DB:SG7

Stock Analysis Report

Executive Summary

Sage Therapeutics, Inc., a clinical-stage biopharmaceutical company, develops and commercializes novel medicines to treat central nervous system (CNS) disorders.


Snowflake Analysis

Flawless balance sheet and fair value.

Share Price & News

How has Sage Therapeutics's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: SG7's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-1.6%

SG7

0.4%

DE Biotechs

0.2%

DE Market


1 Year Return

-52.6%

SG7

9.0%

DE Biotechs

14.4%

DE Market

Return vs Industry: SG7 underperformed the German Biotechs industry which returned 9% over the past year.

Return vs Market: SG7 underperformed the German Market which returned 14.4% over the past year.


Shareholder returns

SG7IndustryMarket
7 Day-1.6%0.4%0.2%
30 Day-8.8%-2.1%0.9%
90 Day-53.7%8.0%4.6%
1 Year-52.6%-52.6%9.2%9.0%17.9%14.4%
3 Year5.0%5.0%45.5%43.9%15.7%5.6%
5 Year71.5%71.5%12.8%10.5%23.4%6.5%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is Sage Therapeutics undervalued compared to its fair value and its price relative to the market?

38.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SG7 (€62.5) is trading below our estimate of fair value (€102.33)

Significantly Below Fair Value: SG7 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: SG7 is unprofitable, so we can't compare its PE Ratio to the Biotechs industry average.

PE vs Market: SG7 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 SG7's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: SG7 is good value based on its PB Ratio (3.3x) compared to the DE Biotechs industry average (3.6x).


Next Steps

Future Growth

How is Sage Therapeutics forecast to perform in the next 1 to 3 years based on estimates from 20 analysts?

32.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SG7 is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: SG7 is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: SG7 is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: SG7's revenue (58.1% per year) is forecast to grow faster than the German market (5% per year).

High Growth Revenue: SG7's revenue (58.1% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SG7 is forecast to be unprofitable in 3 years.


Next Steps

Past Performance

How has Sage Therapeutics performed over the past 5 years?

-47.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SG7 is currently unprofitable.

Growing Profit Margin: SG7 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: SG7 is unprofitable, and losses have increased over the past 5 years at a rate of -47.4% per year.

Accelerating Growth: Unable to compare SG7's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: SG7 is unprofitable, making it difficult to compare its past year earnings growth to the Biotechs industry (-4.7%).


Return on Equity

High ROE: SG7 has a negative Return on Equity (-61.97%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Sage Therapeutics's financial position?


Financial Position Analysis

Short Term Liabilities: SG7's short term assets ($1.2B) exceed its short term liabilities ($91.0M).

Long Term Liabilities: SG7's short term assets ($1.2B) exceed its long term liabilities ($31.7M).


Debt to Equity History and Analysis

Debt Level: SG7 is debt free.

Reducing Debt: SG7 has not had any debt for past 5 years.


Balance Sheet

Inventory Level: SG7 has a low level of unsold assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if SG7's debt is covered by short term assets.


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: SG7 has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: SG7 has sufficient cash runway for 1.9 years if free cash flow continues to reduce at historical rates of -46.1% each year.


Next Steps

Dividend

What is Sage Therapeutics's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate SG7's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate SG7'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 SG7's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if SG7'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 SG7'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?

4.4yrs

Average management tenure


CEO

Jeff Jonas (66yo)

6.5yrs

Tenure

US$9,824,582

Compensation

Dr. Jeffrey M. Jonas, also known as Jeff, M.D., has been the President and Chief Executive Officer of Sage Therapeutics, Inc. since joined it in August 2013. Dr. Jonas serves as Director of Generation Bio  ...


