DB:AQL

Stock Analysis Report

Executive Summary

ArQule, Inc., a biopharmaceutical company, researches and develops therapeutics for the treatment of cancer and rare diseases in the United States.

Rewards

Trading at 66.6% below its fair value

Revenue is forecast to grow 58.32% per year

Risk Analysis

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

Highly volatile share price over past 3 months

Shareholders have been diluted in the past year

Does not have meaningful revenue ($5M)



Snowflake Analysis

Adequate balance sheet and slightly overvalued.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-1.3%

AQL

1.0%

DE Biotechs

2.0%

DE Market


1 Year Return

439.2%

AQL

6.8%

DE Biotechs

15.1%

DE Market

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

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


Shareholder returns

AQLIndustryMarket
7 Day-1.3%1.0%2.0%
30 Day-0.9%-1.2%1.0%
90 Day108.1%7.4%3.8%
1 Year439.2%439.2%7.1%6.8%18.6%15.1%
3 Year1142.3%1142.3%48.3%46.6%16.8%6.6%
5 Year1767.4%1767.4%11.4%9.0%23.7%6.7%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is ArQule 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: AQL (€17.92) is trading below our estimate of fair value (€53.62)

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


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: AQL is overvalued based on its PB Ratio (15.8x) compared to the DE Biotechs industry average (3.4x).


Next Steps

Future Growth

How is ArQule forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

48.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

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

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

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

Revenue vs Market: AQL's revenue (58.3% per year) is forecast to grow faster than the German market (4.8% per year).

High Growth Revenue: AQL's revenue (58.3% 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 AQL's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has ArQule performed over the past 5 years?

-7.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AQL is currently unprofitable.

Growing Profit Margin: AQL is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: AQL is unprofitable, and losses have increased over the past 5 years at a rate of -7.5% per year.

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

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


Return on Equity

High ROE: AQL has a negative Return on Equity (-25.2%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is ArQule's financial position?


Financial Position Analysis

Short Term Liabilities: AQL's short term assets ($128.0M) exceed its short term liabilities ($15.5M).

Long Term Liabilities: AQL's short term assets ($128.0M) exceed its long term liabilities ($11.7M).


Debt to Equity History and Analysis

Debt Level: AQL's debt to equity ratio (9.5%) is considered satisfactory.

Reducing Debt: AQL's debt to equity ratio has increased from 3.9% to 9.5% over the past 5 years.


Balance Sheet

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

Debt Coverage by Assets: AQL's debt is covered by short term assets (assets are 8.8x 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: AQL has sufficient cash runway for more than 3 years based on its current free cash flow.

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


Next Steps

Dividend

What is ArQule'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 AQL's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

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

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

8.4yrs

Average management tenure


CEO

Paolo Pucci (58yo)

11.6yrs

Tenure

US$1,744,527

Compensation

Mr. Paolo Pucci has been Chief Executive Officer of ArQule Inc. since June 2008. Prior to joining ArQule in 2008, Mr. Pucci served as the President of Global Specialty Business Unit and Senior Vice Preside ...


CEO Compensation Analysis

Compensation vs Market: Paolo's total compensation ($USD1.74M) is about average for companies of similar size in the German market ($USD2.07M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Paolo Pucci
CEO & Director11.6yrsUS$1.74m1.02% $22.2m
Peter Lawrence
President11.8yrsUS$1.17m0.26% $5.7m
Brian Schwartz
Chief Medical Officer & Senior VP11.5yrsUS$1.06m0.24% $5.2m
Marc Schegerin
CFO, Head of Strategy & Treasurer0.8yrsno data0.018% $400.7k
Blaine Schamber
Principal Accounting Officer0.8yrsno data0.046% $992.9k
Deb Wall
Senior Manager of Human Resources5.3yrsno datano data

8.4yrs

Average Tenure

57yo

Average Age

Experienced Management: AQL's management team is seasoned and experienced (8.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Paolo Pucci
CEO & Director11.6yrsUS$1.74m1.02% $22.2m
Timothy Barabe
Independent Director18.2yrsUS$92.44k0.12% $2.6m
Daniel Von Hoff
Member of Scientific Advisory Board15.5yrsno datano data
Werner Cautreels
Member of Scientific Advisory Board0yrsUS$8.00kno data
Patrick Zenner
Independent Chairman15.7yrsUS$110.49k0.10% $2.2m
Chiang Li
Chairman of Scientific Advisory Board13yrsUS$805.69kno data
Alfred Goldberg
Member of Scientific Advisory Board0yrsno datano data
Robert Weinberg
Member of Scientific Advisory Board0yrsno datano data
Arthur Pardee
Member of Scientific Advisory Board0yrsno datano data
William Messenger
Independent Director15yrsUS$97.44k0.017% $359.4k

15.3yrs

Average Tenure

66.5yo

Average Age

Experienced Board: AQL's board of directors are seasoned and experienced ( 15.3 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 20.4%.


Top Shareholders

Company Information

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


Key Information

  • Name: ArQule, Inc.
  • Ticker: AQL
  • Exchange: DB
  • Founded: 1993
  • Industry: Biotechnology
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: US$2.417b
  • Listing Market Cap: US$2.172b
  • Shares outstanding: 120.87m
  • Website: https://www.arqule.com

Number of Employees


Location

  • ArQule, Inc.
  • One Wall Street
  • Burlington
  • Massachusetts
  • 1803
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ARQLNasdaqGM (Nasdaq Global Market)YesCommon SharesUSUSDOct 1996
AQLDB (Deutsche Boerse AG)YesCommon SharesDEEUROct 1996
AQLXTRA (XETRA Trading Platform)YesCommon SharesDEEUROct 1996

Biography

ArQule, Inc., a biopharmaceutical company, researches and develops therapeutics for the treatment of cancer and rare diseases in the United States. The company’s pipeline includes ARQ 531, an orally bioavailable, potent and reversible dual inhibitor of wild type and C481S-mutant Bruton’s tyrosine kinase that is in Phase I trial for patients with B-cell malignancies refractory to other therapeutic options; and miransertib (ARQ 092), a potent and selective inhibitor of the protein kinase B (AKT), a serine/threonine kinase, which is in Phase Ib in combination with the hormonal therapy and anastrozole in patients with advanced endometrial cancer. Its pipeline also comprises ARQ 75, a potent and selective inhibitor of AKT that is in Phase I clinical development for solid tumors harboring AKT, phosphoinositide 3-kinase or phosphatase, and tensin homolog loss mutations. In addition, the company’s pipeline includes Derazantinib (ARQ 087), a multi-kinase inhibitor designed to preferentially inhibit the fibroblast growth factor receptor (FGFR) family of kinases that is in a registrational clinical trial in intrahepatic cholangiocarcinoma in patients with FGFR2 fusions. ArQule, Inc. has license agreements with Basilea Pharmaceutica Limited and Roivant Sciences Ltd. The company was founded in 1993 and is headquartered in Burlington, Massachusetts. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/01/16 20:34
End of Day Share Price2020/01/15 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.