DB:RN3N

Stock Analysis Report

Executive Summary

Arena Pharmaceuticals, Inc., a biopharmaceutical company, focuses on providing novel medicines with pharmacology and pharmacokinetics to patients worldwide.


Snowflake Analysis

Flawless balance sheet with proven track record.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: RN3N has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

1.6%

RN3N

-2.3%

DE Biotechs

-0.2%

DE Market


1 Year Return

16.0%

RN3N

8.4%

DE Biotechs

13.7%

DE Market

Return vs Industry: RN3N exceeded the German Biotechs industry which returned 9% over the past year.

Return vs Market: RN3N exceeded the German Market which returned 14.4% over the past year.


Shareholder returns

RN3NIndustryMarket
7 Day1.6%-2.3%-0.2%
30 Day19.0%-3.2%0.3%
90 Day18.5%6.3%3.7%
1 Year16.0%16.0%8.6%8.4%17.2%13.7%
3 Year272.0%272.0%44.5%42.9%15.4%5.3%
5 Year22.9%22.9%13.0%10.6%21.3%4.7%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is Arena Pharmaceuticals undervalued compared to its fair value and its price relative to the market?

4.83x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate RN3N's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate RN3N's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: RN3N is good value based on its PE Ratio (4.8x) compared to the Biotechs industry average (39.4x).

PE vs Market: RN3N is good value based on its PE Ratio (4.8x) compared to the German market (20.7x).


Price to Earnings Growth Ratio

PEG Ratio: RN3N's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: RN3N is good value based on its PB Ratio (2.4x) compared to the DE Biotechs industry average (3.6x).


Next Steps

Future Growth

How is Arena Pharmaceuticals forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

-24.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RN3N's earnings are forecast to decline over the next 3 years (-24.4% per year).

Earnings vs Market: RN3N's earnings are forecast to decline over the next 3 years (-24.4% per year).

High Growth Earnings: RN3N's earnings are forecast to decline over the next 3 years.

Revenue vs Market: RN3N's revenue is expected to decline over the next 3 years (-23.9% per year).

High Growth Revenue: RN3N's revenue is forecast to decline over the next 3 years (-23.9% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: RN3N is forecast to be unprofitable in 3 years.


Next Steps

Past Performance

How has Arena Pharmaceuticals performed over the past 5 years?

63.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RN3N has high quality earnings.

Growing Profit Margin: RN3N became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: RN3N has become profitable over the past 5 years, growing earnings by 63.9% per year.

Accelerating Growth: RN3N has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: RN3N has become profitable in the last year, making it difficult to compare its past year earnings growth to the Biotechs industry (-4.7%).


Return on Equity

High ROE: RN3N's Return on Equity (48.4%) is considered outstanding.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Arena Pharmaceuticals's financial position?


Financial Position Analysis

Short Term Liabilities: RN3N's short term assets ($806.4M) exceed its short term liabilities ($36.8M).

Long Term Liabilities: RN3N's short term assets ($806.4M) exceed its long term liabilities ($59.0M).


Debt to Equity History and Analysis

Debt Level: RN3N is debt free.

Reducing Debt: RN3N has not had any debt for past 5 years.

Debt Coverage: RN3N has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: RN3N has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: RN3N has a low level of unsold assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if RN3N's debt is covered by short term assets.


Next Steps

Dividend

What is Arena Pharmaceuticals's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.3%markettop25%3.7%industryaverage1.0%forecastin3Years0%

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate RN3N's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate RN3N'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 RN3N's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if RN3N'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 RN3N'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?

2.6yrs

Average management tenure


CEO

Amit Munshi (51yo)

3.8yrs

Tenure

US$6,863,445

Compensation

Mr. Amit D. Munshi has been the Chief Executive Officer and President of Arena Pharmaceuticals, Inc. since May 11, 2016. Mr. Munshi serves as Non-Executive Chairman of Enterprise Therapeutics Ltd since Mar ...


