SHSE:603259

Stock Analysis Report

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Executive Summary

WuXi AppTec Co., Ltd. provides research and manufacturing services to discover, develop, and manufacture small molecule drugs, and cell and gene therapies in the People’s Republic of China, rest of Asia, the United States, Europe, and internationally. More Details


Snowflake Analysis

Excellent balance sheet with proven track record.


Similar Companies

Share Price & News

How has WuXi AppTec's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 603259 is not significantly more volatile than the rest of CN stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: 603259's weekly volatility (8%) has been stable over the past year.


Market Performance


7 Day Return

-11.1%

603259

-15.1%

CN Life Sciences

-5.1%

CN Market


1 Year Return

58.3%

603259

55.6%

CN Life Sciences

20.7%

CN Market

Return vs Industry: 603259 underperformed the CN Life Sciences industry which returned 63.8% over the past year.

Return vs Market: 603259 exceeded the CN Market which returned 19.1% over the past year.


Shareholder returns

603259IndustryMarket
7 Day-11.1%-15.1%-5.1%
30 Day-28.4%-27.7%-4.5%
90 Day16.0%4.9%-1.8%
1 Year58.8%58.3%56.1%55.6%22.6%20.7%
3 Yearn/a195.6%192.1%20.6%14.7%
5 Yearn/a223.9%218.4%40.3%30.8%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is WuXi AppTec undervalued compared to its fair value and its price relative to the market?

99.38x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 603259 (CN¥125.11) is trading below our estimate of fair value (CN¥175.14)

Significantly Below Fair Value: 603259 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 603259 is poor value based on its PE Ratio (98.5x) compared to the CN Life Sciences industry average (76.9x).

PE vs Market: 603259 is poor value based on its PE Ratio (98.5x) compared to the CN market (34.6x).


Price to Earnings Growth Ratio

PEG Ratio: 603259 is poor value based on its PEG Ratio (4.4x)


Price to Book Ratio

PB vs Industry: 603259 is overvalued based on its PB Ratio (9.6x) compared to the CN Life Sciences industry average (7x).


Next Steps

Future Growth

How is WuXi AppTec forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?

22.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 603259's forecast earnings growth (22.5% per year) is above the savings rate (3.3%).

Earnings vs Market: 603259's earnings (22.5% per year) are forecast to grow slower than the CN market (24.7% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: 603259's revenue (19.9% per year) is forecast to grow faster than the CN market (18.1% per year).

High Growth Revenue: 603259's revenue (19.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 603259's Return on Equity is forecast to be high in 3 years time (20.3%)


Next Steps

Past Performance

How has WuXi AppTec performed over the past 5 years?

23.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 603259 has high quality earnings.

Growing Profit Margin: 603259's current net profit margins (17.9%) are higher than last year (14.4%).


Past Earnings Growth Analysis

Earnings Trend: 603259's earnings have grown significantly by 23.4% per year over the past 5 years.

Accelerating Growth: 603259's earnings growth over the past year (59.7%) exceeds its 5-year average (23.4% per year).

Earnings vs Industry: 603259 earnings growth over the past year (59.7%) underperformed the Life Sciences industry 59.7%.


Return on Equity

High ROE: 603259's Return on Equity (9.2%) is considered low.


Next Steps

Financial Health

How is WuXi AppTec's financial position?


Financial Position Analysis

Short Term Liabilities: 603259's short term assets (CN¥24.0B) exceed its short term liabilities (CN¥7.4B).

Long Term Liabilities: 603259's short term assets (CN¥24.0B) exceed its long term liabilities (CN¥5.1B).


Debt to Equity History and Analysis

Debt Level: 603259's debt to equity ratio (10.7%) is considered satisfactory.

Reducing Debt: 603259's debt to equity ratio has increased from 2.7% to 10.7% over the past 5 years.

Debt Coverage: 603259's debt is well covered by operating cash flow (104.3%).

Interest Coverage: 603259 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

What is WuXi AppTec current dividend yield, its reliability and sustainability?

0.19%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 603259's dividend (0.19%) isn’t notable compared to the bottom 25% of dividend payers in the CN market (0.4%).

High Dividend: 603259's dividend (0.19%) is low compared to the top 25% of dividend payers in the CN market (1.76%).


Stability and Growth of Payments

Stable Dividend: 603259 is not paying a notable dividend for the CN market, therefore no need to check if payments are stable.

Growing Dividend: 603259 is not paying a notable dividend for the CN market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: 603259 is not paying a notable dividend for the CN market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 603259's dividend in 3 years as they are not forecast to pay a notable one for the CN market.


