DB:3MT

Stock Analysis Report

Executive Summary

Magenta Therapeutics, Inc., a clinical-stage biotechnology company, develops novel medicines to extend the curative power of stem cell transplant, gene therapy, genome editing, and cell therapy to patients.

Risk Analysis

Earnings are forecast to decline by an average of -12.6% per year for the next 3 years

Shareholders have been substantially diluted in the past year

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

Highly volatile share price over past 3 months



Snowflake Analysis

Flawless balance sheet and overvalued.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-8.7%

3MT

-8.1%

DE Biotechs

0.07%

DE Market


1 Year Return

109.7%

3MT

5.9%

DE Biotechs

14.8%

DE Market

Return vs Industry: 3MT exceeded the German Biotechs industry which returned 5.3% over the past year.

Return vs Market: 3MT exceeded the German Market which returned 17.1% over the past year.


Shareholder returns

3MTIndustryMarket
7 Day-8.7%-8.1%0.07%
30 Day2.3%-3.4%1.4%
90 Day50.1%12.2%6.1%
1 Year109.7%109.7%6.1%5.9%18.4%14.8%
3 Yearn/a56.9%55.1%17.4%7.0%
5 Yearn/a16.4%13.9%27.9%10.4%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

3.37x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate 3MT's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate 3MT's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: 3MT is unprofitable, so we can't compare its PE Ratio to the Biotechs industry average.

PE vs Market: 3MT 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 3MT's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 3MT is good value based on its PB Ratio (3.4x) compared to the DE Biotechs industry average (3.6x).


Next Steps

Future Growth

How is Magenta Therapeutics forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

-12.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

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

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

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

Revenue vs Market: Insufficient data to determine if 3MT's revenue is forecast to grow faster than the German market.

High Growth Revenue: Insufficient data to determine if 3MT's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

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


Next Steps

Past Performance

How has Magenta Therapeutics performed over the past 5 years?

-43.4%

Last years earnings growth


Earnings and Revenue History

Quality Earnings: 3MT is currently unprofitable.

Growing Profit Margin: 3MT is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: Insufficient data to determine if 3MT's year-on-year earnings growth rate was positive over the past 5 years.

Accelerating Growth: Unable to compare 3MT's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 3MT is unprofitable, making it difficult to compare its past year earnings growth to the Biotechs industry (5.4%).


Return on Equity

High ROE: 3MT has a negative Return on Equity (-43.47%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Magenta Therapeutics's financial position?


Financial Position Analysis

Short Term Liabilities: 3MT's short term assets ($165.2M) exceed its short term liabilities ($9.6M).

Long Term Liabilities: 3MT's short term assets ($165.2M) exceed its long term liabilities ($6.1M).


Debt to Equity History and Analysis

Debt Level: 3MT is debt free.

Reducing Debt: 3MT has not had any debt for past 5 years.


Balance Sheet

Inventory Level: 3MT has a low level of unsold assets or inventory.

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

Forecast Cash Runway: 3MT has sufficient cash runway for more than 3 years if free cash flow continues to reduce at historical rates of -53.9% each year


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.5%industryaverage1.0%forecastin3Years0%

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate 3MT's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 3MT'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 3MT's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 3MT'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 3MT'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 Magenta Therapeutics's salary, the management and board of directors tenure and is there insider trading?

1.8yrs

Average management tenure


CEO

Jason Gardner (47yo)

3.9yrs

Tenure

US$4,749,458

Compensation

Dr. Jason Gardner, Ph.D., D. Phil., is a Cofounder of Magenta Therapeutics, Inc. and has been its Chief Executive Officer and President since February 2016. Dr. Gardner joined Atlas Venture in November 201 ...


CEO Compensation Analysis

Compensation vs Market: Jason's total compensation ($USD4.75M) is above average for companies of similar size in the German market ($USD817.80K).

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


Management Age and Tenure

1.8yrs

Average Tenure

48yo

Average Age

Experienced Management: 3MT's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Age and Tenure

3.3yrs

Average Tenure

59.5yo

Average Age

Experienced Board: 3MT's board of directors are considered experienced (3.3 years average tenure).


