DB:TA5

Stock Analysis Report

Executive Summary

Targovax ASA, a clinical stage immuno-oncology company, engages in the development of targeted immunotherapies for cancer patients.

Rewards

Revenue is forecast to grow 5.18% per year

Risk Analysis

Makes less than USD$1m in revenue (NOK24K)

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

Has less than 1 year of cash runway

Highly volatile share price over past 3 months

+ 2 more risks


Snowflake Analysis

Adequate balance sheet with limited growth.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: TA5's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-17.5%

TA5

1.3%

DE Biotechs

0.3%

DE Market


1 Year Return

n/a

TA5

4.9%

DE Biotechs

13.8%

DE Market

Return vs Industry: Insufficient data to determine how TA5 performed against the German Biotechs industry.

Return vs Market: Insufficient data to determine how TA5 performed against the German Market.


Shareholder returns

TA5IndustryMarket
7 Day-17.5%1.3%0.3%
30 Day0.3%-2.5%1.3%
90 Day70.9%14.8%5.2%
1 Yearn/a5.1%4.9%17.4%13.8%
3 Yearn/a54.5%52.8%15.9%5.7%
5 Yearn/a16.5%14.0%27.9%10.6%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

1.5x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate TA5's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate TA5's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: TA5 is unprofitable, so we can't compare its PE Ratio to the Biotechs industry average.

PE vs Market: TA5 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 TA5's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: TA5 is good value based on its PB Ratio (1.8x) compared to the DE Biotechs industry average (3.4x).


Next Steps

Future Growth

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

21.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TA5 is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: TA5 is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: TA5 is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: TA5's revenue (5.2% per year) is forecast to grow faster than the German market (4.8% per year).

High Growth Revenue: TA5's revenue (137.2% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: TA5 is forecast to be unprofitable in 3 years.


Next Steps

Past Performance

How has Targovax performed over the past 5 years?

-25.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TA5 is currently unprofitable.

Growing Profit Margin: TA5 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: TA5 is unprofitable, and losses have increased over the past 5 years at a rate of -25.6% per year.

Accelerating Growth: Unable to compare TA5's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: TA5 is unprofitable, making it difficult to compare its past year earnings growth to the Biotechs industry (5.4%).


Return on Equity

High ROE: TA5 has a negative Return on Equity (-46.27%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Targovax's financial position?


Financial Position Analysis

Short Term Liabilities: TA5's short term assets (NOK123.8M) exceed its short term liabilities (NOK50.2M).

Long Term Liabilities: TA5's short term assets (NOK123.8M) exceed its long term liabilities (NOK115.1M).


Debt to Equity History and Analysis

Debt Level: TA5's debt to equity ratio (16.8%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if TA5's debt to equity ratio has reduced over the past 5 years.


Balance Sheet

Inventory Level: TA5 has a low level of unsold assets or inventory.

Debt Coverage by Assets: TA5's debt is covered by short term assets (assets are 2.2x 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: TA5 has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: TA5 has sufficient cash runway for 1.5 years if free cash flow continues to reduce at historical rates of -6.3% each year.


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.3%markettop25%3.6%industryaverage1.0%forecastin3Years0%

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate TA5's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate TA5'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 TA5's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if TA5'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 TA5'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 Targovax's salary, the management and board of directors tenure and is there insider trading?

2.1yrs

Average management tenure


CEO

Øystein Soug (50yo)

3.2yrs

Tenure

kr3,178,000

Compensation

Mr. Oystein Soug, M.Sc has been the Chief Executive Officer of Targovax ASA since November 1, 2016. Mr. Soug has 17 years' experience in international finance and corporate development and has been based p ...


CEO Compensation Analysis

Compensation vs Market: Øystein's total compensation ($USD358.00K) is about average for companies of similar size in the German market ($USD425.50K).

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


Management Age and Tenure

2.1yrs

Average Tenure

Experienced Management: TA5's management team is considered experienced (2.1 years average tenure).


Board Age and Tenure

4.4yrs

Average Tenure

60.5yo

Average Age

Experienced Board: TA5's board of directors are considered experienced (4.4 years average tenure).


Insider Trading

Insider Buying: TA5 insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Buy€4,95328 Nov 19
Ingunn Lindvig
EntityIndividual
Shares10,000
Max Price€0.50
Buy€10,35609 Jul 19
Torbjørn Furuseth
EntityIndividual
Role
Chief Financial Officer
Chief Financial Officer
Shares15,000
Max Price€0.69
Buy€6,90109 Jul 19
Øystein Soug
EntityIndividual
Role
Chief Executive Officer
Chief Executive Officer
Shares10,000
Max Price€0.69

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 10.3%.


