DB:QSOA

Stock Analysis Report

Executive Summary

Surface Oncology, Inc., a clinical-stage immuno-oncology company, engages in the development of cancer therapies.


Snowflake Analysis

Excellent balance sheet and overvalued.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

9.3%

QSOA

5.1%

DE Biotechs

-2.7%

DE Market


1 Year Return

-61.4%

QSOA

-10.6%

DE Biotechs

-20.4%

DE Market

Return vs Industry: QSOA underperformed the German Biotechs industry which returned -10.6% over the past year.

Return vs Market: QSOA underperformed the German Market which returned -20.4% over the past year.


Shareholder returns

QSOAIndustryMarket
7 Day9.3%5.1%-2.7%
30 Day-45.4%-5.4%-18.4%
90 Day-0.6%-22.4%-26.7%
1 Year-61.4%-61.4%-10.4%-10.6%-18.1%-20.4%
3 Yearn/a16.0%14.8%-19.1%-25.9%
5 Yearn/a-6.3%-8.8%-19.5%-30.4%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is Surface Oncology undervalued compared to its fair value and its price relative to the market?

0.87x

Price to Book (PB) ratio


Share Price vs. Fair Value

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

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


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: QSOA is good value based on its PB Ratio (0.9x) compared to the DE Biotechs industry average (3.5x).


Next Steps

Future Growth

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

-14.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

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

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

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

Revenue vs Market: QSOA's revenue (9.5% per year) is forecast to grow faster than the German market (4% per year).

High Growth Revenue: QSOA's revenue (9.5% 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 QSOA's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Surface Oncology performed over the past 5 years?

-729.1%

Last years earnings growth


Earnings and Revenue History

Quality Earnings: QSOA is currently unprofitable.

Growing Profit Margin: QSOA is currently unprofitable.


Past Earnings Growth Analysis

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

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

Earnings vs Industry: QSOA is unprofitable, making it difficult to compare its past year earnings growth to the Biotechs industry (16.1%).


Return on Equity

High ROE: QSOA has a negative Return on Equity (-96.69%), as it is currently unprofitable.


Next Steps

Financial Health

How is Surface Oncology's financial position?


Financial Position Analysis

Short Term Liabilities: QSOA's short term assets ($107.9M) exceed its short term liabilities ($19.3M).

Long Term Liabilities: QSOA's short term assets ($107.9M) exceed its long term liabilities ($55.8M).


Debt to Equity History and Analysis

Debt Level: QSOA's debt to equity ratio (9%) is considered satisfactory.

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


Balance Sheet

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

Debt Coverage by Assets: QSOA's debt is covered by short term assets (assets are 21.1x 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: QSOA has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: QSOA has sufficient cash runway for 2 years if free cash flow continues to reduce at historical rates of -99.4% each year.


Next Steps

Dividend

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


Dividend Yield vs Market

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

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

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

1.8yrs

Average management tenure


CEO

Jeff Goater (44yo)

2.17s

Tenure

US$4,735,765

Compensation

Mr. J. Jeffrey Goater, also known as Jeff, M.S., M.B.A, CFA has been the Chief Executive Officer and Director of Surface Oncology, Inc. since February 12, 2018 and is its President. Mr. Goater served as th ...


CEO Compensation Analysis

Compensation vs Market: Jeff's total compensation ($USD4.74M) is above average for companies of similar size in the German market ($USD427.28K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Daniel Lynch
Executive Chairman3.33yrsUS$1.01mno data
J. Goater
CEO, President & Director2.17yrsUS$4.74m0.93% $445.8k
Vito Palombella
Chief Scientific Officer4.25yrsUS$978.55kno data
Robert Ross
Chief Medical Officer3.5yrsUS$879.98k0.089% $42.5k
Jessica Fees
Senior VP of Finance & Treasurer1.33yrsno data0.18% $86.6k
Liisa Nogelo
Secretaryno datano datano data
Lisa McGrath
Vice President of Human Resourcesno datano datano data
Wendy Dwyer
Chief Business Officer1yrno data0.30% $144.6k
Bob Steininger
Senior Vice President of Chemistryno datano datano data
Alison O'Neill
Senior Vice President of Clinical Development0.17yrno datano data

1.8yrs

Average Tenure

46yo

Average Age

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


Board Members

NamePositionTenureCompensationOwnership
Daniel Lynch
Executive Chairman3.33yrsUS$1.01mno data
J. Goater
CEO, President & Director2.17yrsUS$4.74m0.93% $445.8k
David Grayzel
Director6yrsUS$199.01kno data
Armen Shanafelt
Independent Director5.42yrsUS$204.96kno data
Cameron McDonough
Independent Director2.17yrsUS$382.09kno data
Laurie Stelzer
Independent Director2.17yrsUS$361.38kno data
F. Hodi
Member of Scientific Advisory Boardno datano datano data
Elliott Sigal
Member of Scientific Advisory Board & Director2.17yrsUS$412.33k0.16% $77.3k
Christopher Hunter
Member of Scientific Advisory Board1.25yrsno datano data
Carla Rothlin
Member of Scientific Advisory Board1.25yrsno datano data

2.2yrs

Average Tenure

51yo

Average Age

Experienced Board: QSOA's board of directors are not considered experienced ( 2.2 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: QSOA 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 39.3%.


Top Shareholders

Company Information

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


Key Information

  • Name: Surface Oncology, Inc.
  • Ticker: QSOA
  • Exchange: DB
  • Founded: 2014
  • Industry: Biotechnology
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: US$52.474m
  • Listing Market Cap: US$47.752m
  • Shares outstanding: 28.06m
  • Website: https://www.surfaceoncology.com

Number of Employees


Location

  • Surface Oncology, Inc.
  • 50 Hampshire Street
  • 8th Floor
  • Cambridge
  • Massachusetts
  • 2139
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SURFNasdaqGM (Nasdaq Global Market)YesCommon StockUSUSDApr 2018
QSOADB (Deutsche Boerse AG)YesCommon StockDEEURApr 2018

Biography

Surface Oncology, Inc., a clinical-stage immuno-oncology company, engages in the development of cancer therapies. The company develops human immunoglobulin isotype G4 monoclonal antibodies, including SRF231 inhibiting CD47; NZV930 inhibiting CD73; SRF617 inhibiting CD39; and SRF388 targeting interleukin 27. It also develops various earlier stage programs that targets other critical components of the tumor microenvironment, including regulatory T cells and natural killer cells. The company has a strategic collaboration agreement with Novartis Institutes for Biomedical Research, Inc. for the development of cancer therapies. Surface Oncology, Inc. was founded in 2014 and is headquartered in Cambridge, Massachusetts. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/01 23:52
End of Day Share Price2020/04/01 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.