NasdaqGM:AMRN

Stock Analysis Report

Executive Summary

Amarin Corporation plc, a pharmaceutical company, engages in the development and commercialization of therapeutics for the treatment of cardiovascular diseases in the United States.

Snowflake

Fundamentals

High growth potential with excellent balance sheet.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

37.4%

AMRN

0.5%

US Biotechs

0.7%

US Market


1 Year Return

32.3%

AMRN

6.7%

US Biotechs

12.9%

US Market

Return vs Industry: AMRN exceeded the US Biotechs industry which returned 6.7% over the past year.

Return vs Market: AMRN exceeded the US Market which returned 12.9% over the past year.


Shareholder returns

AMRNIndustryMarket
7 Day37.4%0.5%0.7%
30 Day46.6%10.1%4.4%
90 Day58.5%5.8%7.0%
1 Year32.3%32.3%7.6%6.7%15.4%12.9%
3 Year602.3%602.3%16.8%13.1%49.1%39.5%
5 Year1733.6%1733.6%6.0%1.0%62.7%44.7%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Amarin 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: AMRN ($24.02) is trading below our estimate of fair value ($55.9)

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


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: AMRN is overvalued based on its PB Ratio (15x) compared to the US Biotechs industry average (2.8x).


Next Steps

Future Growth

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

73.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AMRN is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2.7%).

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

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

Revenue vs Market: AMRN's revenue (41% per year) is forecast to grow faster than the US market (7.3% per year).

High Growth Revenue: AMRN's revenue (41% 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 AMRN's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Amarin performed over the past 5 years?

1.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: Insufficient data to determine if AMRN has high quality earnings.

Growing Profit Margin: AMRN's current net profit margins (-17.4%) are higher than last year (-51.1%).


Past Earnings Growth Analysis

Earnings Trend: AMRN is unprofitable, but has reduced losses over the past 5 years at a rate of 1.8% per year.

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

Earnings vs Industry: AMRN is unprofitable, making it difficult to compare its past year earnings growth to the Biotechs industry (86.5%).


Return on Equity

High ROE: AMRN has a negative Return on Equity (-10.64%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Amarin's financial position?


Financial Position Analysis

Short Term Liabilities: AMRN's short term assets ($848.1M) exceeds its short term liabilities ($229.7M)

Long Term Liabilities: AMRN's short term assets (848.1M) exceeds its long term liabilities (41.3M)


Debt to Equity History and Analysis

Debt Level: AMRN's debt to equity ratio (10.1%) is considered satisfactory

Reducing Debt: AMRN had negative shareholder equity 5 years ago, but is now positive and has therefore improved.


Balance Sheet

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

Debt Coverage by Assets: AMRN's debt is covered by short term assets (assets are 14.1x 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: AMRN has sufficient cash runway for more than 3 years based on its current free cash flow.

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


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.6%industryaverage2.1%forecastin3Years0%

Current dividend yield vs market & industry

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

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

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

3.8yrs

Average management tenure


CEO

John Thero (58yo)

5.8yrs

Tenure

US$4,205,779

Compensation

Mr. John F. Thero has been the Chief Executive Officer of Amarin Corporation Plc since January 1, 2014 and has been its President since November 2010. Mr. Thero serves as the President of U.S. at Amarin Co ...


CEO Compensation Analysis

Compensation vs Market: John's total compensation ($USD4.21M) is below average for companies of similar size in the US market ($USD6.73M).

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


Management Age and Tenure

3.8yrs

Average Tenure

52.5yo

Average Age

Experienced Management: AMRN's management team is considered experienced (3.8 years average tenure).


Board Age and Tenure

9.8yrs

Average Tenure

69yo

Average Age

Experienced Board: AMRN's board of directors are considered experienced (9.8 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 15.7%.


Management Team

  • John Thero (58yo)

    President

    • Tenure: 5.8yrs
    • Compensation: US$4.21m
  • Steve Ketchum (54yo)

    President of Research & Development

    • Tenure: 3.8yrs
    • Compensation: US$1.33m
  • Keith Wood

    Head of Research and Development Operations

    • Tenure: 11.9yrs
  • Joe Kennedy (51yo)

    Executive VP

    • Tenure: 7.9yrs
    • Compensation: US$1.36m
  • Dan Dunham

    Senior VP & Chief Pharmaceutical Compliance Officer

    • Tenure: 1.1yrs
  • Mike Kalb (48yo)

    CFO, Senior VP & Assistant Secretary

    • Tenure: 3.4yrs
    • Compensation: US$1.27m
  • Gwen Fisher

    Vice President of Corporate Communications

    • Tenure: 0.5yrs
  • Rami Daoud

    Senior Vice President of Corporate Development

    • Tenure: 3.8yrs
  • Donna Pasek

    Vice President of Human Resources

    • Tenure: 6.3yrs
  • Elisabeth Schwartz

    Senior Director of Investor Relations

    • Tenure: 0yrs

Board Members

  • John Thero (58yo)

    President

    • Tenure: 5.8yrs
    • Compensation: US$4.21m
  • John Climax (66yo)

    Chairman of Scientific Advisory Board

    • Tenure: 13.5yrs
    • Compensation: US$39.00k
  • G. van Heek (69yo)

    Independent Non-Executive Director

    • Tenure: 9.8yrs
    • Compensation: US$282.50k
  • Dave Stack (69yo)

    Non-Executive Independent Director

    • Tenure: 6.9yrs
    • Compensation: US$270.00k
  • Lars Ekman (69yo)

    Chairman & Lead Independent Director

    • Tenure: 5.8yrs
    • Compensation: US$320.01k
  • Jan Wallace (78yo)

    Member of Scientific Advisory Board

    • Tenure: 13.5yrs
  • Joe Zakrzewski (57yo)

    Non-Executive Director

    • Tenure: 9.8yrs
    • Compensation: US$260.00k
  • Mark Pierce

    Member of the Scientific Advisory Board

    • Tenure: 13.5yrs
  • Reid Patterson

    Member of the Scientific Advisory Board

    • Tenure: 13.5yrs
  • Paddy O'Sullivan (77yo)

    Non-Executive Director

    • Tenure: 7.9yrs
    • Compensation: US$275.00k

Company Information

Amarin Corporation plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Amarin Corporation plc
  • Ticker: AMRN
  • Exchange: NasdaqGM
  • Founded: 1989
  • Industry: Biotechnology
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: US$8.621b
  • Shares outstanding: 358.91m
  • Website: https://www.amarincorp.com

Number of Employees


Location

  • Amarin Corporation plc
  • Grand Canal Docklands
  • Block C
  • Dublin
  • Co. Dublin
  • 2
  • Ireland

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
AMRNNasdaqGM (Nasdaq Global Market)YesSPONS ADR NEWUSUSDApr 1993
EH3ADB (Deutsche Boerse AG)YesSPONS ADR NEWDEEURApr 1993

Biography

Amarin Corporation plc, a pharmaceutical company, engages in the development and commercialization of therapeutics for the treatment of cardiovascular diseases in the United States. The company’s lead prod ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/16 23:31
End of Day Share Price2019/11/15 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.