DB:41X

Stock Analysis Report

Executive Summary

Ardelyx, Inc., a specialized biopharmaceutical company, develops and sells medicines for the treatment of cardio renal diseases in the United States and internationally.


Snowflake Analysis

Adequate balance sheet and slightly overvalued.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 41X has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

7.6%

41X

-4.1%

DE Biotechs

-5.7%

DE Market


1 Year Return

217.0%

41X

3.7%

DE Biotechs

6.1%

DE Market

Return vs Industry: 41X exceeded the German Biotechs industry which returned 3.7% over the past year.

Return vs Market: 41X exceeded the German Market which returned 6.1% over the past year.


Shareholder returns

41XIndustryMarket
7 Day7.6%-4.1%-5.7%
30 Day9.2%-8.2%-5.7%
90 Day4.4%-2.0%-3.6%
1 Year217.0%217.0%4.0%3.7%9.3%6.1%
3 Year-45.2%-45.2%38.2%36.7%8.9%-0.7%
5 Year-51.5%-51.5%9.9%7.5%13.6%-2.0%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is Ardelyx 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: 41X (€7.1) is trading below our estimate of fair value (€50.15)

Significantly Below Fair Value: 41X is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 41X is unprofitable, so we can't compare its PE Ratio to the Biotechs industry average.

PE vs Market: 41X 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 41X's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 41X is overvalued based on its PB Ratio (8.9x) compared to the DE Biotechs industry average (3.2x).


Next Steps

Future Growth

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

56.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 41X is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: 41X is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: 41X is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: 41X's revenue (63% per year) is forecast to grow faster than the German market (5.1% per year).

High Growth Revenue: 41X's revenue (63% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if 41X's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Ardelyx performed over the past 5 years?

-28.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 41X is currently unprofitable.

Growing Profit Margin: 41X is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: 41X is unprofitable, and losses have increased over the past 5 years at a rate of -28.7% per year.

Accelerating Growth: Unable to compare 41X's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 41X is unprofitable, making it difficult to compare its past year earnings growth to the Biotechs industry (-4.7%).


Return on Equity

High ROE: 41X has a negative Return on Equity (-209.55%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Ardelyx's financial position?


Financial Position Analysis

Short Term Liabilities: 41X's short term assets ($110.8M) exceed its short term liabilities ($17.7M).

Long Term Liabilities: 41X's short term assets ($110.8M) exceed its long term liabilities ($52.6M).


Debt to Equity History and Analysis

Debt Level: 41X's debt to equity ratio (101.3%) is considered high.

Reducing Debt: Insufficient data to determine if 41X's debt to equity ratio has reduced over the past 5 years.


Balance Sheet

Inventory Level: 41X has a low level of unsold assets or inventory.

Debt Coverage by Assets: 41X's debt is covered by short term assets (assets are 2.2x 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: 41X has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: 41X has sufficient cash runway for 1.1 years if free cash flow continues to reduce at historical rates of -27.8% each year.


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.8%industryaverage1.0%forecastin3Years0%

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate 41X's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 41X'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 41X's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 41X'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 41X'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?

5.8yrs

Average management tenure


CEO

Mike Raab (54yo)

10.9yrs

Tenure

US$4,182,246

Compensation

Mr. Michael G. Raab, also known as Mike, has been the Chief Executive Officer and President of Ardelyx, Inc. since March 2009. He is a Director of Tempest Therapeutics Inc. since May 2019. Mr. Raab was a V ...


CEO Compensation Analysis

Compensation vs Market: Mike's total compensation ($USD4.18M) is above average for companies of similar size in the German market ($USD1.20M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Michael Raab
President10.9yrsUS$4.18m0.39% $2.4m
Elizabeth Grammer
Executive VP5.8yrsUS$1.69m0.14% $842.5k
David Rosenbaum
Chief Development Officer5.1yrsUS$1.71m0.30% $1.8m
Mark Kaufmann
CFO & Treasurer5.8yrsUS$799.18k0.16% $990.5k
Jeffrey Jacobs
Senior Vice President of Technical Operations5.1yrsno datano data
Kimia Keshtbod
Manager of Corporate Communications & Investor Relations0yrsno datano data
Robert Blanks
Senior Vice President of Regulatory Affairs & Quality Assurance0yrsno datano data
Karen Harrigan
Senior Director Market Development0yrsno datano data
Dan Pavicich
Senior Director of Market Development0yrsno datano data
Daniel Olmstead
Vice President of Payer Access0yrsno datano data

5.8yrs

Average Tenure

55yo

Average Age

Experienced Management: 41X's management team is seasoned and experienced (5.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Michael Raab
President10.9yrsUS$4.18m0.39% $2.4m
David Mott
Independent Chairman5.9yrsUS$127.21k0.10% $613.3k
Gordon Ringold
Independent Director5.7yrsUS$91.21k0.012% $70.0k
Robert Bazemore
Independent Director3.7yrsno datano data
William Bertrand
Independent Director4.3yrsUS$93.21k0.061% $365.2k
Jan Lundberg
Independent Director1.9yrsUS$177.50k0.034% $204.0k
Richard Rodgers
Independent Director5.9yrsUS$110.71k0.080% $479.0k
Geoffrey Block
Independent Director0.9yrsno datano data
Annalisa Jenkins
Independent Director4.8yrsUS$97.21k0.039% $234.5k
Robert Bazemore
Independent Director3.7yrsUS$90.71kno data

4.6yrs

Average Tenure

54yo

Average Age

Experienced Board: 41X's board of directors are considered experienced (4.6 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: 41X 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 19.1%.


Top Shareholders

Company Information

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


Key Information

  • Name: Ardelyx, Inc.
  • Ticker: 41X
  • Exchange: DB
  • Founded: 2007
  • Industry: Biotechnology
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: US$653.853m
  • Listing Market Cap: US$601.021m
  • Shares outstanding: 85.81m
  • Website: https://www.ardelyx.com

Number of Employees


Location

  • Ardelyx, Inc.
  • 34175 Ardenwood Boulevard
  • Suite 200
  • Fremont
  • California
  • 94555
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ARDXNasdaqGM (Nasdaq Global Market)YesCommon StockUSUSDJun 2014
41XDB (Deutsche Boerse AG)YesCommon StockDEEURJun 2014

Biography

Ardelyx, Inc., a specialized biopharmaceutical company, develops and sells medicines for the treatment of cardio renal diseases in the United States and internationally. The company’s lead product candidate is tenapanor, which has completed Phase III clinical trial for the treatment of patients with irritable bowel syndrome with constipation, as well as in Phase III clinical trial for the treatment of hyperphosphatemia in end-stage renal disease patients on dialysis. It also develops RDX013, a small molecule potassium secretagogue program for the treatment of patients with hyperkalemia. The company was formerly known as Nteryx, Inc. and changed its name to Ardelyx, Inc. in June 2008. Ardelyx, Inc. was founded in 2007 and is headquartered in Fremont, California. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/25 22:47
End of Day Share Price2020/02/25 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.