Liminal BioSciences (DB:PJ2N) - Share price, News & Analysis

PJ2N fundamental analysis
Snowflake Score
Valuation	0/6
Future Growth	1/6
Past Performance	0/6
Financial Health	0/6
Dividends	0/6

PJ2N Stock Overview

Liminal BioSciences Inc., a clinical-stage biopharmaceutical company, focuses on the development of novel small molecule drug therapeutics for inflammatory, fibrotic, and metabolic diseases in Canada and the United Kingdom.

Rewards

Revenue is forecast to grow 6.86% per year

Risk Analysis

Highly volatile share price over the past 3 months

Negative shareholders equity

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

Has less than 1 year of cash runway

+ 2 more risks

Liminal BioSciences Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Liminal BioSciences
Historical stock prices
Current Share Price	€3.21
52 Week High	€0
52 Week Low	€0
Beta	1.41
1 Month Change	-6.14%
3 Month Change	-9.07%
1 Year Change	-84.86%
3 Year Change	-99.03%
5 Year Change	-99.83%
Change since IPO	n/a

Shareholder Returns

	PJ2N	DE Biotechs	DE Market
7D	-3.2%	0.1%	0.3%
1Y	-84.9%	-0.6%	-20.0%

Return vs Industry: PJ2N underperformed the German Biotechs industry which returned -14.8% over the past year.

Return vs Market: PJ2N underperformed the German Market which returned 26.8% over the past year.

Price Volatility

Is PJ2N's price volatile compared to industry and market?
PJ2N volatility
PJ2N Average Weekly Movement	14.1%
Biotechs Industry Average Movement	8.6%
Market Average Movement	5.7%
10% most volatile stocks in DE Market	10.3%
10% least volatile stocks in DE Market	2.8%

Stable Share Price: PJ2N is more volatile than 90% of German stocks over the past 3 months, typically moving +/- 14% a week.

Volatility Over Time: PJ2N's weekly volatility (14%) has been stable over the past year, but is still higher than 75% of German stocks.

About the Company

Founded	Employees	CEO	Website
1994	251	Bruce Pritchard	https://www.liminalbiosciences.com

Liminal BioSciences Inc., a clinical-stage biopharmaceutical company, focuses on discovery, development, and commercialization of novel small molecule drug candidates for the treatment of patients suffering from respiratory fibrotic diseases and other fibrotic or inflammatory diseases that have high unmet medical needs. It operates through two segments, Small Molecule Therapeutics and Plasma-Derived Therapeutics. The Small Molecule Therapeutics segment’s lead product candidate is fezagepras (PBI-4050), which is in Phase 1 for the treatment of idiopathic pulmonary fibrosis and respiratory diseases.

Liminal BioSciences Fundamentals Summary

How do Liminal BioSciences's earnings and revenue compare to its market cap?
PJ2N fundamental statistics
Market Cap	CA$144.06m
Earnings (TTM)	-CA$114.28m
Revenue (TTM)	CA$3.33m

37.0x

P/S Ratio

-1.1x

P/E Ratio

Is PJ2N overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
PJ2N income statement (TTM)
Revenue	CA$3.33m
Cost of Revenue	CA$0
Gross Profit	-CA$48.39m
Other Expenses	CA$65.90m
Earnings	-CA$114.28m

Last Reported Earnings

Mar 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)	-4.38
Gross Margin	-1,455.31%
Net Profit Margin	-3,437.11%
Debt/Equity Ratio	-819.0%

How did PJ2N perform over the long term?

See historical performance and comparison

We’ve recently updated our valuation analysis.

Valuation

Is PJ2N undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

0/6

Valuation Score 0/6

Below Fair Value
Significantly Below Fair Value

Key Valuation Metric

Which metric is best to use when looking at relative valuation for PJ2N?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for PJ2N. This is calculated by dividing PJ2N's market cap by their current preferred multiple.
What is PJ2N's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	CA$144.06m

PJ2N key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	55.7x
Enterprise Value/EBITDA	-2.2x
PEG Ratio	n/a

Price to Book Ratio vs Peers

How does PJ2N's Ratio compare to its peers?

