NasdaqGM:ARDX

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

High growth potential with adequate balance sheet.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

0.4%

ARDX

2.0%

US Biotechs

2.3%

US Market


1 Year Return

173.3%

ARDX

27.6%

US Biotechs

6.7%

US Market

Return vs Industry: ARDX exceeded the US Biotechs industry which returned 26.3% over the past year.

Return vs Market: ARDX exceeded the US Market which returned 6% over the past year.


Shareholder returns

ARDXIndustryMarket
7 Day0.4%2.0%2.3%
30 Day-3.6%7.4%-0.7%
90 Day16.3%25.3%17.1%
1 Year173.3%173.3%28.8%27.6%9.0%6.7%
3 Year18.5%18.5%34.6%30.2%36.7%27.8%
5 Year-58.5%-58.5%-3.3%-8.8%65.2%46.9%

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 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: ARDX ($7.05) is trading below our estimate of fair value ($56.13)

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 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 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 overvalued based on its PB Ratio (3.7x) compared to the US Biotechs industry average (3.6x).


Next Steps

Future Growth

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

69.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ARDX is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2.2%).

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

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

Revenue vs Market: ARDX's revenue (67.1% per year) is forecast to grow faster than the US market (9.3% per year).

High Growth Revenue: ARDX's revenue (67.1% 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 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?

-19.2%

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 -19.2% 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 (-4.5%).


Return on Equity

High ROE: ARDX has a negative Return on Equity (-54.35%), as it is currently unprofitable.


Next Steps

Financial Health

How is Ardelyx's financial position?


Financial Position Analysis

Short Term Liabilities: ARDX's short term assets ($228.6M) exceed its short term liabilities ($23.4M).

Long Term Liabilities: ARDX's short term assets ($228.6M) exceed its long term liabilities ($44.1M).


Debt to Equity History and Analysis

Debt Level: ARDX's debt to equity ratio (29.9%) is considered satisfactory.

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 sufficient cash runway for more than a year based on its current free cash flow.

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


Next Steps

Dividend

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


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.


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

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

0.5yrs

Average management tenure


CEO

Mike Raab (55yo)

11.33yrs

Tenure

US$1,728,922

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 ($USD1.73M) is below average for companies of similar size in the US market ($USD3.16M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Michael Raab
President11.33yrsUS$1.73m0.29% $1.8m
Elizabeth Grammer
Chief Legal & Administrative Officer and Secretary0.50yrUS$791.41k0.12% $723.8k
David Rosenbaum
Chief Development Officer5.5yrsUS$812.66k0.17% $1.1m
Justin Renz
Chief Accounting & Principal Financial Officer0.083yrno data0.0034% $21.2k
Jeffrey Jacobs
Chief Scientific Officer0.42yrno data0.051% $321.3k
Kimia Keshtbod
Manager of Corporate Communications & Investor Relationsno datano datano data
Robert Blanks
Chief Regulatory Affairs & Quality Assurance Officerno datano data0.017% $108.6k
Karen Harrigan
Senior Director Market Developmentno datano datano data
Dan Pavicich
Senior Director of Market Developmentno datano datano data
Susan Rodriguez
Chief Commercial Officer0.17yrno datano data

0.5yrs

Average Tenure

56yo

Average Age

Experienced Management: ARDX's management team is not considered experienced ( 0.5 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Michael Raab
President11.33yrsUS$1.73m0.29% $1.8m
David Mott
Independent Chairman6.33yrsUS$184.49k0.28% $1.7m
Gordon Ringold
Independent Director6.08yrsUS$144.49k0.011% $70.5k
William Bertrand
Independent Director4.75yrsUS$144.49k0.067% $420.6k
Jan Lundberg
Independent Director2.33yrsUS$141.99k0.040% $251.1k
Richard Rodgers
Independent Director6.33yrsUS$161.99k0.087% $547.2k
Geoffrey Block
Independent Director1.33yrsUS$230.51kno data
Robert Bazemore
Independent Director4.08yrsUS$141.99kno data
Onaiza Cadoret-Manier
Independent Director0.33yrno data0.0069% $43.4k

4.8yrs

Average Tenure

55yo

Average Age

Experienced Board: ARDX's board of directors are considered experienced (4.8 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: ARDX insiders have bought more shares than they have sold 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 42.3%.


Top Shareholders

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$627.850m
  • Shares outstanding: 89.06m
  • 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 biopharmaceutical company, develops and sells medicines for the treatment of cardiorenal diseases in the United States and internationally. The company’s lead product candidate is tenapanor, which has completed Phase 3 clinical trial for the treatment of patients with irritable bowel syndrome with constipation, as well as in Phase 3 clinical trial for the treatment of hyperphosphatemia in end-stage renal disease patients on dialysis. It also develops RDX013, a small molecule potassium secretagogue program for the treatment of patients with hyperkalemia. The company was formerly known as Nteryx, Inc. and changed its name to Ardelyx, Inc. in June 2008. Ardelyx, Inc. was founded in 2007 and is headquartered in Fremont, California. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/09 00:00
End of Day Share Price2020/07/08 00:00
Earnings2020/03/31
Annual Earnings2019/12/31


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.