CEO Compensation Analysis

Compensation vs Market: Amit's total compensation ($USD6.86M) is above average for companies of similar size in the German market ($USD2.18M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Amit Munshi
President3.8yrsUS$6.86m0.015% $387.4k
Kevin Lind
Executive VP & CFO3.7yrsUS$3.06m0.0069% $172.8k
Steven Spector
Executive VP18.3yrsUS$3.11m0.019% $473.1k
Vincent Aurentz
Executive VP & Chief Business Officer3.5yrsUS$3.16mno data
Preston Klassen
Executive VP and Head of Research & Development2.9yrsUS$3.08m0.0080% $199.3k
Douglas Bakan
Executive Vice President of Technical Operations1.8yrsno datano data
Suzanne Zoumaras
Executive VP & Chief Human Resources Officer1.5yrsno datano data
Christopher Cabell
Senior VP & Chief Medical Officer2.3yrsno datano data
Robert Lisicki
Executive VP & Chief Commercial Officer1.3yrsno datano data
Paul Audhya
Senior Vice President of Medical Affairs1.3yrsno datano data

2.6yrs

Average Tenure

51yo

Average Age

Experienced Management: RN3N's management team is considered experienced (2.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Amit Munshi
President3.8yrsUS$6.86m0.015% $387.4k
Randall Woods
Independent Director12.2yrsUS$351.61k0.023% $578.5k
Kieran Gallahue
Independent Director1.6yrsUS$412.63k0.0072% $181.3k
Tina Nova Bennett
Chair of the Board3.7yrsUS$361.36k0.023% $573.5k
Oliver Fetzer
Independent Director3yrsUS$340.57k0.0030% $76.1k
Garry Neil
Independent Director3yrsUS$335.33k0.0061% $152.5k
Manmeet Soni
Independent Director1.2yrsUS$262.30k0.0024% $60.9k
Jayson Donald Dallas
Independent Director3yrsUS$345.57k0.0030% $76.1k
Jennifer Jarrett
Independent Director2.7yrsUS$345.82k0.0061% $152.5k

3.0yrs

Average Tenure

55yo

Average Age

Experienced Board: RN3N's board of directors are considered experienced (3 years average tenure).


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 19.1%.


Top Shareholders

Company Information

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


Key Information

  • Name: Arena Pharmaceuticals, Inc.
  • Ticker: RN3N
  • Exchange: DB
  • Founded: 1997
  • Industry: Biotechnology
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: US$2.703b
  • Listing Market Cap: US$2.504b
  • Shares outstanding: 50.11m
  • Website: https://www.arenapharm.com

Number of Employees


Location

  • Arena Pharmaceuticals, Inc.
  • 6154 Nancy Ridge Drive
  • San Diego
  • California
  • 92121
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ARNANasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDJul 2000
RN3NDB (Deutsche Boerse AG)YesCommon StockDEEURJul 2000
0S54LSE (London Stock Exchange)YesCommon StockGBUSDJul 2000
ARNA *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNJul 2000

Biography

Arena Pharmaceuticals, Inc., a biopharmaceutical company, focuses on providing novel medicines with pharmacology and pharmacokinetics to patients worldwide. Its investigational clinical programs include ralinepag (APD811), which is in Phase III trial to treat pulmonary arterial hypertension; etrasimod (APD334) for ulcerative colitis, and Crohn’s disease, as well as for atopic dermatitis and other indications; and Olorinab (APD371), which is in Phase II trial for the treatment of gastrointestinal pain. It is also developing APD418, a calcium-independent myofilament derepressor for the treatment of decompensated heart failure. The company has collaboration agreements with United Therapeutics Corporation; Everest Medicines Limited; Axovant Sciences GmbH; Outpost Medicine LLC; CY Biotech Company Limited; Boehringer Ingelheim International GmbH; Eisai Co., Ltd.; and Eisai Inc. Arena Pharmaceuticals, Inc. was founded in 1997 and is based in San Diego, California. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/20 20:39
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.