Insufficient data to calculate this valuation analysis check

PJ2N Ratio vs Peers

The above table shows the ratio for PJ2N vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company		Estimated Growth	Market Cap
Peer Average	n/a
PJ2N Liminal BioSciences	n/a	14.9%	€98.1m

Price to Earnings Ratio vs Industry

How does PJ2N's PE Ratio compare vs other companies in the European Biotechs Industry?

Price to Book Ratio vs Fair Ratio

What is PJ2N's Ratio compared to its Fair Ratio? This is the expected Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

PJ2N Ratio vs Fair Ratio.
Fair Ratio
Current Ratio
Fair Ratio	n/a

Share Price vs Fair Value

What is the Fair Price of PJ2N when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: Insufficient data to calculate PJ2N's fair value for valuation analysis.

Significantly Below Fair Value: Insufficient data to calculate PJ2N's fair value to establish if it is undervalued.

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

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Future Growth

How is Liminal BioSciences forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

Future Growth Score

1/6

Future Growth Score 1/6

Earnings vs Savings Rate
Earnings vs Market
Revenue vs Market
High Growth Revenue
Future ROE

14.9%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: PJ2N is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: PJ2N is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: PJ2N's revenue (6.9% per year) is forecast to grow faster than the German market (4.7% per year).

High Growth Revenue: PJ2N's revenue (6.9% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: Insufficient data to determine if PJ2N's Return on Equity is forecast to be high in 3 years time

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Past Performance

How has Liminal BioSciences performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-16.5%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: PJ2N is currently unprofitable.

Growing Profit Margin: PJ2N is currently unprofitable.

Past Earnings Growth Analysis

Earnings Trend: PJ2N is unprofitable, and losses have increased over the past 5 years at a rate of 16.5% per year.

Accelerating Growth: Unable to compare PJ2N's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: PJ2N is unprofitable, making it difficult to compare its past year earnings growth to the Biotechs industry (-12.6%).

Return on Equity

High ROE: PJ2N's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.

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Financial Health

How is Liminal BioSciences's financial position?

Financial Health Score

0/6

Financial Health Score 0/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Stable Cash Runway
Forecast Cash Runway

Financial Position Analysis

Short Term Liabilities: PJ2N has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.

Long Term Liabilities: PJ2N has negative shareholder equity, which is a more serious situation than short term assets not covering long term liabilities.

Debt to Equity History and Analysis

Debt Level: Insufficient data to calculate PJ2N's net debt to equity ratio to determine if it is satisfactory.

Reducing Debt: PJ2N's has negative shareholder equity, so we do not need to check if its debt has reduced over time.

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: PJ2N has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if PJ2N has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.

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Dividend

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

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Cash Flow Coverage

Dividend Yield vs Market

Notable Dividend: Unable to evaluate PJ2N's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate PJ2N's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.

Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if PJ2N's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if PJ2N's dividend payments have been increasing.

Earnings Payout to Shareholders

Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as PJ2N has not reported any payouts.

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Management

How experienced are the management team and are they aligned to shareholders interests?

1.8yrs

Average management tenure

CEO

Bruce Pritchard (47 yo)

0.58yr

Tenure

CA$1,841,985

Compensation

Mr. Bruce Pritchard, BA, CA, FioD, served as Chief Operating Officer of Small Molecule Therapeutics at Liminal BioSciences Inc. until November 2020. Mr. Pritchard served as Chief Operating Officer of Inter...

CEO Compensation Analysis

Compensation vs Market: Bruce's total compensation ($USD1.49M) is above average for companies of similar size in the German market ($USD417.90K).

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

Leadership Team

Experienced Management: PJ2N's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.

Board Members

Experienced Board: PJ2N's board of directors are not considered experienced ( 2.1 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 diluted in the past year, with total shares outstanding growing by 27.9%.

Data	Last Updated (UTC time)
Company Analysis	2021/06/30 00:00
End of Day Share Price	2021/06/30 00:00
Earnings	2021/03/31
Annual Earnings	2020/12/31