NasdaqCM:CHEK

Stock Analysis Report

Executive Summary

Check-Cap Ltd., a clinical stage medical diagnostics company, engages in the development of a capsule-based system that utilizes low-dose X-rays for screening of the colon to detect polyps, masses, and colorectal cancers in Israel.

Snowflake

Fundamentals

Flawless balance sheet and overvalued.

Risks

  • Check-Cap is covered by less than 3 analysts.

Share Price & News

How has Check-Cap's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-3.6%

NasdaqCM:CHEK

1.5%

US Medical Equipment

0.8%

US Market


1 Year Return

-46.9%

NasdaqCM:CHEK

9.7%

US Medical Equipment

1.9%

US Market

CHEK underperformed the Medical Equipment industry which returned 9.6% over the past year.

CHEK underperformed the Market in United States of America which returned 2.1% over the past year.


Share holder returns

CHEKIndustryMarket
7 Day-3.6%1.5%0.8%
30 Day3.6%0.7%3.4%
90 Day-9.8%2.4%2.1%
1 Year-46.9%-46.9%10.6%9.7%4.2%1.9%
3 Year-91.6%-91.6%70.2%65.0%46.7%37.2%
5 Yearn/a136.0%109.1%62.3%44.5%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Check-Cap undervalued based on future cash flows and its price relative to the stock market?

1.26x

Price to Book (PB) ratio


Intrinsic Value Based on Future Cash Flows

Unable to calculate intrinsic value for Check-Cap to establish if it is available at moderate discount.

Unable to calculate intrinsic value for Check-Cap to establish if it is available at substantial discount.


Price Based on Earnings

Check-Cap is loss making, we can't compare its value to the US Medical Equipment industry average.

Check-Cap is loss making, we can't compare the value of its earnings to the United States of America market.


Price Based on Expected Growth

Unable to calculate PEG ratio for Check-Cap, we can't assess if its growth is good value.


Price Based on Value of Assets

Check-Cap is good value based on assets compared to the US Medical Equipment industry average.


Next Steps

Future Growth

How is Check-Cap expected to perform in the next 1 to 3 years based on estimates from 2 analysts?

-23.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Unable to determine if Check-Cap is high growth as no revenue estimate data is available.

Check-Cap is not considered high growth as it is expected to be loss making for the next 1-3 years.

Unable to compare Check-Cap's revenue growth to the United States of America market average as no estimate data is available.

Unable to compare Check-Cap's earnings growth to the United States of America market average as it is expected to be loss making during the next 1-3 years.

Unable to compare Check-Cap's earnings growth to the low risk savings rate as it is expected to be loss making during the next 1-3 years.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Check-Cap will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

How has Check-Cap performed over the past 5 years?

-13.3%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Check-Cap does not make a profit and their year on year earnings growth rate was negative over the past 5 years.

Unable to compare Check-Cap's 1-year earnings growth to the 5-year average as it is not currently profitable.

Unable to compare Check-Cap's 1-year growth to the US Medical Equipment industry average as it is not currently profitable.


Return on Equity

It is difficult to establish if Check-Cap has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.


Return on Assets

It is difficult to establish if Check-Cap has efficiently used its assets last year compared to the US Medical Equipment industry average (Return on Assets) as it is loss-making.


Return on Capital Employed

It is difficult to establish if Check-Cap improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.


Next Steps

Financial Health

How is Check-Cap's financial position?


Financial Position Analysis

Check-Cap is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Check-Cap's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Check-Cap has no debt.

Check-Cap has not taken on any debt in the past 5 years.


Balance Sheet

Low level of unsold assets.

Check-Cap has no debt, it does not need to be 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.

Check-Cap has sufficient cash runway for 1.2 years based on current free cash flow.

Check-Cap has sufficient cash runway for 1.1 years if free cash flow continues to grow at historical rates of 9.4% each year.


Next Steps

Dividend

What is Check-Cap's current dividend yield, its reliability and sustainability?


Dividend Yield and Payments Analysis

Unable to evaluate Check-Cap's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate Check-Cap's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as Check-Cap has not reported any payouts.

Unable to verify if Check-Cap's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as Check-Cap has not reported any payouts.


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

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

1.5yrs

Average management tenure


CEO

Alex Ovadia (57yo)

1.6yrs

Tenure

US$502,911

Compensation

Mr. Alex Ovadia has been Chief Executive Officer of Check-Cap Ltd since February 26, 2018. Mr. Ovadia was Vice President of Research & Development at Check-Cap Ltd. since joining in January 2013. Mr. Ovadi ...


CEO Compensation Analysis

Alex's remuneration is about average for companies of similar size in United States of America.

Alex's compensation has increased whilst company is loss making.


Management Age and Tenure

1.5yrs

Average Tenure

50yo

Average Age

The average tenure for the Check-Cap management team is less than 2 years, this suggests a new team.


Board Age and Tenure

4.5yrs

Average Tenure

55.5yo

Average Age

The tenure for the Check-Cap board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • Mira Rosenzweig (47yo)

    Chief Financial Officer

    • Tenure: 0.4yrs
  • Yoav Kimchy (58yo)

    Founder & Chief Technology Officer

    • Tenure: 15.4yrs
    • Compensation: US$470.29k
  • Alex Ovadia (57yo)

    Chief Executive Officer

    • Tenure: 1.6yrs
    • Compensation: US$502.91k
  • Shuki Belkar (50yo)

    Vice President of Operations

    • Tenure: 0.3yrs
  • Boaz Shpigelman (48yo)

    Vice President of Research & Development

    • Tenure: 1.5yrs
    • Compensation: US$288.13k
  • Israel Hershko

    Director of Quality Assurance & Regulatory Affairs

    • Tenure: 2yrs

Board Members

  • Yuval Yanai (67yo)

    Non-External Director

    • Tenure: 4.5yrs
  • Walt Robb (91yo)

    Scientific Advisor

    • Tenure: 10.3yrs
  • Mary Gorman (59yo)

    Non-External Director

    • Tenure: 4.3yrs
  • Nadir Arber

    Scientific Advisor

    • Tenure: 7.7yrs
  • Steve Hanley (52yo)

    Chairman of the Board

    • Tenure: 2yrs
  • XQ Lin (35yo)

    Director

    • Tenure: 4.6yrs
  • Seth Gross

    Scientific Advisor

    • Tenure: 0yrs
  • Clara Ezed (47yo)

    Director

    • Tenure: 2.3yrs

Company Information

Check-Cap Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Check-Cap Ltd.
  • Ticker: CHEK
  • Exchange: NasdaqCM
  • Founded: 2004
  • Industry: Health Care Equipment
  • Sector: Healthcare
  • Market Cap: US$16.724m
  • Shares outstanding: 8.24m
  • Website: https://www.check-cap.com

Number of Employees


Location

  • Check-Cap Ltd.
  • Check-Cap Building
  • 29 Abba Hushi Avenue
  • Isfiya
  • 30090
  • Israel

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CHEKNasdaqCM (Nasdaq Capital Market)YesOrdinary SharesUSUSDMar 2015
7CCDB (Deutsche Boerse AG)YesOrdinary SharesDEEURMar 2015

Biography

Check-Cap Ltd., a clinical stage medical diagnostics company, engages in the development of a capsule-based system that utilizes low-dose X-rays for screening of the colon to detect polyps, masses, and col ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/18 01:22
End of Day Share Price2019/09/17 00:00
Earnings2019/06/30
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.