DB:8STN

Stock Analysis Report

Executive Summary

Sorrento Therapeutics, Inc., a clinical stage biotechnology company, primarily engages in the discovery and development of therapies focused on oncology and the treatment of chronic cancer pain worldwide.


Snowflake Analysis

Slightly overvalued with limited growth.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 8STN's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-5.9%

8STN

-2.3%

DE Biotechs

-0.2%

DE Market


1 Year Return

24.5%

8STN

8.4%

DE Biotechs

13.7%

DE Market

Return vs Industry: 8STN exceeded the German Biotechs industry which returned 8.4% over the past year.

Return vs Market: 8STN exceeded the German Market which returned 13.7% over the past year.


Shareholder returns

8STNIndustryMarket
7 Day-5.9%-2.3%-0.2%
30 Day-35.7%-3.2%0.3%
90 Day68.7%6.3%3.7%
1 Year24.5%24.5%8.6%8.4%17.2%13.7%
3 Year-52.2%-52.2%44.5%42.9%15.4%5.3%
5 Year-79.2%-79.2%13.0%10.6%21.3%4.7%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

34.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 8STN (€2.4) is trading below our estimate of fair value (€3.67)

Significantly Below Fair Value: 8STN is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 8STN is unprofitable, so we can't compare its PE Ratio to the Biotechs industry average.

PE vs Market: 8STN 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 8STN's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 8STN is overvalued based on its PB Ratio (7.1x) compared to the DE Biotechs industry average (3.5x).


Next Steps

Future Growth

How is Sorrento Therapeutics forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

30.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 8STN is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: 8STN is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: 8STN is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: 8STN's revenue (39.3% per year) is forecast to grow faster than the German market (5% per year).

High Growth Revenue: 8STN's revenue (39.3% 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 8STN's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Sorrento Therapeutics performed over the past 5 years?

-44.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 8STN is currently unprofitable.

Growing Profit Margin: 8STN is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: 8STN is unprofitable, and losses have increased over the past 5 years at a rate of -44.7% per year.

Accelerating Growth: Unable to compare 8STN's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 8STN is unprofitable, making it difficult to compare its past year earnings growth to the Biotechs industry (-4.7%).


Return on Equity

High ROE: 8STN has a negative Return on Equity (-5207.72%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Sorrento Therapeutics's financial position?


Financial Position Analysis

Short Term Liabilities: 8STN's short term assets ($67.6M) do not cover its short term liabilities ($112.7M).

Long Term Liabilities: 8STN's short term assets ($67.6M) do not cover its long term liabilities ($441.5M).


Debt to Equity History and Analysis

Debt Level: 8STN's debt to equity ratio (3902.3%) is considered high.

Reducing Debt: 8STN's debt to equity ratio has increased from 16.9% to 3902.3% over the past 5 years.


Balance Sheet

Inventory Level: 8STN has a low level of unsold assets or inventory.

Debt Coverage by Assets: 8STN's debt is not covered by short term assets (assets are 0.3x 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: 8STN has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: 8STN has less than a year of cash runway if free cash flow continues to reduce at historical rates of -35.7% each year


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.3%markettop25%3.7%industryaverage1.0%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate 8STN's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 8STN'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 8STN's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 8STN'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 8STN'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?

2.4yrs

Average management tenure


CEO

Henry Ji (55yo)

7.4yrs

Tenure

US$4,502,500

Compensation

Dr. Henry H. Ji, Ph.D. co-founded Sorrento Therapeutics, Inc. (STI) in January 2006 and has been its Chief Executive Officer and President since September 2012 and also has been its Chairman since August 1 ...


CEO Compensation Analysis

Compensation vs Market: Henry's total compensation ($USD4.50M) is above average for companies of similar size in the German market ($USD792.68K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Henry Ji
Co-Founder7.4yrsUS$4.50m2.72% $10.5m
Jiong Shao
Executive VP & CFO1.9yrsUS$3.44mno data
Jerome Zeldis
Chief Medical Officer & President of Clinical Development3.5yrsUS$638.22k0.0062% $24.2k
Deborah Telman
Senior Vice President & General Counsel2.1yrsno datano data
Alexis Nahama
Senior Vice President of Corporate Development2.4yrsno datano data
Bill Farley
Vice President of Sales & Business Development2.4yrsno datano data

2.4yrs

Average Tenure

55yo

Average Age

Experienced Management: 8STN's management team is considered experienced (2.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Henry Ji
Co-Founder7.4yrsUS$4.50m2.72% $10.5m
David Lemus
Independent Director2.4yrsUS$161.43kno data
Robin Smith
Director0.2yrsno data0.012% $48.4k
Jaisim Shah
Independent Director6.4yrsUS$178.00k0.070% $272.4k
Richard Lerner
Chairman of Scientific Advisory Board0yrsno data0.13% $511.7k
Kim Janda
Lead Independent Director0.9yrsUS$180.68k0.0019% $7.2k
Edgar Lee
Director0.2yrsno datano data
Yue Wu
Independent Director3.5yrsUS$178.55k0.0031% $12.1k
Dorman Followwill
Independent Director2.4yrsUS$158.80k0.0013% $5.2k

2.4yrs

Average Tenure

56yo

Average Age

Experienced Board: 8STN's board of directors are not considered experienced ( 2.4 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.


Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 29.7%.


Top Shareholders

Company Information

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


Key Information

  • Name: Sorrento Therapeutics, Inc.
  • Ticker: 8STN
  • Exchange: DB
  • Founded: 2006
  • Industry: Biotechnology
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: US$418.200m
  • Listing Market Cap: US$387.504m
  • Shares outstanding: 160.23m
  • Website: https://www.sorrentotherapeutics.com

Number of Employees


Location

  • Sorrento Therapeutics, Inc.
  • 4955 Directors Place
  • San Diego
  • California
  • 92121
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SRNENasdaqCM (Nasdaq Capital Market)YesCommon StockUSUSDSep 2009
8STNDB (Deutsche Boerse AG)YesCommon StockDEEURSep 2009
0L85LSE (London Stock Exchange)YesCommon StockGBUSDSep 2009

Biography

Sorrento Therapeutics, Inc., a clinical stage biotechnology company, primarily engages in the discovery and development of therapies focused on oncology and the treatment of chronic cancer pain worldwide. The company offers resiniferatoxin, a non-opioid-based TRPV1 agonist neurotoxin for the treatment of intractable pain treatment; and ZTlido, a lidocaine delivery system for the treatment of postherpetic neuralgia. It also develops CD38 Directed chimeric antigen receptor T-cell therapy (CAR-T) for the treatment of multiple myeloma, as well as for amyloidosis and graft-versus-host diseases; carcinoembryonic antigen CAR-T cell therapy for the treatment of liver metastases of pancreatic cancer; and various human antibodies. The company has a cooperation framework agreement with LifeTech Scientific Corporation for the research and development, production, and commercialization of water-soluble cannabidiol and other water-soluble cannabinoids products; and clinical and manufacturing collaboration with Celularity, Inc. to initiate emergency allogeneic natural killer cell therapy development for coronavirus infection. Sorrento Therapeutics, Inc. was founded in 2006 and is based in San Diego, California. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/20 22:19
End of Day Share Price2020/02/20 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.