DB:136

Stock Analysis Report

Executive Summary

Adamas Pharmaceuticals, Inc. focuses on the discovery, development, and commercialization of medicines for patients suffering from chronic neurologic disorders.

Rewards

Trading at 85.5% below its fair value

Revenue is forecast to grow 31.13% per year

Risk Analysis

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

Highly volatile share price over past 3 months

Shareholders have been diluted in the past year



Snowflake Analysis

Mediocre balance sheet and slightly overvalued.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 136's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-1.0%

136

0.4%

DE Biotechs

0.2%

DE Market


1 Year Return

-44.3%

136

9.0%

DE Biotechs

14.4%

DE Market

Return vs Industry: 136 underperformed the German Biotechs industry which returned 9% over the past year.

Return vs Market: 136 underperformed the German Market which returned 14.4% over the past year.


Shareholder returns

136IndustryMarket
7 Day-1.0%0.4%0.2%
30 Day-1.0%-2.1%0.9%
90 Day8.2%8.0%4.6%
1 Year-44.3%-44.3%9.2%9.0%17.9%14.4%
3 Year-67.9%-67.9%45.5%43.9%15.7%5.6%
5 Year-65.4%-65.4%12.8%10.5%23.4%6.5%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is Adamas Pharmaceuticals 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: 136 (€5.15) is trading below our estimate of fair value (€35.61)

Significantly Below Fair Value: 136 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 136 is unprofitable, so we can't compare its PE Ratio to the Biotechs industry average.

PE vs Market: 136 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 136's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 136 is overvalued based on its PB Ratio (7.9x) compared to the DE Biotechs industry average (3.6x).


Next Steps

Future Growth

How is Adamas Pharmaceuticals forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

44.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 136 is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: 136 is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: 136 is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: 136's revenue (31.1% per year) is forecast to grow faster than the German market (5% per year).

High Growth Revenue: 136's revenue (31.1% 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 136's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Adamas Pharmaceuticals performed over the past 5 years?

-40.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 136 is currently unprofitable.

Growing Profit Margin: 136 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: 136 is unprofitable, and losses have increased over the past 5 years at a rate of -40% per year.

Accelerating Growth: Unable to compare 136's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 136 is unprofitable, making it difficult to compare its past year earnings growth to the Biotechs industry (-4.7%).


Return on Equity

High ROE: 136 has a negative Return on Equity (-561.8%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Adamas Pharmaceuticals's financial position?


Financial Position Analysis

Short Term Liabilities: 136's short term assets ($167.3M) exceed its short term liabilities ($26.4M).

Long Term Liabilities: 136's short term assets ($167.3M) exceed its long term liabilities ($134.3M).


Debt to Equity History and Analysis

Debt Level: 136's debt to equity ratio (636.8%) is considered high.

Reducing Debt: Insufficient data to determine if 136's debt to equity ratio has reduced over the past 5 years.


Balance Sheet

Inventory Level: 136 has a low level of unsold assets or inventory.

Debt Coverage by Assets: 136's debt is covered by short term assets (assets are 1.3x debt).


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: 136 has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if 136 has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.3%markettop25%3.6%industryaverage1.0%forecastin3Years0%

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate 136's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 136'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 136's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 136'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 136'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?

0.4yrs

Average management tenure


CEO

Neil McFarlane (46yo)

0.4yrs

Tenure

0

Mr. Neil F. Mcfarlane serves as Chief Executive Officer and Director of Adamas Pharmaceuticals, Inc. since September 11, 2019. Mr. Mcfarlane served as Chief Operating Officer of Retrophin, Inc. since Augus ...


Leadership Team

NamePositionTenureCompensationOwnership
Neil McFarlane
CEO & Director0.4yrsno datano data
Christopher Prentiss
Chief Financial Officer0.3yrsno data0.036% $51.5k
Sarah Mathieson
Head of Corporate Communications & Engagement1yrsno datano data
Dean Hart
Senior Vice President of Sales0yrsno datano data
Eric Schlezinger
Head of Human Resources0.3yrsno datano data
Melissa Masterson
Senior Vice President of Commercial Operations & Market Access0yrsno datano data
Vijay Shreedhar
Chief Commercial Officer0.8yrsno datano data

0.4yrs

Average Tenure

46yo

Average Age

Experienced Management: 136's management team is not considered experienced ( 0.4 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Neil McFarlane
CEO & Director0.4yrsno datano data
William Ericson
Independent Director15.1yrsUS$222.74kno data
Martha Demski
Independent Director 5.9yrsUS$232.24k0.047% $67.4k
David Mahoney
Chairman & Lead Independent Director0.4yrsUS$240.61k0.21% $310.1k
Ivan Lieberburg
Independent Director 16.1yrsUS$206.99k0.23% $332.0k
Jeffrey Cummings
Scientific & Clinical Advisor0yrsno datano data
Arnold Monto
Member of Influenza Advisory Board0yrsno datano data
Matthew Stern
Scientific & Clinical Advisor0yrsno datano data
Martin Farlow
Member of CNS Advisory Board0yrsno datano data
Alan Perelson
Member of Influenza Advisory Board0yrsno datano data

5.9yrs

Average Tenure

65.5yo

Average Age

Experienced Board: 136's board of directors are considered experienced (5.9 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: 136 insiders have only sold shares 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 6.7%.


Top Shareholders

Company Information

Adamas Pharmaceuticals, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Adamas Pharmaceuticals, Inc.
  • Ticker: 136
  • Exchange: DB
  • Founded: 2000
  • Industry: Biotechnology
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: US$156.003m
  • Listing Market Cap: US$144.506m
  • Shares outstanding: 27.86m
  • Website: https://www.adamaspharma.com

Number of Employees


Location

  • Adamas Pharmaceuticals, Inc.
  • 1900 Powell Street
  • Suite 750
  • Emeryville
  • California
  • 94608
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ADMSNasdaqGM (Nasdaq Global Market)YesCommon StockUSUSDApr 2014
136DB (Deutsche Boerse AG)YesCommon StockDEEURApr 2014

Biography

Adamas Pharmaceuticals, Inc. focuses on the discovery, development, and commercialization of medicines for patients suffering from chronic neurologic disorders. The company offers GOCOVRI, an extended release capsule for the treatment of dyskinesia in patients with Parkinson’s disease receiving levodopa-based therapy, with or without concomitant dopaminergic medications. It is also developing ADS-5102 that is in Phase III clinical study to treat walking impairment in patients with multiple sclerosis and other indications; and ADS-4101, which has completed two Phase I studies for treating partial onset seizures in patients with epilepsy. In addition, the company offers Namzaric (memantine hydrochloride extended release and donepezil hydrochloride) capsules for the treatment of moderate to severe dementia of an Alzheimer’s type. The company was formerly known as NeuroMolecular Pharmaceuticals, Inc. and changed its name to Adamas Pharmaceuticals, Inc. in July 2007. Adamas Pharmaceuticals, Inc. was founded in 2000 and is headquartered in Emeryville, California. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/19 22:46
End of Day Share Price2020/02/19 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.