BST:RAH

Stock Analysis Report

Executive Summary

Recro Pharma, Inc. operates as a specialty pharmaceutical company.

Rewards

Trading at 86.6% below its fair value

Earnings are forecast to grow 34.68% per year

Became profitable this year

Risk Analysis

Interest payments are not well covered by earnings

High level of non-cash earnings

Highly volatile share price over past 3 months

Shareholders have been diluted in the past year



Snowflake Analysis

Reasonable growth potential and slightly overvalued.


Similar Companies

Share Price & News

How has Recro Pharma's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

6.1%

RAH

3.2%

DE Pharmaceuticals

2.2%

DE Market


1 Year Return

24.1%

RAH

-8.2%

DE Pharmaceuticals

-17.2%

DE Market

Return vs Industry: RAH exceeded the German Pharmaceuticals industry which returned -9.1% over the past year.

Return vs Market: RAH exceeded the German Market which returned -17.5% over the past year.


Shareholder returns

RAHIndustryMarket
7 Day6.1%3.2%2.2%
30 Day-44.4%-15.9%-15.7%
90 Day-59.1%-20.0%-24.0%
1 Year24.1%24.1%-5.1%-8.2%-14.9%-17.2%
3 Year-6.7%-6.7%19.5%5.9%-16.4%-23.3%
5 Year-12.5%-12.5%13.3%-6.0%-16.5%-27.8%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is Recro Pharma undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: RAH (€5.85) is trading below our estimate of fair value (€43.7)

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


Price To Earnings Ratio

PE vs Industry: RAH is poor value based on its PE Ratio (38.8x) compared to the Pharmaceuticals industry average (19.6x).

PE vs Market: RAH is poor value based on its PE Ratio (38.8x) compared to the German market (16.3x).


Price to Earnings Growth Ratio

PEG Ratio: RAH is poor value based on its PEG Ratio (1.1x)


Price to Book Ratio

PB vs Industry: RAH has negative assets, so we can't compare its PB Ratio to the DE Pharmaceuticals industry average.


Next Steps

Future Growth

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

34.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RAH's forecast earnings growth (34.7% per year) is above the savings rate (-0.4%).

Earnings vs Market: RAH's earnings (34.7% per year) are forecast to grow faster than the German market (14.4% per year).

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

Revenue vs Market: RAH's revenue (8.3% per year) is forecast to grow faster than the German market (4.1% per year).

High Growth Revenue: RAH's revenue (8.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

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


Next Steps

Past Performance

How has Recro Pharma performed over the past 5 years?

-29.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RAH has a high level of non-cash earnings.

Growing Profit Margin: RAH became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: RAH has become profitable over the past 5 years, growing earnings by -29.5% per year.

Accelerating Growth: RAH has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: RAH has become profitable in the last year, making it difficult to compare its past year earnings growth to the Pharmaceuticals industry (1.9%).


Return on Equity

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


Next Steps

Financial Health

How is Recro Pharma's financial position?


Financial Position Analysis

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

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

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


Balance Sheet

Inventory Level: RAH has a high level of physical assets or inventory.

Debt Coverage by Assets: RAH 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: RAH is profitable, therefore cash runway is not a concern.

Forecast Cash Runway: RAH is profitable, therefore cash runway is not a concern.


Next Steps

Dividend

What is Recro Pharma's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

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

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

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

8.3yrs

Average management tenure


CEO

Gerri Henwood (67yo)

12.25s

Tenure

US$2,427,434

Compensation

Dr. Geraldine A. Henwood, also known as Gerri, Ph.D., has been the President, Chief Executive Officer and Director of Baudax Bio Inc. since 2019. She has been the Chief Development Officer of Iomab-B at Ac ...


CEO Compensation Analysis

Compensation vs Market: Gerri's total compensation ($USD2.43M) is above average for companies of similar size in the German market ($USD731.58K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Geraldine Henwood
President12.25yrsUS$2.43m0.61% $1.1m
Ryan Lake
Chief Financial Officer2.25yrsUS$784.13k0.060% $104.8k
Randall Mack
Senior Vice President of Development12.25yrsUS$685.15kno data
Stewart McCallum
Chief Medical Officer4.33yrsUS$1.18mno data
Jyrki Mattila
Executive Vice President of Business Developmentno datano datano data
Carla Lusby
Corporate Secretaryno datano datano data

8.3yrs

Average Tenure

54yo

Average Age

Experienced Management: RAH's management team is seasoned and experienced (8.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Geraldine Henwood
President12.25yrsUS$2.43m0.61% $1.1m
Winston Churchill
Independent Director12.25yrsUS$191.49k0.083% $145.0k
Wayne Weisman
Independent Chairman of the board12.25yrsUS$209.99k0.11% $197.2k
Arnaud Ajdler
Independent Director1.08yrsno datano data
William Ashton
Independent Director11.25yrsUS$182.49k0.083% $145.0k
Michael Berelowitz
Independent Director6.08yrsUS$189.99k0.083% $145.0k
Bryan Reasons
Independent Director3.08yrsUS$194.99k0.064% $112.0k

11.3yrs

Average Tenure

67yo

Average Age

Experienced Board: RAH's board of directors are seasoned and experienced ( 11.2 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 9.5%.


Top Shareholders

Company Information

Recro Pharma, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Recro Pharma, Inc.
  • Ticker: RAH
  • Exchange: BST
  • Founded: 2007
  • Industry: Pharmaceuticals
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: US$191.629m
  • Listing Market Cap: US$174.383m
  • Shares outstanding: 23.46m
  • Website: https://www.recropharma.com

Number of Employees


Location

  • Recro Pharma, Inc.
  • 490 Lapp Road
  • Malvern
  • Pennsylvania
  • 19355
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
REPHNasdaqCM (Nasdaq Capital Market)YesCommon StockUSUSDMar 2014
RAHBST (Boerse-Stuttgart)YesCommon StockDEEURMar 2014

Biography

Recro Pharma, Inc. operates as a specialty pharmaceutical company. It operates through two divisions, an Acute Care, and Contract Development and Manufacturing (CDMO). The Acute Care division primarily focuses on developing products for the hospital and other acute care settings. The company’s lead product candidate is a proprietary injectable form of meloxicam, a long-acting preferential COX-2 inhibitor. IV meloxicam has completed two pivotal Phase III clinical efficacy trials, a double-blind placebo-controlled Phase III safety trial, and four Phase II clinical efficacy trials, as well as other safety studies. Its pipeline also includes other early-stage product candidates, including two novel neuromuscular blocking agents and a related proprietary chemical reversal agent, and Dex-IN, a proprietary intranasal formulation of dexmedetomidine or Dex an alpha-2 adrenergic agonist. The CDMO division leverages its formulation expertise to develop and manufacture pharmaceutical products using its proprietary delivery technologies and other manufacturing services for commercial and development-stage partners who commercialize or plan to commercialize these products. The company was formerly known as Recro Pharma I, Inc. and changed its name to Recro Pharma, Inc. in August 2008. Recro Pharma, Inc. was founded in 2007 and is based in Malvern, Pennsylvania. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/01 04:36
End of Day Share Price2020/03/31 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.