XTRA:PA8

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Excellent balance sheet with moderate growth potential.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

1.0%

PA8

-0.5%

DE Biotechs

2.4%

DE Market


1 Year Return

-5.0%

PA8

5.0%

DE Biotechs

2.3%

DE Market

Return vs Industry: PA8 underperformed the German Biotechs industry which returned 5% over the past year.

Return vs Market: PA8 underperformed the German Market which returned 2.3% over the past year.


Shareholder returns

PA8IndustryMarket
7 Day1.0%-0.5%2.4%
30 Day-8.7%-5.5%-0.2%
90 Day-17.7%-1.8%0.6%
1 Year-5.0%-5.0%5.1%5.0%5.5%2.3%
3 Year-28.7%-29.2%68.7%67.0%18.9%8.6%
5 Year-4.2%-5.0%21.6%18.8%44.8%25.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

6.23x

Price to Book (PB) ratio


Share Price vs. Fair Value

Undervalued: PA8 (€2.09) is trading above our estimate of fair value (€0.65)

Significantly Undervalued: PA8 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: PA8 is unprofitable, so we can't compare its PE Ratio to the 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

Low 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 (6.2x) compared to the DE Biotechs industry average (3.2x).


Next Steps

Future Growth

How is Paion forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

107.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PA8 is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: PA8 is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: PA8 is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: PA8's revenue (71.9% per year) is forecast to grow faster than the German market (5% per year).

High Growth Revenue: PA8's revenue (71.9% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: PA8's Return on Equity is forecast to be very high in 3 years time (63%).


Next Steps

Past Performance

How has Paion performed over the past 5 years?

6.4%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: PA8 is unprofitable, but has reduced losses over the past 5 years at a rate of 6.4% 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 (-2.3%).


Return on Equity

High ROE: PA8 has a negative Return on Equity (-14.54%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: PA8 is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: PA8 is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is Paion's financial position?


Financial Position Analysis

Short Term Liabilities: PA8's short term assets (€23.4M) exceeds its short term liabilities (€4.3M)

Long Term Liabilities: PA8's short term assets (23.4M) exceeds its long term liabilities (29.9K)


Debt to Equity History and Analysis

Debt Level: PA8 is debt free.

Reducing Debt: PA8 had no debt 5 years ago.


Balance Sheet

Inventory Level: PA8 has a low level of unsold assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if PA8'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: PA8 has sufficient cash runway for more than 3 years based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if PA8 has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.9%industryaverage0.8%forecastin3Years0%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: Unable to evaluate PA8's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate PA8'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 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.


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 PA8's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

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

3.8yrs

Average management tenure


CEO

Wolfgang Söhngen 0

3.8yrs

Tenure

€597,301

Compensation

Dr. Wolfgang Söhngen founded Paion AG in 2004 and serves as its Chief Executive Officer since December 31, 2015. Dr. Söhngen serves as the Chairman of Management Board at Paion AG. Dr. Söhngen is responsib ...


CEO Compensation Analysis

Compensation vs. Market: Wolfgang's total compensation ($USD658.26K) is about average for companies of similar size in the German market ($USD218.87K).

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


Management Age and Tenure

3.8yrs

Average Tenure

Experienced Management: PA8's management team is considered experienced (3.8 years average tenure).


Board Age and Tenure

2.3yrs

Average Tenure

59.5yo

Average Age

Experienced Board: PA8's board of directors are not considered experienced ( 2.3 years average tenure), which suggests a new board.


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

  • Wolfgang Söhngen

    Founder

    • Tenure: 3.8yrs
    • Compensation: €597.30k
  • Jürgen Beck

    Chief Development Officer & Member of Management Board

    • Tenure: 1.8yrs
    • Compensation: €422.13k
  • Ralf Penner

    Vice President of Investor Relations & Public Relations

    • Tenure: 0yrs
  • Abdelghani Omari (42yo)

    CFO & Member of Management Board

    • Tenure: 5.1yrs
    • Compensation: €387.13k

Board Members

  • Jörg Spiekerkötter (61yo)

    Chairman of Supervisory Board

    • Tenure: 9.4yrs
    • Compensation: €50.00k
  • Karin Louise Dorrepaal (58yo)

    Vice Chairman of Supervisory Board

    • Tenure: 0yrs
    • Compensation: €37.50k
  • Chris Tanner (68yo)

    Member of Supervisory Board

    • Tenure: 2.3yrs
    • Compensation: €25.00k
  • Markus Dieken

    Member of Supervisory Board

    • Tenure: 0.4yrs
  • Irina Antonijevic (54yo)

    Member of Supervisory Board

    • Tenure: 2.3yrs
    • Compensation: €25.00k

Company Information

Paion AG's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Paion AG
  • Ticker: PA8
  • Exchange: XTRA
  • Founded: 2000
  • Industry: Biotechnology
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: €133.561m
  • Shares outstanding: 63.90m
  • Website: https://www.paion.com

Number of Employees


Location

  • Paion AG
  • Martinstrasse 10-12
  • Aachen
  • North Rhine-Westphalia
  • 52062
  • Germany

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PA8DB (Deutsche Boerse AG)YesBearer SharesDEEURFeb 2005
PAIO.FOTCPK (Pink Sheets LLC)YesBearer SharesUSUSDFeb 2005
PA8XTRA (XETRA Trading Platform)YesBearer SharesDEEURFeb 2005
0NF3LSE (London Stock Exchange)YesBearer SharesGBEURFeb 2005
PA8DBATS-CHIXE (BATS 'Chi-X Europe')YesBearer SharesGBEURFeb 2005

Biography

Paion AG, a specialty pharmaceutical company, develops and commercializes drugs for use in out-patient and hospital-based sedation, anesthesia, and critical care services worldwide. The company’s lead prod ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/14 20:52
End of Day Share Price2019/10/14 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.