NasdaqGM:ARDX

Stock Analysis Report

Executive Summary

Ardelyx, Inc., a specialized biopharmaceutical company, develops and sells medicines for the treatment of cardio renal diseases in the United States and internationally.

Snowflake

Fundamentals

Adequate balance sheet and slightly overvalued.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

2.2%

ARDX

0.8%

US Biotechs

1.0%

US Market


1 Year Return

25.3%

ARDX

-8.3%

US Biotechs

6.7%

US Market

Return vs Industry: ARDX exceeded the US Biotechs industry which returned -8.3% over the past year.

Return vs Market: ARDX exceeded the US Market which returned 6.7% over the past year.


Share holder returns

ARDXIndustryMarket
7 Day2.2%0.8%1.0%
30 Day-12.4%-3.9%-1.8%
90 Day79.5%-3.5%-1.8%
1 Year25.3%25.3%-7.5%-8.3%9.1%6.7%
3 Year-63.2%-63.2%13.6%9.6%46.1%36.6%
5 Year-76.7%-76.7%3.3%-1.7%66.9%48.6%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Ardelyx undervalued based on future cash flows and its price relative to the stock market?

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Undervalued: ARDX ($4.65) is trading below our estimate of fair value ($14.27)

Significantly Undervalued: ARDX is trading below fair value by more than 20%.


Price Based on Earnings

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

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


Price Based on Expected Growth

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


Price Based on Value of Assets

PB vs Industry: ARDX is overvalued based on its PB Ratio (4.3x) compared to the US Biotechs industry average (2.5x).


Next Steps

Future Growth

How is Ardelyx expected to perform in the next 1 to 3 years based on estimates from 5 analysts?

53.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

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 (78% per year) is forecast to grow faster than the US market (7.3% per year).

High Growth Revenue: ARDX's revenue (78% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Estimates


Future Return on Equity

High Future ROE: Insufficient data to determine if ARDX's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Ardelyx performed over the past 5 years?

-32.4%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: ARDX is unprofitable, and losses have increased over the past 5 years at a rate of -32.4% 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 (78.4%).


Return on Equity

High ROE: ARDX has a negative Return on Equity (-150.98%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: ARDX is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: ARDX is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is Ardelyx's financial position?


Financial Position Analysis

Short Term Liabilities: ARDX's short term assets ($127.2M) exceeds its short term liabilities ($16.3M)

Long Term Liabilities: ARDX's short term assets (127.2M) exceeds its long term liabilities (53.0M)


Debt to Equity History and Analysis

Debt Level: ARDX's debt to equity ratio (72.3%) is considered high

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


Balance Sheet

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

Debt Coverage by Assets: ARDX's debt is covered by short term assets (assets are 2.565490x 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: ARDX has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: ARDX has sufficient cash runway for 1.255678 years if free cash flow continues to grow at historical rates of 12.4% each year.


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.5%markettop25%3.8%industryaverage1.0%forecastin3Yearsn/a

Current dividend yield vs market & industry


Dividend Yield and Payments Analysis

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

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

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.


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 ARDX'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 Ardelyx's salary, the management and board of directors tenure and is there insider trading?

5.4yrs

Average management tenure


CEO

Mike Raab (54yo)

10.6yrs

Tenure

US$4,182,246

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. Mr. Raab was a V ...


CEO Compensation Analysis

Compensation vs. Market: Mike's total compensation ($USD4.18M) is about average for companies of similar size in the US market ($USD1.17M).

Compensation vs Earnings: Mike's compensation has been consistent with company performance over the past year.


Management Age and Tenure

5.4yrs

Average Tenure

55yo

Average Age

Experienced Management: ARDX's management team is seasoned and experienced (5.4 years average tenure).


Board Age and Tenure

4.5yrs

Average Tenure

54yo

Average Age

Experienced Board: ARDX's board of directors are considered experienced (4.5 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.


Recent Insider Transactions

SellUS$7,25807 Jun 19
David Rosenbaum
EntityIndividual
Role
Senior Key Executive
Chief Development Officer
Shares2,856
Max PriceUS$2.54
SellUS$25,55107 Jun 19
Michael Raab
EntityIndividual
Role
Chief Executive Officer
President
Shares10,054
Max PriceUS$2.54
SellUS$8,55107 Jun 19
Mark Kaufmann
EntityIndividual
Role
Chief Financial Officer
CFO & Treasurer
Shares3,357
Max PriceUS$2.55
SellUS$6,40407 Jun 19
Elizabeth Grammer
EntityIndividual
Role
Chief Legal Officer
Executive VP
Shares2,520
Max PriceUS$2.54
SellUS$10,86605 Jan 19
David Rosenbaum
EntityIndividual
Role
Senior Key Executive
Chief Development Officer
Shares6,386
Max PriceUS$1.70
SellUS$33,41805 Jan 19
Michael Raab
EntityIndividual
Role
Chief Executive Officer
President
Shares19,644
Max PriceUS$1.70
SellUS$11,15405 Jan 19
Mark Kaufmann
EntityIndividual
Role
Chief Financial Officer
CFO & Treasurer
Shares6,556
Max PriceUS$1.70
SellUS$8,37005 Jan 19
Elizabeth Grammer
EntityIndividual
Role
Chief Legal Officer
Executive VP
Shares4,920
Max PriceUS$1.70
SellUS$18,57115 Nov 18
Elizabeth Grammer
EntityIndividual
Role
Chief Legal Officer
Executive VP
Shares6,539
Max PriceUS$2.84
SellUS$18,57115 Nov 18
Michael Raab
EntityIndividual
Role
Chief Executive Officer
President
Shares6,539
Max PriceUS$2.84
SellUS$18,57115 Nov 18
Mark Kaufmann
EntityIndividual
Role
Chief Financial Officer
CFO & Treasurer
Shares6,539
Max PriceUS$2.84
SellUS$15,81915 Nov 18
David Rosenbaum
EntityIndividual
Role
Senior Key Executive
Chief Development Officer
Shares5,570
Max PriceUS$2.84
SellUS$1,76713 Nov 18
Rising River Partners, L.P.
EntityCompany
Shares592
Max PriceUS$2.98