Insider Trading

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


Recent Insider Transactions

Sell€87,95302 Dec 19
Michael Cooke
EntityIndividual
Shares7,500
Max Price€12.01
Sell€54,22225 Nov 19
Michael Cooke
EntityIndividual
Shares5,000
Max Price€10.84
Sell€47,76501 Nov 19
Michael Cooke
EntityIndividual
Shares5,000
Max Price€9.55
Sell€45,81403 Oct 19
Michael Cooke
EntityIndividual
Shares5,000
Max Price€9.16
Sell€224,06422 Mar 19
Atlas Venture L.P.
EntityCompany
Shares14,245
Max Price€15.73

Ownership Breakdown

Dilution of Shares: Shareholders have been substantially diluted in the past year, with total shares outstanding growing by 235.4%.


Management Team

  • Alison Lawton (58yo)

    Board Advisor

    • Tenure: 1.8yrs
    • Compensation: US$4.38k
  • Jason Ryan (45yo)

    Chief Operating & Financial Officer

    • Tenure: 1yrs
  • Christina Isacson (40yo)

    Chief Business Officer

    • Compensation: US$2.28m
  • Manisha Pai

    Vice President of Investor Relations & Communications

    • Tenure: 2.3yrs
  • Jason Gardner (47yo)

    Co-Founder

    • Tenure: 3.9yrs
    • Compensation: US$4.75m
  • Zoran Zdraveski (49yo)

    Chief Legal Officer

    • Tenure: 2.8yrs
  • John Davis (57yo)

    Chief Medical Officer

    • Tenure: 1.9yrs
    • Compensation: US$3.18m
  • Meg Woods

    Head of Culture & People

    • Tenure: 1.8yrs
  • Catherine Monaghan

    Head of Clinical Development Operations

    • Tenure: 1.8yrs
  • Jan Pinkas

    Senior VP & Head of Translational Sciences

    • Tenure: 0.3yrs

Board Members

  • Mike Bonney (61yo)

    Chairman

    • Tenure: 3.3yrs
    • Compensation: US$21.32k
  • Tom Daniel (65yo)

    Independent Director

    • Tenure: 3.3yrs
    • Compensation: US$28.91k
  • Alexis Borisy (47yo)

    Independent Director

    • Tenure: 4.6yrs
    • Compensation: US$12.79k
  • Bruce Booth (45yo)

    Independent Director

    • Tenure: 3.9yrs
    • Compensation: US$11.33k
  • Anne McGeorge (58yo)

    Independent Director

    • Tenure: 0.6yrs
  • Robert Negrin

    Member of Scientific Advisory Board

    • Luigi Naldini

      Member of Scientific Advisory Board

      • David Scadden (66yo)

        Chair of Scientific Advisory Board & Director

        • Tenure: 3.2yrs
        • Compensation: US$85.39k
      • Jason Gardner (47yo)

        Co-Founder

        • Tenure: 3.9yrs
        • Compensation: US$4.75m
      • Alan Tyndall (71yo)

        Member of Scientific Advisory Board

        Company Information

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


        Key Information

        • Name: Magenta Therapeutics, Inc.
        • Ticker: 3MT
        • Exchange: DB
        • Founded: 2015
        • Industry: Biotechnology
        • Sector: Pharmaceuticals & Biotech
        • Market Cap: US$544.491m
        • Listing Market Cap: US$490.858m
        • Shares outstanding: 38.56m
        • Website: https://www.magentatx.com

        Number of Employees


        Location

        • Magenta Therapeutics, Inc.
        • 100 Technology Square
        • 5th Floor
        • Cambridge
        • Massachusetts
        • 2139
        • United States

        Listings

        TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
        MGTANasdaqGM (Nasdaq Global Market)YesCommon StockUSUSDJun 2018
        3MTDB (Deutsche Boerse AG)YesCommon StockDEEURJun 2018

        Biography

        Magenta Therapeutics, Inc., a clinical-stage biotechnology company, develops novel medicines to extend the curative power of stem cell transplant, gene therapy, genome editing, and cell therapy to patients. It is developing C100, C200, and C300 targeted antibody-drug conjugates for transplant conditioning; MGTA-145, a novel stem cell mobilization product candidate to control stem cell mobilization; MGTA-456, an allogeneic stem cell therapy to control stem cell growth; E478, a small molecule aryl hydrocarbon receptor antagonist for the expansion of gene-modified stem cells; and G100, an antibody-drug conjugate program to prevent acute graft and host diseases. The company was formerly known as HSCTCo Therapeutics, Inc. and changed its name to Magenta Therapeutics, Inc. in February 2016. Magenta Therapeutics, Inc. was founded in 2015 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 Analysis2020/01/19 22:07
        End of Day Share Price2020/01/17 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.