NasdaqCM:AKTX

Stock Analysis Report

Executive Summary

Akari Therapeutics, Plc, a clinical-stage biopharmaceutical company, focuses on the development and commercialization of treatments for a range of rare and orphan autoimmune and inflammatory diseases.

Rewards

Earnings have grown 3% per year over the past 5 years

Risk Analysis

Earnings are forecast to decline by an average of -23% per year for the next 3 years

Has less than 1 year of cash runway

Currently unprofitable and not forecast to become profitable over the next 3 years

Shareholders have been diluted in the past year

+ 1 more risk


Snowflake Analysis

Adequate balance sheet with weak fundamentals.


Similar Companies

Pfizer

NYSE:PFE

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-3.0%

AKTX

2.4%

US Pharmaceuticals

1.7%

US Market


1 Year Return

4.8%

AKTX

12.9%

US Pharmaceuticals

23.6%

US Market

Return vs Industry: AKTX underperformed the US Pharmaceuticals industry which returned 12.6% over the past year.

Return vs Market: AKTX underperformed the US Market which returned 24.7% over the past year.


Shareholder returns

AKTXIndustryMarket
7 Day-3.0%2.4%1.7%
30 Day9.6%2.8%3.5%
90 Day14.1%16.0%11.7%
1 Year4.8%4.8%15.7%12.9%26.2%23.6%
3 Year-74.0%-74.0%41.1%31.0%53.2%43.3%
5 Yearn/a29.2%15.6%75.5%56.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

12.54x

Price to Book (PB) ratio


Share Price vs. Fair Value

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

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


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: AKTX is overvalued based on its PB Ratio (12.4x) compared to the US Pharmaceuticals industry average (3.3x).


Next Steps

Future Growth

How is Akari Therapeutics forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

-23.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AKTX is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: AKTX is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: AKTX is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: Insufficient data to determine if AKTX's revenue is forecast to grow faster than the US market.

High Growth Revenue: Insufficient data to determine if AKTX's revenue 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 AKTX's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Akari Therapeutics performed over the past 5 years?

3.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AKTX is currently unprofitable.

Growing Profit Margin: AKTX is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: AKTX is unprofitable, but has reduced losses over the past 5 years at a rate of 3% per year.

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

Earnings vs Industry: AKTX is unprofitable, making it difficult to compare its past year earnings growth to the Pharmaceuticals industry (36.8%).


Return on Equity

High ROE: AKTX has a negative Return on Equity (-391.96%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Akari Therapeutics's financial position?


Financial Position Analysis

Short Term Liabilities: AKTX's short term assets ($10.6M) exceed its short term liabilities ($7.4M).

Long Term Liabilities: AKTX has no long term liabilities.


Debt to Equity History and Analysis

Debt Level: AKTX is debt free.

Reducing Debt: AKTX has no debt compared to 5 years ago when its debt to equity ratio was 24.6%.


Balance Sheet

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

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

Forecast Cash Runway: AKTX has less than a year of cash runway if free cash flow continues to grow at historical rates of 15.1% each year.


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage2.6%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

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

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

4.0yrs

Average board tenure


CEO

Clive Richardson (54yo)

1.7yrs

Tenure

US$773,966

Compensation

Mr. Clive Richardson serves as the Chief Executive Officer of Akari Therapeutics, Plc since 2019. Mr. Richardson has been the Chief Operations Officer and Director of Akari Therapeutics, Plc since Septembe ...


CEO Compensation Analysis

Compensation vs Market: Clive's total compensation ($USD773.97K) is above average for companies of similar size in the US market ($USD519.76K).

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


Board Age and Tenure

4.0yrs

Average Tenure

69yo

Average Age

Experienced Board: AKTX's board of directors are considered experienced (4 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 11.7%.


Management Team

  • Ray Prudo (74yo)

    Executive Chairman

    • Tenure: 4.3yrs
    • Compensation: US$318.27k
  • Clive Richardson (54yo)

    COO, CEO & Director

    • Tenure: 1.7yrs
    • Compensation: US$773.97k
  • Miles Nunn

    Chief Scientific Officer

    • Annie Mack

      Financial Controller


      Board Members

      • Don Williams (60yo)

        Independent Director

        • Tenure: 3.6yrs
        • Compensation: US$78.65k
      • Ray Prudo (74yo)

        Executive Chairman

        • Tenure: 4.3yrs
        • Compensation: US$318.27k
      • Clive Richardson (54yo)

        COO, CEO & Director

        • Tenure: 1.7yrs
        • Compensation: US$773.97k
      • James Hill (73yo)

        Independent Director

        • Tenure: 4.3yrs
        • Compensation: US$75.66k
      • Stuart Ungar (75yo)

        Independent Director

        • Tenure: 4.3yrs
        • Compensation: US$65.36k
      • David Byrne (59yo)

        Independent Director

        • Tenure: 3.8yrs
        • Compensation: US$65.36k
      • Michael Grissinger (65yo)

        Director

        • Tenure: 2yrs
        • Compensation: US$85.19k
      • Peter Feldschreiber (75yo)

        Independent Director

        • Tenure: 2yrs
        • Compensation: US$85.19k

      Company Information

      Akari Therapeutics, Plc's company bio, employee growth, exchange listings and data sources


      Key Information

      • Name: Akari Therapeutics, Plc
      • Ticker: AKTX
      • Exchange: NasdaqCM
      • Founded:
      • Industry: Pharmaceuticals
      • Sector: Pharmaceuticals & Biotech
      • Market Cap: US$40.757m
      • Shares outstanding: 21.01m
      • Website: https://www.akaritx.com

      Number of Employees


      Location

      • Akari Therapeutics, Plc
      • 75/76 Wimpole Street
      • London
      • W1G 9RT
      • United Kingdom

      Listings

      TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
      AKTXNasdaqCM (Nasdaq Capital Market)YesSPON ADR EACH REPR 100 ORDUSUSDJun 2014
      CLABDB (Deutsche Boerse AG)YesSPON ADR EACH REPR 100 ORDDEEURJun 2014

      Biography

      Akari Therapeutics, Plc, a clinical-stage biopharmaceutical company, focuses on the development and commercialization of treatments for a range of rare and orphan autoimmune and inflammatory diseases. Its lead product candidate is Coversin, a second-generation complement inhibitor that is in Phase II clinical trial for the treatment of autoimmune and inflammatory diseases, including paroxysmal nocturnal hemoglobinuria, guillain barré syndrome, and atypical hemolytic uremic syndrome. Akari Therapeutics, Plc is based in London, the United Kingdom. 


      Company Analysis and Financial Data Status

      All financial data provided by Standard & Poor's Capital IQ.
      DataLast Updated (UTC time)
      Company Analysis2020/01/20 00:26
      End of Day Share Price2020/01/17 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.