DB:RQE1

Stock Analysis Report

Executive Summary

ReNeuron Group plc develops and sells cell-based therapies in the United Kingdom.

Rewards

Revenue is forecast to grow 37.11% per year

Risk Analysis

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

Highly volatile share price over past 3 months

Does not have a meaningful market cap (€44M)



Snowflake Analysis

Flawless balance sheet with limited growth.


Similar Companies

Share Price & News

How has ReNeuron Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: RQE1's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-1.8%

RQE1

-0.6%

DE Biotechs

-2.4%

DE Market


1 Year Return

223.3%

RQE1

8.1%

DE Biotechs

11.8%

DE Market

Return vs Industry: RQE1 exceeded the German Biotechs industry which returned 5.3% over the past year.

Return vs Market: RQE1 exceeded the German Market which returned 17.1% over the past year.


Shareholder returns

RQE1IndustryMarket
7 Day-1.8%-0.6%-2.4%
30 Day17.6%-3.7%-1.1%
90 Day41.0%14.7%3.0%
1 Year223.3%223.3%8.3%8.1%15.3%11.8%
3 Year25.0%25.0%55.6%53.8%14.4%4.4%
5 Year-44.9%-44.9%16.3%13.8%23.8%7.0%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is ReNeuron Group undervalued compared to its fair value and its price relative to the market?

2.56x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate RQE1's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate RQE1's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: RQE1 is unprofitable, so we can't compare its PE Ratio to the Biotechs industry average.

PE vs Market: RQE1 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 RQE1's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: RQE1 is good value based on its PB Ratio (2.2x) compared to the DE Biotechs industry average (3.4x).


Next Steps

Future Growth

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

37.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RQE1 is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: RQE1 is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: RQE1 is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: RQE1's revenue (37.1% per year) is forecast to grow faster than the German market (4.8% per year).

High Growth Revenue: RQE1's revenue (37.1% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if RQE1's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has ReNeuron Group performed over the past 5 years?

-10.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RQE1 is currently unprofitable.

Growing Profit Margin: RQE1 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: RQE1 is unprofitable, and losses have increased over the past 5 years at a rate of -10.6% per year.

Accelerating Growth: Unable to compare RQE1's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: RQE1 is unprofitable, making it difficult to compare its past year earnings growth to the Biotechs industry (5.4%).


Return on Equity

High ROE: RQE1 has a negative Return on Equity (-63.43%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is ReNeuron Group's financial position?


Financial Position Analysis

Short Term Liabilities: RQE1's short term assets (£26.8M) exceed its short term liabilities (£7.2M).

Long Term Liabilities: RQE1's short term assets (£26.8M) exceed its long term liabilities (£794.0K).


Debt to Equity History and Analysis

Debt Level: RQE1 is debt free.

Reducing Debt: RQE1 has not had any debt for past 5 years.


Balance Sheet

Inventory Level: RQE1 has a low level of unsold assets or inventory.

Debt Coverage by Assets: RQE1's debt is not covered by short term assets (assets are -2.4151003361736E+17x 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: RQE1 has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: RQE1 has sufficient cash runway for 1.6 years if free cash flow continues to grow at historical rates of 4.2% each year.


Next Steps

Dividend

What is ReNeuron Group's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.6%industryaverage1.0%forecastin3Years0%

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate RQE1's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate RQE1'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 RQE1's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if RQE1'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 RQE1's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

What is the CEO of ReNeuron Group's salary, the management and board of directors tenure and is there insider trading?

5.0yrs

Average management tenure


CEO

Olav Hellebø (54yo)

5.3yrs

Tenure

UK£539,000

Compensation

Mr. Olav Hellebø, MBA, BBA, has been the Chief Executive Officer of ReNeuron Group plc since September 8, 2014. Mr. Hellebø served as an Executive of Aqualis ASA. He is a Co-Founder and Chairman of Palma B ...


CEO Compensation Analysis

Compensation vs Market: Olav's total compensation ($USD700.86K) is above average for companies of similar size in the German market ($USD425.50K).

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


Management Age and Tenure

5.0yrs

Average Tenure

Experienced Management: RQE1's management team is seasoned and experienced (5 years average tenure).


