DB:WX8

Stock Analysis Report

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Executive Summary

WuXi AppTec Co., Ltd. provides research and manufacturing services to discover, develop, and manufacture small molecule drugs, and cell and gene therapies in the People’s Republic of China, rest of Asia, the United States, Europe, and internationally.


Snowflake Analysis

Excellent balance sheet with reasonable growth potential.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: WX8's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-0.8%

WX8

2.7%

DE Life Sciences

2.7%

DE Market


1 Year Return

121.6%

WX8

63.9%

DE Life Sciences

10.3%

DE Market

Return vs Industry: WX8 exceeded the German Life Sciences industry which returned 64.3% over the past year.

Return vs Market: WX8 exceeded the German Market which returned 8.8% over the past year.


Shareholder returns

WX8IndustryMarket
7 Day-0.8%2.7%2.7%
30 Day5.1%8.1%1.9%
90 Day34.6%17.8%17.0%
1 Year122.3%121.6%65.0%63.9%12.8%10.3%
3 Yearn/a130.5%125.3%7.1%-1.4%
5 Yearn/a265.8%242.4%18.2%2.3%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

102.38x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: WX8 (€12.4) is trading above our estimate of fair value (€7.89)

Significantly Below Fair Value: WX8 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: WX8 is poor value based on its PE Ratio (102.4x) compared to the XE Life Sciences industry average (63.1x).

PE vs Market: WX8 is poor value based on its PE Ratio (102.4x) compared to the German market (21.6x).


Price to Earnings Growth Ratio

PEG Ratio: WX8 is poor value based on its PEG Ratio (4.3x)


Price to Book Ratio

PB vs Industry: WX8 is overvalued based on its PB Ratio (14.7x) compared to the XE Life Sciences industry average (6.7x).


Next Steps

Future Growth

How is WuXi AppTec forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?

24.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: WX8's forecast earnings growth (24% per year) is above the savings rate (0.2%).

Earnings vs Market: WX8's earnings (24% per year) are forecast to grow slower than the German market (24.6% per year).

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

Revenue vs Market: WX8's revenue (20.7% per year) is forecast to grow faster than the German market (5.9% per year).

High Growth Revenue: WX8's revenue (20.7% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: WX8's Return on Equity is forecast to be low in 3 years time (18.8%).


Next Steps

Past Performance

How has WuXi AppTec performed over the past 5 years?

24.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: WX8 has high quality earnings.

Growing Profit Margin: WX8's current net profit margins (17.7%) are lower than last year (18.4%).


Past Earnings Growth Analysis

Earnings Trend: WX8's earnings have grown significantly by 24.1% per year over the past 5 years.

Accelerating Growth: WX8's earnings growth over the past year (22.9%) is below its 5-year average (24.1% per year).

Earnings vs Industry: WX8 earnings growth over the past year (22.9%) exceeded the Life Sciences industry 5.5%.


Return on Equity

High ROE: WX8's Return on Equity (14.4%) is considered low.


Next Steps

Financial Health

How is WuXi AppTec's financial position?


Financial Position Analysis

Short Term Liabilities: WX8's short term assets (CN¥13.0B) exceed its short term liabilities (CN¥7.3B).

Long Term Liabilities: WX8's short term assets (CN¥13.0B) exceed its long term liabilities (CN¥5.1B).


Debt to Equity History and Analysis

Debt Level: WX8's debt to equity ratio (27%) is considered satisfactory.

Reducing Debt: WX8's debt to equity ratio has increased from 11% to 27% over the past 5 years.

Debt Coverage: WX8's debt is well covered by operating cash flow (79.3%).

Interest Coverage: WX8 earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

What is WuXi AppTec current dividend yield, its reliability and sustainability?

0.21%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: WX8's dividend (0.21%) isn’t notable compared to the bottom 25% of dividend payers in the German market (1.24%).

High Dividend: WX8's dividend (0.21%) is low compared to the top 25% of dividend payers in the German market (3.77%).


Stability and Growth of Payments

Stable Dividend: WX8 is not paying a notable dividend for the German market, therefore no need to check if payments are stable.

Growing Dividend: WX8 is not paying a notable dividend for the German market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: WX8 is not paying a notable dividend for the German market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of WX8'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?

3.1yrs

Average management tenure


CEO

Ge Li (53 yo)

no data

Tenure

Dr. Ge Li, Ph.D., serves as President at WuXi AppTec Co., Ltd. since May 21, 2020. Dr. Li serves as Chief Executive Officer of WuXi AppTec Co., Ltd. Dr. Li is a Co-founder of Hua Medicine (Shanghai) Ltd. D ...


