NasdaqGM:AKBA

Stock Analysis Report

Executive Summary

Akebia Therapeutics, Inc., a biopharmaceutical company, focuses on the development and commercialization of therapeutics for patients with kidney diseases.

Rewards

Earnings are forecast to grow 59.2% per year

Risk Analysis

Has less than 1 year of cash runway

Shareholders have been substantially diluted in the past year

Highly volatile share price over past 3 months



Snowflake Analysis

Adequate balance sheet with moderate growth potential.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

6.8%

AKBA

0.1%

US Biotechs

1.1%

US Market


1 Year Return

-28.3%

AKBA

14.7%

US Biotechs

17.8%

US Market

Return vs Industry: AKBA underperformed the US Biotechs industry which returned 14.7% over the past year.

Return vs Market: AKBA underperformed the US Market which returned 17.8% over the past year.


Shareholder returns

AKBAIndustryMarket
7 Day6.8%0.1%1.1%
30 Day75.1%9.0%1.4%
90 Day21.9%15.2%3.9%
1 Year-28.3%-28.3%15.7%14.7%20.3%17.8%
3 Year-18.6%-18.6%28.4%24.3%44.8%35.4%
5 Year-46.0%-46.0%10.2%5.0%71.3%52.4%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

1.63x

Price to Book (PB) ratio


Share Price vs. Fair Value

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

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


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: AKBA is good value based on its PB Ratio (1.6x) compared to the US Biotechs industry average (3.2x).


Next Steps

Future Growth

How is Akebia Therapeutics forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

59.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

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

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

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

Revenue vs Market: AKBA's revenue (4.8% per year) is forecast to grow slower than the US market (7.4% per year).

High Growth Revenue: AKBA's revenue (4.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: AKBA's Return on Equity is forecast to be low in 3 years time (5.8%).


Next Steps

Past Performance

How has Akebia Therapeutics performed over the past 5 years?

-18.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AKBA is currently unprofitable.

Growing Profit Margin: AKBA is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: AKBA is unprofitable, and losses have increased over the past 5 years at a rate of -18.5% per year.

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

Earnings vs Industry: AKBA is unprofitable, making it difficult to compare its past year earnings growth to the Biotechs industry (103.3%).


Return on Equity

High ROE: AKBA has a negative Return on Equity (-52.45%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Akebia Therapeutics's financial position?


Financial Position Analysis

Short Term Liabilities: AKBA's short term assets ($299.0M) exceed its short term liabilities ($223.1M).

Long Term Liabilities: AKBA's short term assets ($299.0M) exceed its long term liabilities ($104.5M).


Debt to Equity History and Analysis

Debt Level: AKBA is debt free.

Reducing Debt: AKBA had no debt 5 years ago.


Balance Sheet

Inventory Level: AKBA has a low level of unsold assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if AKBA'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: AKBA has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: AKBA has less than a year of cash runway if free cash flow continues to reduce at historical rates of -93.3% each year


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage2.1%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

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

Growing Dividend: Insufficient data to determine if AKBA'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 AKBA'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 Akebia Therapeutics's salary, the management and board of directors tenure and is there insider trading?

3.6yrs

Average management tenure


CEO

John Butler (55yo)

6.3yrs

Tenure

US$3,471,072

Compensation

Mr. John P. Butler, MBA, has been the Chief Executive Officer and President of Akebia Therapeutics, Inc. since September 2013. Mr. Butler served as Chief Executive Officer of Inspiration Biopharmaceuticals ...


CEO Compensation Analysis

Compensation vs Market: John's total compensation ($USD3.47M) is above average for companies of similar size in the US market ($USD2.64M).

Compensation vs Earnings: John's compensation has increased whilst the company is unprofitable.


Management Age and Tenure

3.6yrs

Average Tenure

53yo

Average Age

Experienced Management: AKBA's management team is considered experienced (3.6 years average tenure).


Board Age and Tenure

1.2yrs

Average Tenure

63.5yo

Average Age

Experienced Board: AKBA's board of directors are not considered experienced ( 1.2 years average tenure), which suggests a new board.