Board Age and Tenure

8.0yrs

Average Tenure

61yo

Average Age

Experienced Board: RQE1's board of directors are considered experienced (8 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Buy€26,45918 Apr 19
Christopher Evans
EntityIndividual
Shares10,000
Max Price€2.65
Buy€11,56411 Apr 19
Christopher Evans
EntityIndividual
Shares4,500
Max Price€2.57
Buy€208,82211 Apr 19
John Berriman
EntityIndividual
Role
Chairman of the Board
Non-Executive Chairman
Shares80,000
Max Price€2.61
Buy€20,30011 Apr 19
Simon Cartmell
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares7,758
Max Price€2.62
Buy€11,60011 Apr 19
Michael Owen
EntityIndividual
Role
Chairman of Advisory Board
Chair of Scientific Advisory Board & Non-Executive Director
Shares4,237
Max Price€2.74

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Michael Hunt (56yo)

    CFO, Company Secretary & Executive Director

    • Tenure: 19yrs
    • Compensation: UK£344.00k
  • Olav Hellebø (54yo)

    CEO & Director

    • Tenure: 5.3yrs
    • Compensation: UK£539.00k
  • Richard Beckman

    Chief Medical Officer

    • Tenure: 1.8yrs
  • Randolph Corteling

    Head of Research

    • Tenure: 4.8yrs

Board Members

  • Michael Hunt (56yo)

    CFO, Company Secretary & Executive Director

    • Tenure: 19yrs
    • Compensation: UK£344.00k
  • John Berriman (71yo)

    Non-Executive Chairman

    • Tenure: 4.8yrs
    • Compensation: UK£52.00k
  • Claudia D'Augusta (49yo)

    Non-Executive Director

    • Tenure: 2.3yrs
    • Compensation: UK£37.00k
  • Trevor Jones (76yo)

    Member of Scientific & Strategic Advisory Group

    • Tenure: 7.6yrs
    • Compensation: UK£16.00k
  • Doug Losordo (61yo)

    Member of Clinical Advisory Board

    • Tenure: 9.9yrs
  • Jack Price (67yo)

    Member of Scientific and Strategic Advisory Group

    • Olav Hellebø (54yo)

      CEO & Director

      • Tenure: 5.3yrs
      • Compensation: UK£539.00k
    • Simon Cartmell (59yo)

      Non-Executive Director

      • Tenure: 8.5yrs
      • Compensation: UK£38.00k
    • William Hiatt

      Member of Clinical Advisory Board

      • Tenure: 9.9yrs
    • Mike Owen (68yo)

      Chair of Scientific Advisory Board & Non-Executive Director

      • Tenure: 4.1yrs
      • Compensation: UK£27.00k

    Company Information

    ReNeuron Group plc's company bio, employee growth, exchange listings and data sources


    Key Information

    • Name: ReNeuron Group plc
    • Ticker: RQE1
    • Exchange: DB
    • Founded: 1997
    • Industry: Biotechnology
    • Sector: Pharmaceuticals & Biotech
    • Market Cap: UK£51.730m
    • Listing Market Cap: UK£61.040m
    • Shares outstanding: 31.83m
    • Website: https://www.reneuron.com

    Number of Employees


    Location

    • ReNeuron Group plc
    • Pencoed Business Park
    • Pencoed
    • CF35 5HY
    • United Kingdom

    Listings

    TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
    RENEAIM (London Stock Exchange AIM Market)YesOrdinary SharesGBGBPAug 2005
    RQE1DB (Deutsche Boerse AG)YesOrdinary SharesDEEURAug 2005
    RNUG.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDAug 2005
    RENEAIM (London Stock Exchange AIM Market)ORD GBP0.01GBGBPJan 2018

    Biography

    ReNeuron Group plc develops and sells cell-based therapies in the United Kingdom. The company engages in the development of CTX stem cell therapy candidate that is in Phase IIb clinical trial for stroke disability; and human retinal progenitor cell therapy that is in Phase I/IIa clinical trial for treating retinitis pigmentosa, a blindness-causing disease. It also developing CTX-derived exosomes, which are Nano-sized packages of information released by CTX cells. The company was founded in 1997 and is headquartered in Pencoed, the United Kingdom. 


    Company Analysis and Financial Data Status

    All financial data provided by Standard & Poor's Capital IQ.
    DataLast Updated (UTC time)
    Company Analysis2020/01/28 21:13
    End of Day Share Price2020/01/28 00:00
    Earnings2019/09/30
    Annual Earnings2019/03/31


    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.