Ardelyx (NasdaqGM:ARDX) - Share price, News & Analysis

ARDX fundamental analysis
Snowflake Score
Valuation	3/6
Future Growth	2/6
Past Performance	0/6
Financial Health	4/6
Dividends	0/6

ARDX Stock Overview

Ardelyx, Inc., a biopharmaceutical company, discovers, develops, and commercializes medicines to treat gastrointestinal and cardiorenal therapeutic areas in the United States and internationally.

Rewards

Trading at 98% below our estimate of its fair value

Revenue is forecast to grow 54.52% per year

Risk Analysis

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

Has less than 1 year of cash runway

Volatile share price over the past 3 months

Shareholders have been diluted in the past year

+ 2 more risks

Ardelyx Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Ardelyx
Historical stock prices
Current Share Price	US$0.59
52 Week High	US$8.25
52 Week Low	US$0.58
Beta	1.84
1 Month Change	-20.48%
3 Month Change	-8.60%
1 Year Change	-91.45%
3 Year Change	-77.80%
5 Year Change	-87.07%
Change since IPO	-95.78%

Shareholder Returns

	ARDX	US Biotechs	US Market
7D	-14.3%	-3.2%	-4.0%
1Y	-91.5%	-22.1%	-13.2%

Return vs Industry: ARDX underperformed the US Biotechs industry which returned -21.4% over the past year.

Return vs Market: ARDX underperformed the US Market which returned -12.3% over the past year.

Price Volatility

Is ARDX's price volatile compared to industry and market?
ARDX volatility
ARDX Average Weekly Movement	16.2%
Biotechs Industry Average Movement	12.4%
Market Average Movement	7.8%
10% most volatile stocks in US Market	16.8%
10% least volatile stocks in US Market	2.9%

Stable Share Price: ARDX is more volatile than 75% of US stocks over the past 3 months, typically moving +/- 16% a week.

Volatility Over Time: ARDX's weekly volatility (16%) has been stable over the past year, but is still higher than 75% of US stocks.

About the Company

Founded	Employees	CEO	Website
2007	86	Mike Raab	https://www.ardelyx.com

Ardelyx, Inc., a biopharmaceutical company, discovers, develops, and commercializes medicines to treat gastrointestinal and cardiorenal therapeutic areas in the United States and internationally. The company’s lead product candidate is tenapanor, which has completed Phase III clinical trial for the treatment of patients with irritable bowel syndrome with constipation, as well as in Phase III clinical trial to control serum phosphorus in adult patients with chronic kidney disease (CKD)on dialysis, or hyperphosphatemia. It is also developing RDX013, a potassium secretagogue, for the treatment of elevated serum potassium, or hyperkalemia, a problem among certain patients with kidney and/or heart disease; and RDX020, an early-stage program in metabolic acidosis, a serious electrolyte disorder in patients with CKD.

Ardelyx Fundamentals Summary

How do Ardelyx's earnings and revenue compare to its market cap?
ARDX fundamental statistics
Market Cap	US$86.04m
Earnings (TTM)	-US$153.08m
Revenue (TTM)	US$3.98m

21.6x

P/S Ratio

-0.6x

P/E Ratio

Is ARDX overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
ARDX income statement (TTM)
Revenue	US$3.98m
Cost of Revenue	-US$7.40m
Gross Profit	US$11.39m
Other Expenses	US$164.47m
Earnings	-US$153.08m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	-1.06
Gross Margin	285.89%
Net Profit Margin	-3,843.36%
Debt/Equity Ratio	40.7%

How did ARDX perform over the long term?

See historical performance and comparison

Valuation

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

Valuation Score

3/6

Valuation Score 3/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

>50%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: ARDX ($0.6) is trading below our estimate of fair value ($30.47)

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

Price To Earnings Ratio

PE vs Industry: ARDX is unprofitable, so we can't compare its Price-To-Earnings Ratio to the US Biotechs industry average.

PE vs Market: ARDX is unprofitable, so we can't compare its Price-To-Earnings Ratio to the US market.

Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate ARDX's PEG Ratio to determine if it is good value.

Price to Book Ratio

PB vs Industry: ARDX is good value based on its Price-To-Book Ratio (1.3x) compared to the US Biotechs industry average (1.5x).

Future Growth

How is Ardelyx forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

Future Growth Score

2/6

Future Growth Score 2/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

66.0%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

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

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

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

Revenue vs Market: ARDX's revenue (54.5% per year) is forecast to grow faster than the US market (7.8% per year).

High Growth Revenue: ARDX's revenue (54.5% per year) is forecast to grow faster than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: ARDX is forecast to be unprofitable in 3 years.

Past Performance

How has Ardelyx performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-11.3%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: ARDX is currently unprofitable.

Growing Profit Margin: ARDX is currently unprofitable.

Past Earnings Growth Analysis

Earnings Trend: ARDX is unprofitable, and losses have increased over the past 5 years at a rate of 11.3% per year.

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

Earnings vs Industry: ARDX is unprofitable, making it difficult to compare its past year earnings growth to the Biotechs industry (96.9%).

Return on Equity

High ROE: ARDX has a negative Return on Equity (-238.48%), as it is currently unprofitable.

Financial Health

How is Ardelyx's financial position?

Financial Health Score

4/6

Financial Health Score 4/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Stable Cash Runway
Forecast Cash Runway

Financial Position Analysis

Short Term Liabilities: ARDX's short term assets ($114.2M) exceed its short term liabilities ($47.8M).

Long Term Liabilities: ARDX's short term assets ($114.2M) exceed its long term liabilities ($17.4M).

Debt to Equity History and Analysis

Debt Level: ARDX has more cash than its total debt.

Reducing Debt: Insufficient data to determine if ARDX's debt to equity ratio has reduced over the past 5 years.

Balance Sheet

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: ARDX has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: ARDX has sufficient cash runway for 1.4 years if free cash flow continues to reduce at historical rates of 7.3% each year.

Dividend

What is Ardelyx current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

Dividend Yield vs Market

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

High Dividend: Unable to evaluate ARDX's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.

Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if ARDX's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if ARDX's dividend payments have been increasing.

Earnings Payout to Shareholders

Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as ARDX has not reported any payouts.

Discover strong dividend paying companies

Management

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

2.0yrs

Average management tenure

CEO

Mike Raab (56 yo)

13.17yrs

Tenure

US$4,230,994

Compensation

Mr. Michael G. Raab, also known as Mike, has been the Chief Executive Officer and President of Ardelyx, Inc. since March 2009. He is a Director of Tempest Therapeutics Inc. since May 2019 and its Chairman...

CEO Compensation Analysis

Compensation vs Market: Mike's total compensation ($USD4.23M) is above average for companies of similar size in the US market ($USD770.27K).

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

Leadership Team

Experienced Management: ARDX's management team is considered experienced (2 years average tenure).

Board Members

Experienced Board: ARDX's board of directors are considered experienced (3.7 years average tenure).

Ownership

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

Insider Trading Volume

Insider Buying: ARDX insiders have only sold shares in the past 3 months.

Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 46.5%.

Data	Last Updated (UTC time)
Company Analysis	2022/05/24 00:00
End of Day Share Price	2022/05/24 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31