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.


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

5.5%

AERI

2.8%

US Pharmaceuticals

1.8%

US Market


1 Year Return

-63.6%

AERI

-6.5%

US Pharmaceuticals

7.3%

US Market

Return vs Industry: AERI underperformed the US Pharmaceuticals industry which returned -6.5% over the past year.

Return vs Market: AERI underperformed the US Market which returned 7.3% over the past year.


Shareholder returns

AERIIndustryMarket
7 Day5.5%2.8%1.8%
30 Day-1.8%1.6%-0.7%
90 Day-8.1%0.01%0.06%
1 Year-63.6%-63.6%-4.3%-6.5%9.7%7.3%
3 Year-40.8%-40.8%19.4%11.0%46.3%36.9%
5 Year-9.3%-9.3%25.5%12.3%64.5%46.5%

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

Undervalued: AERI ($21.25) is trading below our estimate of fair value ($243.68)

Significantly Undervalued: 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

Low 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 (6.3x) compared to the US Pharmaceuticals industry average (2.9x).


Next Steps

Future Growth

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

71.2%

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 (2.7%).

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

High Growth Earnings: AERI's loss is forecast to worsen by 0% next year.

Revenue vs Market: AERI's revenue (46.4% per year) is forecast to grow faster than the US market (7.3% per year).

High Growth Revenue: AERI's revenue (46.4% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High 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?

-35.0%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: AERI is unprofitable, and losses have increased over the past 5 years at a rate of -35% 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 (24.3%).


Return on Equity

High ROE: AERI has a negative Return on Equity (-148.92%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: AERI is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: AERI is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is Aerie Pharmaceuticals's financial position?


Financial Position Analysis

Short Term Liabilities: AERI's short term assets ($154.1M) exceeds its short term liabilities ($61.1M)

Long Term Liabilities: AERI's short term assets (154.1M) exceeds its long term liabilities (17.3M)


Debt to Equity History and Analysis

Debt Level: AERI is debt free.

Reducing Debt: AERI has no debt compared to 5 years ago when its debt to equity ratio was 2.6%.


Balance Sheet

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

Debt Coverage by Assets: Insufficient data to determine if AERI's debt is 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.

Stable Cash Runway: AERI has less than a year of cash runway 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%1.5%markettop25%3.7%industryaverage2.8%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

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.

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

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

3.9yrs

Average management tenure


CEO

Vince Anido (66yo)

6.3yrs

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 ($USD6.77M) is about average for companies of similar size in the US market ($USD2.67M).

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


Management Age and Tenure

3.9yrs

Average Tenure

61yo

Average Age

Experienced Management: AERI's management team is considered experienced (3.9 years average tenure).


Board Age and Tenure

4.4yrs

Average Tenure

66yo

Average Age

Experienced Board: AERI's board of directors are considered experienced (4.4 years average tenure).


Insider Trading

Insider Buying: AERI insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$100,44709 Sep 19
Richard Rubino
EntityIndividual
Role
Chief Financial Officer
CFO, Secretary & Treasurer
Shares5,040
Max PriceUS$19.93
BuyUS$498,95309 Sep 19
Vicente Anido
EntityIndividual
Role
Chief Executive Officer
CEO & Chairman
Shares26,250
Max PriceUS$19.95
BuyUS$2,140,89007 Sep 19
Foresite Capital Management, LLC
EntityCompany
Shares115,900
Max PriceUS$18.48
BuyUS$1,574,74105 Sep 19
Foresite Capital Management, LLC
EntityCompany
Shares75,000
Max PriceUS$21.45
BuyUS$1,082,44924 Aug 19
Foresite Capital Management, LLC
EntityCompany
Shares46,153
Max PriceUS$23.68
BuyUS$3,673,28921 Aug 19
Foresite Capital Management, LLC
EntityCompany
Shares153,847
Max PriceUS$24.23
BuyUS$4,565,60515 Aug 19
Foresite Capital Management, LLC
EntityCompany
Shares178,903
Max PriceUS$25.52
BuyUS$8,775,56615 Aug 19
Foresite Capital Management, LLC
EntityCompany
Shares360,652
Max PriceUS$24.92
BuyUS$83,49319 Nov 18
Gerald Cagle
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares2,000
Max PriceUS$41.75

Ownership Breakdown


Management Team

  • Vince Anido (66yo)

    CEO & Chairman

    • Tenure: 6.3yrs
    • Compensation: US$6.77m
  • Tom Mitro (61yo)

    President & COO

    • Tenure: 6.2yrs
    • Compensation: US$3.44m
  • Richard Rubino (61yo)

    CFO, Secretary & Treasurer

    • Tenure: 7yrs
    • Compensation: US$2.99m
  • Kathleen McGinley (69yo)

    Vice President of Human Resources & Corporate Services

    • Tenure: 0yrs
  • Casey Kopczynski (58yo)

    Co-Founder & Chief Scientific Officer

    • Tenure: 14.8yrs
    • Compensation: US$2.35m
  • John LaRocca (54yo)

    General Counsel & Assistant Secretary

    • Tenure: 1.7yrs
    • Compensation: US$4.17m
  • Tad Heitmann

    Head of Communications

    • Tenure: 1.7yrs
  • Ami Bavishi

    Director of Investor Relations

    • Tenure: 0.8yrs
  • Jeffrey Calabrese

    Director of Accounting

    • Tenure: 0.3yrs
  • Charlene Davis

    VP & Chief Compliance Officer

    • Tenure: 0yrs

Board Members

  • Murray Goldberg (74yo)

    Independent Director

    • Tenure: 6.2yrs
    • Compensation: US$511.87k
  • Ben McGraw (70yo)

    Lead Independent Director

    • Tenure: 0yrs
    • Compensation: US$533.28k
  • Dave Gryska (64yo)

    Independent Director

    • Tenure: 1.1yrs
    • Compensation: US$1.00m
  • Vince Anido (66yo)

    CEO & Chairman

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

    Independent Director

    • Tenure: 6.1yrs
    • Compensation: US$509.37k
  • Michael du Toit (66yo)

    Independent Director

    • Tenure: 4.3yrs
    • Compensation: US$504.37k
  • Rick Croarkin (65yo)

    Independent Director

    • Tenure: 4.4yrs
    • Compensation: US$501.87k
  • Julie McHugh (55yo)

    Independent Director

    • Tenure: 4.3yrs
    • Compensation: US$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$976.209m
  • Shares outstanding: 45.94m
  • 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,  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/18 00:33
End of Day Share Price2019/10/17 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.