DB:AB3A

Stock Analysis Report

Executive Summary

Sarepta Therapeutics, Inc. focuses on the discovery and development of RNA-based therapeutics, gene therapy, and other genetic medicine approaches for the treatment of rare diseases.

Rewards

Trading at 64.6% below its fair value

Earnings are forecast to grow 61.1% per year

Risk Analysis

Highly volatile share price over past 3 months

Shareholders have been diluted in the past year



Snowflake Analysis

Exceptional growth potential with mediocre balance sheet.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: AB3A's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

3.0%

AB3A

-1.0%

DE Biotechs

1.7%

DE Market


1 Year Return

-5.8%

AB3A

6.2%

DE Biotechs

15.0%

DE Market

Return vs Industry: AB3A underperformed the German Biotechs industry which returned 6.2% over the past year.

Return vs Market: AB3A underperformed the German Market which returned 15% over the past year.


Shareholder returns

AB3AIndustryMarket
7 Day3.0%-1.0%1.7%
30 Day-0.4%-2.3%0.8%
90 Day30.6%7.8%3.7%
1 Year-5.8%-5.8%6.4%6.2%18.5%15.0%
3 Year324.2%324.2%49.0%47.3%17.1%6.9%
5 Year766.4%766.4%12.6%10.3%24.3%7.3%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is Sarepta Therapeutics 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: AB3A (€114.56) is trading below our estimate of fair value (€323.27)

Significantly Below Fair Value: AB3A is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: AB3A is unprofitable, so we can't compare its PE Ratio to the Biotechs industry average.

PE vs Market: AB3A 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 AB3A's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: AB3A is overvalued based on its PB Ratio (9.4x) compared to the DE Biotechs industry average (3.5x).


Next Steps

Future Growth

How is Sarepta Therapeutics forecast to perform in the next 1 to 3 years based on estimates from 21 analysts?

61.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AB3A is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (-0.4%).

Earnings vs Market: AB3A is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: AB3A's is expected to become profitable in the next 3 years.

Revenue vs Market: AB3A's revenue (44.4% per year) is forecast to grow faster than the German market (5% per year).

High Growth Revenue: AB3A's revenue (44.4% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: AB3A's Return on Equity is forecast to be very high in 3 years time (45.1%).


Next Steps

Past Performance

How has Sarepta Therapeutics performed over the past 5 years?

-25.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AB3A is currently unprofitable.

Growing Profit Margin: AB3A is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: AB3A is unprofitable, and losses have increased over the past 5 years at a rate of -25% per year.

Accelerating Growth: Unable to compare AB3A's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: AB3A is unprofitable, making it difficult to compare its past year earnings growth to the Biotechs industry (-4.7%).


Return on Equity

High ROE: AB3A has a negative Return on Equity (-62.33%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Sarepta Therapeutics's financial position?


Financial Position Analysis

Short Term Liabilities: AB3A's short term assets ($1.4B) exceed its short term liabilities ($215.9M).

Long Term Liabilities: AB3A's short term assets ($1.4B) exceed its long term liabilities ($491.4M).


Debt to Equity History and Analysis

Debt Level: AB3A's debt to equity ratio (43.9%) is considered high.

Reducing Debt: AB3A's debt to equity ratio has increased from 2.2% to 43.9% over the past 5 years.


Balance Sheet

Inventory Level: AB3A has a low level of unsold assets or inventory.

Debt Coverage by Assets: AB3A's debt is covered by short term assets (assets are 3.1x 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: AB3A has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if AB3A has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.3%markettop25%3.6%industryaverage1.0%forecastin3Years0%

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate AB3A's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate AB3A'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 AB3A's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if AB3A'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 AB3A'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?

1.9yrs

Average management tenure


CEO

Doug Ingram (56yo)

2.7yrs

Tenure

US$1,433,872

Compensation

Mr. Douglas S. Ingram, also known as Doug, J.D., Esq., has been Chief Executive Officer and President of Sarepta Therapeutics, Inc. since June 28, 2017. Mr. Ingram serves as Director of Relay Therapeutics, ...


