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

Fundamentals

High growth potential with adequate balance sheet.

Risks

  • Aerie Pharmaceuticals has significant price volatility in the past 3 months.

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


Market Performance


7 Day Return

-1.4%

NasdaqGM:AERI

-1.8%

US Pharmaceuticals

-1.0%

US Market


1 Year Return

-63.7%

NasdaqGM:AERI

-6.6%

US Pharmaceuticals

-0.4%

US Market

AERI underperformed the Pharmaceuticals industry which returned -6.8% over the past year.

AERI underperformed the Market in United States of America which returned -1.7% over the past year.


Share holder returns

AERIIndustryMarket
7 Day-1.4%-1.8%-1.0%
30 Day-1.8%-3.1%-3.3%
90 Day-40.6%-3.9%0.4%
1 Year-63.7%-63.7%-4.3%-6.6%1.8%-0.4%
3 Year21.1%21.1%7.9%0.6%39.4%30.4%
5 Year38.6%38.6%22.9%10.0%54.2%37.1%

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 based on future cash flows and its price relative to the stock market?

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Aerie Pharmaceuticals's share price is below the future cash flow value, and at a moderate discount (> 20%).

Aerie Pharmaceuticals's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

Aerie Pharmaceuticals is loss making, we can't compare its value to the US Pharmaceuticals industry average.

Aerie Pharmaceuticals 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 Aerie Pharmaceuticals, we can't assess if its growth is good value.


Price Based on Value of Assets

Aerie Pharmaceuticals is overvalued based on assets compared to the US Pharmaceuticals industry average.


Next Steps

Future Growth

How is Aerie Pharmaceuticals expected to perform in the next 1 to 3 years based on estimates from 10 analysts?

71.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Aerie Pharmaceuticals's revenue is expected to grow significantly at over 20% yearly.

Aerie Pharmaceuticals's earnings are expected to grow significantly at over 20% yearly.

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

Aerie Pharmaceuticals's earnings growth is expected to exceed the United States of America market average.

Aerie Pharmaceuticals's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

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


Next Steps

Past Performance

How has Aerie Pharmaceuticals performed over the past 5 years?

-35.0%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

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

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

Unable to compare Aerie Pharmaceuticals's 1-year growth to the US Pharmaceuticals industry average as it is not currently profitable.


Return on Equity

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


Return on Capital Employed

It is difficult to establish if Aerie Pharmaceuticals 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 Aerie Pharmaceuticals's financial position?


Financial Position Analysis

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

Aerie Pharmaceuticals's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Aerie Pharmaceuticals has no debt.

Aerie Pharmaceuticals has no debt compared to 5 years ago when it was 2.6%.


Balance Sheet

High level of physical assets or inventory.

Aerie Pharmaceuticals 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.

Aerie Pharmaceuticals has less than a year of cash runway based on current free cash flow.

Aerie Pharmaceuticals has less than a year of cash runway if free cash flow continues to grow at historical rates of 35.6% each year.


Next Steps

Dividend

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


Dividend Yield and Payments Analysis

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

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

Unable to perform a dividend volatility check as Aerie Pharmaceuticals has not reported any payouts.

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


Current Payout to Shareholders

Unable to calculate sustainability of dividends as Aerie Pharmaceuticals 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

  • Explore strong dividend paying companies in the pharmaceuticals & biotech industry.

Management

What is the CEO of Aerie Pharmaceuticals's salary, the management and board of directors tenure and is there insider trading?

1.5yrs

Average management tenure


CEO

Vince Anido (66yo)

6.1yrs

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

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

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


Management Age and Tenure

1.5yrs

Average Tenure

61yo

Average Age

The average tenure for the Aerie Pharmaceuticals management team is less than 2 years, this suggests a new team.


Board Age and Tenure

4.3yrs

Average Tenure

66yo

Average Age

The tenure for the Aerie Pharmaceuticals board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

BuyUS$8,775,56615 Aug 19
Foresite Capital Management, LLC
EntityCompany
Shares360,652
Max PriceUS$24.92
BuyUS$4,565,60515 Aug 19
Foresite Capital Management, LLC
EntityCompany
Shares178,903
Max PriceUS$25.52
BuyUS$83,49319 Nov 18
Gerald Cagle
EntityIndividual
Role
Member of the Board of Directors
Shares2,000
Max PriceUS$41.75
SellUS$2,076,60814 Sep 18
Richard Rubino
EntityIndividual
Role
CFO, Secretary & Treasurer
Shares34,512
Max PriceUS$60.17
SellUS$661,02406 Sep 18
Casey Kopczynski
EntityIndividual
Role
Co-Founder & Chief Scientific Officer
Shares11,000
Max PriceUS$61.00

Ownership Breakdown


Management Team

  • Vince Anido (66yo)

    CEO & Chairman

    • Tenure: 6.1yrs
    • Compensation: $6.77m
  • Casey Kopczynski (58yo)

    Co-Founder & Chief Scientific Officer

    • Tenure: 14.6yrs
    • Compensation: $2.35m
  • John LaRocca (54yo)

    General Counsel & Assistant Secretary

    • Tenure: 1.5yrs
    • Compensation: $4.17m
  • Tom Mitro (61yo)

    President & COO

    • Tenure: 6.0yrs
    • Compensation: $3.44m
  • Ami Bavishi

    Director of Investor Relations

    • Tenure: 0.6yrs
  • Tad Heitmann

    Head of Communications

    • Tenure: 1.5yrs
  • Richard Rubino (61yo)

    CFO, Secretary & Treasurer

    • Tenure: 6.8yrs
    • Compensation: $2.99m
  • Jeffrey Calabrese

    Director of Accounting

    • Tenure: 0.2yrs
  • Carmen Wasserman

    Chief Compliance Officer & Senior Corporate Counsel

    • Tenure: 1.0yrs
  • Kathleen McGinley (69yo)

    Vice President of Human Resources & Corporate Services


Board Members

  • Murray Goldberg (74yo)

    Independent Director

    • Tenure: 6.0yrs
    • Compensation: $511.87k
  • Ben McGraw (70yo)

    Lead Independent Director

    • Compensation: $533.28k
  • Dave Gryska (64yo)

    Director

    • Tenure: 0.9yrs
    • Compensation: $1.00m
  • Vince Anido (66yo)

    CEO & Chairman

    • Tenure: 6.3yrs
    • Compensation: $6.77m
  • Jerry Cagle (75yo)

    Independent Director

    • Tenure: 5.9yrs
    • Compensation: $509.37k
  • Michael du Toit (66yo)

    Independent Director

    • Tenure: 4.2yrs
    • Compensation: $504.37k
  • Rick Croarkin (65yo)

    Independent Director

    • Tenure: 4.3yrs
    • Compensation: $501.87k
  • Julie McHugh (55yo)

    Independent Director

    • Tenure: 4.2yrs
    • Compensation: $506.87k

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$1.065b
  • Shares outstanding: 45.94m
  • Website: Click here

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,  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/17 00:19
End of Day Share Price2019/08/16 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.