Molecular Templates, Inc., a clinical stage oncology company, focuses on the discovery and development of biologic therapeutics for the treatment of cancer and other diseases.
The last earnings update was 23 days ago.
Discounted Cash Flow Calculation for DB:NZW2 using 2 Stage Free Cash Flow to Equity Model
The calculations below outline how an intrinsic value for
is arrived at by discounting future cash flows to their present value using the 2 stage method.
We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.
DB:NZW2 DCF 1st Stage: Next 10 year cash flow forecast
Amount off the current price
is available for.
Share price is
vs Future cash flow value of
Current Discount Checks
to be considered undervalued it must be available for at least 20% below the
current price. Less than 40% is even better.
Molecular Templates's share price is below the future cash flow value, and at a moderate discount (> 20%).
Molecular Templates's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for
it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing
when they are out of season, or how much your home is worth.
The amount the stock market is willing to pay for
is considered below, and whether this is a fair price.
Price based on past earnings
Molecular Templates's earnings available for a low price, and how does
this compare to other companies in the same industry?
Molecular Templates is not considered high growth as it is expected to be loss making for the next 1-3 years.
Molecular Templates's revenue is expected to grow significantly at over 20% yearly.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can
be gauged below. We look back 3 years and see if they were any good at
predicting what actually occurred. We also show the highest and lowest estimates
looking forward to see if there is a wide range.
Molecular Templates's performance over the past 5 years by checking for:
Has earnings increased in past 5 years? (1 check)
Has the earnings growth in the last year exceeded that of the
industry? (1 check)
Is the recent earnings growth over the last year higher than the average annual growth over the
past 5 years? (1 check)
Is the Return on Equity (ROE) higher than 20%? (1 check)
Is the Return on Assets (ROA) above industry average? (1 check)
Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent
earnings report. Some checks require at least 3 or 5 years worth of data.
has a total score of
0/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
A company's financial position is much like your own financial position,
it includes everything you own
The boxes below represent the relative size of what makes up
Molecular Templates's finances.
The net worth of a company is the difference between its assets and liabilities.
Molecular Templates is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
Molecular Templates's cash and other short term assets cover its long term commitments.
This treemap shows a more detailed breakdown of
Molecular Templates's finances. If any of them are yellow this
indicates they may be out of proportion and red means they relate to one of the
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
Low level of unsold assets.
Debt is covered by short term assets, assets are 32.2x debt.
Nearly all companies have debt. Debt in itself isn’t
however if the debt is too high, or the company can’t afford to pay the interest
on its debts this may have impacts in the future.
The graphic below shows equity (available funds) and debt, we ideally want to
see the red area (debt) decreasing.
If there is any debt we look at the companies capability to repay it, and
whether the level has increased over the past 5 years.
Management is one of the most important areas of a company. We look at
unreasonable CEO compensation, how long the team and board of directors have
been around for and insider trading.
TENURE AS CEO
Dr. Eric E. Poma, Ph.D., is the Chief Executive Officer and Chief Scientific Officer of Molecular Templates, Inc. since 2009 and served as it's President. Dr. Poma served as Vice President of Business Development and Secretary at CytRx Oncology Corporation (formerly Innovive Pharmaceuticals, Inc.). Dr. Poma served as Assistant Vice President for Business Development of ImClone Systems, Inc. from June 2001 to March 2005, where he was responsible for all licensing and partnership agreements. He also ran the Strategic Planning group at ImClone before his appointment to Business Development. Prior to ImClone, he was a Healthcare and Biotechnology analyst for Eagle Growth Investors from july 2000 to June 2001. He serves as a Director at Molecular Templates, Inc. He held a variety of positions at Bates Healthworld (marketing and contract sales), Rood Research (market research) and Cline, Davis & Mann (pharmaceutical advertising). He holds a PhD in Microbiology and Immunology from the University of North Carolina at Chapel Hill, School of Medicine. He holds an MBA from the Leonard N. Stern School of Business at New York University and a Bachelor of Science in biology from the University of North Carolina at Chapel Hill.
Eric's compensation has increased whilst company is loss making.
Insufficient data for Eric to establish whether their remuneration is reasonable compared to companies of similar size in Germany.
Management Team Tenure
Average tenure and age of the
management team in years:
The average tenure for the Molecular Templates management team is less than 2 years, this suggests a new team.
CEO, Chief Scientific Officer & Director
President & COO
Chief Financial Officer
Executive Vice President of Corporate Development
Executive VP of Operations & Head of Manufacturing
Executive Vice President of R&D
Executive Vice President of Manufacturing
Senior Vice President of Clinical Development
Senior Vice President of Finance & Corporate Controller
Chief Medical Officer
Board of Directors Tenure
Average tenure and age of the
board of directors in years:
The average tenure for the Molecular Templates board of directors is less than 3 years, this suggests a new board.
Molecular Templates, Inc., a clinical stage oncology company, focuses on the discovery and development of biologic therapeutics for the treatment of cancer and other diseases. The company primarily develops a pipeline of engineered toxin bodies. Its lead drug candidate is MT-3724 that is in a Phase II clinical trial for the treatment of relapsed/refractory diffuse large B-cell lymphoma; and Phase II clinical trial for treating non-Hodgkin’s lymphoma. The company also develops MT-4019, engineered toxin body targeting CD38; and TAK-169 targeting CD38. It has an agreement with Takeda Pharmaceutical Company Limited to develop CD38-targeted engineered toxin bodies for the treatment of patients with diseases, such as multiple myeloma. Molecular Templates, Inc. is headquartered in Austin, Texas.
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