DB:GXE

Stock Analysis Report

Executive Summary

Galapagos NV, a clinical-stage biotechnology company, discovers, develops, and commercializes various small molecule medicines.


Snowflake Analysis

Flawless balance sheet with moderate growth potential.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

9.7%

GXE

5.1%

DE Biotechs

-2.7%

DE Market


1 Year Return

56.9%

GXE

-10.6%

DE Biotechs

-20.4%

DE Market

Return vs Industry: GXE exceeded the German Biotechs industry which returned -10.6% over the past year.

Return vs Market: GXE exceeded the German Market which returned -20.4% over the past year.


Shareholder returns

GXEIndustryMarket
7 Day9.7%5.1%-2.7%
30 Day-10.8%-5.4%-18.4%
90 Day-9.6%-22.4%-26.7%
1 Year56.9%56.9%-10.4%-10.6%-18.1%-20.4%
3 Year108.0%108.0%16.0%14.8%-19.1%-25.9%
5 Year650.0%650.0%-6.3%-8.8%-19.5%-30.4%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is Galapagos 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: GXE (€169.95) is trading below our estimate of fair value (€465.32)

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


Price To Earnings Ratio

PE vs Industry: GXE is poor value based on its PE Ratio (66.7x) compared to the Biotechs industry average (39.4x).

PE vs Market: GXE is poor value based on its PE Ratio (66.7x) compared to the German market (16.2x).


Price to Earnings Growth Ratio

PEG Ratio: GXE is poor value based on its PEG Ratio (4.3x)


Price to Book Ratio

PB vs Industry: GXE is overvalued based on its PB Ratio (3.9x) compared to the DE Biotechs industry average (3.5x).


Next Steps

Future Growth

How is Galapagos forecast to perform in the next 1 to 3 years based on estimates from 17 analysts?

15.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GXE's forecast earnings growth (15.5% per year) is above the savings rate (-0.4%).

Earnings vs Market: GXE's earnings (15.5% per year) are forecast to grow faster than the German market (14.3% per year).

High Growth Earnings: GXE's earnings are forecast to grow, but not significantly.

Revenue vs Market: GXE's revenue (9.8% per year) is forecast to grow faster than the German market (4% per year).

High Growth Revenue: GXE's revenue (9.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: GXE's Return on Equity is forecast to be low in 3 years time (3.8%).


Next Steps

Past Performance

How has Galapagos performed over the past 5 years?

29.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GXE has a large one-off loss of €179.4M impacting its December 31 2019 financial results.

Growing Profit Margin: GXE became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: GXE has become profitable over the past 5 years, growing earnings by 29.8% per year.

Accelerating Growth: GXE has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: GXE has become profitable in the last year, making it difficult to compare its past year earnings growth to the Biotechs industry (16.1%).


Return on Equity

High ROE: GXE's Return on Equity (5.2%) is considered low.


Next Steps

Financial Health

How is Galapagos's financial position?


Financial Position Analysis

Short Term Liabilities: GXE's short term assets (€5.9B) exceed its short term liabilities (€571.8M).

Long Term Liabilities: GXE's short term assets (€5.9B) exceed its long term liabilities (€2.6B).


Debt to Equity History and Analysis

Debt Level: GXE is debt free.

Reducing Debt: GXE had no debt 5 years ago.


Balance Sheet

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

Debt Coverage by Assets: Insufficient data to determine if GXE'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: GXE is profitable, therefore cash runway is not a concern.

Forecast Cash Runway: GXE is profitable, therefore cash runway is not a concern.


Next Steps

Dividend

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


Dividend Yield vs Market

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

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

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

6.0yrs

Average management tenure


CEO

Onno van de Stolpe (60yo)

21.25s

Tenure

€1,480,627

Compensation

Mr. Onno van de Stolpe co-founded Galapagos NV in 1999 and has been Chief Executive Officer and Managing Director since 1999. Mr. van de Stolpe served as the Managing Director Genomics at IntroGene BV. He  ...


