DB:PBS

Stock Analysis Report

Executive Summary

Precision BioSciences, Inc. operates as a genome editing company and develops therapeutic products in the United States.


Snowflake Analysis

Flawless balance sheet with limited growth.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-4.8%

PBS

5.2%

DE Biotechs

4.3%

DE Market


1 Year Return

-62.1%

PBS

-7.4%

DE Biotechs

-14.2%

DE Market

Return vs Industry: PBS underperformed the German Biotechs industry which returned -7.4% over the past year.

Return vs Market: PBS underperformed the German Market which returned -14.2% over the past year.


Shareholder returns

PBSIndustryMarket
7 Day-4.8%5.2%4.3%
30 Day-24.8%-3.3%-9.0%
90 Day-63.2%-20.3%-21.6%
1 Year-62.1%-62.1%-7.2%-7.4%-11.7%-14.2%
3 Yearn/a20.8%19.5%-12.3%-19.6%
5 Yearn/a-7.0%-9.4%-14.0%-25.6%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is Precision BioSciences undervalued compared to its fair value and its price relative to the market?

2.07x

Price to Book (PB) ratio


Share Price vs. Fair Value

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

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


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: PBS is good value based on its PB Ratio (2.1x) compared to the DE Biotechs industry average (3.4x).


Next Steps

Future Growth

How is Precision BioSciences forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

14.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

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

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

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

Revenue vs Market: PBS's revenue (37.2% per year) is forecast to grow faster than the German market (3.9% per year).

High Growth Revenue: PBS's revenue (37.2% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: PBS is forecast to be unprofitable in 3 years.


Next Steps

Past Performance

How has Precision BioSciences performed over the past 5 years?

-101.7%

Last years earnings growth


Earnings and Revenue History

Quality Earnings: PBS is currently unprofitable.

Growing Profit Margin: PBS is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: Insufficient data to determine if PBS's year-on-year earnings growth rate was positive over the past 5 years.

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

Earnings vs Industry: PBS is unprofitable, making it difficult to compare its past year earnings growth to the Biotechs industry (14.9%).


Return on Equity

High ROE: PBS has a negative Return on Equity (-67.15%), as it is currently unprofitable.


Next Steps

Financial Health

How is Precision BioSciences's financial position?


Financial Position Analysis

Short Term Liabilities: PBS's short term assets ($193.7M) exceed its short term liabilities ($26.9M).

Long Term Liabilities: PBS's short term assets ($193.7M) exceed its long term liabilities ($70.0M).


Debt to Equity History and Analysis

Debt Level: PBS is debt free.

Reducing Debt: PBS had no debt 5 years ago.


Balance Sheet


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

Forecast Cash Runway: PBS has sufficient cash runway for 1.4 years if free cash flow continues to reduce at historical rates of -79.5% each year.


Next Steps

Dividend

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


Dividend Yield vs Market

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

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

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

0.9yrs

Average management tenure


CEO

Matt Kane (42yo)

14.25s

Tenure

US$2,166,460

Compensation

Mr. Matthew R. Kane, also known as Matt, co-founded Precision BioSciences, Inc. and has been its President, Chief Executive Officer and director since inception in 2006. Mr. Kane has a wealth of life sci ...


CEO Compensation Analysis

Compensation vs Market: Matt's total compensation ($USD2.17M) is above average for companies of similar size in the German market ($USD746.46K).

Compensation vs Earnings: Matt's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
Matthew Kane
Co-Founder14.25yrsUS$2.17m3.55% $9.4m
Dario Scimeca
General Counsel & Secretary0.83yrUS$1.71m0.0040% $10.7k
Christopher Heery
Chief Medical Officer0.92yrUS$2.18m0.0048% $12.8k
Jefferson Smith
Co-Founder & CTOno datano data7.48% $19.9m
Abid Ansari
Chief Financial Officer1.17yrsUS$1.42m0.24% $640.2k
David Thomson
Chief Operating Officer0.58yrUS$1.86m0.23% $605.4k
Derek Jantz
Co-Founder14.25yrsno data7.5% $19.9m
Nicholas Riddle
Vice President of Financial Strategy & Investor Relations0.58yrno datano data
Bruce Stevens
Vice President of Quality & Compliance0.25yrno datano data
Heather King
Director of Marketing Communications & PRno datano datano data

0.9yrs

Average Tenure

42.5yo

Average Age

Experienced Management: PBS's management team is not considered experienced ( 0.9 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Matthew Kane
Co-Founder14.25yrsUS$2.17m3.55% $9.4m
Derek Jantz
Co-Founder14.25yrsno data7.5% $19.9m
Paul Billings
Member of Advisory Boardno datano datano data
Raymond Schinazi
Member of Scientific Advisory Board & Independent Director1.08yrsUS$326.28kno data
Kevin Buehler
Independent Chairman0.083yrUS$361.96kno data
Shalini Sharp
Independent Director1.33yrsUS$55.18kno data
Jon Stonehouse
Member of Advisory Boardno datano datano data
M. Zirakparvar
Member of Advisory Boardno datano datano data
Ralph Dewey
Member of Advisory Boardno datano datano data
June Medford
Member of Advisory Boardno datano datano data

1.3yrs

Average Tenure

59.5yo

Average Age

Experienced Board: PBS's board of directors are not considered experienced ( 1.3 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 been substantially diluted in the past year, with total shares outstanding growing by 166.2%.


Top Shareholders

Company Information

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


Key Information

  • Name: Precision BioSciences, Inc.
  • Ticker: PBS
  • Exchange: DB
  • Founded: 2006
  • Industry: Biotechnology
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: US$287.409m
  • Listing Market Cap: US$265.767m
  • Shares outstanding: 51.41m
  • Website: https://www.precisionbiosciences.com

Number of Employees


Location

  • Precision BioSciences, Inc.
  • Dibrell Building
  • Suite A-100
  • Durham
  • North Carolina
  • 27701
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
DTILNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDMar 2019
PBSDB (Deutsche Boerse AG)YesCommon StockDEEURMar 2019

Biography

Precision BioSciences, Inc. operates as a genome editing company and develops therapeutic products in the United States. It operates through two segments, Therapeutic and Food. The company offers ARCUS, a genome editing platform to cure cancers and genetic disorders. The Therapeutic segment develops allogeneic CAR T immunotherapy that recognizes and kills cancer cells; and engages in the in vivo gene correction activities. This segment develops PBCAR0191, is an allogeneic CAR T cell therapy targeting the tumor target CD19 for acute lymphoblastic leukemia and non-hodgkin lymphoma; and CD20, BCMA, and CLL-1, CAR T cell therapies targeting the tumor antigens. The Food segment develops food and nutrition products; and pre-breeding materials, a gene edited crop intermediate that could be integrated into breeding program and use in producing new crop varieties. The company has development and commercial license agreement with Shire Plc for research and development of individual T cell modifications; collaboration agreement with Gilead Sciences, Inc. to co-develop a product candidate to cure chronic Hepatitis B infection. Precision BioSciences, Inc. was founded in 2006 and is headquartered in Durham, North Carolina. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/08 02:32
End of Day Share Price2020/04/07 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.