DB:VPA

Stock Analysis Report

Executive Summary

AVEO Pharmaceuticals, Inc., a biopharmaceutical company, develops and commercializes a portfolio of targeted medicines for oncology and other areas of unmet medical need.

Rewards

PE ratio (5.9x) is below the German market (16.3x)

Earnings are forecast to grow 23.57% per year

Became profitable this year

Risk Analysis

Debt is not well covered by operating cash flow

Highly volatile share price over past 3 months

Shareholders have been diluted in the past year

Does not have a meaningful market cap (€57M)



Snowflake Analysis

High growth potential and fair value.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

33.4%

VPA

3.3%

DE Biotechs

2.2%

DE Market


1 Year Return

-77.9%

VPA

-11.2%

DE Biotechs

-17.2%

DE Market

Return vs Industry: VPA underperformed the German Biotechs industry which returned -8.1% over the past year.

Return vs Market: VPA underperformed the German Market which returned -17.5% over the past year.


Shareholder returns

VPAIndustryMarket
7 Day33.4%3.3%2.2%
30 Day-19.4%-6.5%-15.7%
90 Day-44.0%-23.1%-24.0%
1 Year-77.9%-77.9%-11.0%-11.2%-14.9%-17.2%
3 Year-44.5%-44.5%14.9%13.6%-16.4%-23.3%
5 Year-77.0%-77.0%-8.0%-10.3%-16.5%-27.8%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

5.91x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

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

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


Price To Earnings Ratio

PE vs Industry: VPA is good value based on its PE Ratio (5.9x) compared to the Biotechs industry average (39.4x).

PE vs Market: VPA is good value based on its PE Ratio (5.9x) compared to the German market (16.3x).


Price to Earnings Growth Ratio

PEG Ratio: VPA is good value based on its PEG Ratio (0.3x)


Price to Book Ratio

PB vs Industry: VPA is overvalued based on its PB Ratio (3.9x) compared to the DE Biotechs industry average (3.6x).


Next Steps

Future Growth

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

23.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: VPA's forecast earnings growth (23.6% per year) is above the savings rate (-0.4%).

Earnings vs Market: VPA's earnings (23.6% per year) are forecast to grow faster than the German market (14.4% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: VPA's revenue (39.3% per year) is forecast to grow faster than the German market (4.1% per year).

High Growth Revenue: VPA's revenue (39.3% 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 VPA's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has AVEO Pharmaceuticals performed over the past 5 years?

27.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: VPA has high quality earnings.

Growing Profit Margin: VPA became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: VPA has become profitable over the past 5 years, growing earnings by 27.6% per year.

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

Earnings vs Industry: VPA has become profitable in the last year, making it difficult to compare its past year earnings growth to the Biotechs industry (8.7%).


Return on Equity

High ROE: Whilst VPA's Return on Equity (63.24%) is outstanding, this metric is skewed due to their high level of debt.


Next Steps

Financial Health

How is AVEO Pharmaceuticals's financial position?


Financial Position Analysis

Short Term Liabilities: VPA's short term assets ($50.6M) exceed its short term liabilities ($21.1M).

Long Term Liabilities: VPA's short term assets ($50.6M) exceed its long term liabilities ($14.6M).


Debt to Equity History and Analysis

Debt Level: VPA's debt to equity ratio (106.2%) is considered high.

Reducing Debt: VPA's debt to equity ratio has increased from 100.4% to 106.2% over the past 5 years.


Balance Sheet

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

Debt Coverage by Assets: VPA's debt is covered by short term assets (assets are 3.2x 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: VPA is profitable, therefore cash runway is not a concern.

Forecast Cash Runway: VPA is profitable, therefore cash runway is not a concern.


Next Steps

Dividend

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


Dividend Yield vs Market

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

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

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

4.2yrs

Average management tenure


CEO

Michael Bailey (54yo)

5.17s

Tenure

US$3,110,562

Compensation

Mr. Michael P. Bailey has been Chief Executive Officer and President of AVEO Pharmaceuticals, Inc. since January 7, 2015 and served as its Secretary. Mr. Bailey served as the Principal Financial Officer of ...


