NZSE:PEB

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Market Cap

NZ$873.9m

Last Updated

2021/06/15 15:39 UTC

Data Sources

Company Financials +

Executive Summary

Pacific Edge Limited, a cancer diagnostic company, researches, develops, and commercializes diagnostic and prognostic tools for the early detection and management of cancers in New Zealand, the United States, and internationally. More Details


Snowflake Analysis

Exceptional growth potential with flawless balance sheet.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: PEB is more volatile than 75% of NZ stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: PEB's weekly volatility has decreased from 20% to 7% over the past year, but is still higher than 75% of NZ stocks.


Market Performance


7 Day Return

3.4%

PEB

1.6%

NZ Biotechs

-0.05%

NZ Market


1 Year Return

410.6%

PEB

7.7%

NZ Biotechs

13.5%

NZ Market

Return vs Industry: PEB exceeded the NZ Biotechs industry which returned 7.6% over the past year.

Return vs Market: PEB exceeded the NZ Market which returned 13.9% over the past year.


Shareholder returns

PEBIndustryMarket
7 Day3.4%1.6%-0.05%
30 Day7.1%7.3%0.5%
90 Day15.4%12.5%-2.6%
1 Year410.6%410.6%8.7%7.7%16.7%13.5%
3 Year392.8%361.5%67.0%61.6%39.5%22.8%
5 Year134.0%118.2%184.9%168.3%80.5%38.6%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

34.78x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: PEB (NZ$1.19) is trading above our estimate of fair value (NZ$0.08)

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


Price To Earnings Ratio

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

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


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: PEB is overvalued based on its PB Ratio (34.5x) compared to the XO Biotechs industry average (5.2x).


Future Growth

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

99.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PEB is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2.1%).

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

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

Revenue vs Market: PEB's revenue (64.4% per year) is forecast to grow faster than the NZ market (6% per year).

High Growth Revenue: PEB's revenue (64.4% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: PEB's Return on Equity is forecast to be very high in 3 years time (84.1%).


Past Performance

How has Pacific Edge performed over the past 5 years?

4.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PEB is currently unprofitable.

Growing Profit Margin: PEB is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: PEB is unprofitable, but has reduced losses over the past 5 years at a rate of 4% per year.

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

Earnings vs Industry: PEB is unprofitable, making it difficult to compare its past year earnings growth to the Biotechs industry (34.5%).


Return on Equity

High ROE: PEB has a negative Return on Equity (-56.65%), as it is currently unprofitable.


Financial Health

How is Pacific Edge's financial position?


Financial Position Analysis

Short Term Liabilities: PEB's short term assets (NZ$27.3M) exceed its short term liabilities (NZ$4.3M).

Long Term Liabilities: PEB's short term assets (NZ$27.3M) exceed its long term liabilities (NZ$1.8M).


Debt to Equity History and Analysis

Debt Level: PEB is debt free.

Reducing Debt: PEB had no debt 5 years ago.


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: PEB has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: PEB has sufficient cash runway for 1.5 years if free cash flow continues to grow at historical rates of 0.7% each year.


Dividend

What is Pacific Edge current dividend yield, its reliability and sustainability?

0.30%

Forecast Dividend Yield


Dividend Yield vs Market

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

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

Growing Dividend: Insufficient data to determine if PEB'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 PEB'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?

5.3yrs

Average management tenure


CEO

Dave Darling

17.58yrs

Tenure

NZ$255,000

Compensation

Mr. David Darling, also known as Dave has been the Chief Executive Officer at Pacific Edge Limited (previously known as Pacific Edge Biotechnology Ltd.) since November 2003 and serves as its Managing direc...


Leadership Team

Experienced Management: PEB's management team is seasoned and experienced (5.3 years average tenure).


Board Members

Experienced Board: PEB's board of directors are considered experienced (6.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: PEB insiders have only sold shares 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 5.6%.


Top Shareholders

Company Information

Pacific Edge Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Pacific Edge Limited
  • Ticker: PEB
  • Exchange: NZSE
  • Founded: 2001
  • Industry: Biotechnology
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: NZ$873.935m
  • Shares outstanding: 728.28m
  • Website: https://www.pacificedgedx.com

Location

  • Pacific Edge Limited
  • Centre for Innovation
  • 87 St David Street
  • Dunedin
  • 9016
  • New Zealand

Listings


Biography

Pacific Edge Limited, a cancer diagnostic company, researches, develops, and commercializes diagnostic and prognostic tools for the early detection and management of cancers in New Zealand, the United Stat...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/06/15 15:39
End of Day Share Price2021/06/15 00:00
Earnings2021/03/31
Annual Earnings2021/03/31


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.