OB:PHO

Stock Analysis Report

Executive Summary

Photocure ASA, a specialty pharmaceutical company, engages in the research, development, production, distribution, marketing, and sale of pharmaceutical products in Nordic countries and the United States.

Snowflake

Fundamentals

Exceptional growth potential with flawless balance sheet.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-5.4%

PHO

0.9%

NO Pharmaceuticals

-0.3%

NO Market


1 Year Return

47.9%

PHO

12.2%

NO Pharmaceuticals

-3.2%

NO Market

Return vs Industry: PHO exceeded the Norwegian Pharmaceuticals industry which returned 12.2% over the past year.

Return vs Market: PHO exceeded the Norwegian Market which returned -3.2% over the past year.


Shareholder returns

PHOIndustryMarket
7 Day-5.4%0.9%-0.3%
30 Day6.3%4.8%3.1%
90 Day13.6%8.1%10.0%
1 Year47.9%47.9%18.6%12.2%2.0%-3.2%
3 Year44.7%44.7%39.7%23.7%41.8%24.1%
5 Year170.4%170.4%34.6%11.4%56.8%20.9%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: PHO (NOK57.6) is trading below our estimate of fair value (NOK340.58)

Significantly Below Fair Value: PHO is trading below fair value by more than 20%.


Price To Earnings Ratio

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

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


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: PHO is overvalued based on its PB Ratio (7.4x) compared to the XE Pharmaceuticals industry average (3.1x).


Next Steps

Future Growth

How is Photocure forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

79.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PHO is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.8%).

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

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

Revenue vs Market: PHO's revenue (28.3% per year) is forecast to grow faster than the Norwegian market (4.3% per year).

High Growth Revenue: PHO's revenue (28.3% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: PHO's Return on Equity is forecast to be very high in 3 years time (44.2%).


Next Steps

Past Performance

How has Photocure performed over the past 5 years?

-9.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PHO has high quality earnings.

Growing Profit Margin: PHO's current net profit margins (-10.5%) are higher than last year (-22.1%).


Past Earnings Growth Analysis

Earnings Trend: PHO is unprofitable, and losses have increased over the past 5 years at a rate of -9.8% per year.

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

Earnings vs Industry: PHO is unprofitable, making it difficult to compare its past year earnings growth to the Pharmaceuticals industry (0.9%).


Return on Equity

High ROE: PHO has a negative Return on Equity (-13.63%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Photocure's financial position?


Financial Position Analysis

Short Term Liabilities: PHO's short term assets (NOK143.5M) exceeds its short term liabilities (NOK39.5M)

Long Term Liabilities: PHO's short term assets (143.5M) exceeds its long term liabilities (10.8M)


Debt to Equity History and Analysis

Debt Level: PHO is debt free.

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


Balance Sheet

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

Debt Coverage by Assets: Insufficient data to determine if PHO'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: Whilst unprofitable PHO has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: PHO is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 2.4% per year.


Next Steps

Dividend

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


Dividend Yield vs Market

company0%marketbottom25%2.5%markettop25%6.1%industryaverage3.0%forecastin3Years0%

Current dividend yield vs market & industry

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

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

Growing Dividend: Insufficient data to determine if PHO's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: PHO is not paying a notable dividend for the Norwegian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of PHO's dividend in 3 years as they are not forecast to pay a notable one for the Norwegian market.


Next Steps

Management

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

2.5yrs

Average management tenure


CEO

Dan Schneider 0

1yrs

Tenure

0

Mr. Daniel Schneider, also known as Dan, has been President & CEO of PhotoCure ASA since November 1, 2018. He has been Vice President of Sales at Pernix Sleep, Inc. (also known as Somaxon Pharmaceuticals,  ...


Management Age and Tenure

2.5yrs

Average Tenure

62yo

Average Age

Experienced Management: PHO's management team is considered experienced (2.5 years average tenure).


Board Age and Tenure

2.6yrs

Average Tenure

61yo

Average Age

Experienced Board: PHO's board of directors are not considered experienced ( 2.6 years average tenure), which suggests a new board.


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

Sellkr897,60602 May 19
KLP Kapitalforvaltning AS
EntityCompany
Shares17,792
Max Pricekr50.45
Buykr61,02426 Nov 18
Ambaw Bellete
EntityIndividual
Shares1,600
Max Pricekr38.14

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Grete Hogstad (63yo)

    Vice President of Strategic Marketing

    • Tenure: 0yrs
    • Compensation: kr1.43m
  • Erik Dahl (62yo)

    Chief Financial Officer

    • Tenure: 7.3yrs
  • Dan Schneider

    President & CEO

    • Tenure: 1yrs
  • Gry Stensrud (49yo)

    Vice President of Technical Development & Operations

    • Tenure: 0yrs
  • Espen Njåstad

    Head of Nordic Cancer Commercial Operations

    • Tenure: 7.8yrs
  • Tolv Hillestad

    Group Controller

    • Tenure: 0yrs
  • Jeremy Bahr

    Chief Business Officer

    • Tenure: 2.5yrs
  • Kari Myren

    Head of Global Medical Affairs & Clinical Development

    • Tenure: 0.8yrs

Board Members

  • Johanna Holldack

    Independent Director

    • Tenure: 2.6yrs
  • Gwen Melincoff (67yo)

    Independent Director

    • Tenure: 2.6yrs
  • Tom Pike (59yo)

    Independent Director

    • Tenure: 5.8yrs
  • Jan Egberts (61yo)

    Board Chairman

    • Tenure: 2.6yrs
  • Grannum Sant

    Independent Director

    • Tenure: 3.5yrs
  • Einar Antonsen

    Director

    • Tenure: 0.4yrs
  • Tove Ringvold

    Director

    • Tenure: 0.4yrs

Company Information

Photocure ASA's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Photocure ASA
  • Ticker: PHO
  • Exchange: OB
  • Founded: 1997
  • Industry: Pharmaceuticals
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: kr1.255b
  • Shares outstanding: 21.78m
  • Website: https://www.photocure.com

Number of Employees


Location

  • Photocure ASA
  • Hoffsveien 4
  • Oslo
  • Oslo
  • 275
  • Norway

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PHOOB (Oslo Bors)YesOrdinary SharesNONOKMar 2000
PHCU.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDMar 2000
0IMTLSE (London Stock Exchange)YesOrdinary SharesGBNOKMar 2000
PHSDB (Deutsche Boerse AG)YesOrdinary SharesDEEURMar 2000
PHOOBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBNOKMar 2000

Biography

Photocure ASA, a specialty pharmaceutical company, engages in the research, development, production, distribution, marketing, and sale of pharmaceutical products in Nordic countries and the United States.  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/13 20:33
End of Day Share Price2019/11/13 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.