CEO Compensation Analysis

Compensation vs Market: Jeff's total compensation ($USD9.82M) is above average for companies of similar size in the German market ($USD2.18M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Jeffrey Jonas
CEO, President & Director6.5yrsUS$9.82m0.11% $3.5m
Kimi Iguchi
CFO & Treasurer6.9yrsUS$3.65m0.056% $1.9m
Albert Robichaud
Chief Scientific Officer8.3yrsUS$3.67m0.26% $8.7m
Anne Cook
Senior VP4.4yrsUS$3.67m0.0034% $111.6k
Michael Cloonan
Chief Business Officer2.8yrsUS$4.16m0.0041% $133.7k
Heinrich Schlieker
Senior Vice President of Technical Operations4.4yrsno datano data
Matthew Calistri
Vice President of Investor Relations0.7yrsno datano data
Erin Lanciani
Senior Vice President of People & Organizational Strategy0yrsno datano data
Stephen Kanes
Chief Medical Officer6.6yrsUS$1.97m0.016% $526.9k
Amy Schacterle
Senior Vice President of Global Regulatory Affairs & Policy2.8yrsno datano data

4.4yrs

Average Tenure

57yo

Average Age

Experienced Management: SG7's management team is considered experienced (4.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Jeffrey Jonas
CEO, President & Director6.5yrsUS$9.82m0.11% $3.5m
Kevin Starr
Chairman0yrsUS$1.06m0.58% $19.2m
Michael Cola
Independent Director5.4yrsUS$1.05mno data
James Frates
Independent Director5.8yrsUS$1.04m0.0020% $65.9k
Steven Paul
Founder & Director8.4yrsUS$1.03m0.76% $25.1m
David Farb
Member of Scientific Advisory Board0yrsno datano data
Geno Germano
Independent Director3.6yrsUS$1.03mno data
James Audia
Member of Scientific Advisory Board0yrsno datano data
Christine Marx
Member of Scientific Advisory Board0yrsno datano data
A. Morrow
Member of Scientific Advisory Board0yrsno datano data

5.8yrs

Average Tenure

59yo

Average Age

Experienced Board: SG7's board of directors are considered experienced (5.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: SG7 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 11.5%.


Top Shareholders

Company Information

Sage Therapeutics, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Sage Therapeutics, Inc.
  • Ticker: SG7
  • Exchange: DB
  • Founded: 2010
  • Industry: Biotechnology
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: US$3.555b
  • Listing Market Cap: US$3.293b
  • Shares outstanding: 51.82m
  • Website: https://www.sagerx.com

Number of Employees


Location

  • Sage Therapeutics, Inc.
  • 215 First Street
  • Cambridge
  • Massachusetts
  • 2142
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SAGENasdaqGM (Nasdaq Global Market)YesCommon StockUSUSDJul 2014
SG7BST (Boerse-Stuttgart)YesCommon StockDEEURJul 2014
SG7DB (Deutsche Boerse AG)YesCommon StockDEEURJul 2014

Biography

Sage Therapeutics, Inc., a clinical-stage biopharmaceutical company, develops and commercializes novel medicines to treat central nervous system (CNS) disorders. Its lead product candidate is ZULRESSO, a proprietary intravenous formulation of brexanolone that has completed Phase III clinical trials for the treatment of postpartum depression (PPD). The company’s product pipeline also includes SAGE-217, a novel neuroactive steroid, which is in Phase III clinical trials for treating PPD, major depressive disorders, bipolar depression, and sleep disorders; and SAGE-324, a novel neuroactive steroid that has completed Phase I clinical trials to treat various neurological conditions, including essential tremor and epileptiform disorders. In addition, its product pipeline comprises SAGE-718, an oxysterol-based positive allosteric modulator of the NMDA receptor, which has completed Phase I clinical trial for the treatment of depression, Huntington’s disease, Alzheimer’s disease, attention deficit hyperactivity disorder, schizophrenia, and neuropathic pain; and SAGE-689, a novel GABAA receptor positive allosteric modulator that is in preclinical stage to treat acute and chronic CNS disorders. Sage Therapeutics, Inc. has a strategic collaboration with Shionogi & Co., Ltd. for the development and commercialization of SAGE-217 in Japan, Taiwan, and South Korea. The company was formerly known as Sterogen Biopharma, Inc. and changed its name to Sage Therapeutics, Inc. in September 2011. Sage Therapeutics, Inc. was founded in 2010 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 Analysis2020/02/19 22:58
End of Day Share Price2020/02/19 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.