executive Director

    • Tenure: 5.6yrs
    • Compensation: €96.00k
  • Ze’ Seltzer

    Member of Scientific & Clinical Advisory Board

    • Tenure: 0yrs
  • Fabrizio Stocchi

    Member of Scientific and Clinical Advisory Board

    • Tenure: 0yrs
  • Emilio Perucca

    Member of Scientific & Clinical Advisory Board

    • Tenure: 0yrs
  • Paolo Marchettini

    Member of Scientific & Clinical Advisory Board

    • Tenure: 0yrs
  • Richard Murphy (55yo)

    Chairman of the Board of Statutory Auditors

    • Tenure: 12.5yrs
    • Compensation: €13.00k

Company Information

Newron Pharmaceuticals S.p.A.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Newron Pharmaceuticals S.p.A.
  • Ticker: NWRN
  • Exchange: SWX
  • Founded: 1998
  • Industry: Pharmaceuticals
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: CHF106.180m
  • Shares outstanding: 17.85m
  • Website: https://www.newron.com

Number of Employees


Location

  • Newron Pharmaceuticals S.p.A.
  • Via Ludovico Ariosto 21
  • Bresso
  • Milan
  • 20091
  • Italy

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NWRNSWX (SIX Swiss Exchange)YesOrdinary SharesCHCHFDec 2006
NP5DB (Deutsche Boerse AG)YesOrdinary SharesDEEURDec 2006
NWPH.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDDec 2006
NP5XTRA (XETRA Trading Platform)YesOrdinary SharesDEEURDec 2006
0QOILSE (London Stock Exchange)YesOrdinary SharesGBCHFDec 2006

Biography

Newron Pharmaceuticals S.p.A., a clinical stage biopharmaceutical company, focuses on the research and development, manufacture, and distribution of therapies for the treatment of central and peripheral ne ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/13 21:27
End of Day Share Price2019/10/11 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.

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