SEHK:1952

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Market Cap

HK$21.4b

Last Updated

2021/06/18 10:38 UTC

Data Sources

Company Financials +

Executive Summary

Everest Medicines Limited, a clinical-stage biopharmaceutical company, focuses on licensing, developing, and commercializing therapies for addressing critical unmet medical needs in Greater China and other Asia Pacific markets. More Details


Snowflake Analysis

Adequate balance sheet and overvalued.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 1952 is not significantly more volatile than the rest of Hong Kong stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: 1952's weekly volatility (7%) has been stable over the past year.


Market Performance


7 Day Return

-2.7%

1952

-4.6%

HK Biotechs

-1.5%

HK Market


1 Year Return

n/a

1952

42.8%

HK Biotechs

21.7%

HK Market

Return vs Industry: Insufficient data to determine how 1952 performed against the Hong Kong Biotechs industry.

Return vs Market: Insufficient data to determine how 1952 performed against the Hong Kong Market.


Shareholder returns

1952IndustryMarket
7 Day-2.7%-4.6%-1.5%
30 Day0.4%3.7%-0.9%
90 Day-14.3%12.7%-2.5%
1 Yearn/a43.0%42.8%26.2%21.7%
3 Yearn/a-10.4%-11.8%9.7%-1.9%
5 Yearn/a65.9%60.0%56.3%29.7%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

2.5x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: 1952 (HK$72) is trading above our estimate of fair value (HK$31.05)

Significantly Below Fair Value: 1952 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 1952 is unprofitable, so we can't compare its PE Ratio to the Hong Kong Biotechs industry average.

PE vs Market: 1952 is unprofitable, so we can't compare its PE Ratio to the Hong Kong market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 1952's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 1952 is good value based on its PB Ratio (2.5x) compared to the HK Biotechs industry average (4.2x).


Future Growth

How is Everest Medicines forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

85.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 1952 is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: 1952 is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: 1952 is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: Insufficient data to determine if 1952's revenue is forecast to grow faster than the Hong Kong market.

High Growth Revenue: Insufficient data to determine if 1952's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 1952 is forecast to be unprofitable in 3 years.


Past Performance

How has Everest Medicines performed over the past 5 years?

-2,565.7%

Last years earnings growth


Earnings and Revenue History

Quality Earnings: 1952 is currently unprofitable.

Growing Profit Margin: 1952 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: Insufficient data to determine if 1952's year-on-year earnings growth rate was positive over the past 5 years.

Accelerating Growth: Unable to compare 1952's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 1952 is unprofitable, making it difficult to compare its past year earnings growth to the Biotechs industry (43.1%).


Return on Equity

High ROE: 1952 has a negative Return on Equity (-82.71%), as it is currently unprofitable.


Financial Health

How is Everest Medicines's financial position?


Financial Position Analysis

Short Term Liabilities: 1952's short term assets (CN¥4.5B) exceed its short term liabilities (CN¥186.9M).

Long Term Liabilities: 1952's short term assets (CN¥4.5B) exceed its long term liabilities (CN¥449.2M).


Debt to Equity History and Analysis

Debt Level: 1952's debt to equity ratio (5.7%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if 1952's debt to equity ratio has reduced over the past 5 years.


Balance Sheet


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: 1952 has sufficient cash runway for more than 3 years based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if 1952 has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Dividend

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


Dividend Yield vs Market

Notable Dividend: Unable to evaluate 1952's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate 1952's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 1952's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 1952'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 1952's dividend in 3 years as they are not forecast to pay a notable one for the Hong Kong market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.8yrs

Average management tenure


CEO

Kerry Levan Blanchard (64 yo)

1.33yrs

Tenure

Dr. Kerry Levan Blanchard, Ph.D., M.D., is an Executive Director at Everest Medicines Limited since February 2020 and serves as its Chief Executive Officer since February 2020. Dr. Blanchard is also a Dire...


Leadership Team

Experienced Management: 1952's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Members

Experienced Board: 1952's board of directors are not considered experienced ( 0.9 years average tenure), which suggests a new board.


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: 1952 only recently listed within the past 12 months.


Top Shareholders

Company Information

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


Key Information

  • Name: Everest Medicines Limited
  • Ticker: 1952
  • Exchange: SEHK
  • Founded: 2017
  • Industry: Biotechnology
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: HK$21.425b
  • Shares outstanding: 297.57m
  • Website: https://www.everestmedicines.com

Number of Employees


Location

  • Everest Medicines Limited
  • Plaza 66
  • Tower 1, Units 6601-6606
  • Shanghai
  • 200040
  • China

Listings


Biography

Everest Medicines Limited, a clinical-stage biopharmaceutical company, focuses on licensing, developing, and commercializing therapies for addressing critical unmet medical needs in Greater China and other...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/06/18 10:38
End of Day Share Price2021/06/18 00:00
Earnings2020/12/31
Annual Earnings2020/12/31


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.