DB:4C8

Stock Analysis Report

Executive Summary

Forty Seven, Inc., a clinical-stage immuno-oncology company, focuses on developing therapies to activate macrophages for the treatment of cancer.


Snowflake Analysis

Flawless balance sheet and slightly overvalued.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 4C8's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

3.6%

4C8

-0.7%

DE Biotechs

-0.6%

DE Market


1 Year Return

471.6%

4C8

-13.5%

DE Biotechs

-20.9%

DE Market

Return vs Industry: 4C8 exceeded the German Biotechs industry which returned -13.2% over the past year.

Return vs Market: 4C8 exceeded the German Market which returned -20.9% over the past year.


Shareholder returns

4C8IndustryMarket
7 Day3.6%-0.7%-0.6%
30 Day4.8%-7.8%-16.6%
90 Day158.9%-21.1%-26.0%
1 Year471.6%471.6%-13.3%-13.5%-18.6%-20.9%
3 Yearn/a14.1%12.9%-19.0%-25.8%
5 Yearn/a-9.6%-11.9%-21.1%-31.8%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is Forty Seven undervalued compared to its fair value and its price relative to the market?

47.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 4C8 (€87) is trading below our estimate of fair value (€164.06)

Significantly Below Fair Value: 4C8 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 4C8 is unprofitable, so we can't compare its PE Ratio to the Biotechs industry average.

PE vs Market: 4C8 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 4C8's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 4C8 is overvalued based on its PB Ratio (14.4x) compared to the DE Biotechs industry average (3.3x).


Next Steps

Future Growth

How is Forty Seven forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

34.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 4C8 is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: 4C8 is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: 4C8 is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: 4C8's revenue (60.9% per year) is forecast to grow faster than the German market (3.9% per year).

High Growth Revenue: 4C8's revenue (60.9% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 4C8 is forecast to be unprofitable in 3 years.


Next Steps

Past Performance

How has Forty Seven performed over the past 5 years?

-24.5%

Last years earnings growth


Earnings and Revenue History

Quality Earnings: 4C8 is currently unprofitable.

Growing Profit Margin: 4C8 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: Insufficient data to determine if 4C8's year-on-year earnings growth rate was positive over the past 5 years.

Accelerating Growth: Unable to compare 4C8's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 4C8 is unprofitable, making it difficult to compare its past year earnings growth to the Biotechs industry (16.1%).


Return on Equity

High ROE: 4C8 has a negative Return on Equity (-27.56%), as it is currently unprofitable.


Next Steps

Financial Health

How is Forty Seven's financial position?


Financial Position Analysis

Short Term Liabilities: 4C8's short term assets ($337.5M) exceed its short term liabilities ($22.8M).

Long Term Liabilities: 4C8's short term assets ($337.5M) exceed its long term liabilities ($2.9M).


Debt to Equity History and Analysis

Debt Level: 4C8 is debt free.

Reducing Debt: 4C8 has not had any debt for past 5 years.


Balance Sheet

Inventory Level: 4C8 has a low level of unsold assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if 4C8'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: 4C8 has sufficient cash runway for more than 3 years based on its current free cash flow.

Forecast Cash Runway: 4C8 has sufficient cash runway for 2.1 years if free cash flow continues to reduce at historical rates of -35.9% each year.


Next Steps

Dividend

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


Dividend Yield vs Market

Notable Dividend: Unable to evaluate 4C8's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 4C8'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 4C8's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 4C8'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 4C8'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?

2.9yrs

Average management tenure


CEO

Mark McCamish (66yo)

2.92s

Tenure

US$8,027,641

Compensation

Dr. Mark A. McCamish, M.D., Ph.D., serves as Director at Avadel Pharmaceuticals plc since December 10, 2019. He has been Chief Executive Officer, Director and President at Forty Seven Inc. since May 1, 201 ...


CEO Compensation Analysis

Compensation vs Market: Mark's total compensation ($USD8.03M) is above average for companies of similar size in the German market ($USD3.30M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Mark McCamish
President2.92yrsUS$8.03mno data
Ann Rhoads
Chief Financial Officer2yrsUS$2.96m0.024% $1.0m
Chris Takimoto
Chief Medical Officer4.17yrsUS$3.15mno data
Mark Chao
Founderno datano datano data
Jens-Peter Volkmer
Founder and VP of Research & Early Developmentno datano datano data
Kyle Elrod
Senior Vice President of Planning & Operationsno datano datano data
Mukul Agarwal
Vice President of Corporate Development0.50yrno datano data
Craig Gibbs
Chief Business Officer4.58yrsUS$549.86k0.23% $10.0m
Norman Kruse
Chief Patent Counselno datano datano data
Eric Jensen
Secretaryno datano datano data

2.9yrs

Average Tenure

56yo

Average Age

Experienced Management: 4C8's management team is considered experienced (2.9 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Mark McCamish
President2.92yrsUS$8.03mno data
Dennis Henner
Independent Director4.42yrsUS$106.18kno data
Jeffrey Bird
Lead Directorno dataUS$131.72k0.49% $20.7m
Irving Weissman
Independent Director4.92yrsUS$202.68k3.64% $155.1m
Ian Clark
Independent Director2yrsUS$110.18kno data
Ronald Levy
Member of Scientific Advisory Board1.5yrsno datano data
James Allison
Member of Scientific Advisory Board1.5yrsno datano data
Kristine Ball
Independent Director2.17yrsUS$117.09kno data
Padmanee Sharma
Member of Scientific Advisory Board1.5yrsno datano data
Ravindra Majeti
Independent Director4.92yrsUS$178.68k2.62% $111.6m

2.2yrs

Average Tenure

59yo

Average Age

Experienced Board: 4C8's board of directors are not considered experienced ( 2.2 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: Insufficient data to determine if 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 substantially diluted in the past year, with total shares outstanding growing by 94.1%.


Top Shareholders

Company Information

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


Key Information

  • Name: Forty Seven, Inc.
  • Ticker: 4C8
  • Exchange: DB
  • Founded: 2014
  • Industry: Biotechnology
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: US$4.597b
  • Listing Market Cap: US$4.261b
  • Shares outstanding: 48.16m
  • Website: https://www.fortyseveninc.com

Number of Employees


Location

  • Forty Seven, Inc.
  • 1490 O’Brien Drive
  • Suite A
  • Menlo Park
  • California
  • 94025
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
FTSVNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDJun 2018
4C8DB (Deutsche Boerse AG)YesCommon StockDEEURJun 2018

Biography

Forty Seven, Inc., a clinical-stage immuno-oncology company, focuses on developing therapies to activate macrophages for the treatment of cancer. It is developing 5F9, a humanized IgG4 subclass monoclonal antibody against CD47 that is in Phase 1b/2 clinical trials used for the treatment of cancer; FSI-189, an antibody that binds to SIRPa; and FSI-174, an anti-cKIT antibody. Forty Seven, Inc. has a collaboration agreement with Genentech to include third clinical trial in non-Hodgkin’s lymphoma; and collaboration with Acerta Pharma to evaluate novel immuno-oncology triple combination in diffuse large B-Cell Lymphoma. The company was formerly known as CD47 Sciences, Inc. Forty Seven, Inc. was incorporated in 2014 and is headquartered in Menlo Park, California. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/06 01:36
End of Day Share Price2020/04/03 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.