NasdaqCM:VLRX

Stock Analysis Report

Executive Summary

Valeritas Holdings, Inc., a commercial-stage medical technology company, focuses on the development and commercialization of technologies to treat patients with Type 2 diabetes in the United States.

Snowflake

Fundamentals

Limited growth with worrying balance sheet.

Risks

  • Valeritas Holdings has significant price volatility in the past 3 months.
  • Valeritas Holdings is covered by less than 3 analysts.

Similar Companies

Share Price & News

How has Valeritas Holdings's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-7.6%

VLRX

0.7%

US Medical Equipment

-0.2%

US Market


1 Year Return

-92.0%

VLRX

9.5%

US Medical Equipment

1.1%

US Market

VLRX underperformed the Medical Equipment industry which returned 9.9% over the past year.

VLRX underperformed the Market in United States of America which returned 1.6% over the past year.


Share holder returns

VLRXIndustryMarket
7 Day-7.6%0.7%-0.2%
30 Day-31.0%0.1%2.5%
90 Day-45.5%2.5%1.6%
1 Year-92.0%-92.0%10.4%9.5%3.4%1.1%
3 Year-99.8%-99.8%69.3%64.1%45.2%35.8%
5 Yearn/a138.0%110.9%62.6%44.8%

Price Volatility Vs. Market

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


Simply Wall St News

1 year ago | Simply Wall St

With A -10.02% Earnings Drop, Is Valeritas Holdings Inc's (NASDAQ:VLRX) A Concern?

Valuation

Is Valeritas Holdings undervalued based on future cash flows and its price relative to the stock market?


In this section, we usually try to help investors determine whether Valeritas Holdings is trading at an attractive price based on the cash flow it is expected to produce in the future. But as Valeritas Holdings has not provided consistent financial data, and the stock also has no analyst forecast or coverage, its intrinsic value cannot be reliably calculated by extrapolating past data or using analyst consensus cash flow predictions.

This is quite a rare situation as 89% of companies covered by Simply Wall St do have a valuation analysis.


Next Steps

Future Growth

How is Valeritas Holdings expected to perform in the next 1 to 3 years based on estimates from 2 analysts?

2.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Valeritas Holdings's revenue is expected to grow significantly at over 20% yearly.

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

Valeritas Holdings's revenue growth is expected to exceed the United States of America market average.

Unable to compare Valeritas Holdings'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 Valeritas Holdings'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 Valeritas Holdings will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

How has Valeritas Holdings performed over the past 5 years?

10.7%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Valeritas Holdings does not make a profit even though their year on year earnings growth rate was positive over the past 5 years.

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

Unable to compare Valeritas Holdings'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 Valeritas Holdings has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) due to its liabilities exceeding its assets.


Return on Assets

It is difficult to establish if Valeritas Holdings 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 Valeritas Holdings 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 Valeritas Holdings's financial position?


Financial Position Analysis

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

Valeritas Holdings's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Valeritas Holdings has negative shareholder equity (liabilities exceed assets), this is a more serious situation compared with a high debt level.

Irrelevant to check if Valeritas Holdings's debt level has increased considering it has negative shareholder equity.


Balance Sheet

High level of physical assets or inventory.

Valeritas Holdings has negative shareholder equity (liabilities exceed assets) therefore debt is not 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.

Valeritas Holdings has less than a year of cash runway based on current free cash flow.

Valeritas Holdings has less than a year of cash runway if free cash flow continues to grow at historical rates of 10.1% each year.


Next Steps

Dividend

What is Valeritas Holdings's current dividend yield, its reliability and sustainability?


Dividend Yield and Payments Analysis

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

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

Unable to perform a dividend volatility check as Valeritas Holdings has not reported any payouts.

Unable to verify if Valeritas Holdings's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as Valeritas Holdings 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 Valeritas Holdings's salary, the management and board of directors tenure and is there insider trading?

3.1yrs

Average management tenure


CEO

John Timberlake (54yo)

3.6yrs

Tenure

US$1,646,554

Compensation

Mr. John E. Timberlake has been President of Valeritas Holdings, Inc. since August 2008 and its Chief Executive Officer since February 25, 2016. Mr. Timberlake served as the Chief Commercial Officer of Val ...


CEO Compensation Analysis

John's remuneration is higher than average for companies of similar size in United States of America.

John's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

3.1yrs

Average Tenure

54yo

Average Age

The tenure for the Valeritas Holdings management team is about average.