CEO Compensation Analysis

Compensation vs Market: Onno's total compensation ($USD1.62M) is below average for companies of similar size in the German market ($USD5.21M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Onno van de Stolpe
Co-Founder21.25yrs€1.48m0.74% 83.0m
Bart Filius
CFO & COO5.33yrsno data0.015% 1.7m
Piet Wigerinck
Chief Scientific Officer8.25yrsno data0.066% 7.5m
Elizabeth Goodwin
Vice President of Investor Relationsno datano datano data
Carmen Vroonen
Senior Director of Communications & Public Affairsno datano datano data
Andre Hoekema
Chief Business Officer2.58yrsno data0.034% 3.9m
John Montana
Managing Director of Argenta6.67yrsno datano data
Walid Abi-Saab
Chief Medical Officer3.08yrsno datano data
Chantal Tasset
Head of Developmentno datano datano data
Ellen Aar
Head of Developmentno datano datano data

6.0yrs

Average Tenure

55yo

Average Age

Experienced Management: GXE's management team is seasoned and experienced (6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Onno van de Stolpe
Co-Founder21.25yrs€1.48m0.74% 83.0m
Rajesh Parekh
Non-Executive Chairman16.25yrs€90.00k0.023% 2.6m
Katrine Bosley
Independent Non-Executive Director7.08yrs€45.00kno data
Mary Kerr
Independent Non-Executive Director3.75yrs€43.75kno data
Howard Rowe
Independent Non-Executive Director9.58yrs€52.50kno data
Linda Higgins
Non-Independent Director0.50yrno datano data
Daniel P. O'Day
Non-Independent Director0.50yrno datano data
Peter Guenter
Director1yrno datano data

5.4yrs

Average Tenure

57yo

Average Age

Experienced Board: GXE's board of directors are considered experienced (5.4 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.


Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 10.6%.


Top Shareholders

Company Information

Galapagos NV's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Galapagos NV
  • Ticker: GXE
  • Exchange: DB
  • Founded: 1999
  • Industry: Biotechnology
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: €11.246b
  • Shares outstanding: 64.82m
  • Website: https://www.glpg.com

Number of Employees


Location

  • Galapagos NV
  • Generaal De Wittelaan L11 A3
  • Mechelen
  • Antwerp
  • 2800
  • Belgium

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
GLPGENXTAM (Euronext Amsterdam)YesOrdinary SharesNLEURMay 2005
GXEDB (Deutsche Boerse AG)YesOrdinary SharesDEEURMay 2005
0JXZLSE (London Stock Exchange)YesOrdinary SharesGBEURMay 2005
GLPG.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDMay 2005
GLPGABATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBEURMay 2005
GLPGWBAG (Wiener Boerse AG)YesOrdinary SharesATEURMay 2005
GXEETLX (Eurotlx)YesOrdinary SharesITEURMay 2005
GLPGNasdaqGS (Nasdaq Global Select)SPON ADR REPR 1 ORD SHSUSUSDMay 2008
GXEADB (Deutsche Boerse AG)SPON ADR REPR 1 ORD SHSDEEURMay 2008

Biography

Galapagos NV, a clinical-stage biotechnology company, discovers, develops, and commercializes various small molecule medicines. The company’s clinical stage programs include filgotinib, which is in Phase III clinical trials for the treatment of rheumatoid arthritis, Crohn’s disease, and ulcerative colitis; Phase II trials for small bowel CD, fistulizing CD, Sjögren’s syndrome, ankylosing spondylitis, psoriatic arthritis, cutaneous lupus erythematosus, lupus membranous nephropathy, and uveitis. Its clinical stage programs also comprise GLPG1690I, an autotaxin inhibitor that is in ISABELA I and II trials for idiopathic pulmonary fibrosis (IPF), and NOVESA Phase II proof of concept trial for systemic sclerosis; and GLPG1205, a GPR84 inhibitor, which is in the PINTA Phase II proof of concept trial for treating IPF. In addition, the company engages in the development of GLPG1972, which is in the ROCCELLA Phase II trial in osteoarthritis patients; MOR106 that is in Phase I and II trials in atopic dermatitis patients; and GLPG3312, a Toledo molecule, which is in Phase I clinical development for various indications. Galapagos NV has collaboration agreement with Servier for GLPG1972; Les Laboratoires Servier for GLPG1972; MorphoSys AG and Novartis Pharma AG for MOR106; AbbVie for the discovery, development, and commercialization of potentiator and corrector molecules for the treatment of cystic fibrosis; and Evotec for fibrosis, as well as a drug discovery research collaboration agreement with HitGen to identify small molecule leads. The company was founded in 1999 and is headquartered in Mechelen, Belgium. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/01 22:38
End of Day Share Price2020/04/01 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.