BST:6XC1

Stock Analysis Report

Executive Summary

Soleno Therapeutics, Inc. focuses on the development and commercialization of novel therapeutics for the treatment of rare diseases.

Risk Analysis

Shareholders have been substantially diluted in the past year

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

Has less than 1 year of cash runway

Highly volatile share price over past 3 months



Snowflake Analysis

Adequate balance sheet with weak fundamentals.

Share Price & News

How has Soleno Therapeutics's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 6XC1's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-5.1%

6XC1

-1.0%

DE Biotechs

1.7%

DE Market


1 Year Return

75.5%

6XC1

6.2%

DE Biotechs

15.0%

DE Market

Return vs Industry: 6XC1 exceeded the German Biotechs industry which returned 6.2% over the past year.

Return vs Market: 6XC1 exceeded the German Market which returned 15% over the past year.


Shareholder returns

6XC1IndustryMarket
7 Day-5.1%-1.0%1.7%
30 Day4.9%-2.3%0.8%
90 Day95.5%7.8%3.7%
1 Year75.5%75.5%6.4%6.2%18.5%15.0%
3 Year-31.2%-31.2%49.0%47.3%17.1%6.9%
5 Yearn/a12.6%10.3%24.3%7.3%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is Soleno Therapeutics undervalued compared to its fair value and its price relative to the market?

6.18x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate 6XC1's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate 6XC1's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: 6XC1 is unprofitable, so we can't compare its PE Ratio to the Biotechs industry average.

PE vs Market: 6XC1 is unprofitable, so we can't compare its PE Ratio to the German market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 6XC1's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 6XC1 is overvalued based on its PB Ratio (6.2x) compared to the DE Biotechs industry average (3.5x).


Next Steps

Future Growth

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

37.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 6XC1 is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: 6XC1 is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: 6XC1 is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: Insufficient data to determine if 6XC1's revenue is forecast to grow faster than the German market.

High Growth Revenue: Insufficient data to determine if 6XC1's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if 6XC1's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Soleno Therapeutics performed over the past 5 years?

-2.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 6XC1 is currently unprofitable.

Growing Profit Margin: 6XC1 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: 6XC1 is unprofitable, and losses have increased over the past 5 years at a rate of -2.5% per year.

Accelerating Growth: Unable to compare 6XC1's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 6XC1 is unprofitable, making it difficult to compare its past year earnings growth to the Biotechs industry (-4.7%).


Return on Equity

High ROE: 6XC1 has a negative Return on Equity (-105.85%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Soleno Therapeutics's financial position?


Financial Position Analysis

Short Term Liabilities: 6XC1's short term assets ($11.6M) exceed its short term liabilities ($3.5M).

Long Term Liabilities: 6XC1's short term assets ($11.6M) exceed its long term liabilities ($10.4M).


Debt to Equity History and Analysis

Debt Level: 6XC1 is debt free.

Reducing Debt: 6XC1 currently has no debt however we can't compare to 5 years ago as we have no data for that period.


Balance Sheet

Inventory Level: 6XC1 has a low level of unsold assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if 6XC1's debt is 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: 6XC1 has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if 6XC1 has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.3%markettop25%3.6%industryaverage1.0%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate 6XC1's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 6XC1'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 6XC1's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 6XC1'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 6XC1's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

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

2.4yrs

Average management tenure


CEO

Anish Bhatnagar (49yo)

US$951,911

Compensation

Dr. Anish Bhatnagar, M.D. serves as President and Chief Executive Officer of Soleno Therapeutics, Inc. Dr. Bhatnagar served as the Chief Executive Officer of Soleno Therapeutics, Inc. since February 6, 201 ...


CEO Compensation Analysis

Compensation vs Market: Anish's total compensation ($USD951.91K) is above average for companies of similar size in the German market ($USD412.37K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Anish Bhatnagar
President0yrsUS$951.91k0.14% $172.4k
James MacKaness
CFO, Principal Financial & Accounting Officer0.3yrsno data0.022% $26.7k
Anthony Wondka
Senior VP & GM5.1yrsUS$270.00kno data
Neil Cowen
Senior Vice President of Drug Development0yrsno datano data
Patricia Hirano
Head of Regulatory Affairs and Quality0yrsno datano data
David O'Toole
Consultant2.4yrsUS$358.00kno data

2.4yrs

Average Tenure

56yo

Average Age

Experienced Management: 6XC1's management team is considered experienced (2.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Anish Bhatnagar
President0yrsUS$951.91k0.14% $172.4k
Ernest Mario
Independent Chairman6yrsUS$83.83k1.09% $1.3m
William Harris
Independent Director5.7yrsUS$75.94k0.056% $66.2k
Stuart J. Collinson
Independent Director2.9yrsUS$60.91k0.036% $42.4k
Thomas Casale
Member of Advisory Board0yrsno datano data
Andrew Sinclair
Independent Director1.2yrsUS$20.23kno data
Robert Christensen
Member of Advisory Board0yrsno datano data
Vinod Bhutani
Member of Advisory Board0yrsno datano data
Glenis Scadding
Member of Advisory Board0yrsno datano data
David Stevenson
Member of Advisory Board0yrsno datano data

5.7yrs

Average Tenure

59yo

Average Age

Experienced Board: 6XC1's board of directors are considered experienced (5.7 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: 6XC1 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 substantially diluted in the past year, with total shares outstanding growing by 61.7%.


Top Shareholders

Company Information

Soleno Therapeutics, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Soleno Therapeutics, Inc.
  • Ticker: 6XC1
  • Exchange: BST
  • Founded: 1999
  • Industry: Biotechnology
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: US$129.267m
  • Listing Market Cap: US$119.223m
  • Shares outstanding: 44.66m
  • Website: https://www.soleno.life

Number of Employees


Location

  • Soleno Therapeutics, Inc.
  • 1235 Radio Road
  • Suite 110
  • Redwood City
  • California
  • 94065
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SLNONasdaqCM (Nasdaq Capital Market)YesCommon StockUSUSDNov 2014
6XC1BST (Boerse-Stuttgart)YesCommon StockDEEURNov 2014
6XC1DB (Deutsche Boerse AG)YesCommon StockDEEURNov 2014

Biography

Soleno Therapeutics, Inc. focuses on the development and commercialization of novel therapeutics for the treatment of rare diseases. The company’s lead candidate, Diazoxide Choline Controlled Release (DCCR), a once-daily oral tablet for the treatment of Prader-Willi Syndrome (PWS), is being evaluated in a Phase III clinical development program. It has collaboration agreement with Casimir Inc. to develop DCCR tablets for patients with PWS. The company was formerly known as Capnia, Inc. and changed its name to Soleno Therapeutics, Inc. in May 2017. Soleno Therapeutics, Inc. was incorporated in 1999 and is headquartered in Redwood City, California. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/16 22:34
End of Day Share Price2020/02/14 00:00
Earnings2019/09/30
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.