Insider Trading

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


Recent Insider Transactions

BuyUS$19,89422 Nov 19
Steven Gilman
EntityIndividual
Shares5,800
Max PriceUS$3.43
BuyUS$52,80022 Nov 19
Cynthia Smith
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares15,000
Max PriceUS$3.52
BuyUS$96,66022 Nov 19
Steven Burke
EntityIndividual
Role
Senior Key Executive
Senior VP & Chief Medical Officer
Shares27,000
Max PriceUS$3.58
BuyUS$172,00021 Nov 19
John Butler
EntityIndividual
Role
Chief Executive Officer
CEO, President & Director
Shares50,000
Max PriceUS$3.44
BuyUS$170,50021 Nov 19
Adrian Adams
EntityIndividual
Role
Chairman of the Board
Independent Chairperson
Shares50,000
Max PriceUS$3.41
SellUS$844,80421 Dec 18
Nantahala Capital Management, LLC
EntityCompany
Shares99,931
Max PriceUS$8.61
BuyUS$2,965,98121 Dec 18
Nantahala Capital Management, LLC
EntityCompany
Shares410,577
Max PriceUS$8.50

Ownership Breakdown

Dilution of Shares: Shareholders have been substantially diluted in the past year, with total shares outstanding growing by 101.8%.


Management Team

  • John Butler (55yo)

    CEO, President & Director

    • Tenure: 6.3yrs
    • Compensation: US$3.47m
  • Steven Burke (58yo)

    Senior VP & Chief Medical Officer

    • Tenure: 0.5yrs
  • Kristen Sheppard

    Vice President of Investor Relations

    • Tenure: 0yrs
  • Jason Amello (51yo)

    Senior VP

    • Tenure: 6.3yrs
    • Compensation: US$1.09m
  • Karen Tubridy (57yo)

    Senior VP & Chief Development Officer

    • Tenure: 3.1yrs
  • Michel Dahan (40yo)

    Senior VP & Chief Business Officer

    • Tenure: 4.2yrs
    • Compensation: US$1.28m
  • Nikki Hadas (46yo)

    SVP, Chief Legal Officer & Secretary

    • Tenure: 6.9yrs
  • Tamara Dillon

    Senior Vice President of Human Resources

    • Tenure: 3.1yrs
  • Doug Jermasek

    Vice President of Marketing & Strategy

    • Tenure: 0yrs
  • Dell Faulkingham

    Senior VP & Chief Commercial Officer

    • Tenure: 0.6yrs

Board Members

  • Suzette Dutch

    Observer

    • Tenure: 0yrs
  • Michael Rogers (59yo)

    Independent Director

    • Tenure: 1yrs
    • Compensation: US$133.44k
  • Peter Hutt (84yo)

    • Tenure: 0yrs
  • Adrian Adams (68yo)

    Independent Chairperson

    • Tenure: 1yrs
    • Compensation: US$133.44k
  • John Butler (55yo)

    CEO, President & Director

    • Tenure: 6.3yrs
    • Compensation: US$3.47m
  • Randall Johnson (72yo)

    Advisor & Member of Scientific Advisory Board

    • Tenure: 0yrs
  • John Adamson

    • Tenure: 0yrs
  • Frank Bunn

    • Tenure: 0yrs
  • Volker Haase

    Advisor & Member of Scientific Advisory Board

    • Tenure: 0yrs
  • Cynthia Smith (50yo)

    Independent Director

    • Tenure: 1.3yrs
    • Compensation: US$154.62k

Company Information

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


Key Information

  • Name: Akebia Therapeutics, Inc.
  • Ticker: AKBA
  • Exchange: NasdaqGM
  • Founded: 2007
  • Industry: Biotechnology
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: US$762.425m
  • Shares outstanding: 118.94m
  • Website: https://www.akebia.com

Number of Employees


Location

  • Akebia Therapeutics, Inc.
  • 245 First Street
  • Suite 1400
  • Cambridge
  • Massachusetts
  • 2142
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
AKBANasdaqGM (Nasdaq Global Market)YesCommon StockUSUSDMar 2014
AX9DB (Deutsche Boerse AG)YesCommon StockDEEURMar 2014

Biography

Akebia Therapeutics, Inc., a biopharmaceutical company, focuses on the development and commercialization of therapeutics for patients with kidney diseases. Its lead product candidate includes Auryxia, a fe ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/11 00:41
End of Day Share Price2019/12/10 00:00
Earnings2019/09/30
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.