CEO Compensation Analysis

Compensation vs Market: Doug's total compensation ($USD1.43M) is below average for companies of similar size in the German market ($USD3.37M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Douglas Ingram
President2.7yrsUS$1.43m0.53% $45.7m
Sandesh Mahatme
Executive VP7.3yrsUS$4.22m0.057% $4.9m
David Howton
Executive VP7.3yrsUS$3.13m0.034% $2.9m
Alexander Cumbo
Executive VP & Chief Commercial Officer3.3yrsUS$3.12m0.0071% $614.4k
Gilmore O'Neill
Executive VP of R&D and Chief Medical Officer1.7yrsUS$6.67m0.0099% $853.4k
William Ciambrone
Executive Vice President of Technical Operations0.3yrsno datano data
Ian Estepan
Senior VP of Corporate Affairs & Chief of Staff2.1yrsno datano data
Diane Berry
Senior Vice President of Global Health Policy and Government & Patient Affairs0.4yrsno datano data
Joan Nickerson
Senior Vice President of Human Resources0.4yrsno datano data
Louise Rodino-Klapac
Senior Vice President of Gene Therapy0.9yrsno datano data

1.9yrs

Average Tenure

54yo

Average Age

Experienced Management: AB3A's management team is not considered experienced ( 1.9 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Douglas Ingram
President2.7yrsUS$1.43m0.53% $45.7m
Michael Bonney
Independent Director2.2yrsUS$445.25k0.0073% $627.4k
M. Behrens
Chairwoman4.8yrsUS$502.15k0.18% $15.5m
Hans Wigzell
Chairman of Corporate Strategy Board & Non-Employee Director0yrsUS$467.02k0.014% $1.2m
Richard Barry
Non-Employee Director4.7yrsUS$477.35k4.27% $368.8m
Beverly Davidson
Member of Strategic & Scientific Advisory Board4.5yrsno datano data
Louis Kunkel
Member of Strategic & Scientific Advisory Board4.5yrsno datano data
Claude Nicaise
Non-Employee Director4.7yrsUS$464.51k0.0073% $627.4k
Kenneth Fischbeck
Member of Strategic & Scientific Advisory Board2.9yrsno datano data
Matthew Wood
Member of Strategic & Scientific Advisory Board2.9yrsno datano data

4.5yrs

Average Tenure

63.5yo

Average Age

Experienced Board: AB3A's board of directors are considered experienced (4.5 years average tenure).


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 diluted in the past year, with total shares outstanding growing by 10.9%.


Top Shareholders

Company Information

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


Key Information

  • Name: Sarepta Therapeutics, Inc.
  • Ticker: AB3A
  • Exchange: DB
  • Founded: 1980
  • Industry: Biotechnology
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: US$9.349b
  • Listing Market Cap: US$8.629b
  • Shares outstanding: 74.54m
  • Website: https://www.sarepta.com

Number of Employees


Location

  • Sarepta Therapeutics, Inc.
  • 215 First Street
  • Suite 415
  • Cambridge
  • Massachusetts
  • 2142
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SRPTNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDJun 1997
AB3ADB (Deutsche Boerse AG)YesCommon StockDEEURJun 1997
0L35LSE (London Stock Exchange)YesCommon StockGBUSDJun 1997

Biography

Sarepta Therapeutics, Inc. focuses on the discovery and development of RNA-based therapeutics, gene therapy, and other genetic medicine approaches for the treatment of rare diseases. The company offers EXONDYS 51, a disease-modifying therapy for duchenne muscular dystrophy (DMD). Its products pipeline include Golodirsen, a product candidate that binds to exon 53 of dystrophin pre-mRNA, which results in exclusion or skipping of exon during mRNA processing in patients with genetic mutations; and Casimersen, a product candidate that uses phosphorodiamidate morpholino oligomer (PMO) chemistry and exon-skipping technology to skip exon 45 of the DMD gene. In addition, the company’s pipeline comprise SRP-5051, a peptide conjugated PMO that binds to exon 51 of dystrophin pre-mRNA. It has collaboration agreements with Nationwide Children’s Hospital to advance micro-dystrophin gene therapy program under the research and license option agreement; Galgt2, a gene therapy program for the treatment of DMD; and Neutrophin 3, a gene therapy program to treat Charcot-Marie-Tooth neuropathies. The company also has a license agreement with Lysogene to develop LYS-SAF302, a gene therapy for mucopolysaccharidosis IIIA; a license and option agreement with Lacerta to develop treatments for CNS-targeted and lysosomal storage diseases; and research collaboration and option agreement with Genethon to develop micro-dystrophin gene therapy products. In addition, it has a research agreement with Duke University to advance gene editing CRISPR/Cas9 technology for restoring dystrophin expression; a collaboration agreement with Summit (Oxford) Ltd. to commercialize products in Summit’s utrophin modulator pipeline; a strategic collaboration with Paragon Bioservices; and a strategic collaboration with CENTOGENE for the identification of patients with DMD in the Middle East and North Africa region. Sarepta Therapeutics, Inc. was founded in 1980 and is headquartered in Cambridge, Massachusetts. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/17 21:44
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.