Ownership Breakdown


Management Team

  • Mike Raab (54yo)

    President

    • Tenure: 10.6yrs
    • Compensation: US$4.18m
  • Liz Grammer (55yo)

    Executive VP

    • Tenure: 5.4yrs
    • Compensation: US$1.69m
  • Mark Kaufmann (51yo)

    CFO & Treasurer

    • Tenure: 5.4yrs
    • Compensation: US$799.18k
  • David Rosenbaum (58yo)

    Chief Development Officer

    • Tenure: 2.8yrs
    • Compensation: US$1.71m
  • Rob Blanks

    Senior Vice President of Regulatory Affairs & Quality Assurance

    • Tenure: 0yrs
  • Jeff Jacobs (56yo)

    Senior Vice President of Technical Operations

    • Tenure: 4.8yrs
  • Kimia Keshtbod

    Manager of Corporate Communications & Investor Relations

    • Tenure: 0yrs

Board Members

  • Dave Mott (54yo)

    Independent Chairman

    • Tenure: 5.6yrs
    • Compensation: US$127.21k
  • Gordon Ringold (68yo)

    Independent Director

    • Tenure: 5.3yrs
    • Compensation: US$91.21k
  • Rob Bazemore (51yo)

    Independent Director

    • Tenure: 3.3yrs
    • Compensation: US$90.71k
  • Bill Bertrand (54yo)

    Independent Director

    • Tenure: 4yrs
    • Compensation: US$93.21k
  • Jan Lundberg (65yo)

    Independent Director

    • Tenure: 1.6yrs
    • Compensation: US$177.50k
  • Mike Raab (54yo)

    President

    • Tenure: 10.6yrs
    • Compensation: US$4.18m
  • Rick Rodgers (52yo)

    Independent Director

    • Tenure: 5.6yrs
    • Compensation: US$110.71k
  • Geoff Block (53yo)

    Independent Director

    • Tenure: 0.6yrs
  • Annalisa Jenkins (54yo)

    Independent Director

    • Tenure: 4.5yrs
    • Compensation: US$97.21k

Company Information

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


Key Information

  • Name: Ardelyx, Inc.
  • Ticker: ARDX
  • Exchange: NasdaqGM
  • Founded: 2007
  • Industry: Biotechnology
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: US$292.024m
  • Shares outstanding: 62.80m
  • Website: https://www.ardelyx.com

Number of Employees


Location

  • Ardelyx, Inc.
  • 34175 Ardenwood Boulevard
  • Suite 200
  • Fremont
  • California
  • 94555
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ARDXNasdaqGM (Nasdaq Global Market)YesCommon StockUSUSDJun 2014
41XDB (Deutsche Boerse AG)YesCommon StockDEEURJun 2014

Biography

Ardelyx, Inc., a specialized biopharmaceutical company, develops and sells medicines for the treatment of cardio renal diseases in the United States and internationally. The company’s lead product candidat ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/14 02:57
End of Day Share Price2019/10/11 00:00
Earnings2019/06/30
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.

© 2018 SIMPLY WALL STREET PTY LTD, COMMUNITY DESIGN 2845206, US DESIGN PATENT #29/544/281, EUROPEAN DESIGN REGISTRATION #2845206, STANDARD & POOR’S FINANCIAL SERVICES LLC. ALL RIGHTS RESERVED.

Simply Wall Street Pty Ltd (ACN 600 056 611), is a Corporate Authorised Representative (Authorised Representative Number: 467183) of Sanlam Private Wealth Pty Ltd (AFSL No. 337927). Any advice contained in this website is general advice only and has been prepared without considering your objectives, financial situation or needs. You should not rely on any advice and/or information contained in this website and before making any investment decision we recommend that you consider whether it is appropriate for your situation and seek appropriate financial, taxation and legal advice. Please read our Financial Services Guide before deciding whether to obtain financial services from us.

Copyright © 2018, Standard & Poor’s Financial Services LLC. Reproduction of S&P Capital IQ in any form is prohibited except with the prior written permission of S&P. S&P does not guarantee the accuracy, adequacy, completeness or availability of any information and is not responsible for any errors or omissions, regardless of the cause or for the results obtained from the use of such information. S&P DISCLAIMS ANY AND ALL EXPRESS OR IMPLIED WARRANTIES, INCLUDING, BUT NOT LIMITED TO, ANY WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE. In no event shall S&P be liable for any direct, indirect, special or consequential damages, costs, expenses, legal fees, or losses (including lost income or lost profit and opportunity costs) in connection with subscriber’s or others’ use of S&P Capital IQ. (2018)