DB:HVE

Stock Analysis Report

Executive Summary

Innoviva, Inc. engages in the development and commercialization of pharmaceuticals.


Snowflake Analysis

Excellent balance sheet and good value.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: HVE has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-4.3%

HVE

-4.3%

DE Pharmaceuticals

-4.7%

DE Market


1 Year Return

-3.2%

HVE

13.9%

DE Pharmaceuticals

8.3%

DE Market

Return vs Industry: HVE underperformed the German Pharmaceuticals industry which returned 13.9% over the past year.

Return vs Market: HVE underperformed the German Market which returned 8.3% over the past year.


Shareholder returns

HVEIndustryMarket
7 Day-4.3%-4.3%-4.7%
30 Day2.3%-2.9%-4.0%
90 Day14.7%6.4%-1.4%
1 Year-3.2%-3.2%17.8%13.9%11.7%8.3%
3 Year20.6%20.6%37.1%21.5%11.4%1.6%
5 Year-19.6%-22.9%34.4%11.5%15.1%-0.7%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is Innoviva 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: HVE (€13.6) is trading below our estimate of fair value (€42.29)

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


Price To Earnings Ratio

PE vs Industry: HVE is good value based on its PE Ratio (9.7x) compared to the Pharmaceuticals industry average (24x).

PE vs Market: HVE is good value based on its PE Ratio (9.7x) compared to the German market (20.7x).


Price to Earnings Growth Ratio

PEG Ratio: HVE is poor value based on its PEG Ratio (4x)


Price to Book Ratio

PB vs Industry: HVE is overvalued based on its PB Ratio (4.9x) compared to the DE Pharmaceuticals industry average (2.2x).


Next Steps

Future Growth

How is Innoviva forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

2.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HVE's forecast earnings growth (2.4% per year) is above the savings rate (-0.4%).

Earnings vs Market: HVE's earnings (2.4% per year) are forecast to grow slower than the German market (13% per year).

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

Revenue vs Market: HVE's revenue is expected to decline over the next 3 years (-9.3% per year).

High Growth Revenue: HVE's revenue is forecast to decline over the next 3 years (-9.3% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: HVE's Return on Equity is forecast to be low in 3 years time (16.6%).


Next Steps

Past Performance

How has Innoviva performed over the past 5 years?

63.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HVE has high quality earnings.

Growing Profit Margin: HVE's current net profit margins (60.3%) are lower than last year .


Past Earnings Growth Analysis

Earnings Trend: HVE has become profitable over the past 5 years, growing earnings by 63.6% per year.

Accelerating Growth: HVE's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: HVE had negative earnings growth (-60.2%) over the past year, making it difficult to compare to the Pharmaceuticals industry average (-1.3%).


Return on Equity

High ROE: Whilst HVE's Return on Equity (55.83%) is outstanding, this metric is skewed due to their high level of debt.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Innoviva's financial position?


Financial Position Analysis

Short Term Liabilities: HVE's short term assets ($431.2M) exceed its short term liabilities ($5.4M).

Long Term Liabilities: HVE's short term assets ($431.2M) exceed its long term liabilities ($377.3M).


Debt to Equity History and Analysis

Debt Level: HVE's debt to equity ratio (110.2%) is considered high.

Reducing Debt: HVE had negative shareholder equity 5 years ago, but is now positive and has therefore improved.

Debt Coverage: HVE's debt is well covered by operating cash flow (68.3%).

Interest Coverage: HVE's interest payments on its debt are well covered by EBIT (18.8x coverage).


Balance Sheet

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

Debt Coverage by Assets: HVE's debt is covered by short term assets (assets are 1.1x debt).


Next Steps

Dividend

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


Dividend Yield vs Market

company0%marketbottom25%1.4%markettop25%3.7%industryaverage2.9%forecastin3Years0%

Current dividend yield vs market & industry

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

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

Growing Dividend: Insufficient data to determine if HVE's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: HVE is not paying a notable dividend for the German market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of HVE'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?

2.0yrs

Average board tenure


CEO

Geoff Hulme (52yo)

1.8yrs

Tenure

US$419,645

Compensation

Mr. Geoffrey Hulme, also known as Geoff, has been Interim Principal Executive Officer of Innoviva Inc. since May 21, 2018. Prior to joining Innoviva, Mr. Hulme served as the owner and manager of Steel Vall ...


CEO Compensation Analysis

Compensation vs Market: Geoff's total compensation ($USD419.65K) is below average for companies of similar size in the German market ($USD1.62M).

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


Board Members

NamePositionTenureCompensationOwnership
Jules Haimovitz
Independent Director2yrsUS$453.83k0.036% $490.8k
George Bickerstaff
Independent Director2.2yrsUS$302.08k0.053% $713.8k
Odysseas Kostas
Independent Chairman of the Board0yrsUS$307.07k0.028% $381.9k
Sarah Schlesinger
Independent Director2yrsUS$446.96k0.024% $328.9k
Mark DiPaolo
Independent Director2yrsUS$441.81k0.024% $328.9k

2.0yrs

Average Tenure

59yo

Average Age

Experienced Board: HVE's board of directors are not considered experienced ( 2 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 not been meaningfully diluted in the past year.


Top Shareholders

Company Information

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


Key Information

  • Name: Innoviva, Inc.
  • Ticker: HVE
  • Exchange: DB
  • Founded: 1996
  • Industry: Pharmaceuticals
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: US$1.463b
  • Listing Market Cap: US$1.345b
  • Shares outstanding: 101.30m
  • Website: https://www.inva.com

Number of Employees


Location

  • Innoviva, Inc.
  • 1350 Old Bayshore Highway
  • Suite 400
  • Burlingame
  • California
  • 94010
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
INVANasdaqGS (Nasdaq Global Select)YesCommon SharesUSUSDOct 2004
HVEDB (Deutsche Boerse AG)YesCommon SharesDEEUROct 2004

Biography

Innoviva, Inc. engages in the development and commercialization of pharmaceuticals. The company has long-acting beta2 agonist (LABA) collaboration agreement with Glaxo Group Limited to develop and commercialize once-daily products for the treatment of chronic obstructive pulmonary disease and asthma. Its products include RELVAR/BREO ELLIPTA, a once-daily combination medicine consisting of a LABA, vilanterol (VI), an inhaled corticosteroid (ICS), and fluticasone furoate; ANORO ELLIPTA, a once-daily medicine combining a long-acting muscarinic antagonist (LAMA), umeclidinium bromide (UMEC), with a LABA, and VI; and TRELEGY ELLIPTA, a once-daily combination medicine consisting of an ICS, LAMA, and LABA. The company was formerly known as Theravance, Inc. and changed its name to Innoviva, Inc. in January 2016. Innoviva, Inc. was incorporated in 1996 and is headquartered in Burlingame, California. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/25 22:12
End of Day Share Price2020/02/25 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.