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.

Rewards

Trading at 60% below its fair value

Earnings are forecast to grow 58.72% per year

Earnings have grown 1.8% per year over the past 5 years

Risk Analysis

Highly volatile share price over past 3 months

Shareholders have been diluted in the past year



Snowflake Analysis

Exceptional 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

1.6%

AMRN

-0.5%

US Biotechs

0.06%

US Market


1 Year Return

3.7%

AMRN

13.4%

US Biotechs

19.4%

US Market

Return vs Industry: AMRN underperformed the US Biotechs industry which returned 13.4% over the past year.

Return vs Market: AMRN underperformed the US Market which returned 19.4% over the past year.


Shareholder returns

AMRNIndustryMarket
7 Day1.6%-0.5%0.06%
30 Day-8.6%1.1%1.1%
90 Day-10.2%8.8%8.9%
1 Year3.7%3.7%14.3%13.4%21.9%19.4%
3 Year419.7%419.7%24.0%20.6%48.9%39.3%
5 Year1218.1%1218.1%2.7%-2.1%71.9%53.1%

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 ($18.19) is trading below our estimate of fair value ($45.42)

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 (11.3x) compared to the US Biotechs industry average (3.2x).


Next Steps

Future Growth

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

58.7%

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 (1.7%).

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 (33.3% per year) is forecast to grow faster than the US market (7.6% per year).

High Growth Revenue: AMRN's revenue (33.3% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: AMRN's Return on Equity is forecast to be very high in 3 years time (45%).


Next Steps

  • Explore growth companies in the Pharmaceuticals & Biotech industry.

Past Performance

How has Amarin performed over the past 5 years?

1.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AMRN is currently unprofitable.

Growing Profit Margin: AMRN is currently unprofitable.


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 (64%).


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) exceed its short term liabilities ($229.7M).

Long Term Liabilities: AMRN's short term assets ($848.1M) exceed 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%3.7%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

How experienced are the management team and are they aligned to shareholders interests?

4.1yrs

Average management tenure


CEO

John Thero (58yo)

6.1yrs

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 ($USD4.21M) is below average for companies of similar size in the US market ($USD6.27M).

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


Leadership Team

NamePositionTenureCompensationOwnership
John Thero
President6.1yrsUS$4.21m1.56% $98.9m
Michael Kalb
CFO, Senior VP & Assistant Secretary3.7yrsUS$1.27m0.022% $1.4m
Steven Ketchum
President of Research & Development4.1yrsUS$1.33m0.26% $16.6m
Joseph Kennedy
Executive VP8.2yrsUS$1.36m0.045% $2.8m
Elisabeth Schwartz
Senior Director of Investor Relations0yrsno datano data
Daniel Dunham
Senior VP & Chief Pharmaceutical Compliance Officer1.3yrsno datano data
Gwen Fisher
Vice President of Corporate Communications0.8yrsno datano data
Rami Daoud
Senior Vice President of Corporate Development4.1yrsno datano data
Donna Pasek
Vice President of Human Resources6.5yrsno datano data
Keith Wood
Head of Research and Development Operations12.2yrsno datano data

4.1yrs

Average Tenure

52.5yo

Average Age

Experienced Management: AMRN's management team is considered experienced (4.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
John Thero
President6.1yrsUS$4.21m1.56% $98.9m
John Climax
Chairman of Scientific Advisory Board13.8yrsUS$39.00kno data
G. van Heek
Independent Non-Executive Director10yrsUS$282.50k0.0079% $499.6k
David Stack
Non-Executive Independent Director7.2yrsUS$270.00kno data
Lars Ekman
Chairman & Lead Independent Director6.1yrsUS$320.01kno data
Jan Wallace
Member of Scientific Advisory Board13.8yrsno datano data
Joseph Zakrzewski
Non-Executive Director10.1yrsUS$260.00k0.047% $3.0m
Mark Pierce
Member of the Scientific Advisory Board13.8yrsno datano data
Reid Patterson
Member of the Scientific Advisory Board13.8yrsno datano data
Patrick O'Sullivan
Non-Executive Director8.2yrsUS$275.00kno data

10.0yrs

Average Tenure

69yo

Average Age

Experienced Board: AMRN's board of directors are seasoned and experienced ( 10 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

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%.


Top Shareholders

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$6.324b
  • 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)YesADR EACH REP 1 ORD GBP0.50USUSDApr 1993
EH3ADB (Deutsche Boerse AG)YesADR EACH REP 1 ORD GBP0.50DEEURApr 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 product is Vascepa, a prescription-only omega-3 fatty acid capsule, used as an adjunct to diet for reducing triglyceride levels in adult patients with severe hypertriglyceridemia. It is also involved in developing Vascepa for the treatment of patients with high triglyceride levels who are also on statin therapy for elevated low-density lipoprotein cholesterol levels. Amarin Corporation plc sells its products principally to wholesalers and specialty pharmacy providers through direct sales force. It has a collaboration with Mochida Pharmaceutical Co., Ltd., Mochida Pharmaceutical Co., Ltd., Biologix FZCo, and HLS Therapeutics, Inc. The company was formerly known as Ethical Holdings plc and changed its name to Amarin Corporation plc in 1999. Amarin Corporation plc was incorporated in 1989 and is headquartered in Dublin, Ireland. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/18 23:41
End of Day Share Price2020/02/18 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.