DB:22Z

Stock Analysis Report

Executive Summary

Zealand Pharma A/S, a biotechnology company, engages in the discovery and development of peptide based medicines in Denmark.

Rewards

Revenue is forecast to grow 53.32% 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

Excellent balance sheet with limited growth.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 22Z's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

1.9%

22Z

1.3%

DE Biotechs

0.3%

DE Market


1 Year Return

153.1%

22Z

4.9%

DE Biotechs

13.8%

DE Market

Return vs Industry: 22Z exceeded the German Biotechs industry which returned 5.3% over the past year.

Return vs Market: 22Z exceeded the German Market which returned 17.1% over the past year.


Shareholder returns

22ZIndustryMarket
7 Day1.9%1.3%0.3%
30 Day5.6%-2.5%1.3%
90 Day31.4%14.8%5.2%
1 Year153.1%153.1%5.1%4.9%17.4%13.8%
3 Year99.1%99.1%54.5%52.8%15.9%5.7%
5 Year187.1%187.1%16.5%14.0%27.9%10.6%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

6.31x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: 22Z (€30.92) is trading above our estimate of fair value (€24.57)

Significantly Below Fair Value: 22Z is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 22Z is unprofitable, so we can't compare its PE Ratio to the Biotechs industry average.

PE vs Market: 22Z 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 22Z's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 22Z is overvalued based on its PB Ratio (5.9x) compared to the DE Biotechs industry average (3.4x).


Next Steps

Future Growth

How is Zealand Pharma forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

36.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 22Z is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: 22Z is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: 22Z is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: 22Z's revenue (53.3% per year) is forecast to grow faster than the German market (4.8% per year).

High Growth Revenue: 22Z's revenue (53.3% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 22Z is forecast to be unprofitable in 3 years.


Next Steps

Past Performance

How has Zealand Pharma performed over the past 5 years?

28.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 22Z is currently unprofitable.

Growing Profit Margin: 22Z is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: 22Z is unprofitable, but has reduced losses over the past 5 years at a rate of 28.7% per year.

Accelerating Growth: Unable to compare 22Z's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 22Z is unprofitable, making it difficult to compare its past year earnings growth to the Biotechs industry (5.4%).


Return on Equity

High ROE: 22Z has a negative Return on Equity (-36.07%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Zealand Pharma's financial position?


Financial Position Analysis

Short Term Liabilities: 22Z's short term assets (DKK1.6B) exceed its short term liabilities (DKK304.4M).

Long Term Liabilities: 22Z has no long term liabilities.


Debt to Equity History and Analysis

Debt Level: 22Z is debt free.

Reducing Debt: 22Z has no debt compared to 5 years ago when its debt to equity ratio was 0.9%.


Balance Sheet

Inventory Level: 22Z has a low level of unsold assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if 22Z'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: 22Z has sufficient cash runway for more than 3 years based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if 22Z has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

What is Zealand Pharma'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 22Z's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 22Z'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 22Z's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 22Z'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 22Z'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 Zealand Pharma's salary, the management and board of directors tenure and is there insider trading?

1.0yrs

Average management tenure


CEO

Emmanuel Dulac (49yo)

0.8yrs

Tenure

0

Dr. Emmanuel Dulac, PharmD, PhD, MBA, has been Chief Executive Officer at Zealand Pharma A/S since April 22, 2019 and its President since 2019. He had been Chief Commercial Officer and Senior Vice Presiden ...


Management Age and Tenure

1.0yrs

Average Tenure

47yo

Average Age

Experienced Management: 22Z's management team is not considered experienced ( 1 years average tenure), which suggests a new team.


Board Age and Tenure

8.2yrs

Average Tenure

64yo

Average Age

Experienced Board: 22Z's board of directors are considered experienced (8.2 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.


Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 4.3%.


