DB:21J

Stock Analysis Report

Executive Summary

Jounce Therapeutics, Inc., a clinical-stage immunotherapy company, develops therapies for the treatment of cancer.

Rewards

Trading at 3.4% below its fair value

Became profitable this year

Risk Analysis

Earnings are forecast to decline by an average of -22.9% per year for the next 3 years

Highly volatile share price over past 3 months



Snowflake Analysis

Flawless balance sheet and good value.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 21J's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-17.2%

21J

1.3%

DE Biotechs

0.3%

DE Market


1 Year Return

63.2%

21J

4.9%

DE Biotechs

13.8%

DE Market

Return vs Industry: 21J exceeded the German Biotechs industry which returned 5.3% over the past year.

Return vs Market: 21J exceeded the German Market which returned 17.1% over the past year.


Shareholder returns

21JIndustryMarket
7 Day-17.2%1.3%0.3%
30 Day-25.0%-2.7%1.7%
90 Day57.7%12.0%5.7%
1 Year63.2%63.2%5.1%4.9%17.4%13.8%
3 Yearn/a54.5%52.8%15.9%5.7%
5 Yearn/a16.5%14.0%27.9%10.6%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

10.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 21J (€6.45) is trading below our estimate of fair value (€6.68)

Significantly Below Fair Value: 21J is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: 21J is good value based on its PE Ratio (3x) compared to the Biotechs industry average (35.3x).

PE vs Market: 21J is good value based on its PE Ratio (3x) compared to the German market (20.6x).


Price to Earnings Growth Ratio

PEG Ratio: 21J's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: 21J is good value based on its PB Ratio (1.2x) compared to the DE Biotechs industry average (3.4x).


Next Steps

Future Growth

How is Jounce Therapeutics forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

-22.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 21J's earnings are forecast to decline over the next 3 years (-22.9% per year).

Earnings vs Market: 21J's earnings are forecast to decline over the next 3 years (-22.9% per year).

High Growth Earnings: 21J's earnings are forecast to decline over the next 3 years.

Revenue vs Market: 21J's revenue is expected to decline over the next 3 years (-19.9% per year).

High Growth Revenue: 21J's revenue is forecast to decline over the next 3 years (-19.9% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 21J is forecast to be unprofitable in 3 years.


Next Steps

Past Performance

How has Jounce Therapeutics performed over the past 5 years?

20.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 21J has high quality earnings.

Growing Profit Margin: 21J became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: 21J has become profitable over the past 5 years, growing earnings by 20.3% per year.

Accelerating Growth: 21J has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: 21J has become profitable in the last year, making it difficult to compare its past year earnings growth to the Biotechs industry (5.4%).


Return on Equity

High ROE: 21J's Return on Equity (40.5%) is considered outstanding.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Jounce Therapeutics's financial position?


Financial Position Analysis

Short Term Liabilities: 21J's short term assets ($181.1M) exceed its short term liabilities ($13.3M).

Long Term Liabilities: 21J's short term assets ($181.1M) exceed its long term liabilities ($17.6M).


Debt to Equity History and Analysis

Debt Level: 21J is debt free.

Reducing Debt: 21J has not had any debt for past 5 years.

Debt Coverage: 21J has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: 21J has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: 21J has a low level of unsold assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if 21J's debt is covered by short term assets.


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.3%markettop25%3.6%industryaverage1.0%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate 21J's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 21J'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 21J's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 21J'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 21J'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 Jounce Therapeutics's salary, the management and board of directors tenure and is there insider trading?

8.0yrs

Average management tenure


CEO

Rich Murray (60yo)

5.5yrs

Tenure

US$3,686,268

Compensation

Dr. Richard Murray, Ph.D., also known as Rich, has been the Chief Executive Officer, President and Director of Jounce Therapeutics, Inc., since July 10, 2014. Prior to joining Jounce, Dr. Murray serves as  ...


CEO Compensation Analysis

Compensation vs Market: Rich's total compensation ($USD3.69M) is above average for companies of similar size in the German market ($USD638.09K).

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


Management Age and Tenure

8.0yrs

Average Tenure

60yo

Average Age

Experienced Management: 21J's management team is seasoned and experienced (8 years average tenure).


Board Age and Tenure

4.8yrs

Average Tenure

60yo

Average Age

Experienced Board: 21J's board of directors are considered experienced (4.8 years average tenure).