Board Age and Tenure

3.0yrs

Average Tenure

54yo

Average Age

The average tenure for the Valeritas Holdings board of directors is less than 3 years, this suggests a new board.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

BuyUS$54,36028 May 19
Armistice Capital LLC
EntityCompany
Shares24,000
Max PriceUS$2.28
BuyUS$149,52021 May 19
Armistice Capital LLC
EntityCompany
Shares36,000
Max PriceUS$4.60
BuyUS$30,51014 May 19
Armistice Capital LLC
EntityCompany
Shares5,000
Max PriceUS$6.10
BuyUS$16,53027 Mar 19
Armistice Capital LLC
EntityCompany
Shares2,500
Max PriceUS$6.61
BuyUS$16,26028 Dec 18
Armistice Capital LLC
EntityCompany
Shares2,500
Max PriceUS$6.51
BuyUS$50,60020 Dec 18
Armistice Capital LLC
EntityCompany
Shares7,500
Max PriceUS$6.91
BuyUS$51,24110 Dec 18
Armistice Capital LLC
EntityCompany
Shares7,500
Max PriceUS$7.14
BuyUS$8,75010 Dec 18
Matthew Nguyen
EntityIndividual
Role
Senior Key Executive
Chief Commercial Officer
Shares1,250
Max PriceUS$7.00
BuyUS$9,00007 Dec 18
John Timberlake
EntityIndividual
Role
Chief Executive Officer
President
Shares1,250
Max PriceUS$7.20
BuyUS$6,48006 Dec 18
Peter Devlin
EntityIndividual
Role
Chairman of the Board
Chairman of the Board
Shares900
Max PriceUS$7.20
BuyUS$53,85029 Nov 18
Armistice Capital LLC
EntityCompany
Shares7,500
Max PriceUS$7.18
BuyUS$39,00028 Nov 18
Joseph Mandato
EntityIndividual
Role
Member of the Board of Directors
Director
Shares5,000
Max PriceUS$7.80
BuyUS$7,40028 Nov 18
Peter Devlin
EntityIndividual
Role
Chairman of the Board
Chairman of the Board
Shares1,000
Max PriceUS$7.40
BuyUS$133,20426 Nov 18
Armistice Capital LLC
EntityCompany
Shares17,500
Max PriceUS$7.81
BuyUS$12,20026 Nov 18
John Timberlake
EntityIndividual
Role
Chief Executive Officer
President
Shares1,500
Max PriceUS$8.20
BuyUS$98,14020 Nov 18
Armistice Capital LLC
EntityCompany
Shares12,500
Max PriceUS$8.24

Ownership Breakdown


Management Team

  • Scott Huie

    Vice President of Corporate Compliance & Information Systems

    • Tenure: 3.2yrs
  • Geoff Jenkins (67yo)

    Executive Vice President of Manufacturing

    • Tenure: 10.4yrs
    • Compensation: US$607.73k
  • Matt Nguyen (49yo)

    Chief Commercial Officer

    • Tenure: 2.8yrs
    • Compensation: US$719.09k
  • John Timberlake (54yo)

    President

    • Tenure: 3.6yrs
    • Compensation: US$1.65m
  • Hokan Ojert

    Vice President of Sales

    • Tenure: 0yrs
  • Erick Lucera (51yo)

    CFO & Secretary

    • Tenure: 3.1yrs
    • Compensation: US$639.72k
  • Joe Saldanha (54yo)

    Chief Business Officer

    • Tenure: 1.7yrs
    • Compensation: US$628.75k
  • Mark Conley (57yo)

    VP, Corporate Controller & Treasurer

    • Tenure: 0yrs
  • Catherine DeRose

    Senior Director for Human Resources

    • Tenure: 0.7yrs

Board Members

  • Joe Mandato (75yo)

    Director

    • Tenure: 2.8yrs
    • Compensation: US$72.19k
  • Brian Roberts (48yo)

    Director

    • Tenure: 3.2yrs
    • Compensation: US$82.00k
  • Bob Henry

    Member of Scientific Advisory Board

    • Tenure: 0yrs
  • Steve Edelman (63yo)

    Member of Scientific Advisory Board

    • Tenure: 0yrs
  • John Leahy

    Member of Scientific Advisory Board

    • Tenure: 0yrs
  • Richard Bergenstal

    Member of Scientific Advisory Board

    • Tenure: 0yrs
  • Matthew Riddle

    Member of Scientific Advisory Board

    • Tenure: 0yrs
  • John Timberlake (54yo)

    President

    • Tenure: 3.6yrs
    • Compensation: US$1.65m
  • Bruce Bode

    Member of Scientific Advisory Board

    • Tenure: 0yrs
  • Peter Devlin (51yo)

    Chairman of the Board

    • Tenure: 2.3yrs
    • Compensation: US$111.60k

Company Information

Valeritas Holdings, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Valeritas Holdings, Inc.
  • Ticker: VLRX
  • Exchange: NasdaqCM
  • Founded: 2006
  • Industry: Health Care Supplies
  • Sector: Healthcare
  • Market Cap: US$11.309m
  • Shares outstanding: 7.16m
  • Website: https://www.valeritas.com

Number of Employees


Location

  • Valeritas Holdings, Inc.
  • 750 Route 202 South
  • Suite 600
  • Bridgewater
  • New Jersey
  • 8807
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
VLRXNasdaqCM (Nasdaq Capital Market)YesCommon StockUSUSDMay 2016
3D9DB (Deutsche Boerse AG)YesCommon StockDEEURMay 2016

Biography

Valeritas Holdings, Inc., a commercial-stage medical technology company, focuses on the development and commercialization of technologies to treat patients with Type 2 diabetes in the United States. The co ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/20 01:12
End of Day Share Price2019/09/19 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.