Management Team

  • Hanne Bak (66yo)

    Senior Project Director

    • Tenure: 3.8yrs
    • Compensation: ø300.00k
  • Niels Mørk

    Head of Bioanalysis

    • Jens Mikkelsen

      Head of Molecular Pharmacology

      • Søren Keller

        Head of Legal Affairs

        • Tenure: 5.8yrs
      • Matt Dallas (44yo)

        Senior VP & CFO

        • Tenure: 0.3yrs
      • Adam Steensberg (45yo)

        Executive VP of Research & Development and Chief Medical Officer

        • Tenure: 1yrs
      • Emmanuel Dulac (49yo)

        CEO & President

        • Tenure: 0.8yrs
      • Ivan Møller (47yo)

        Senior Vice President of Technical Development & Operations

        • Tenure: 1.8yrs
      • Lani Morvan

        Investor Relations & Communications Officer

        • Rie Hansen

          Interim Chief Scientific Officer & VP of Research

          • Tenure: 0.4yrs

        Board Members

        • Leon Kruimer (61yo)

          Independent Director

          • Tenure: 0.8yrs
        • Alain Munoz (70yo)

          Co-Chair of the Clinical & Scientific Advisory Board & Director

          • Tenure: 8.2yrs
          • Compensation: ø350.00k
        • Martin Nicklasson (64yo)

          Independent Chairman of the Board

          • Tenure: 4.8yrs
          • Compensation: ø750.00k
        • Ake Lernmark (74yo)

          Member of Advisory Board

          • Tenure: 8.2yrs
        • Tyge Korsgaard (62yo)

          Board Observer

          • Bernard Charbonnel

            Member of Advisory Board

            • Tenure: 8.2yrs
          • Richard Pratley

            Member of Advisory Board

            • Tenure: 8.2yrs
          • Paul Dorian

            Member of Advisory Board

            • Tenure: 8.2yrs
          • Hanne Bak (66yo)

            Senior Project Director

            • Tenure: 3.8yrs
            • Compensation: ø300.00k
          • Kirsten Drejer (63yo)

            Independent Vice Chairman

            • Tenure: 0.8yrs
            • Compensation: ø200.00k

          Company Information

          Zealand Pharma A/S's company bio, employee growth, exchange listings and data sources


          Key Information

          • Name: Zealand Pharma A/S
          • Ticker: 22Z
          • Exchange: DB
          • Founded: 1997
          • Industry: Biotechnology
          • Sector: Pharmaceuticals & Biotech
          • Market Cap: ø8.947b
          • Listing Market Cap: ø1.197b
          • Shares outstanding: 35.99m
          • Website: https://www.zealandpharma.com

          Number of Employees


          Location

          • Zealand Pharma A/S
          • Sydmarken 11
          • Søborg
          • Copenhagen
          • Capital Region of Denmark
          • Denmark

          Listings

          TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
          ZEALCPSE (OMX Nordic Exchange Copenhagen)YesOrdinary SharesDKDKKNov 2010
          0NZULSE (London Stock Exchange)YesOrdinary SharesGBDKKNov 2010
          22ZDB (Deutsche Boerse AG)YesOrdinary SharesDEEURNov 2010
          ZLDP.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDNov 2010
          ZEALCBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBDKKNov 2010
          ZEALNasdaqGS (Nasdaq Global Select)ADR EACH REP 1 ORD SHS SPONUSUSDAug 2017
          22ZADB (Deutsche Boerse AG)ADR EACH REP 1 ORD SHS SPONDEEURAug 2017

          Biography

          Zealand Pharma A/S, a biotechnology company, engages in the discovery and development of peptide based medicines in Denmark. It has a portfolio of medicines in late-stage clinical development focusing on gastrointestinal and metabolic diseases. The company markets lixisenatide under the brand names of Adlyxin, Lyxumia, Soliqua 100/33, and Suliqua. Its product pipeline includes glepaglutide, a long acting GLP-2 analog, which is in Phase 3 clinical trials for the treatment of short bowel syndrome; and dasiglucagon, a stable glucagon analog for the treatment of severe hypoglycemia in diabetes and congenital hyperinsulinism, as well as for use in dual-hormone automated pump therapy for management of type 1 diabetes. Zealand Pharma A/S has collaboration agreements with Sanofi-Aventis Deutschland GmbH; Boehringer Ingelheim International GmbH; and Beta Bionics, Inc. to initiate home-use trial of the iLet bionic pancreas with dasiglucagon for autonomous bihormonal treatment of type 1 diabetes, as well as research agreement with Orbit Discovery Ltd. and Torrey Pines Institute for Molecular Studies. The company was founded in 1997 and is headquartered in Copenhagen, Denmark. 


          Company Analysis and Financial Data Status

          All financial data provided by Standard & Poor's Capital IQ.
          DataLast Updated (UTC time)
          Company Analysis2020/01/26 21:48
          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.