DB:1AE

Stock Analysis Report

Executive Summary

argenx SE, a clinical-stage biopharmaceutical company, focuses on developing antibody-based therapies for the treatment of autoimmune diseases and cancer.

Rewards

Revenue is forecast to grow 57.53% 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

Flawless balance sheet with limited growth.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 1AE's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

7.1%

1AE

6.2%

DE Biotechs

1.0%

DE Market


1 Year Return

59.6%

1AE

10.1%

DE Biotechs

14.2%

DE Market

Return vs Industry: 1AE exceeded the German Biotechs industry which returned 10.1% over the past year.

Return vs Market: 1AE exceeded the German Market which returned 14.2% over the past year.


Shareholder returns

1AEIndustryMarket
7 Day7.1%6.2%1.0%
30 Day19.8%17.2%0.04%
90 Day26.9%9.1%6.0%
1 Year59.6%59.6%10.3%10.1%17.8%14.2%
3 Yearn/a80.4%78.3%19.2%8.7%
5 Yearn/a15.6%13.2%36.0%17.5%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

8.15x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate 1AE's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate 1AE's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: 1AE is unprofitable, so we can't compare its PE Ratio to the Biotechs industry average.

PE vs Market: 1AE 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 1AE's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 1AE is overvalued based on its PB Ratio (8.1x) compared to the DE Biotechs industry average (3.5x).


Next Steps

Future Growth

How is argenx forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

19.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 1AE is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: 1AE is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: 1AE is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: 1AE's revenue (57.5% per year) is forecast to grow faster than the German market (4.8% per year).

High Growth Revenue: 1AE's revenue (57.5% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 1AE is forecast to be unprofitable in 3 years.


Next Steps

Past Performance

How has argenx performed over the past 5 years?

-44.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 1AE is currently unprofitable.

Growing Profit Margin: 1AE is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: 1AE is unprofitable, and losses have increased over the past 5 years at a rate of -44.8% per year.

Accelerating Growth: Unable to compare 1AE's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 1AE is unprofitable, making it difficult to compare its past year earnings growth to the Biotechs industry (5.4%).


Return on Equity

High ROE: 1AE has a negative Return on Equity (-15.07%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is argenx's financial position?


Financial Position Analysis

Short Term Liabilities: 1AE's short term assets (€959.9M) exceed its short term liabilities (€102.4M).

Long Term Liabilities: 1AE's short term assets (€959.9M) exceed its long term liabilities (€241.4M).


Debt to Equity History and Analysis

Debt Level: 1AE is debt free.

Reducing Debt: 1AE had no debt 5 years ago.


Balance Sheet

Inventory Level: 1AE has a low level of unsold assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if 1AE'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: Whilst unprofitable 1AE has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: 1AE is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 68.5% per year.


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.3%markettop25%3.6%industryaverage1.1%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate 1AE's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 1AE'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 1AE's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 1AE'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 1AE'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 argenx's salary, the management and board of directors tenure and is there insider trading?

2.7yrs

Average management tenure


CEO

Tim Van Hauwermeiren (47yo)

11.4yrs

Tenure

€4,402,768

Compensation

Mr. Tim Van Hauwermeiren, MSc, EMBA, has been the Chief Executive Officer and Executive Director at argenx SE since July 2008 and July 9, 2014 respectively. Mr. Van Hauwermeiren co-founded Argenx SE in 200 ...


CEO Compensation Analysis

Compensation vs Market: Tim's total compensation ($USD4.90M) is above average for companies of similar size in the German market ($USD3.71M).

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


Management Age and Tenure

2.7yrs

Average Tenure

55yo

Average Age

Experienced Management: 1AE's management team is considered experienced (2.7 years average tenure).


Board Age and Tenure

4.6yrs

Average Tenure

59.5yo

Average Age

Experienced Board: 1AE's board of directors are considered experienced (4.6 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Sell€715,67905 Mar 19
Tim Van Hauwermeiren
EntityIndividual
Role
Chief Executive Officer
CEO & Executive Director
Shares6,107
Max Price€117.19
Sell€2,132,35204 Mar 19
Tim Van Hauwermeiren
EntityIndividual
Role
Chief Executive Officer
CEO & Executive Director
Shares18,205
Max Price€117.13
Sell€678,40917 Dec 18
Tim Van Hauwermeiren
EntityIndividual
Role
Chief Executive Officer
CEO & Executive Director
Shares7,370
Max Price€92.05

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 18.1%.


Management Team

  • Eric Castaldi (55yo)

    Chief Financial Officer

    • Tenure: 5.7yrs
  • Dirk Marcel Beeusaert (55yo)

    General Counsel

    • Tenure: 2.7yrs
  • Tim Van Hauwermeiren (47yo)

    CEO & Executive Director

    • Tenure: 11.4yrs
    • Compensation: €4.40m
  • Hans de Haard (59yo)

    Chief Scientific Officer

    • Tenure: 11.4yrs
  • Joke Comijn

    Director Corporate Communications & Investor Relations (EU)

    • Tenure: 0yrs
  • R. Woods (51yo)

    Chief Operating Officer

    • Tenure: 1.7yrs
  • Wim Parys

    Chief Medical Officer

    • Tenure: 0.9yrs
  • Arjen Lemmen

    Vice President of Corporate Development & Strategy

    • Tenure: 0.9yrs

Board Members

  • Don deBethizy (69yo)

    Non-Executive Director

    • Tenure: 4.6yrs
    • Compensation: €497.40k
  • Peter K. Verhaeghe (61yo)

    Chairman of the Board

    • Tenure: 5.4yrs
    • Compensation: €522.40k
  • Werner Lanthaler (51yo)

    Vice-Chairperson

    • Tenure: 0yrs
    • Compensation: €499.90k
  • Tony Rosenberg (66yo)

    Non-Executive Director

    • Tenure: 2.7yrs
    • Compensation: €487.40k
  • Pam Klein (58yo)

    Non-Executive Director

    • Tenure: 3.7yrs
    • Compensation: €487.40k
  • Tim Van Hauwermeiren (47yo)

    CEO & Executive Director

    • Tenure: 11.4yrs
    • Compensation: €4.40m
  • David Lacey (67yo)

    Non-Executive Director

    • Tenure: 5.4yrs
    • Compensation: €494.90k
  • James Daly (58yo)

    Non-Executive Director

    • Tenure: 1.6yrs
    • Compensation: €961.75k

Company Information

argenx SE's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: argenx SE
  • Ticker: 1AE
  • Exchange: DB
  • Founded: 2008
  • Industry: Biotechnology
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: €6.079b
  • Shares outstanding: 42.72m
  • Website: https://www.argenx.com

Number of Employees


Location

  • argenx SE
  • Willemstraat 5
  • Breda
  • Noord-Brabant
  • 4811 AH
  • Netherlands

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ARGXENXTBR (Euronext Brussels)YesOrdinary SharesBEEURJul 2014
0QW0LSE (London Stock Exchange)YesOrdinary SharesGBEURJul 2014
ARGN.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJul 2014
ARGXBBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBEURJul 2014
1AEDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJul 2014
ARGXNasdaqGS (Nasdaq Global Select)American Depository ReceiptsUSUSDMay 2017

Biography

argenx SE, a clinical-stage biopharmaceutical company, focuses on developing antibody-based therapies for the treatment of autoimmune diseases and cancer. The company’s lead product candidates include Efga ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/13 22:39
End of Day Share Price2019/12/13 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.