Management Team

  • Jon Eriksen

    Special Advisor

    • Tenure: 2.1yrs
    • Compensation: kr1.86m
  • Øystein Soug (50yo)

    Chief Executive Officer

    • Tenure: 3.2yrs
    • Compensation: kr3.18m
  • Peter Skorpil

    Vice President of Business Development

    • Tenure: 4.8yrs
    • Compensation: kr1.07m
  • Gustav Gaudernack

    Chief Scientific Adviser

    • Magnus Jäderberg

      Chief Medical Officer

      • Tenure: 4.5yrs
      • Compensation: kr3.67m
    • Torbjørn Furuseth

      Chief Financial Officer

      • Tenure: 1.3yrs
      • Compensation: kr525.00k
    • Erik Wiklund

      Chief Business Officer

      • Tenure: 1.3yrs
      • Compensation: kr1.65m
    • Patrick Vink (56yo)

      Executive Chairman

      • Tenure: 2.2yrs
    • Anne-Sophie Møller

      Head of Clinical Science

      • Tenure: 1yrs

    Board Members

    • Diane Mellett (59yo)

      Non-Executive Director

      • Tenure: 4.3yrs
      • Compensation: kr4.00k
    • Johan Christenson (61yo)

      Independent Director

      • Tenure: 4.5yrs
      • Compensation: kr294.00k
    • Per Anders Samuelsson (58yo)

      Independent Director

      • Tenure: 4.5yrs
      • Compensation: kr268.00k
    • Robert Burns (72yo)

      Independent Director

      • Tenure: 4.5yrs
      • Compensation: kr8.00k
    • Eva-Lotta Allan Coulter (60yo)

      Non-Executive Director

      • Tenure: 4.3yrs
      • Compensation: kr4.00k
    • Catherine Wheeler (66yo)

      Director

      • Tenure: 1.8yrs
      • Compensation: kr25.00k
    • Bente-Lill Romøren (70yo)

      Independent Director

      • Tenure: 7.7yrs
      • Compensation: kr164.00k
    • Patrick Vink (56yo)

      Executive Chairman

      • Tenure: 2.2yrs
    • Kristiina Hyvarinen

      Director

      Company Information

      Targovax ASA's company bio, employee growth, exchange listings and data sources


      Key Information

      • Name: Targovax ASA
      • Ticker: TA5
      • Exchange: DB
      • Founded:
      • Industry: Biotechnology
      • Sector: Pharmaceuticals & Biotech
      • Market Cap: kr595.929m
      • Listing Market Cap: kr59.771m
      • Shares outstanding: 76.01m
      • Website: https://www.targovax.com

      Number of Employees


      Location

      • Targovax ASA
      • Lilleakerveien 2 C
      • Oslo
      • Oslo
      • 283
      • Norway

      Listings

      TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
      TRVXOB (Oslo Bors)YesOrdinary SharesNONOKJun 2014
      0RISLSE (London Stock Exchange)YesOrdinary SharesGBNOKJun 2014
      TRVXOBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBNOKJun 2014
      TA5DB (Deutsche Boerse AG)YesOrdinary SharesDEEURJun 2014

      Biography

      Targovax ASA, a clinical stage immuno-oncology company, engages in the development of targeted immunotherapies for cancer patients. Its lead pipeline candidates are ONCOS-102 that is in Phase I/II clinical studies for the treatment of mesothelioma, melanoma, peritoneal disease, and prostate cancer; and TG01, which is in Phase Ib/II clinical trial for the treatment of patients with resected adenocarcinoma of the pancreas. The company also develops TG02 that is in Phase Ib exploratory trial for the treatment of colorectal cancer; a peptide-based targeted immunotherapy platform for patients with RAS-mutated cancers; and a virus-based oncolytic immunotherapy platform based on engineered oncolytic viruses armed with potent immune-stimulating transgenes for patients with solid tumors. The company has clinical collaboration agreements with the Parker Institute for Cancer Immunotherapy and Cancer Research Institute. Targovax ASA is based in Oslo, Norway. 


      Company Analysis and Financial Data Status

      All financial data provided by Standard & Poor's Capital IQ.
      DataLast Updated (UTC time)
      Company Analysis2020/01/26 23:11
      End of Day Share Price2020/01/24 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.