DB:NJTC

Stock Analysis Report

Executive Summary

PolarityTE, Inc., a biotechnology and regenerative biomaterials company, focuses on discovering, designing, and developing a range of regenerative tissue products and biomaterials for the fields of medicine, biomedical engineering, and material sciences in the United States.

Rewards

Trading at 97.3% below its fair value

Revenue is forecast to grow 55.52% per year

Risk Analysis

Has less than 1 year of cash runway

Shareholders have been substantially diluted in the past year

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

Highly volatile share price over past 3 months

+ 1 more risk


Snowflake Analysis

Fair value with mediocre balance sheet.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-2.6%

NJTC

0.4%

DE Biotechs

0.2%

DE Market


1 Year Return

-87.7%

NJTC

9.0%

DE Biotechs

14.4%

DE Market

Return vs Industry: NJTC underperformed the German Biotechs industry which returned 9% over the past year.

Return vs Market: NJTC underperformed the German Market which returned 14.4% over the past year.


Shareholder returns

NJTCIndustryMarket
7 Day-2.6%0.4%0.2%
30 Day-58.7%-2.1%0.9%
90 Day-47.9%8.0%4.6%
1 Year-87.7%-87.7%9.2%9.0%17.9%14.4%
3 Year-81.1%-81.1%45.5%43.9%15.7%5.6%
5 Year-65.1%-75.6%12.8%10.5%23.4%6.5%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is PolarityTE 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: NJTC (€1.47) is trading below our estimate of fair value (€53.92)

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


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: NJTC is good value based on its PB Ratio (0.8x) compared to the DE Biotechs industry average (3.6x).


Next Steps

Future Growth

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

35.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

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

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

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

Revenue vs Market: NJTC's revenue (55.5% per year) is forecast to grow faster than the German market (5% per year).

High Growth Revenue: NJTC's revenue (55.5% 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 NJTC's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has PolarityTE performed over the past 5 years?

-45.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NJTC is currently unprofitable.

Growing Profit Margin: NJTC is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: NJTC is unprofitable, and losses have increased over the past 5 years at a rate of -45% per year.

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

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


Return on Equity

High ROE: NJTC has a negative Return on Equity (-258.63%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is PolarityTE's financial position?


Financial Position Analysis

Short Term Liabilities: NJTC's short term assets ($49.2M) exceed its short term liabilities ($13.5M).

Long Term Liabilities: NJTC's short term assets ($49.2M) exceed its long term liabilities ($5.4M).


Debt to Equity History and Analysis

Debt Level: NJTC's debt to equity ratio (1.5%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if NJTC's debt to equity ratio has reduced over the past 5 years.


Balance Sheet

Inventory Level: NJTC has a high level of physical assets or inventory.

Debt Coverage by Assets: NJTC's debt is covered by short term assets (assets are 62.7x 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: NJTC has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: NJTC has less than a year of cash runway if free cash flow continues to reduce at historical rates of -51.6% each year


Next Steps

Dividend

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

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

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

1.6yrs

Average management tenure


CEO

PolarityTE has no CEO, or we have no data on them.


Leadership Team

NamePositionTenureCompensationOwnership
David Seaburg
President & Member of Office of Chief Executive0.5yrsUS$7.50k1.19% $687.3k
Edward Swanson
Chief Translational Medicine Officer & Co-Founder0yrsUS$400.00k0.13% $77.8k
Paul Mann
Chief Financial Officer1.6yrsUS$400.00k1.58% $909.8k
Richard Hague
Chief Operating Officer0.8yrsno data1.06% $610.8k
Nikolai Sopko
Chief Scientific Officer and VP of R&D1.6yrsno datano data
Rich Haerle
Vice President of Investor Relations & Strategy1.8yrsno datano data
Cameron Hoyler
General Counsel and Executive VP of Corporate Development & Strategy2.8yrsno data1.17% $676.7k
Alain Adam
Vice President of Sales1.6yrsno datano data
Stephen Milner
Chief Clinical Officer & Member of Clinical Advisory Board3.2yrsno datano data
Jennifer Burdman
Chief Intellectual Property Officer & Deputy General Counsel2.5yrsno datano data

1.6yrs

Average Tenure

46yo

Average Age

Experienced Management: NJTC's management team is not considered experienced ( 1.6 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Stephen Milner
Chief Clinical Officer & Member of Clinical Advisory Board3.2yrsno datano data
Peter Cohen
Independent Chairman of the Board0.4yrsUS$157.88k0.33% $191.8k
Michael Callahan
Member of Clinical Advisory board0yrsno datano data
Jon Mogford
Independent Director3yrsUS$148.01k0.066% $38.4k
Michael Grant
Member of Clinical Advisory Board3.2yrsno datano data
Anand Kumar
Member of Clinical Advisory Board3.2yrsno datano data
Jeffry Dyer
Independent Director2.9yrsUS$159.05k0.17% $97.4k
Anthony Tufaro
Member of Clinical Advisory Board0yrsno datano data
Trinity Bivalacqua
Member of Clinical Advisory Board0yrsno datano data
Shannath Merbs
Member of Clinical Advisory Board0yrsno datano data

3.1yrs

Average Tenure

65yo

Average Age

Experienced Board: NJTC's board of directors are considered experienced (3.1 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: NJTC insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been substantially diluted in the past year, with total shares outstanding growing by 94.2%.


Top Shareholders

Company Information

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


Key Information

  • Name: PolarityTE, Inc.
  • Ticker: NJTC
  • Exchange: DB
  • Founded:
  • Industry: Biotechnology
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: US$62.333m
  • Listing Market Cap: US$57.757m
  • Shares outstanding: 38.60m
  • Website: https://www.polarityte.com

Number of Employees


Location

  • PolarityTE, Inc.
  • 123 North Wright Brothers Drive
  • Salt Lake City
  • Utah
  • 84116
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PTENasdaqCM (Nasdaq Capital Market)YesCommon StockUSUSDDec 2003
NJTCDB (Deutsche Boerse AG)YesCommon StockDEEURDec 2003

Biography

PolarityTE, Inc., a biotechnology and regenerative biomaterials company, focuses on discovering, designing, and developing a range of regenerative tissue products and biomaterials for the fields of medicine, biomedical engineering, and material sciences in the United States. The company operates in two segments, Regenerative Medicine and Contract Services. It offers SkinTE, a tissue product for treatment of defects of the skin, as well as contract research services. The company also develops OsteoTE, an autologous homologous bone regeneration product; and CartTE, an autologous cartilage regeneration product. In addition, it develops AdipoTE to optimize the delivery of autologous fat; AngioTE for vascular regeneration; NeuralTE for peripheral nerve injuries of the extremities, as well as for patients with neuromas or chronic compression due to joint replacements, migraines, craniofacial injuries, carpal tunnel syndrome, and those who have undergone hernia or abdominal-based procedures; UroTE for the delivery of autologous urogenital epithelium and submucosa; LiverTE to address various causes of liver failure; and BowelTE to deliver an optimized autologous construct to aid in the regeneration of bowel tissue. PolarityTE, Inc. is headquartered in Salt Lake City, Utah. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/20 21:04
End of Day Share Price2020/02/20 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.