Paion (XTRA:PA8) - Share price, News & Analysis

PA8 fundamental analysis
Snowflake Score
Valuation	2/6
Future Growth	5/6
Past Performance	0/6
Financial Health	3/6
Dividends	0/6

PA8 Stock Overview

Paion AG, a specialty pharmaceutical company, develops and commercializes drugs for hospital-based sedation, anesthesia, and critical care services worldwide.

Rewards

Trading at 98.2% below our estimate of its fair value

Earnings are forecast to grow 67.82% per year

Risk Analysis

Has less than 1 year of cash runway

Volatile share price over the past 3 months

Does not have a meaningful market cap (€67M)

Paion Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Paion
Historical stock prices
Current Share Price	€0.94
52 Week High	€2.01
52 Week Low	€0.87
Beta	0.95
1 Month Change	-18.35%
3 Month Change	-29.19%
1 Year Change	-45.79%
3 Year Change	-56.33%
5 Year Change	-63.18%
Change since IPO	-89.46%

Shareholder Returns

	PA8	DE Biotechs	DE Market
7D	-7.9%	4.3%	-0.1%
1Y	-45.8%	-31.4%	-12.9%

Return vs Industry: PA8 underperformed the German Biotechs industry which returned -31.4% over the past year.

Return vs Market: PA8 underperformed the German Market which returned -12.9% over the past year.

Price Volatility

Is PA8's price volatile compared to industry and market?
PA8 volatility
PA8 Average Weekly Movement	8.4%
Biotechs Industry Average Movement	8.2%
Market Average Movement	6.3%
10% most volatile stocks in DE Market	10.7%
10% least volatile stocks in DE Market	3.5%

Stable Share Price: PA8 is more volatile than 75% of German stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: PA8's weekly volatility (8%) has been stable over the past year, but is still higher than 75% of German stocks.

About the Company

Founded	Employees	CEO	Website
2000	56	Jim Phillips	https://www.paion.com

Paion AG, a specialty pharmaceutical company, develops and commercializes drugs for hospital-based sedation, anesthesia, and critical care services worldwide. The company’s lead product is Remimazolam, an ultra-short-acting intravenous benzodiazepine sedative/anesthetic, which is in clinical development for use in procedural sedation, general anesthesia, and intensive care unit sedation. It is also developing Angiotensin II, a vasoconstrictor indicated for the treatment of refractory hypotension in adults with septic or other distributive shock; and Eravacycline, a novel fluorocycline antibiotic indicated for the treatment of complicated intra-abdominal infections in adults.

Paion Fundamentals Summary

How do Paion's earnings and revenue compare to its market cap?
PA8 fundamental statistics
Market Cap	€66.99m
Earnings (TTM)	-€21.79m
Revenue (TTM)	€7.13m

9.4x

P/S Ratio

-3.1x

P/E Ratio

Is PA8 overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
PA8 income statement (TTM)
Revenue	€7.13m
Cost of Revenue	€3.08m
Gross Profit	€4.05m
Other Expenses	€25.84m
Earnings	-€21.79m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

Aug 24, 2022

Earnings per share (EPS)	-0.31
Gross Margin	56.83%
Net Profit Margin	-305.62%
Debt/Equity Ratio	0%

How did PA8 perform over the long term?

See historical performance and comparison

Valuation

Is Paion 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: PA8 (€0.94) is trading below our estimate of fair value (€53.15)

Significantly Below Fair Value: PA8 is trading below fair value by more than 20%.

Price To Earnings Ratio

PE vs Industry: PA8 is unprofitable, so we can't compare its PE Ratio to the European Biotechs industry average.

PE vs Market: PA8 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 PA8's PEG Ratio to determine if it is good value.

Price to Book Ratio

PB vs Industry: PA8 is overvalued based on its PB Ratio (9.6x) compared to the DE Biotechs industry average (1.5x).

Future Growth

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

Future Growth Score

5/6

Future Growth Score 5/6

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

67.8%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: PA8 is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (-0.05%).

Earnings vs Market: PA8 is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: PA8's is expected to become profitable in the next 3 years.

Revenue vs Market: PA8's revenue (49.1% per year) is forecast to grow faster than the German market (4.7% per year).

High Growth Revenue: PA8's revenue (49.1% per year) 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 PA8's Return on Equity is forecast to be high in 3 years time

Past Performance

How has Paion 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

15.0%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: PA8 is currently unprofitable.

Growing Profit Margin: PA8 is currently unprofitable.

Past Earnings Growth Analysis

Earnings Trend: PA8 is unprofitable, but has reduced losses over the past 5 years at a rate of 15% per year.

Accelerating Growth: Unable to compare PA8's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: PA8 is unprofitable, making it difficult to compare its past year earnings growth to the Biotechs industry (-6.2%).

Return on Equity

High ROE: PA8 has a negative Return on Equity (-311.26%), as it is currently unprofitable.

Financial Health

How is Paion's financial position?

Financial Health Score

3/6

Financial Health Score 3/6

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

Financial Position Analysis

Short Term Liabilities: PA8's short term assets (€16.2M) exceed its short term liabilities (€11.0M).

Long Term Liabilities: PA8's short term assets (€16.2M) do not cover its long term liabilities (€18.8M).

Debt to Equity History and Analysis

Debt Level: PA8 is debt free.

Reducing Debt: PA8 had no debt 5 years ago.

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: PA8 has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: PA8 has less than a year of cash runway if free cash flow continues to grow at historical rates of 8.6% each year.

Dividend

What is Paion 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 PA8's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate PA8'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 PA8's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if PA8'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 PA8 has not reported any payouts.

Discover strong dividend paying companies

Management

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

4.9yrs

Average board tenure

CEO

Jim Phillips (59 yo)

2.58yrs

Tenure

€427,599

Compensation

Dr. James Neil Phillips, also known as Jim, MB, ChB, M.D., MBA, serves as Chairman of Management Board and Chief Executive Officer of Paion AG since October 16, 2019. Dr. Phillips serves as the Chief Execu...

CEO Compensation Analysis

Compensation vs Market: Jim's total compensation ($USD451.10K) is about average for companies of similar size in the German market ($USD404.30K).

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

Board Members

Experienced Board: PA8's board of directors are considered experienced (4.9 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	2022/05/21 00:00
End of Day Share Price	2022/05/20 00:00
Earnings	2021/12/31
Annual Earnings	2021/12/31