Insider Trading

Insider Buying: 21J insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Sell€18,32810 Jan 20
Elizabeth Tréhu
EntityIndividual
Role
Senior Key Executive
Chief Medical Officer
Shares2,624
Max Price€6.98
Sell€18,32810 Jan 20
Kimberlee Drapkin
EntityIndividual
Role
Chief Financial Officer
CFO & Treasurer
Shares2,624
Max Price€6.98
Sell€18,32810 Jan 20
Hugh Cole
EntityIndividual
Shares2,624
Max Price€6.98
Sell€49,94210 Jan 20
Richard Murray
EntityIndividual
Role
Chief Executive Officer
President
Shares7,150
Max Price€6.98
Sell€8,40817 Aug 19
Hugh Cole
EntityIndividual
Shares2,336
Max Price€3.69
Sell€8,40817 Aug 19
Elizabeth Tréhu
EntityIndividual
Role
Senior Key Executive
Chief Medical Officer
Shares2,336
Max Price€3.69
Sell€8,40817 Aug 19
Kimberlee Drapkin
EntityIndividual
Role
Chief Financial Officer
CFO & Treasurer
Shares2,336
Max Price€3.69

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Louis Weiner (67yo)

    • Tenure: 8yrs
  • Rich Murray (60yo)

    President

    • Tenure: 5.5yrs
    • Compensation: US$3.69m
  • Drew Pardoll

    • Tenure: 8yrs
  • Jim Allison

    • Tenure: 8yrs
  • Steve Farrand (62yo)

    Chief Technical Officer

    • Tenure: 3.3yrs
  • Kim Drapkin (51yo)

    CFO & Treasurer

    • Tenure: 4.4yrs
    • Compensation: US$2.03m
  • Tom Gajewski

    • Tenure: 8yrs
  • Bob Schreiber

    • Beth Tréhu (59yo)

      Chief Medical Officer

      • Tenure: 4.2yrs
      • Compensation: US$1.68m
    • Pam Sharma

      • Tenure: 8yrs

    Board Members

    • Bob Tepper (63yo)

      Independent Director

      • Tenure: 6.9yrs
      • Compensation: US$100.32k
    • Perry Karsen (64yo)

      Independent Chairman of the Board

      • Tenure: 3.8yrs
      • Compensation: US$149.57k
    • Barbara Duncan (54yo)

      Independent Director

      • Tenure: 3.7yrs
      • Compensation: US$118.07k
    • Rich Murray (60yo)

      President

      • Tenure: 5.5yrs
      • Compensation: US$3.69m
    • Bob Kamen (75yo)

      Independent Director

      • Tenure: 6.9yrs
      • Compensation: US$100.32k
    • John Higgons (64yo)

      Independent Director

      • Tenure: 4.2yrs
      • Compensation: US$116.57k
    • Cary Pfeffer (57yo)

      Independent Director

      • Tenure: 6.9yrs
      • Compensation: US$108.07k
    • Luis Diaz (48yo)

      Independent Director

      • Tenure: 2.3yrs
      • Compensation: US$85.55k
    • Rob Iannone (51yo)

      Director

      Company Information

      Jounce Therapeutics, Inc.'s company bio, employee growth, exchange listings and data sources


      Key Information

      • Name: Jounce Therapeutics, Inc.
      • Ticker: 21J
      • Exchange: DB
      • Founded: 2012
      • Industry: Biotechnology
      • Sector: Pharmaceuticals & Biotech
      • Market Cap: US$209.672m
      • Listing Market Cap: US$190.151m
      • Shares outstanding: 33.23m
      • Website: https://www.jouncetx.com

      Number of Employees


      Location

      • Jounce Therapeutics, Inc.
      • 780 Memorial Drive
      • Cambridge
      • Massachusetts
      • 2139
      • United States

      Listings

      TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
      JNCENasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDJan 2017
      21JDB (Deutsche Boerse AG)YesCommon StockDEEURJan 2017

      Biography

      Jounce Therapeutics, Inc., a clinical-stage immunotherapy company, develops therapies for the treatment of cancer. The company offers vopratelimab, a clinical-stage monoclonal antibody that binds to and activates the Inducible T cell CO-Stimulator, a protein on the surface of T cells found in various solid tumors, which is in Phase I/II clinical trial for the treatment of head and neck squamous cell cancer, non-small cell lung cancer, triple negative breast cancer, gastric cancer, and other tumor types identified through its translational science platform. It is also developing JTX-4014, a monoclonal antibody that is in Phase I clinical trial for combination therapy; and JTX-8064, a monoclonal antibody that binds to leukocyte immunoglobulin like receptor B2 that is in the IND-enabling phase. The company has a master research and collaboration agreement with Celgene Corporation focused on developing and commercializing biologic immunotherapies. Jounce Therapeutics, Inc. was incorporated in 2012 and is headquartered in Cambridge, Massachusetts. 


      Company Analysis and Financial Data Status

      All financial data provided by Standard & Poor's Capital IQ.
      DataLast Updated (UTC time)
      Company Analysis2020/01/25 23:08
      End of Day Share Price2020/01/24 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.