DB:2MT

Stock Analysis Report

Executive Summary

Athenex, Inc., a biopharmaceutical company, engages in the discovery, development, and commercialization of various therapies for the treatment of cancer and related conditions in North America and Asia.


Snowflake Analysis

High growth potential with mediocre balance sheet.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 2MT's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-6.0%

2MT

-4.3%

DE Biotechs

-4.7%

DE Market


1 Year Return

10.1%

2MT

5.5%

DE Biotechs

8.3%

DE Market

Return vs Industry: 2MT exceeded the German Biotechs industry which returned 5.5% over the past year.

Return vs Market: 2MT exceeded the German Market which returned 8.3% over the past year.


Shareholder returns

2MTIndustryMarket
7 Day-6.0%-4.3%-4.7%
30 Day-6.7%-6.7%-4.0%
90 Day-14.9%0.4%-1.4%
1 Year10.1%10.1%5.8%5.5%11.7%8.3%
3 Yearn/a40.9%39.4%11.4%1.6%
5 Yearn/a10.9%8.6%15.1%-0.7%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is Athenex 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: 2MT (€12.6) is trading below our estimate of fair value (€51.7)

Significantly Below Fair Value: 2MT is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 2MT is unprofitable, so we can't compare its PE Ratio to the Biotechs industry average.

PE vs Market: 2MT 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 2MT's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 2MT is overvalued based on its PB Ratio (6.8x) compared to the DE Biotechs industry average (3.5x).


Next Steps

Future Growth

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

58.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 2MT is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (-0.4%).

Earnings vs Market: 2MT is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: 2MT's is expected to become profitable in the next 3 years.

Revenue vs Market: 2MT's revenue (39.6% per year) is forecast to grow faster than the German market (5.1% per year).

High Growth Revenue: 2MT's revenue (39.6% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 2MT is forecast to be unprofitable in 3 years.


Next Steps

Past Performance

How has Athenex performed over the past 5 years?

-21.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 2MT is currently unprofitable.

Growing Profit Margin: 2MT is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: 2MT is unprofitable, and losses have increased over the past 5 years at a rate of -21.4% per year.

Accelerating Growth: Unable to compare 2MT's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 2MT is unprofitable, making it difficult to compare its past year earnings growth to the Biotechs industry (-4.7%).


Return on Equity

High ROE: 2MT has a negative Return on Equity (-96.63%), as it is currently unprofitable.


Next Steps

Financial Health

How is Athenex's financial position?


Financial Position Analysis

Short Term Liabilities: 2MT's short term assets ($213.5M) exceed its short term liabilities ($90.0M).

Long Term Liabilities: 2MT's short term assets ($213.5M) exceed its long term liabilities ($62.8M).


Debt to Equity History and Analysis

Debt Level: 2MT's debt to equity ratio (39.4%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if 2MT's debt to equity ratio has reduced over the past 5 years.


Balance Sheet

Inventory Level: 2MT has a low level of unsold assets or inventory.

Debt Coverage by Assets: 2MT's debt is covered by short term assets (assets are 4x 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: 2MT has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: 2MT has less than a year of cash runway if free cash flow continues to reduce at historical rates of -30.2% each year


Next Steps

Dividend

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


Dividend Yield vs Market

Notable Dividend: Unable to evaluate 2MT's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 2MT'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 2MT's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 2MT'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 2MT'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?

2.5yrs

Average management tenure


CEO

Johnson Lau (59yo)

9.1yrs

Tenure

US$3,177,139

Compensation

Dr. Yiu-Nam Lau, also known as Johnson, MBBS, MD, FRCP, Ph.D., has been the Chief Executive Officer of Athenex, Inc. since 2011. Dr. Lau is the Vice Chairman and CEO of Axis Therapeutics. Dr. Lau serves as ...


