NasdaqGS:ARNA

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

Arena Pharmaceuticals, Inc., a biopharmaceutical company, focuses on providing novel medicines with pharmacology and pharmacokinetics to patients worldwide.


Snowflake Analysis

Flawless balance sheet with limited growth.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

1.1%

ARNA

-1.6%

US Biotechs

1.2%

US Market


1 Year Return

24.6%

ARNA

31.0%

US Biotechs

16.8%

US Market

Return vs Industry: ARNA underperformed the US Biotechs industry which returned 32.4% over the past year.

Return vs Market: ARNA exceeded the US Market which returned 16.4% over the past year.


Shareholder returns

ARNAIndustryMarket
7 Day1.1%-1.6%1.2%
30 Day-2.8%-3.2%4.9%
90 Day26.7%5.5%20.0%
1 Year24.6%24.6%33.2%31.0%19.3%16.8%
3 Year199.6%199.6%31.7%25.5%43.7%34.4%
5 Year86.8%86.8%5.8%-1.8%75.5%56.6%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

2.97x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate ARNA's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate ARNA's fair value to establish if it is undervalued.


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: ARNA is good value based on its PB Ratio (3x) compared to the US Biotechs industry average (3.4x).


Next Steps

Future Growth

How is Arena Pharmaceuticals forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

12.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

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

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

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

Revenue vs Market: ARNA's revenue (74% per year) is forecast to grow faster than the US market (9.4% per year).

High Growth Revenue: ARNA's revenue (74% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

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


Next Steps

Past Performance

How has Arena Pharmaceuticals performed over the past 5 years?

31.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ARNA is currently unprofitable.

Growing Profit Margin: ARNA is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: ARNA is unprofitable, but has reduced losses over the past 5 years at a rate of 31.2% per year.

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

Earnings vs Industry: ARNA is unprofitable, making it difficult to compare its past year earnings growth to the Biotechs industry (1.8%).


Return on Equity

High ROE: ARNA has a negative Return on Equity (-27.87%), as it is currently unprofitable.


Next Steps

Financial Health

How is Arena Pharmaceuticals's financial position?


Financial Position Analysis

Short Term Liabilities: ARNA's short term assets ($1.2B) exceed its short term liabilities ($41.9M).

Long Term Liabilities: ARNA's short term assets ($1.2B) exceed its long term liabilities ($55.2M).


Debt to Equity History and Analysis

Debt Level: ARNA is debt free.

Reducing Debt: ARNA has not had any debt for past 5 years.

Debt Coverage: ARNA has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: ARNA has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

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


Dividend Yield vs Market

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

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

Growing Dividend: Insufficient data to determine if ARNA'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 ARNA's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

  • Explore strong dividend paying companies in the Pharmaceuticals & Biotech industry.

Management

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

2.0yrs

Average management tenure


CEO

Amit Munshi (52 yo)

4.25yrs

Tenure

US$8,931,402

Compensation

Mr. Amit D. Munshi has been the Chief Executive Officer and President of Arena Pharmaceuticals, Inc. since May 11, 2016. Mr. Munshi serves as Non-Executive Chairman of Enterprise Therapeutics Ltd since Mar ...


CEO Compensation Analysis

Compensation vs Market: Amit's total compensation ($USD8.93M) is above average for companies of similar size in the US market ($USD5.74M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Amit Munshi
President4.25yrsUS$8.93m0.013%
$ 496.5k
Vincent Aurentz
Executive VP & Chief Business Officer4yrsUS$3.45mno data
Preston Klassen
3.42yrsUS$3.21m0.0069%
$ 255.6k
Robert Lisicki
Executive VP & Chief Commercial Officer1.75yrsUS$3.26mno data
Laurie Stelzer
Executive VP & CFO0.42yrno datano data
Douglas Bakan
Executive Vice President of Technical Operations2.25yrsno datano data
Megan Knight
Director of Investor Relationsno datano datano data
Joan Schmidt
Executive VP0.42yrno datano data
Suzanne Zoumaras
Executive VP & Chief Human Resources Officer2yrsno datano data
Steven Spector
Consultant0.42yrUS$3.11m0.030%
$ 1.1m
Christopher Cabell
Executive VP2.83yrsno datano data
Paul Audhya
Senior Vice President of Medical Affairs1.75yrsno datano data

2.0yrs

Average Tenure

52.5yo

Average Age

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


Board Members

NamePositionTenureCompensationOwnership
Amit Munshi
President4.25yrsUS$8.93m0.013%
$ 496.5k
Kieran Gallahue
Independent Director2.08yrsUS$370.13k0.012%
$ 438.5k
Tina Nova Bennett
Independent Chair of the Board4.17yrsUS$395.13k0.025%
$ 905.4k
Oliver Fetzer
Independent Director3.5yrsUS$367.63k0.0073%
$ 267.8k
Garry Neil
Independent Director3.5yrsUS$360.13k0.0099%
$ 365.3k
Manmeet Soni
Independent Director1.67yrsUS$370.13k0.0060%
$ 221.6k
Jayson Donald Dallas
Independent Director3.5yrsUS$372.63k0.0073%
$ 267.8k
Jennifer Jarrett
Independent Director3.17yrsUS$375.13k0.0099%
$ 365.3k
Katharine Knobil
Director0.17yrno data0.00015%
$ 5.5k

3.5yrs

Average Tenure

56yo

Average Age

Experienced Board: ARNA's board of directors are considered experienced (3.5 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.


Recent Insider Transactions

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

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


Key Information

  • Name: Arena Pharmaceuticals, Inc.
  • Ticker: ARNA
  • Exchange: NasdaqGS
  • Founded: 1997
  • Industry: Biotechnology
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: US$3.694b
  • Shares outstanding: 57.65m
  • Website: https://www.arenapharm.com

Number of Employees


Location

  • Arena Pharmaceuticals, Inc.
  • 6154 Nancy Ridge Drive
  • San Diego
  • California
  • 92121
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ARNANasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDJul 2000
RN3NDB (Deutsche Boerse AG)YesCommon StockDEEURJul 2000
0S54LSE (London Stock Exchange)YesCommon StockGBUSDJul 2000
ARNA *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNJul 2000

Biography

Arena Pharmaceuticals, Inc., a biopharmaceutical company, focuses on providing novel medicines with pharmacology and pharmacokinetics to patients worldwide. Its investigational clinical programs include ra ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/10 23:48
End of Day Share Price2020/08/10 00:00
Earnings2020/06/30
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.