NasdaqGM:OBLN

Stock Analysis Report

Executive Summary

Obalon Therapeutics, Inc., a vertically integrated medical device company, focuses on developing and commercializing medical devices to treat people with obesity.


Snowflake Analysis

Adequate balance sheet with limited growth.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: OBLN's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-9.9%

OBLN

-1.6%

US Medical Equipment

-2.6%

US Market


1 Year Return

-87.5%

OBLN

-5.2%

US Medical Equipment

-13.3%

US Market

Return vs Industry: OBLN underperformed the US Medical Equipment industry which returned -7.7% over the past year.

Return vs Market: OBLN underperformed the US Market which returned -15.9% over the past year.


Shareholder returns

OBLNIndustryMarket
7 Day-9.9%-1.6%-2.6%
30 Day-42.5%-10.2%-15.2%
90 Day-65.3%-17.5%-22.2%
1 Year-87.5%-87.5%-4.4%-5.2%-11.5%-13.3%
3 Year-99.4%-99.4%45.4%41.5%13.2%5.7%
5 Yearn/a75.2%57.1%31.8%17.2%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

0.32x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate OBLN's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate OBLN's fair value to establish if it is undervalued.


Price To Earnings Ratio

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

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


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: OBLN is good value based on its PB Ratio (0.3x) compared to the US Medical Equipment industry average (2.9x).


Next Steps

Future Growth

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

72.2%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if OBLN's forecast earnings growth is above the savings rate (1.7%).

Earnings vs Market: Insufficient data to determine if OBLN's earnings are forecast to grow faster than the US market

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

Revenue vs Market: OBLN's revenue (72.2% per year) is forecast to grow faster than the US market (7% per year).

High Growth Revenue: OBLN's revenue (72.2% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if OBLN's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Obalon Therapeutics performed over the past 5 years?

-18.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: OBLN is currently unprofitable.

Growing Profit Margin: OBLN is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: OBLN is unprofitable, and losses have increased over the past 5 years at a rate of -18% per year.

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

Earnings vs Industry: OBLN is unprofitable, making it difficult to compare its past year earnings growth to the Medical Equipment industry (1%).


Return on Equity

High ROE: OBLN has a negative Return on Equity (-149.38%), as it is currently unprofitable.


Next Steps

Financial Health

How is Obalon Therapeutics's financial position?


Financial Position Analysis

Short Term Liabilities: OBLN's short term assets ($18.2M) exceed its short term liabilities ($4.0M).

Long Term Liabilities: OBLN's short term assets ($18.2M) exceed its long term liabilities ($567.0K).


Debt to Equity History and Analysis

Debt Level: OBLN is debt free.

Reducing Debt: OBLN has no debt compared to 5 years ago when its debt to equity ratio was 32.8%.


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: OBLN has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: OBLN has less than a year of cash runway if free cash flow continues to reduce at historical rates of -16.2% each year


Next Steps

Dividend

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


Dividend Yield vs Market

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

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

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


Next Steps

Management

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

0.9yrs

Average management tenure


CEO

William Plovanic (50yo)

0.50

Tenure

US$955,619

Compensation

Mr. William John Plovanic, also known as Bill, CFA serves as Chief Executive Officer at Obalon Therapeutics, Inc. since October 19, 2019. Mr. Plovanic serves as President and Director of Obalon Therapeutic ...


CEO Compensation Analysis

Compensation vs Market: William's total compensation ($USD955.62K) is above average for companies of similar size in the US market ($USD626.39K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Andrew Rasdal
Executive Chairman of the Board1.25yrsUS$526.00k0.90% $44.9k
William Plovanic
President0.50yrUS$955.62k1.39% $69.4k
Mark Brister
Chief Technology Officer3.42yrsUS$542.67k0.50% $25.2k
Amy VandenBerg
Chief Quality Assurance1.25yrsUS$539.52k0.15% $7.6k
Kelly Huang
Consultant0.92yrUS$856.38k0.16% $7.8k
Nooshin Hussainy
Chief Financial Officer0.50yrno data0.21% $10.6k
Robert Macdonald
Chief Retail Officer0.92yrno data0.068% $3.4k

0.9yrs

Average Tenure

57yo

Average Age

Experienced Management: OBLN's management team is not considered experienced ( 0.9 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Andrew Rasdal
Executive Chairman of the Board1.25yrsUS$526.00k0.90% $44.9k
William Plovanic
President0.50yrUS$955.62k1.39% $69.4k
Sharon Stevenson
Independent Director12.25yrsUS$117.50k0.13% $6.7k
Raymond Dittamore
Independent Director4.08yrsUS$130.00k0.036% $1.8k
Lesley Howe
Independent Director4.25yrsUS$132.50k0.15% $7.5k
Kim Kamdar
Independent Director12.25yrsUS$130.00k0.25% $12.6k
Douglas Fisher
Independent Director7.92yrsUS$115.00kno data
David Moatazedi
Independent Director3.08yrsUS$122.50k0.0071% $356.7

4.2yrs

Average Tenure

56.5yo

Average Age

Experienced Board: OBLN's board of directors are considered experienced (4.2 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 substantially diluted in the past year, with total shares outstanding growing by 147.2%.


Top Shareholders

Company Information

Obalon Therapeutics, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Obalon Therapeutics, Inc.
  • Ticker: OBLN
  • Exchange: NasdaqGM
  • Founded: 2008
  • Industry: Health Care Equipment
  • Sector: Healthcare
  • Market Cap: US$5.003m
  • Shares outstanding: 7.70m
  • Website: https://www.obalon.com

Number of Employees


Location

  • Obalon Therapeutics, Inc.
  • 5421 Avenida Encinas
  • Suite F
  • Carlsbad
  • California
  • 92008-4410
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
OBLNNasdaqGM (Nasdaq Global Market)YesCommon SharesUSUSDOct 2016
24OADB (Deutsche Boerse AG)YesCommon SharesDEEUROct 2016

Biography

Obalon Therapeutics, Inc., a vertically integrated medical device company, focuses on developing and commercializing medical devices to treat people with obesity. The company offers the Obalon Balloon System designed to provide weight loss in patients with obesity. Its Obalon Balloon System comprises of a swallow able capsule that contains an inflatable balloon attached to a microcatheter; the Obalon Navigation System console, which is a combination of hardware and software used to track and display the location of the balloon during placement; the Obalon Touch Inflation Dispenser, which is a semi-automated, hand-held inflation device used to inflate the balloon once it is placed; and a disposable canister filled with mixture of gas. As of February 27, 2020, it had three company-managed retail treatment centers in California. Obalon Therapeutics, Inc. was founded in 2008 and is headquartered in Carlsbad, California. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/06 04:44
End of Day Share Price2020/04/03 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.