Pacific Edge (NZSE:PEB) - Share price, News & Analysis

Q: What is the Fair Price of PEB when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

PEB (NZ$0.52) is trading above our estimate of [[fair value]] (NZ$0.11)

PEB fundamental analysis
Snowflake Score
Valuation	1/6
Future Growth	2/6
Past Performance	0/6
Financial Health	5/6
Dividends	0/6

PEB Stock Overview

Rewards

Revenue is forecast to grow 45.67% per year

Risk Analysis

Highly volatile share price over the past 3 months

Currently unprofitable and not forecast to become profitable over the next 3 years

Shareholders have been diluted in the past year

Pacific Edge Competitors

AFT Pharmaceuticals

NZSE:AFT

NZ$377.5m

XOMA

NasdaqGM:XOMA

US$220.7m

Sunmax Biotechnology

TPEX:4728

NT$8.2b

AVEO Pharmaceuticals

NasdaqCM:AVEO

US$265.1m

Price History & Performance

Summary of all time highs, changes and price drops for Pacific Edge
Historical stock prices
Current Share Price	NZ$0.52
52 Week High	NZ$1.59
52 Week Low	NZ$0.40
Beta	0.95
1 Month Change	-26.76%
3 Month Change	-35.00%
1 Year Change	-57.72%
3 Year Change	136.36%
5 Year Change	10.64%
Change since IPO	197.15%

Recent News & Updates

May 31

Pacific Edge (NZSE:PEB) Is In A Good Position To Deliver On Growth Plans

Just because a business does not make any money, does not mean that the stock will go down. For example, biotech and...

Shareholder Returns

	PEB	NZ Biotechs	NZ Market
7D	-1.9%	0.4%	0.3%
1Y	-57.7%	-0.8%	-11.1%

Return vs Industry: PEB underperformed the NZ Biotechs industry which returned -1.6% over the past year.

Return vs Market: PEB underperformed the NZ Market which returned -11.3% over the past year.

Price Volatility

Is PEB's price volatile compared to industry and market?
PEB volatility
PEB Average Weekly Movement	14.2%
Biotechs Industry Average Movement	11.7%
Market Average Movement	4.3%
10% most volatile stocks in NZ Market	8.3%
10% least volatile stocks in NZ Market	3.0%

Stable Share Price: PEB is more volatile than 90% of NZ stocks over the past 3 months, typically moving +/- 14% a week.

Volatility Over Time: PEB's weekly volatility has increased from 8% to 14% over the past year.

About the Company

Founded	Employees	CEO	Website
2001	86	Peter Meintjes	https://www.pacificedgedx.com

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, Australia, and Singapore. It operates in two segments, Commercial and Research. The company offers Cxbladder, a genomic urine tests for the detection and management of bladder cancer.

Pacific Edge Fundamentals Summary

How do Pacific Edge's earnings and revenue compare to its market cap?
PEB fundamental statistics
Market Cap	NZ$421.29m
Earnings (TTM)	-NZ$19.79m
Revenue (TTM)	NZ$13.14m

32.1x

P/S Ratio

-21.3x

P/E Ratio

Is PEB overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
PEB income statement (TTM)
Revenue	NZ$13.14m
Cost of Revenue	NZ$6.50m
Gross Profit	NZ$6.64m
Other Expenses	NZ$26.43m
Earnings	-NZ$19.79m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

Nov 26, 2022

Earnings per share (EPS)	-0.024
Gross Margin	50.53%
Net Profit Margin	-150.64%
Debt/Equity Ratio	0%

How did PEB perform over the long term?

See historical performance and comparison

We’ve recently updated our valuation analysis.

Valuation

Is PEB undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

1/6

Valuation Score 1/6

Price-To-Sales vs Peers
Price-To-Sales vs Industry
Price-To-Sales vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for PEB?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for PEB. This is calculated by dividing PEB's market cap by their current preferred multiple.
What is PEB's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	NZ$421.29m

PEB key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	24.2x
Enterprise Value/EBITDA	-15.7x
PEG Ratio	n/a

Price to Sales Ratio vs Peers

How does PEB's PS Ratio compare to its peers?

PEB PS Ratio vs Peers

The above table shows the PS ratio for PEB vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PS	Estimated Growth	Market Cap
Peer Average	4.9x
AFT AFT Pharmaceuticals	2.9x	13.5%	NZ$377.5m
XOMA XOMA	5.4x	31.8%	US$220.7m
4728 Sunmax Biotechnology	7.5x	n/a	NT$8.2b
AVEO AVEO Pharmaceuticals	3.4x	29.3%	US$265.1m
PEB Pacific Edge	32.1x	45.7%	NZ$421.3m

Price-To-Sales vs Peers: PEB is expensive based on its Price-To-Sales Ratio (32.1x) compared to the peer average (4.9x).

Price to Earnings Ratio vs Industry

How does PEB's PE Ratio compare vs other companies in the Oceanian Biotechs Industry?

Price-To-Sales vs Industry: PEB is expensive based on its Price-To-Sales Ratio (32.1x) compared to the Oceanic Biotechs industry average (20.1x)

Price to Sales Ratio vs Fair Ratio

What is PEB's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

PEB PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	32.1x
Fair PS Ratio	20.8x

Price-To-Sales vs Fair Ratio: PEB is expensive based on its Price-To-Sales Ratio (32.1x) compared to the estimated Fair Price-To-Sales Ratio (20.8x).

Share Price vs Fair Value

What is the Fair Price of PEB when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: PEB (NZ$0.52) is trading above our estimate of fair value (NZ$0.11)

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

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.

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Future Growth

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

Future Growth Score

2/6

Future Growth Score 2/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

4.3%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

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

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

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

Revenue vs Market: PEB's revenue (45.7% per year) is forecast to grow faster than the NZ market (5.8% per year).

High Growth Revenue: PEB's revenue (45.7% per year) is forecast to grow faster than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

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

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Past Performance

How has Pacific Edge performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

5.6%

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 5.6% 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 (4.9%).

Return on Equity

High ROE: PEB has a negative Return on Equity (-18.26%), as it is currently unprofitable.

Discover strong past performing companies

Financial Health

How is Pacific Edge's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Stable Cash Runway
Forecast Cash Runway

Financial Position Analysis

Short Term Liabilities: PEB's short term assets (NZ$111.6M) exceed its short term liabilities (NZ$6.1M).

Long Term Liabilities: PEB's short term assets (NZ$111.6M) exceed its long term liabilities (NZ$851.0K).

Debt to Equity History and Analysis

Debt Level: PEB is debt free.

Reducing Debt: PEB has no debt compared to 5 years ago when its debt to equity ratio was 0.01%.

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 3 years based on its current free cash flow.

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

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Dividend

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

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Cash Flow Coverage

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.

Earnings Payout to Shareholders

Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as PEB has not reported any payouts.

Discover strong dividend paying companies

Management

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

2.6yrs

Average management tenure

CEO

Peter Meintjes

0.58

Tenure

Dr. Peter Meintjes served as a Chief Commercial Officer at Transplant Genomics, Inc., since April 2020. he serves as CEO at Pacific Edge Limited since January 17, 2022. He was responsible for leding the co...

Leadership Team

Experienced Management: PEB's management team is considered experienced (2.6 years average tenure).

Board Members

Experienced Board: PEB's board of directors are considered experienced (6.1 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 11.1%.

Data	Last Updated (UTC time)
Company Analysis	2022/08/09 00:00
End of Day Share Price	2022/08/09 00:00
Earnings	2022/03/31
Annual Earnings	2022/03/31