NasdaqGM:AERI

Stock Analysis Report

Executive Summary

Aerie Pharmaceuticals, Inc., an ophthalmic pharmaceutical company, focuses on the discovery, development, and commercialization of first-in-class therapies for the treatment of glaucoma, retinal diseases, and other eye diseases.


Snowflake Analysis

High growth potential with adequate balance sheet.


Similar Companies

Share Price & News

How has Aerie Pharmaceuticals's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: AERI has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

11.0%

AERI

-0.5%

US Pharmaceuticals

-1.1%

US Market


1 Year Return

-46.1%

AERI

6.2%

US Pharmaceuticals

17.9%

US Market

Return vs Industry: AERI underperformed the US Pharmaceuticals industry which returned 6.1% over the past year.

Return vs Market: AERI underperformed the US Market which returned 18% over the past year.


Shareholder returns

AERIIndustryMarket
7 Day11.0%-0.5%-1.1%
30 Day0.4%-1.0%1.4%
90 Day16.6%5.7%6.9%
1 Year-46.1%-46.1%8.9%6.2%20.3%17.9%
3 Year-51.5%-51.5%25.4%16.6%47.8%38.3%
5 Year-23.2%-23.2%29.7%15.7%71.9%53.0%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Aerie Pharmaceuticals undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: AERI ($21.59) is trading below our estimate of fair value ($164.44)

Significantly Below Fair Value: AERI is trading below fair value by more than 20%.


Price To Earnings Ratio

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

PE vs Market: AERI 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 AERI's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: AERI is overvalued based on its PB Ratio (5.9x) compared to the US Pharmaceuticals industry average (3.1x).


Next Steps

Future Growth

How is Aerie Pharmaceuticals forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

62.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AERI is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.7%).

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

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

Revenue vs Market: AERI's revenue (34.6% per year) is forecast to grow faster than the US market (7.6% per year).

High Growth Revenue: AERI's revenue (34.6% 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 AERI's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Aerie Pharmaceuticals performed over the past 5 years?

-29.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AERI is currently unprofitable.

Growing Profit Margin: AERI is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: AERI is unprofitable, and losses have increased over the past 5 years at a rate of -29.9% per year.

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

Earnings vs Industry: AERI is unprofitable, making it difficult to compare its past year earnings growth to the Pharmaceuticals industry (-0.2%).


Return on Equity

High ROE: AERI has a negative Return on Equity (-119.55%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Aerie Pharmaceuticals's financial position?


Financial Position Analysis

Short Term Liabilities: AERI's short term assets ($376.3M) exceed its short term liabilities ($83.6M).

Long Term Liabilities: AERI's short term assets ($376.3M) exceed its long term liabilities ($202.0M).


Debt to Equity History and Analysis

Debt Level: AERI's debt to equity ratio (113%) is considered high.

Reducing Debt: AERI's debt to equity ratio has reduced from 434.8% to 113% over the past 5 years.


Balance Sheet

Inventory Level: AERI has a high level of physical assets or inventory.

Debt Coverage by Assets: AERI's debt is covered by short term assets (assets are 2x debt).


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

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


Next Steps

Dividend

What is Aerie Pharmaceuticals's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage2.7%forecastin3Years0%

Current dividend yield vs market & industry

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

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

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

2.0yrs

Average management tenure


CEO

Vince Anido (66yo)

6.6yrs

Tenure

US$6,774,726

Compensation

Dr. Vicente J. Anido, Jr., Ph.D., also known as Vince, has been the Chairman of Aerie Pharmaceuticals, Inc. since April 4, 2013 and its Chief Executive Officer since July 25, 2013. Dr. Anido is employed at ...


CEO Compensation Analysis

Compensation vs Market: Vince's total compensation ($USD6.77M) is above average for companies of similar size in the US market ($USD2.50M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Vicente Anido
CEO & Chairman6.6yrsUS$6.77m0.50% $5.0m
Thomas Mitro
President & COO6.5yrsUS$3.44m0.18% $1.8m
Casey Kopczynski
Co-Founder & Chief Scientific Officer15.1yrsUS$2.35m0.49% $4.9m
Richard Rubino
CFO, Secretary & Treasurer7.3yrsUS$2.99m0.75% $7.6m
John LaRocca
General Counsel & Assistant Secretary2yrsUS$4.17m0.074% $742.0k
Jeffrey Calabrese
Director of Accounting0.7yrsno datano data
Ami Bavishi
Director of Investor Relations1.1yrsno datano data
Charlene Davis
VP & Chief Compliance Officer0.3yrsno datano data
Tad Heitmann
Head of Communications2yrsno datano data
Kathleen McGinley
Vice President of Human Resources & Corporate Services0yrsno datano data

2.0yrs

Average Tenure

61yo

Average Age

Experienced Management: AERI's management team is considered experienced (2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Vicente Anido
CEO & Chairman6.6yrsUS$6.77m0.50% $5.0m
Murray Goldberg
Independent Director6.5yrsUS$511.87k0.017% $174.4k
Benjamin McGraw
Lead Independent Director0yrsUS$533.28k0.017% $174.4k
David Gryska
Independent Director1.4yrsUS$1.00m0.0081% $81.2k
Gerald Cagle
Independent Director6.4yrsUS$509.37k0.047% $466.7k
Mechiel du Toit
Independent Director4.7yrsUS$504.37k0.014% $137.5k
Richard Croarkin
Independent Director4.8yrsUS$501.87k0.014% $137.5k
Julie McHugh
Independent Director4.7yrsUS$506.87k0.014% $137.5k

4.8yrs

Average Tenure

66yo

Average Age

Experienced Board: AERI's board of directors are considered experienced (4.8 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 9%.


Top Shareholders

Company Information

Aerie Pharmaceuticals, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Aerie Pharmaceuticals, Inc.
  • Ticker: AERI
  • Exchange: NasdaqGM
  • Founded: 2005
  • Industry: Pharmaceuticals
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: US$1.003b
  • Shares outstanding: 46.46m
  • Website: https://www.aeriepharma.com

Number of Employees


Location

  • Aerie Pharmaceuticals, Inc.
  • 4301 Emperor Boulevard
  • Suite 400
  • Durham
  • North Carolina
  • 27703
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
AERINasdaqGM (Nasdaq Global Market)YesCommon StockUSUSDOct 2013
0P0DB (Deutsche Boerse AG)YesCommon StockDEEUROct 2013

Biography

Aerie Pharmaceuticals, Inc., an ophthalmic pharmaceutical company, focuses on the discovery, development, and commercialization of first-in-class therapies for the treatment of glaucoma, retinal diseases, and other eye diseases. Its lead product is Rhopressa, a once-daily eye drop to reduce elevated intraocular pressure (IOP) in patients with glaucoma or ocular hypertension. The company’s advanced-stage product candidate is Roclatan, a once-daily eye drop to reduce IOP to treat patients with open-angle glaucoma and ocular hypertension. Aerie Pharmaceuticals, Inc. has a collaborative research, development, and licensing agreement with DSM. Aerie Pharmaceuticals, Inc. was founded in 2005 and is headquartered in Durham, North Carolina. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/23 02:19
End of Day Share Price2020/02/21 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.