NZSE:AFT

Stock Analysis Report

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Executive Summary

AFT Pharmaceuticals Limited develops, licenses, and sells pharmaceutical products in New Zealand, Australia, Southeast Asia, and internationally. More Details


Snowflake Analysis

High growth potential with adequate balance sheet.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-3.0%

AFT

-4.0%

NZ Pharmaceuticals

-1.0%

NZ Market


1 Year Return

62.1%

AFT

-23.3%

NZ Pharmaceuticals

6.7%

NZ Market

Return vs Industry: AFT exceeded the NZ Pharmaceuticals industry which returned -23.3% over the past year.

Return vs Market: AFT exceeded the NZ Market which returned 6.7% over the past year.


Shareholder returns

AFTIndustryMarket
7 Day-3.0%-4.0%-1.0%
30 Day-2.4%-10.8%4.2%
90 Day6.1%-3.9%6.0%
1 Year62.1%62.1%-23.1%-23.3%11.0%6.7%
3 Year99.2%99.2%-31.7%-32.6%46.4%27.1%
5 Yearn/a-34.1%-37.8%96.2%48.3%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

45.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: AFT (NZ$4.88) is trading below our estimate of fair value (NZ$8.98)

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


Price To Earnings Ratio

PE vs Industry: AFT is poor value based on its PE Ratio (40.6x) compared to the XO Pharmaceuticals industry average (39x).

PE vs Market: AFT is poor value based on its PE Ratio (40.6x) compared to the NZ market (23.1x).


Price to Earnings Growth Ratio

PEG Ratio: AFT is poor value based on its PEG Ratio (1.1x)


Price to Book Ratio

PB vs Industry: AFT is overvalued based on its PB Ratio (73.5x) compared to the XO Pharmaceuticals industry average (3.9x).


Next Steps

Future Growth

How is AFT Pharmaceuticals forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

36.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AFT's forecast earnings growth (36.6% per year) is above the savings rate (2.6%).

Earnings vs Market: AFT's earnings (36.6% per year) are forecast to grow faster than the NZ market (11.2% per year).

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

Revenue vs Market: AFT's revenue (16.9% per year) is forecast to grow faster than the NZ market (5.5% per year).

High Growth Revenue: AFT's revenue (16.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: AFT's Return on Equity is forecast to be very high in 3 years time (43.1%).


Next Steps

Past Performance

How has AFT Pharmaceuticals performed over the past 5 years?

38.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AFT has a large one-off gain of NZ$9.8M impacting its March 31 2020 financial results.

Growing Profit Margin: AFT became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: AFT has become profitable over the past 5 years, growing earnings by 38.2% per year.

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

Earnings vs Industry: AFT has become profitable in the last year, making it difficult to compare its past year earnings growth to the Pharmaceuticals industry (117.8%).


Return on Equity

High ROE: Whilst AFT's Return on Equity (73.56%) is outstanding, this metric is skewed due to their high level of debt.


Next Steps

Financial Health

How is AFT Pharmaceuticals's financial position?


Financial Position Analysis

Short Term Liabilities: AFT's short term assets (NZ$55.3M) exceed its short term liabilities (NZ$25.1M).

Long Term Liabilities: AFT's short term assets (NZ$55.3M) exceed its long term liabilities (NZ$44.7M).


Debt to Equity History and Analysis

Debt Level: AFT's debt to equity ratio (250.4%) is considered high.

Reducing Debt: AFT's debt to equity ratio has reduced from 1009.2% to 250.4% over the past 5 years.

Debt Coverage: AFT's debt is well covered by operating cash flow (34.4%).

Interest Coverage: AFT's interest payments on its debt are not well covered by EBIT (1.7x coverage).


Balance Sheet


Next Steps

Dividend

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

1.11%

Forecast Dividend Yield


Dividend Yield vs Market

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

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

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


Next Steps

Management

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

8.1yrs

Average management tenure


CEO

Hartley Atkinson

23.08yrs

Tenure

NZ$592,353

Compensation

Dr. Hartley Atkinson, M.Pharm (Dist), PhD, founded AFT Pharmaceuticals Limited in 1997, has been its Chief Executive Officer since September 04, 1997 and also serves as its Managing Director. Before establ ...


CEO Compensation Analysis

Compensation vs Market: Hartley's total compensation ($USD394.35K) is below average for companies of similar size in the NZ market ($USD588.56K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Hartley Atkinson
Founder23.08yrsNZ$592.35kno data
Marree Atkinson
Chief of Staff & Executive Director8.08yrsNZ$130.49kno data
Malcolm Tubby
CFO & Company Secretaryno datano data0%
NZ$ 0
Murray Keith
Group Marketing Managerno datano datano data
Ioana Stanescu
Head of Drug Developmentno datano datano data
Calvin Mackenzie
General Manager of AFT Australiano datano datano data
Scott Crawford
General Manager of Promoted Products Australasia & South East Asiano datano datano data
Louise Clayton
Director of International Business2.92yrsno datano data

8.1yrs

Average Tenure

Experienced Management: AFT's management team is seasoned and experienced (8.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Hartley Atkinson
Founder23.08yrsNZ$592.35kno data
Marree Atkinson
Chief of Staff & Executive Director8.08yrsNZ$130.49kno data
James Burns
Independent Director5.08yrsNZ$93.13k0.12%
NZ$ 612.1k
David Flacks
Independent Chairman5.33yrsNZ$100.00k0.17%
NZ$ 872.4k
John Wilson
Independent Director8.08yrsNZ$47.50k0.054%
NZ$ 276.7k
Jon Lamb
Independent Director8.08yrsNZ$55.00k0.24%
NZ$ 1.2m

8.1yrs

Average Tenure

Experienced Board: AFT's board of directors are considered experienced (8.1 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 7.5%.


Top Shareholders

Company Information

AFT Pharmaceuticals Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: AFT Pharmaceuticals Limited
  • Ticker: AFT
  • Exchange: NZSE
  • Founded: 1997
  • Industry: Pharmaceuticals
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: NZ$510.345m
  • Shares outstanding: 104.58m
  • Website: https://www.aftpharm.com

Number of Employees


Location

  • AFT Pharmaceuticals Limited
  • 129 Hurstmere Road
  • Level 1
  • Auckland
  • 622
  • New Zealand

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
AFTNZSE (New Zealand Stock Exchange)YesOrdinary SharesNZNZDDec 2015
AFPASX (Australian Securities Exchange)YesOrdinary SharesAUAUDDec 2015
AFPCHIA (Chi-X Australia)YesOrdinary SharesAUAUDDec 2015

Biography

AFT Pharmaceuticals Limited develops, licenses, and sells pharmaceutical products in New Zealand, Australia, Southeast Asia, and internationally. The company offers approximately 130 prescription and non-p ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/29 10:33
End of Day Share Price2020/10/29 00:00
Earnings2020/03/31
Annual Earnings2020/03/31


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.