CEO Compensation Analysis

Compensation vs Market: Michael's total compensation ($USD3.11M) is above average for companies of similar size in the German market ($USD431.45K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Michael Bailey
CEO, President & Director5.17yrsUS$3.11m0.20% $103.6k
Karuna Rubin
Senior VP & General Counsel4.67yrsUS$1.00mno data
Michael Needle
Chief Medical Officer5.17yrsUS$1.10m0.032% $16.8k
Erick Lucera
Chief Financial Officer0.17yrno datano data
Lisa Bruneau
VP of Financial Accounting & Reporting and Treasurer4.17yrsno datano data
Emile Farhan
Senior Vice President of Technical Operations & Quality Assuranceno datano datano data
Kevin Peacock
Vice President of Marketing0.25yrno datano data
Mike Ferraresso
Senior Vice President of Business Analytics & Commercial Operationsno datano datano data
Darlene Noci
Interim Head of Regulatory Affairs0.42yrno datano data

4.2yrs

Average Tenure

52yo

Average Age

Experienced Management: VPA's management team is considered experienced (4.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Michael Bailey
CEO, President & Director5.17yrsUS$3.11m0.20% $103.6k
Anthony Evnin
Independent Director18yrsUS$102.30k0.26% $135.9k
Kenneth Bate
Lead Outside Directorno dataUS$124.92k0.0023% $1.2k
Raju Kucherlapati
Member of Scientific Advisory Boardno dataUS$3.00kno data
Robert Young
Independent Director10.67yrsUS$95.47k0.012% $6.2k
H. Horvitz
Member of Scientific Advisory Boardno datano datano data
Tyler Jacks
Member of Scientific Advisory Boardno datano datano data
Lynda Chin
Member of Scientific Advisory Boardno datano datano data
Lewis Cantley
Member of Scientific Advisory Boardno datano datano data
Douglas Hanahan
Member of Scientific Advisory Boardno datano datano data

10.7yrs

Average Tenure

70yo

Average Age

Experienced Board: VPA's board of directors are seasoned and experienced ( 10.7 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 27.1%.


Top Shareholders

Company Information

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


Key Information

  • Name: AVEO Pharmaceuticals, Inc.
  • Ticker: VPA
  • Exchange: DB
  • Founded: 2001
  • Industry: Biotechnology
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: US$57.408m
  • Listing Market Cap: US$52.241m
  • Shares outstanding: 16.08m
  • Website: https://www.aveooncology.com

Number of Employees


Location

  • AVEO Pharmaceuticals, Inc.
  • One Broadway
  • 14th Floor
  • Cambridge
  • Massachusetts
  • 2142
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
AVEONasdaqCM (Nasdaq Capital Market)YesCommon StockUSUSDMar 2010
VPADB (Deutsche Boerse AG)YesCommon StockDEEURMar 2010
VPABRSE (Berne Stock Exchange)YesCommon StockCHCHFMar 2010

Biography

AVEO Pharmaceuticals, Inc., a biopharmaceutical company, develops and commercializes a portfolio of targeted medicines for oncology and other areas of unmet medical need. It markets its lead candidate, tivozanib, an oral, once-daily, vascular endothelial growth factor receptor tyrosine kinase inhibitor, which is used for the treatment of renal cell carcinoma (RCC). The company has also completed a Phase 3 TIVO-3 trial of tivozanib for the treatment of RCC; and initiated enrollment in a phase Ib/II clinical trial of tivozanib in combination with Opdivo (nivolumab), an immune checkpoint (PD-1) inhibitor, for the treatment of RCC. In addition, it is developing Ficlatuzumab, a potent hepatocyte growth factor inhibitory antibody for the treatment of squamous cell carcinoma of the head and neck, metastatic pancreatic ductal cancer, and acute myeloid leukemia; and AV-203, a potent anti-ErbB3 specific monoclonal antibody, which has completed Phase I clinical trial for treating esophageal cancer. The company’s preclinical stage products include AV-380, a potent humanized IgG1 inhibitory monoclonal antibody for the treatment or prevention of cachexia; and AV-353 for the treatment of pulmonary arterial hypertension. It has strategic partnerships with CANbridge Life Sciences Ltd.; EUSA Pharma (UK) Limited; Novartis International Pharmaceutical Ltd.; Biodesix, Inc.; St. Vincent’s Hospital Sydney Limited; Biogen Idec; and Kyowa Hakko Kirin Co., Ltd. AVEO Pharmaceuticals, Inc. has a clinical collaboration with AstraZeneca PLC to evaluate IMFINZI (durvalumab), a human monoclonal antibody directed against programmed death-ligand 1 (PD-L1). The company was formerly known as GenPath Pharmaceuticals, Inc. and changed its name to AVEO Pharmaceuticals, Inc. in March 2005. AVEO Pharmaceuticals, Inc. was incorporated in 2001 and is based in Cambridge, Massachusetts. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/31 21:44
End of Day Share Price2020/03/31 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.