DB:UKJ

Stock Analysis Report

Executive Summary

Opthea Limited, a biotechnology company, develops and commercializes therapies primarily for eye disease in Australia.

Rewards

Earnings are forecast to grow 15.23% per year

Risk Analysis

Makes less than USD$1m in revenue (A$240K)

Has less than 1 year of cash runway

Shareholders have been diluted in the past year



Snowflake Analysis

High growth potential with adequate balance sheet.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

5.1%

UKJ

-2.0%

DE Biotechs

0.7%

DE Market


1 Year Return

345.4%

UKJ

5.6%

DE Biotechs

15.6%

DE Market

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

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


Shareholder returns

UKJIndustryMarket
7 Day5.1%-2.0%0.7%
30 Day20.2%-2.7%1.7%
90 Day-8.0%9.4%6.3%
1 Year345.4%345.4%5.8%5.6%19.2%15.6%
3 Yearn/a59.0%57.2%18.3%7.9%
5 Yearn/a17.3%14.8%26.8%9.4%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

27.57x

Price to Book (PB) ratio


Share Price vs. Fair Value

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

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


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: UKJ is overvalued based on its PB Ratio (27.3x) compared to the DE Biotechs industry average (3.4x).


Next Steps

Future Growth

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

15.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: UKJ is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (-0.4%).

Earnings vs Market: UKJ is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: UKJ's is expected to become profitable in the next 3 years.

Revenue vs Market: UKJ's revenue (39.9% per year) is forecast to grow faster than the German market (4.8% per year).

High Growth Revenue: UKJ's revenue (39.9% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

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


Next Steps

Past Performance

How has Opthea performed over the past 5 years?

-35.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: UKJ is currently unprofitable.

Growing Profit Margin: UKJ is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: UKJ is unprofitable, and losses have increased over the past 5 years at a rate of -35% per year.

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

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


Return on Equity

High ROE: UKJ has a negative Return on Equity (-67.19%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Opthea's financial position?


Financial Position Analysis

Short Term Liabilities: UKJ's short term assets (A$36.9M) exceed its short term liabilities (A$6.5M).

Long Term Liabilities: UKJ's short term assets (A$36.9M) exceed its long term liabilities (A$24.8K).


Debt to Equity History and Analysis

Debt Level: UKJ is debt free.

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


Balance Sheet

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

Debt Coverage by Assets: Insufficient data to determine if UKJ'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: UKJ has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if UKJ has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.5%industryaverage1.0%forecastin3Years0%

Current dividend yield vs market & industry

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

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

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

8.3yrs

Average management tenure


CEO

Megan Baldwin 0

5.9yrs

Tenure

AU$943,171

Compensation

Ms. Megan Baldwin, PhD, MAICD has been the Chief Executive Officer and Managing Director at Opthea Limited since February 24, 2014 and served as its Head of Pre-Clinical Research & Development since Januar ...


CEO Compensation Analysis

Compensation vs Market: Megan's total compensation ($USD650.91K) is below average for companies of similar size in the German market ($USD1.28M).

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


Management Age and Tenure

8.3yrs

Average Tenure

Experienced Management: UKJ's management team is seasoned and experienced (8.3 years average tenure).


Board Age and Tenure

5.1yrs

Average Tenure

Experienced Board: UKJ's board of directors are considered experienced (5.1 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

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Megan Baldwin
EntityIndividual
Role
Chief Executive Officer
MD, CEO & Executive Director
Shares667,000
Max Price€0.42

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 15.5%.


Management Team

  • Mike Gerometta

    Head of CMC Development

    • Tenure: 11.1yrs
    • Compensation: AU$208.93k
  • James Goding

    Independent Consultant

    • Megan Baldwin

      MD, CEO & Executive Director

      • Tenure: 5.9yrs
      • Compensation: AU$943.17k
    • Richard Chadwick

      Head of Intellectual Property

      • Tenure: 11.9yrs
      • Compensation: AU$219.80k
    • Ian Leitch

      Director of Clinical Research

      • Tenure: 8.3yrs
      • Compensation: AU$203.44k
    • Mike Tonroe

      CFO & Company Secretary

      • Tenure: 5.7yrs
      • Compensation: AU$390.43k
    • Annie Lee

      Finance & Operations Manager


      Board Members

      • Geoffrey Kempler (64yo)

        Non-Executive Chairman

        • Tenure: 4.2yrs
        • Compensation: AU$274.79k
      • Peter Campochiaro

        Member of Clinical Advisory Board

        • Tenure: 5.1yrs
      • Michael Sistenich

        Independent Non-Executive Director

        • Tenure: 4.2yrs
        • Compensation: AU$241.50k
      • Pravin Dugel (55yo)

        Member of Clinical Advisory Board

        • Tenure: 5.1yrs
      • Megan Baldwin

        MD, CEO & Executive Director

        • Tenure: 5.9yrs
        • Compensation: AU$943.17k
      • Mark Gillies

        Member of Clinical Advisory Board

        • Tenure: 5.1yrs
      • Kameran Lashkari

        Member of Clinical Advisory Board

        • Tenure: 5.1yrs

      Company Information

      Opthea Limited's company bio, employee growth, exchange listings and data sources


      Key Information

      • Name: Opthea Limited
      • Ticker: UKJ
      • Exchange: DB
      • Founded:
      • Industry: Biotechnology
      • Sector: Pharmaceuticals & Biotech
      • Market Cap: AU$925.903m
      • Listing Market Cap: AU$573.832m
      • Shares outstanding: 269.16m
      • Website: https://www.opthea.com

      Location

      • Opthea Limited
      • 650 Chapel Street
      • Suite 0403
      • South Yarra
      • Victoria
      • 3141
      • Australia

      Listings

      TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
      OPTASX (Australian Securities Exchange)YesOrdinary SharesAUAUDJan 1992
      OPTCHIA (Chi-X Australia)YesOrdinary SharesAUAUDJan 1992
      UKJDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1992
      CKDX.YOTCPK (Pink Sheets LLC)SPONSORED ADRUSUSDJun 2011

      Biography

      Opthea Limited, a biotechnology company, develops and commercializes therapies primarily for eye disease in Australia. The company’s development activities are based on the intellectual property portfolio covering Vascular Endothelial Growth Factors (VEGF) VEGF-C, VEGF-D, and VEGF Receptor-3 for the treatment of diseases associated with blood and lymphatic vessel growth, as well as vascular leakage. Its lead molecule is OPT-302, a soluble form of VEGFR-3, which is in Phase Ib/IIa clinical trials for the treatment of wet age-related macular degeneration and diabetic macular edema. The company was formerly known as Circadian Technologies Limited and changed its name to Opthea Limited in December 2015. Opthea Limited is based in South Yarra, Australia. 


      Company Analysis and Financial Data Status

      All financial data provided by Standard & Poor's Capital IQ.
      DataLast Updated (UTC time)
      Company Analysis2020/01/20 22:33
      End of Day Share Price2020/01/20 00:00
      Earnings2019/06/30
      Annual Earnings2019/06/30


      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.