CEO Compensation Analysis

Compensation vs Market: Johnson's total compensation ($USD3.18M) is above average for companies of similar size in the German market ($USD1.31M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Yiu-Nam Lau
Chairman & CEO9.1yrsUS$3.18m4.21% $42.0m
Jeffrey Yordon
COO & President of Athenex Pharmaceutical Division3yrsUS$1.67m0.27% $2.7m
Rudolf Kwan
Executive VP & Chief Medical Officer6.1yrsUS$1.67m0.17% $1.7m
Kam-Chung Leung
Strategic & Business Advisor1.9yrsUS$11.00kno data
Allen Barnett
Co-Founder & President Emeritus9.1yrsno datano data
Randoll Sze
Chief Financial Officer1.5yrsno data0.0052% $51.6k
Teresa Bair
Senior Vice President of Administration & Legal Affairs1.2yrsno datano data
Jacqueline Li
Director of Corporate Development & Investor Relations0yrsno datano data
Daniel Lang
Senior Director of Corporate Development1.1yrsno datano data
John Matthei
Vice President of Human Resources0yrsno datano data

2.5yrs

Average Tenure

66yo

Average Age

Experienced Management: 2MT's management team is considered experienced (2.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Yiu-Nam Lau
Chairman & CEO9.1yrsUS$3.18m4.21% $42.0m
John Vierling
Independent Director0.8yrsno datano data
Tiong Lu Koh
Independent Director0.8yrsno datano data
Jinn Wu
Independent Director12.8yrsUS$198.57k0.48% $4.8m
Kwan-Hung Tsang
Director1.6yrsUS$130.07kno data
Jordan Kanfer
Independent Director0.8yrsno data0.0054% $54.0k
Manson Fok
Director4.7yrsUS$179.38k2.42% $24.1m
Kim Campbell
Lead Independent Director3.2yrsUS$216.26kno data
Stephanie Davis
Independent Director0.8yrsno data0.013% $128.9k

1.6yrs

Average Tenure

62yo

Average Age

Experienced Board: 2MT's board of directors are not considered experienced ( 1.6 years average tenure), which suggests a new board.


Ownership

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


Insider Trading Volume

Insider Buying: 2MT insiders have bought more shares than they have sold 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 14%.


Top Shareholders

Company Information

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


Key Information

  • Name: Athenex, Inc.
  • Ticker: 2MT
  • Exchange: DB
  • Founded: 2003
  • Industry: Biotechnology
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: US$1.083b
  • Listing Market Cap: US$997.411m
  • Shares outstanding: 77.38m
  • Website: https://www.athenex.com

Number of Employees


Location

  • Athenex, Inc.
  • Conventus Building
  • Suite 600
  • Buffalo
  • New York
  • 14203
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ATNXNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDJun 2017
2MTDB (Deutsche Boerse AG)YesCommon StockDEEURJun 2017

Biography

Athenex, Inc., a biopharmaceutical company, engages in the discovery, development, and commercialization of various therapies for the treatment of cancer and related conditions in North America and Asia. It operates in three segments: Oncology Innovation Platform, Global Supply Chain Platform, and Commercial Platform. The company’s Orascovery product candidates include Oraxol, an oral dosage form, which is in Phase III trial for metastatic breast cancer, as well as various clinical studies in advanced malignances and gastric cancer; and Oratecan, an oral dosage form of irinotecan that is in a Phase I study for the treatment of metastatic colorectal cancer, glioblastoma, lung, ovarian, cervical, upper gastrointestinal, and pancreatic cancer. Its Orascovery product candidates also comprise Oradoxel, an oral dosage form of docetaxel, which is in Phase I clinical study for breast, lung, prostate, gastric, and head and neck cancers; Oratopo, an oral dosage form of topotecan that is Phase I clinical trial to treat lung, ovarian, and cervical cancer; and oral eribulin, an intravenous anticancer drug to treat certain patients with breast cancer and advanced liposarcoma. In addition, the company offers Src Kinase product candidates comprising KX2-391 ointments for actinic keratosis, skin cancers, and psoriasis; KX-01 oral for solid and liquid tumors; and KX2-361 for glioblastoma multiforme. Further, it is developing dual absorption enhancers to inhibit the P-gp transporter and the cytochrome P450 enzymes within the gastrointestinal tract; T Cell Receptor Engineered T Cell, a cell-based immunotherapy; and Pegtomarginase, an arginine deprivation therapy product. The company was formerly known as Kinex Pharmaceuticals LLC and changed its name to Athenex, Inc. in August 2015. Athenex, Inc. was founded in 2003 and is headquartered in Buffalo, New York. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/24 22:57
End of Day Share Price2020/02/24 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.