DB:AVU

Stock Analysis Report

Executive Summary

Adverum Biotechnologies, Inc., a clinical-stage gene therapy company, engages in developing gene therapy product candidates to treat ocular and rare diseases.

Snowflake

Flawless balance sheet with limited growth.

Rewards

Revenue is forecast to grow by 73% next year

Earnings grew by 14.7% over the past year

Risk Analysis

Earnings are forecast to decline by an average of -10.5% per year for the next 3 years

High level of non-cash earnings

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

Highly volatile share price over past 3 months

+ 3 more risks

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

0.6%

AVU

-2.3%

DE Biotechs

0.03%

DE Market


1 Year Return

146.2%

AVU

-6.9%

DE Biotechs

9.9%

DE Market

Return vs Industry: AVU exceeded the German Biotechs industry which returned -6.9% over the past year.

Return vs Market: AVU exceeded the German Market which returned 9.9% over the past year.


Shareholder returns

AVUIndustryMarket
7 Day0.6%-2.3%0.03%
30 Day32.0%-3.1%4.4%
90 Day-29.4%-9.6%13.6%
1 Year146.2%146.2%-6.7%-6.9%13.4%9.9%
3 Year146.3%146.3%52.7%50.8%25.6%14.6%
5 Year-69.5%-69.5%5.0%2.7%36.9%18.2%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is Adverum Biotechnologies undervalued compared to its fair value and its price relative to the market?

3.69x

Price to Book (PB) ratio


Share Price vs. Fair Value

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

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


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: AVU is overvalued based on its PB Ratio (3.7x) compared to the DE Biotechs industry average (3.1x).


Next Steps

Future Growth

How is Adverum Biotechnologies forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

-10.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

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

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

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

Revenue vs Market: AVU's revenue (78.7% per year) is forecast to grow faster than the German market (4.8% per year).

High Growth Revenue: AVU's revenue (78.7% 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 AVU's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Adverum Biotechnologies performed over the past 5 years?

-9.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AVU has a high level of non-cash earnings.

Growing Profit Margin: AVU's current net profit margins (-19131.3%) are lower than last year (-3582.5%).


Past Earnings Growth Analysis

Earnings Trend: AVU is unprofitable, and losses have increased over the past 5 years at a rate of -9.9% per year.

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

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


Return on Equity

High ROE: AVU has a negative Return on Equity (-37.28%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Adverum Biotechnologies's financial position?


Financial Position Analysis

Short Term Liabilities: AVU's short term assets ($167.6M) exceeds its short term liabilities ($17.7M)

Long Term Liabilities: AVU's short term assets (167.6M) exceeds its long term liabilities (23.6M)


Debt to Equity History and Analysis

Debt Level: AVU is debt free.

Reducing Debt: AVU had no debt 5 years ago.


Balance Sheet

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

Debt Coverage by Assets: Insufficient data to determine if AVU's debt is covered by short term assets.


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: AVU has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: AVU has sufficient cash runway for 2.295062 years if free cash flow continues to reduce at historical rates of -14.4% each year.


Next Steps

Dividend

What is Adverum Biotechnologies's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.3%markettop25%3.7%industryaverage1.1%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

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

Growing Dividend: Insufficient data to determine if AVU'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 AVU'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 Adverum Biotechnologies's salary, the management and board of directors tenure and is there insider trading?

0.4yrs

Average management tenure


CEO

Leone Patterson (56yo)

1.5yrs

Tenure

US$2,510,555

Compensation

Ms. Leone D. Patterson serves as the Chief Executive Officer and Director of Adverum Biotechnologies, Inc. since October 12, 2018. Ms. Patterson was Chief Financial Officer at Adverum Biotechnologies, Inc. ...


CEO Compensation Analysis

Compensation vs Market: Leone's total compensation ($USD2.51M) is above average for companies of similar size in the German market ($USD1.18M).

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


Management Age and Tenure

0.4yrs

Average Tenure

52yo

Average Age

Experienced Management: AVU's management team is not considered experienced ( 0.4 years average tenure), which suggests a new team.


Board Age and Tenure

0.5yrs

Average Tenure

55yo

Average Age

Experienced Board: AVU's board of directors are not considered experienced ( 0.5 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$119,84106 May 19
James Scopa
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares20,000
Max PriceUS$5.99
BuyUS$1,492,33403 May 19
The Sonic Fund II, L.P.
EntityCompany
Shares300,000
Max PriceUS$5.19
BuyUS$7,114,40321 Mar 19
The Sonic Fund II, L.P.
EntityCompany
Shares1,418,449
Max PriceUS$5.02

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 11.2%.


Management Team

  • Leone Patterson (56yo)

    CEO & Director

    • Tenure: 1.5yrs
    • Compensation: US$2.51m
  • Amber Salzman (57yo)

    Consultant

    • Tenure: 1.5yrs
    • Compensation: US$2.71m
  • Mehdi Gasmi (52yo)

    Consultant & Director

    • Tenure: 0.2yrs
    • Compensation: US$1.80m
  • Peter Soparkar

    Chief Legal Officer

    • Tenure: 0.08yrs
  • Myesha Lacy

    Vice President of Investor Relations & Corporate Communications

    • Tenure: 0.3yrs
  • Aaron Osborne (45yo)

    Chief Medical Officer

    • Tenure: 0.6yrs
  • Thomas Leung (38yo)

    Chief Financial Officer

    • Tenure: 0.6yrs
  • Dena House

    Vice President of Human Resources

    • Tenure: 0.3yrs

Board Members

  • Tom Woiwode (47yo)

    Independent Director

    • Tenure: 3.5yrs
    • Compensation: US$203.07k
  • Leone Patterson (56yo)

    CEO & Director

    • Tenure: 1.5yrs
    • Compensation: US$2.51m
  • Jim Scopa (60yo)

    Independent Director

    • Tenure: 0.5yrs
  • Pat Machado (55yo)

    Chairman

    • Tenure: 0.5yrs
    • Compensation: US$257.80k
  • Richard Spivey (69yo)

    Independent Director

    • Tenure: 2.6yrs
    • Compensation: US$223.07k
  • Mehdi Gasmi (52yo)

    Consultant & Director

    • Tenure: 0.2yrs
    • Compensation: US$1.80m
  • Eric Carter (67yo)

    Independent Director

    • Tenure: 2.2yrs
    • Compensation: US$200.57k
  • Mark Lupher (48yo)

    Independent Director

    • Tenure: 0.5yrs
  • Rekha Hemrajani (50yo)

    Independent Director

    • Tenure: 0.5yrs

Company Information

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


Key Information

  • Name: Adverum Biotechnologies, Inc.
  • Ticker: AVU
  • Exchange: DB
  • Founded: 2006
  • Industry: Biotechnology
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: US$605.190m
  • Listing Market Cap: US$547.818m
  • Shares outstanding: 64.59m
  • Website: https://www.adverum.com

Number of Employees


Location

  • Adverum Biotechnologies, Inc.
  • 1035 O’Brien Drive
  • Suite A
  • Menlo Park
  • California
  • 94025
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ADVMNasdaqGM (Nasdaq Global Market)YesCommon StockUSUSDAug 2014
AVUDB (Deutsche Boerse AG)YesCommon StockDEEURAug 2014
0HA3LSE (London Stock Exchange)YesCommon StockGBUSDAug 2014

Biography

Adverum Biotechnologies, Inc., a clinical-stage gene therapy company, engages in developing gene therapy product candidates to treat ocular and rare diseases. Its pipeline of product candidates includes AD ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/16 21:25
End of Day Share Price2019/11/15 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.