DB:9IP1

Stock Analysis Report

Executive Summary

Rocket Pharmaceuticals, Inc., together with its subsidiaries, operates as a multi-platform biotechnology company that focuses on developing gene therapies for rare and devastating pediatric diseases.

Rewards

Trading at 81.2% below its fair value

Risk Analysis

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

Excellent balance sheet and slightly overvalued.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 9IP1's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

4.8%

9IP1

1.0%

DE Biotechs

2.0%

DE Market


1 Year Return

62.8%

9IP1

6.8%

DE Biotechs

15.1%

DE Market

Return vs Industry: 9IP1 exceeded the German Biotechs industry which returned 6.2% over the past year.

Return vs Market: 9IP1 exceeded the German Market which returned 15% over the past year.


Shareholder returns

9IP1IndustryMarket
7 Day4.8%1.0%2.0%
30 Day16.0%-1.2%1.0%
90 Day66.4%7.4%3.8%
1 Year62.8%62.8%7.1%6.8%18.6%15.1%
3 Yearn/a48.3%46.6%16.8%6.6%
5 Yearn/a11.4%9.0%23.7%6.7%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is Rocket Pharmaceuticals 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: 9IP1 (€21.8) is trading below our estimate of fair value (€115.87)

Significantly Below Fair Value: 9IP1 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 9IP1 is unprofitable, so we can't compare its PE Ratio to the Biotechs industry average.

PE vs Market: 9IP1 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 9IP1's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 9IP1 is overvalued based on its PB Ratio (5.2x) compared to the DE Biotechs industry average (3.5x).


Next Steps

Future Growth

How is Rocket Pharmaceuticals forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

20.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 9IP1 is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: 9IP1 is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: 9IP1 is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: Insufficient data to determine if 9IP1's revenue is forecast to grow faster than the German market.

High Growth Revenue: Insufficient data to determine if 9IP1's revenue 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 9IP1's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Rocket Pharmaceuticals performed over the past 5 years?

-65.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 9IP1 is currently unprofitable.

Growing Profit Margin: 9IP1 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: 9IP1 is unprofitable, and losses have increased over the past 5 years at a rate of -65.9% per year.

Accelerating Growth: Unable to compare 9IP1's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 9IP1 is unprofitable, making it difficult to compare its past year earnings growth to the Biotechs industry (-4.7%).


Return on Equity

High ROE: 9IP1 has a negative Return on Equity (-36.54%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Rocket Pharmaceuticals's financial position?


Financial Position Analysis

Short Term Liabilities: 9IP1's short term assets ($245.6M) exceed its short term liabilities ($22.2M).

Long Term Liabilities: 9IP1's short term assets ($245.6M) exceed its long term liabilities ($45.8M).


Debt to Equity History and Analysis

Debt Level: 9IP1's debt to equity ratio (19%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if 9IP1's debt to equity ratio has reduced over the past 5 years.


Balance Sheet

Inventory Level: 9IP1 has a low level of unsold assets or inventory.

Debt Coverage by Assets: 9IP1's debt is covered by short term assets (assets are 5.6x 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: 9IP1 has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: 9IP1 has sufficient cash runway for 2.3 years if free cash flow continues to reduce at historical rates of -72.3% each year.


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.3%markettop25%3.6%industryaverage1.0%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate 9IP1's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 9IP1'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 9IP1's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 9IP1'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 9IP1'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?

2.1yrs

Average management tenure


CEO

Gaurav Shah (44yo)

2.1yrs

Tenure

US$6,375,752

Compensation

Mr. Gaurav Shah, M.D. serves as the Chief Executive Officer, President and Director of Rocket Pharmaceuticals, Ltd since January 2018. 


CEO Compensation Analysis

Compensation vs Market: Gaurav's total compensation ($USD6.38M) is above average for companies of similar size in the German market ($USD1.49M).

Compensation vs Earnings: Insufficient data to compare Gaurav's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
Gaurav Shah
CEO, President & Director2.1yrsUS$6.38m1.27% $15.2m
Kinnari Patel
COO & Executive VP of Development2.1yrsUS$2.99m0.22% $2.6m
Jonathan Schwartz
Chief Medical Officer & Senior VP of Clinical Development2.1yrsUS$1.36mno data
Kamran Alam
Senior VP of Finance & Principal Financial Officer0.3yrsno datano data
John Militello
Senior Controller2.1yrsno datano data
Claudine Prowse
Senior Vice President of Corporate Development & Strategy and IRO0yrsno datano data
Raj Prabhakar
Senior Vice President of Business Development & Operations0yrsno datano data

2.1yrs

Average Tenure

45yo

Average Age

Experienced Management: 9IP1's management team is considered experienced (2.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Gaurav Shah
CEO, President & Director2.1yrsUS$6.38m1.27% $15.2m
David Southwell
Director5.5yrsUS$2.74m0.18% $2.1m
Pedro Granadillo
Independent Director2.1yrsUS$608.85kno data
Carsten Boess
Independent Director4.1yrsUS$731.01kno data
Roderick Wong
Chairman2.1yrsUS$649.74kno data
Naveen Yalamanchi
Independent Director2.1yrsUS$600.44k0.21% $2.5m
Gotham Makker
Independent Director2.1yrsUS$598.59kno data

2.1yrs

Average Tenure

44yo

Average Age

Experienced Board: 9IP1's board of directors are not considered experienced ( 2.1 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 52.2%.


Top Shareholders

Company Information

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


Key Information

  • Name: Rocket Pharmaceuticals, Inc.
  • Ticker: 9IP1
  • Exchange: DB
  • Founded:
  • Industry: Biotechnology
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: US$1.301b
  • Listing Market Cap: US$1.201b
  • Shares outstanding: 54.17m
  • Website: https://www.rocketpharma.com

Number of Employees


Location

  • Rocket Pharmaceuticals, Inc.
  • The Empire State Building
  • Suite 7530
  • New York
  • New York
  • 10118
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
RCKTNasdaqGM (Nasdaq Global Market)YesCommon StockUSUSDJan 2018
9IP1DB (Deutsche Boerse AG)YesCommon StockDEEURJan 2018

Biography

Rocket Pharmaceuticals, Inc., together with its subsidiaries, operates as a multi-platform biotechnology company that focuses on developing gene therapies for rare and devastating pediatric diseases. It has clinical-stage lentiviral vector (LVV) programs under clinical testing to treat fanconi anemia, a genetic defect in the bone marrow that reduces production of blood cells or promotes the production of faulty blood cells; and leukocyte adhesion deficiency-I, a genetic disorder that causes the immune system to malfunction It also has additional pre-clinical stage LVV programs include pyruvate kinase deficiency, a rare red blood cell autosomal recessive disorder that results in chronic non-spherocytic hemolytic anemia; and infantile malignant osteopetrosis, a genetic disorder characterized by increased bone density and bone mass secondary to impaired bone resorption. In addition, the company has an adeno-associated virus program for Danon disease, a multi-organ lysosomal-associated disorder leading to early death due to heart failure. It has license agreements with Fred Hutchinson Cancer Research Center; Centro de Investigaciones Energéticas, Medioambientales y Tecnológicas (CIEMAT), Centro de Investigacion Biomedica En Red, and Fundacion Instituto de investigacion Sanitaria Fundacion Jimenez Diaz; CIEMAT and UCL Business PLC; The Regents of the University of California; and REGENXBIO Inc. The company also has a research and collaboration agreement with Lund University; and strategic collaboration agreement with Stanford University School of Medicine. Rocket Pharmaceuticals, Inc. is headquartered in New York, New York. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/17 22:45
End of Day Share Price2020/02/17 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.