AIM:SUMM

Stock Analysis Report

Executive Summary

Summit Therapeutics plc, a biopharmaceutical company, discovers, develops, and commercializes medicines to treat infectious diseases in the United States, Latin America, and Europe.

Snowflake

Fundamentals

Excellent balance sheet and slightly overvalued.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

-10.0%

SUMM

0.2%

GB Biotechs

-0.4%

GB Market


1 Year Return

-23.7%

SUMM

26.9%

GB Biotechs

2.9%

GB Market

Return vs Industry: SUMM underperformed the UK Biotechs industry which returned 26.9% over the past year.

Return vs Market: SUMM underperformed the UK Market which returned 2.9% over the past year.


Shareholder returns

SUMMIndustryMarket
7 Day-10.0%0.2%-0.4%
30 Day4.7%2.9%-1.4%
90 Day-5.3%2.1%-2.1%
1 Year-23.7%-23.7%27.8%26.9%7.9%2.9%
3 Year-88.6%-88.6%12.3%10.3%18.0%3.6%
5 Year-83.3%-83.3%55.3%51.6%35.8%6.4%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

36.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: SUMM (£0.23) is trading below our estimate of fair value (£0.35)

Significantly Undervalued: SUMM is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

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

PE vs Market: SUMM is unprofitable, so we can't compare its PE Ratio to the UK market.


Price to Earnings Growth Ratio

Low PEG Ratio: Insufficient data to calculate SUMM's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: SUMM is good value based on its PB Ratio (1.1x) compared to the GB Biotechs industry average (2x).


Next Steps

Future Growth

How is Summit Therapeutics forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

18.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

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

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

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

Revenue vs Market: SUMM's revenue (3.9% per year) is forecast to grow faster than the UK market (3.9% per year).

High Growth Revenue: SUMM's revenue (3.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

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


Next Steps

Past Performance

How has Summit Therapeutics performed over the past 5 years?

14.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: SUMM is unprofitable, but has reduced losses over the past 5 years at a rate of 14.8% per year.

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

Earnings vs Industry: SUMM is unprofitable, making it difficult to compare its past year earnings growth to the Biotechs industry (-2.3%).


Return on Equity

High ROE: SUMM has a negative Return on Equity (-66.6%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: SUMM is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: SUMM is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is Summit Therapeutics's financial position?


Financial Position Analysis

Short Term Liabilities: SUMM's short term assets (£35.0M) exceeds its short term liabilities (£10.1M)

Long Term Liabilities: SUMM's short term assets (35.0M) exceeds its long term liabilities (4.6M)


Debt to Equity History and Analysis

Debt Level: SUMM is debt free.

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


Balance Sheet

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

Debt Coverage by Assets: Insufficient data to determine if SUMM'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: SUMM has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: SUMM has less than a year of cash runway if free cash flow continues to reduce at historical rates of -60.1% each year


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%2.0%markettop25%5.4%industryaverage0.8%forecastin3Years0%

Current dividend yield vs market & industry


Stability and Growth of Payments

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

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

Stable Dividend: Insufficient data to determine if SUMM's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if SUMM'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 SUMM's dividend in 3 years as they are not forecast to pay a notable one for the UK market.


Next Steps

Management

What is the CEO of Summit Therapeutics's salary, the management and board of directors tenure and is there insider trading?

4.1yrs

Average management tenure


CEO

Glyn Edwards (63yo)

7.5yrs

Tenure

UK£650,279

Compensation

Mr. Glyn O. Edwards, MBE has been the Chief Executive Officer of Summit Therapeutics plc since April 4, 2012. Mr. Edwards has a wealth of expertise garnered from a thirty-year career in the life sciences i ...


CEO Compensation Analysis

Compensation vs. Market: Glyn's total compensation ($USD650.28K) is about average for companies of similar size in the UK market ($USD320.52K).

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


Management Age and Tenure

4.1yrs

Average Tenure

53yo

Average Age

Experienced Management: SUMM's management team is considered experienced (4.1 years average tenure).


Board Age and Tenure

6.3yrs

Average Tenure

62.5yo

Average Age

Experienced Board: SUMM's board of directors are considered experienced (6.3 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.


Ownership Breakdown


Management Team

  • Glyn Edwards (63yo)

    CEO & Executive Director

    • Tenure: 7.5yrs
    • Compensation: UK£650.28k
  • Kay Davies (69yo)

    Co-Founder

    • Tenure: 0yrs
  • David Roblin (53yo)

    COO, Chief Medical Officer and President of Research & Development

    • Tenure: 2.5yrs
    • Compensation: UK£503.40k
  • Jonathon Tinsley (60yo)

    Chief Scientific Officer of DMD

    • Tenure: 6yrs
  • Richard Vickers (43yo)

    Chief Scientific Officer & Senior VP of Research and Development?

    • Tenure: 0yrs
  • Michelle Avery

    Director of Investor Relations

    • Tenure: 4.1yrs
  • Richard Pye

    Senior Director of Corporate Affairs & Communications

    • Tenure: 0yrs
  • Melissa Strange (39yo)

    VP of Finance & Company Secretary

    • Tenure: 0.8yrs
  • Dave Powell (50yo)

    Senior VP & Head of Research

    • Tenure: 0yrs
  • Anna Triola

    Vice President of Marketing

    • Tenure: 0yrs

Board Members

  • Dave Wurzer (61yo)

    Independent Non-Executive Director

    • Tenure: 4.7yrs
    • Compensation: UK£121.19k
  • Glyn Edwards (63yo)

    CEO & Executive Director

    • Tenure: 7.5yrs
    • Compensation: UK£650.28k
  • Frank Armstrong (62yo)

    Non-Executive Chairman

    • Tenure: 6.3yrs
    • Compensation: UK£225.27k
  • Marcel van den Heuvel

    Member of Scientific Advisory Board

    • Tenure: 0yrs
  • Francesco Muntoni

    Member of Scientific Advisory Board

    • Tenure: 0yrs
  • Roger Patient

    Member of Scientific Advisory Board

    • Tenure: 0yrs
  • Edith Sim

    Member of Scientific Advisory board

    • Tenure: 0yrs
  • Bob Sim

    Member of Scientific Advisory board

    • Tenure: 0yrs
  • Derek Stemple

    Member of Scientific Advisory board

    • Tenure: 0yrs
  • Kay Davies (69yo)

    Co-Founder

    • Tenure: 0yrs

Company Information

Summit Therapeutics plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Summit Therapeutics plc
  • Ticker: SUMM
  • Exchange: AIM
  • Founded: 2003
  • Industry: Biotechnology
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: UK£36.111m
  • Shares outstanding: 160.49m
  • Website: https://www.summitplc.com

Number of Employees


Location

  • Summit Therapeutics plc
  • 136a Eastern Avenue
  • Milton Park
  • Abingdon
  • Oxfordshire
  • OX14 4SB
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SUMMAIM (London Stock Exchange AIM Market)YesOrdinary SharesGBGBPOct 2004
UVF1DB (Deutsche Boerse AG)YesOrdinary SharesDEEUROct 2004
SMMTNasdaqGM (Nasdaq Global Market)SPONS ADSUSUSDMar 2015

Biography

Summit Therapeutics plc, a biopharmaceutical company, discovers, develops, and commercializes medicines to treat infectious diseases in the United States, Latin America, and Europe. It conducts clinical pr ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/19 20:33
End of Day Share Price2019/10/18 00:00
Earnings2019/07/31
Annual Earnings2019/01/31


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.