Leadership Team

NamePositionTenureCompensationOwnership
Ge Li
Co-Founderno datano data8.44%
CN¥ 2.8b
Qing Yang
Co-CEO, Head of RSD & WuXi Testing and Executive Director0.25yrno data0.010%
CN¥ 3.3m
Edward Hu
Vice Chairman of the Board & Global Chief Investment Officer0.25yrno data0.014%
CN¥ 4.5m
Bih-Hsin Chu
Senior VP & CFO1.58yrsno datano data
Peter Tong
Senior VP & COO2.92yrsno datano data
Shuhui Chen
Executive VP4.67yrsno data0.011%
CN¥ 3.7m
Yao Chi
Board Secretary & Executive Director of the Corporate Legal Office4.42yrsno data0.0021%
CN¥ 695.5k
Ning Zhao
Global Head of Human Resources3.42yrsno datano data
Zhaohui Zhang
Senior VP15.58yrsno datano data
Jingchao Dong
Senior VP & Head of CSUno datano datano data
Jian Li
Head of Structural Biology and Executive Directorno datano datano data
Felix Hsu
Chief Commercial & Business Officer of WuXi ATU3.25yrsno datano data

3.1yrs

Average Tenure

52yo

Average Age

Experienced Management: WX8's management team is considered experienced (3.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Ge Li
Co-Founderno datano data8.44%
CN¥ 2.8b
Qing Yang
Co-CEO, Head of RSD & WuXi Testing and Executive Director0.25yrno data0.010%
CN¥ 3.3m
Edward Hu
Vice Chairman of the Board & Global Chief Investment Officer0.25yrno data0.014%
CN¥ 4.5m
Ning Zhao
Global Head of Human Resources3.42yrsno datano data
Zhaohui Zhang
Senior VP15.58yrsno datano data
Xiaotong Zhang
Independent Non-Executive Director3.42yrsno datano data
Hetong Lou
Independent Non-Executive Director3.42yrsno datano data
Dai Feng
Independent Non-Executive Director1.67yrsno datano data
Yan Liu
Independent Non-Executive Director3.42yrsno datano data
Jiangnan Cai
Independent Non-Executive Director3.42yrsno datano data
Yibing Wu
Non-Executive Director3.42yrsno datano data
He Liang
Chairman of the Supervisory Committee3.42yrsno datano data

3.4yrs

Average Tenure

52.5yo

Average Age

Experienced Board: WX8's board of directors are considered experienced (3.4 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 3.8%.


Top Shareholders

Company Information

WuXi AppTec Co., Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: WuXi AppTec Co., Ltd.
  • Ticker: WX8
  • Exchange: DB
  • Founded: 2000
  • Industry: Life Sciences Tools and Services
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: CN¥266.930b
  • Listing Market Cap: CN¥32.654b
  • Shares outstanding: 2.38b
  • Website: https://www.wuxiapptec.com

Number of Employees


Location

  • WuXi AppTec Co., Ltd.
  • 288 Fute Zhong Road
  • Waigaoqiao Free Trade Zone
  • Shanghai
  • 200131
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
603259SHSE (Shanghai Stock Exchange)YesDomestic SharesCNCNYMay 2018
603259XSSC (Shanghai Stock Exchange - Shanghai - Hong Kong Stock Connect)YesDomestic SharesCNCNYMay 2018
2359SEHK (The Stock Exchange of Hong Kong Ltd.)Foreign Shares-Foreign ListedHKHKDDec 2018
WX8DB (Deutsche Boerse AG)Foreign Shares-Foreign ListedDEEURDec 2018
2359SZSC (The Stock Exchange of Hong Kong - Shenzhen - Hong Kong Stock Connect)Foreign Shares-Foreign ListedHKHKDDec 2018
2359SHSC (Stock Exchange of Hong Kong Limited - Shanghai - Hong Kong Stock Connect)Foreign Shares-Foreign ListedHKHKDDec 2018
WUXI.FOTCPK (Pink Sheets LLC)Foreign Shares-Foreign ListedUSUSDDec 2018

Biography

WuXi AppTec Co., Ltd. provides research and manufacturing services to discover, develop, and manufacture small molecule drugs, and cell and gene therapies in the People’s Republic of China, rest of Asia, t ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/11 21:13
End of Day Share Price2020/08/11 00:00
Earnings2020/06/30
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.