Next Steps

Management

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

3.5yrs

Average management tenure


CEO

Ge Li (53 yo)

no data

Tenure

Dr. Ge Li, Ph.D., serves as President at WuXi AppTec Co., Ltd. since May 21, 2020. Dr. Li serves as Chief Executive Officer of WuXi AppTec Co., Ltd. Dr. Li is a Co-founder of Hua Medicine (Shanghai) Ltd. D...


Leadership Team

NamePositionTenureCompensationOwnership
Ge Li
Co-Founderno datano data8.19%
CN¥ 24.9b
Qing Yang
Co-CEO & Executive Director0.83yrno data0.0097%
CN¥ 29.5m
Edward Hu
Vice Chairman of the Board & Global Chief Investment Officer0.83yrno data0.013%
CN¥ 41.1m
Bih-Hsin Chu
Senior VP & CFO2.17yrsno data0.0040%
CN¥ 12.2m
Peter Tong
Senior VP & COO3.5yrsno datano data
Shuhui Chen
Executive VP5.25yrsno data0.011%
CN¥ 33.8m
Tianyi Zhang
IR Directorno datano datano data
Yao Chi
Board Secretary & Executive Director of the Corporate Legal Office5yrsno data0.0021%
CN¥ 6.3m
Ning Zhao
Global Head of Human Resources4yrsno data0.00097%
CN¥ 3.0m
Zhaohui Zhang
Senior VP16.17yrsno datano data
Jingchao Dong
Senior VP & Head of CSUno datano datano data
Jian Li
Head of Structural Biology and Executive Directorno datano datano data

3.5yrs

Average Tenure

52yo

Average Age

Experienced Management: 603259's management team is considered experienced (3.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Ge Li
Co-Founderno datano data8.19%
CN¥ 24.9b
Qing Yang
Co-CEO & Executive Director0.83yrno data0.0097%
CN¥ 29.5m
Edward Hu
Vice Chairman of the Board & Global Chief Investment Officer0.83yrno data0.013%
CN¥ 41.1m
Ning Zhao
Global Head of Human Resources4yrsno data0.00097%
CN¥ 3.0m
Zhaohui Zhang
Senior VP16.17yrsno datano data
Jiangnan Cai
Independent Non-Executive Director4yrsno datano data
Xiaotong Zhang
Independent Non-Executive Director4yrsno datano data
Hetong Lou
Independent Non-Executive Director4yrsno datano data
Dai Feng
Independent Non-Executive Director2.25yrsno datano data
Yan Liu
Independent Non-Executive Director4yrsno datano data
Yibing Wu
Non-Executive Director4yrsno datano data
He Liang
Chairman of the Supervisory Committee4yrsno datano data

4.0yrs

Average Tenure

52.5yo

Average Age

Experienced Board: 603259's board of directors are considered experienced (4 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.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 6%.


Top Shareholders

Company Information

WuXi AppTec Co., Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: WuXi AppTec Co., Ltd.
  • Ticker: 603259
  • Exchange: SHSE
  • Founded: 2000
  • Industry: Life Sciences Tools and Services
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: CN¥304.281b
  • Shares outstanding: 2.45b
  • Website: https://www.wuxiapptec.com

Number of Employees


Location

  • WuXi AppTec Co., Ltd.
  • 288 Fute Zhong Road
  • Waigaoqiao Free Trade Zone
  • Shanghai
  • 200131
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
603259SHSE (Shanghai Stock Exchange)YesDomestic SharesCNCNYMay 2018
603259XSSC (Shanghai Stock Exchange - Shanghai - Hong Kong Stock Connect)YesDomestic SharesCNCNYMay 2018
2359SEHK (The Stock Exchange of Hong Kong Ltd.)Foreign Shares-Foreign ListedHKHKDDec 2018
WX8DB (Deutsche Boerse AG)Foreign Shares-Foreign ListedDEEURDec 2018
2359SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)Foreign Shares-Foreign ListedHKHKDDec 2018
2359SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)Foreign Shares-Foreign ListedHKHKDDec 2018
WUXI.FOTCPK (Pink Sheets LLC)Foreign Shares-Foreign ListedUSUSDDec 2018
WUXA.YOTCPK (Pink Sheets LLC)UNSPONSRED ADSUSUSDJul 2019

Biography

WuXi AppTec Co., Ltd. provides research and manufacturing services to discover, develop, and manufacture small molecule drugs, and cell and gene therapies in the People’s Republic of China, rest of Asia, t...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/03/09 09:11
End of Day Share Price2021/03/09 00:00
Earnings2020/12/31
Annual Earnings2020/12/31


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.