DB:4NX

Stock Analysis Report

Executive Summary

NewLink Genetics Corporation, a late clinical-stage immuno-oncology company, focuses on discovering and developing novel immunotherapeutic products for the treatment of patients with cancer.

Rewards

Revenue is forecast to grow 58.95% per year

Risk Analysis

Makes less than USD$1m in revenue ($705K)

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

Highly volatile share price over past 3 months

Does not have a meaningful market cap (€73M)



Snowflake Analysis

Flawless balance sheet with limited growth.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-9.3%

4NX

-8.1%

DE Biotechs

0.07%

DE Market


1 Year Return

34.4%

4NX

5.9%

DE Biotechs

14.8%

DE Market

Return vs Industry: 4NX exceeded the German Biotechs industry which returned 5.3% over the past year.

Return vs Market: 4NX exceeded the German Market which returned 17.1% over the past year.


Shareholder returns

4NXIndustryMarket
7 Day-9.3%-8.1%0.07%
30 Day24.8%-3.4%1.4%
90 Day55.8%12.2%6.1%
1 Year34.4%34.4%6.1%5.9%18.4%14.8%
3 Year-82.6%-82.6%56.9%55.1%17.4%7.0%
5 Year-94.9%-94.9%16.4%13.9%27.9%10.4%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is NewLink Genetics undervalued compared to its fair value and its price relative to the market?

0.88x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate 4NX's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate 4NX's fair value to establish if it is undervalued.


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: 4NX is good value based on its PB Ratio (0.8x) compared to the DE Biotechs industry average (3.4x).


Next Steps

Future Growth

How is NewLink Genetics forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

19.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

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

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

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

Revenue vs Market: 4NX's revenue (58.9% per year) is forecast to grow faster than the German market (4.8% per year).

High Growth Revenue: 4NX's revenue (58.9% 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 4NX's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has NewLink Genetics performed over the past 5 years?

-34.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 4NX is currently unprofitable.

Growing Profit Margin: 4NX is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: 4NX is unprofitable, and losses have increased over the past 5 years at a rate of -34.1% per year.

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

Earnings vs Industry: 4NX is unprofitable, making it difficult to compare its past year earnings growth to the Biotechs industry (5.4%).


Return on Equity

High ROE: 4NX has a negative Return on Equity (-52.42%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is NewLink Genetics's financial position?


Financial Position Analysis

Short Term Liabilities: 4NX's short term assets ($102.7M) exceed its short term liabilities ($14.0M).

Long Term Liabilities: 4NX's short term assets ($102.7M) exceed its long term liabilities ($6.2M).


Debt to Equity History and Analysis

Debt Level: 4NX's debt to equity ratio (0.07%) is considered satisfactory.

Reducing Debt: 4NX's debt to equity ratio has reduced from 1.6% to 0.07% over the past 5 years.


Balance Sheet

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

Debt Coverage by Assets: 4NX's debt is covered by short term assets (assets are 1769.9x 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: 4NX has sufficient cash runway for more than 3 years based on its current free cash flow.

Forecast Cash Runway: 4NX has sufficient cash runway for more than 3 years if free cash flow continues to grow at historical rates of 26.3% each year


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.5%industryaverage1.0%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

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

Growing Dividend: Insufficient data to determine if 4NX'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 4NX'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 NewLink Genetics's salary, the management and board of directors tenure and is there insider trading?

1.5yrs

Average management tenure


CEO

NewLink Genetics has no CEO, or we have no data on them.


Management Age and Tenure

1.5yrs

Average Tenure

53yo

Average Age

Experienced Management: 4NX's management team is not considered experienced ( 1.5 years average tenure), which suggests a new team.


Board Age and Tenure

4.5yrs

Average Tenure

59yo

Average Age

Experienced Board: 4NX's board of directors are considered experienced (4.5 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 not been meaningfully diluted in the past year.


Management Team

  • Mario Mautino (53yo)

    Senior VP of Drug Discovery & Intellectual Property Officer

    • Carl Langren (64yo)

      CFO & Principal Accounting Officer

      • Tenure: 1.5yrs
      • Compensation: US$842.81k
    • Gene Kennedy (50yo)

      Chief Medical Officer

      • Tenure: 2.2yrs
      • Compensation: US$1.21m
    • Lisa Miller

      Director of Investor Relations

      • Lori Lawley

        VP of Finance & Controller

        • Tenure: 1.5yrs
      • Brad Powers

        General Counsel

        • Tenure: 1.5yrs

      Board Members

      • Lota Zoth (59yo)

        Independent Director

        • Tenure: 7.2yrs
        • Compensation: US$181.13k
      • Tom Raffin (72yo)

        Lead Independent Director

        • Compensation: US$204.26k
      • Matt Sherman (63yo)

        Independent Director

        • Tenure: 1.7yrs
        • Compensation: US$358.92k
      • Ernest Talarico (48yo)

        Independent Director

        • Tenure: 21yrs
        • Compensation: US$175.00k
      • Chad Johnson (40yo)

        Independent Director

        • Tenure: 1.8yrs
        • Compensation: US$393.32k

      Company Information

      NewLink Genetics Corporation's company bio, employee growth, exchange listings and data sources


      Key Information

      • Name: NewLink Genetics Corporation
      • Ticker: 4NX
      • Exchange: DB
      • Founded: 1999
      • Industry: Biotechnology
      • Sector: Pharmaceuticals & Biotech
      • Market Cap: US$76.143m
      • Listing Market Cap: US$68.643m
      • Shares outstanding: 37.33m
      • Website: https://www.newlinkgenetics.com

      Number of Employees


      Location

      • NewLink Genetics Corporation
      • 2503 South Loop Drive
      • Suite 5100
      • Ames
      • Iowa
      • 50010
      • United States

      Listings

      TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
      NLNKNasdaqGM (Nasdaq Global Market)YesCommon StockUSUSDNov 2011
      4NXDB (Deutsche Boerse AG)YesCommon StockDEEURNov 2011

      Biography

      NewLink Genetics Corporation, a late clinical-stage immuno-oncology company, focuses on discovering and developing novel immunotherapeutic products for the treatment of patients with cancer. It is developing Indoximod, an indoleamine-2, 3-dioxygenase (IDO) pathway inhibitor that is in clinical development in combination with other cancer therapeutics for patients with diffuse intrinsic pontine glioma, pediatric brain tumors, acute myeloid leukemia, and melanoma. The company also develops NLG207 in combination with paclitaxel in recurrent ovarian, fallopian tube, or primary peritoneal cancer; NLG802, a prodrug of indoximod, which has completed Phase I clinical trial; and NLG919, a direct enzymatic inhibitor. The company has collaboration and license agreement with Genentech Inc. for the development and commercialization of NLG919, as well as a research collaboration for the discovery of next generation IDO/TDO inhibitors; and Merck Sharpe & Dohme Corp. to research, develop, and commercialize rVSV G-ZEBOV GP, an Ebola vaccine product candidate. NewLink Genetics Corporation was founded in 1999 and is headquartered in Ames, Iowa. 


      Company Analysis and Financial Data Status

      All financial data provided by Standard & Poor's Capital IQ.
      DataLast Updated (UTC time)
      Company Analysis2020/01/18 21:23
      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.