Arena Pharmaceuticals
Market Cap
US$3.7b
Last Updated
2021/04/15 23:06 UTC
Data Sources
Company Financials +
Executive Summary
Arena Pharmaceuticals, Inc., a biopharmaceutical company, focuses on providing novel medicines with pharmacology and pharmacokinetics to patients worldwide. More Details
Rewards
Risk Analysis
Currently unprofitable and not forecast to become profitable over the next 3 years
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 is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.
Volatility Over Time: ARNA's weekly volatility (6%) has been stable over the past year.
Market Performance
7 Day Return
2.3%
ARNA
2.8%
US Biotechs
1.6%
US Market
1 Year Return
42.9%
ARNA
26.6%
US Biotechs
57.5%
US Market
Return vs Industry: ARNA exceeded the US Biotechs industry which returned 26.6% over the past year.
Return vs Market: ARNA underperformed the US Market which returned 57.5% over the past year.
Shareholder returns
| ARNA | Industry | Market | |
|---|---|---|---|
| 7 Day | 2.3% | 2.8% | 1.6% |
| 30 Day | -10.7% | -1.9% | 3.4% |
| 90 Day | -15.5% | -5.1% | 8.6% |
| 1 Year | 42.9%42.9% | 28.5%26.6% | 60.3%57.5% |
| 3 Year | 73.1%73.1% | 31.0%24.5% | 62.6%51.9% |
| 5 Year | 261.6%261.6% | 44.2%32.7% | 119.9%95.3% |
Long-Term 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
4 days ago | Simply Wall St
How Many Arena Pharmaceuticals, Inc. (NASDAQ:ARNA) Shares Have Insiders Sold, In The Last Year?2 months ago | Simply Wall St
Here's Why We're Not Too Worried About Arena Pharmaceuticals' (NASDAQ:ARNA) Cash Burn Situation3 months ago | Simply Wall St
Read This Before Buying Arena Pharmaceuticals, Inc. (NASDAQ:ARNA) SharesValuation
Is Arena Pharmaceuticals undervalued compared to its fair value and its price relative to the market?
3.69x
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's PB Ratio (3.7x) is in line with the US Biotechs industry average.
Future Growth
How is Arena Pharmaceuticals forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?
22.5%
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 (56.4% per year) is forecast to grow faster than the US market (9.4% per year).
High Growth Revenue: ARNA's revenue (56.4% 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.
Past Performance
How has Arena Pharmaceuticals performed over the past 5 years?
2.1%
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 2.1% 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 (-7.3%).
Return on Equity
High ROE: ARNA has a negative Return on Equity (-37.46%), as it is currently unprofitable.
Financial Health
How is Arena Pharmaceuticals's financial position?
Financial Position Analysis
Short Term Liabilities: ARNA's short term assets ($1.1B) exceed its short term liabilities ($58.1M).
Long Term Liabilities: ARNA's short term assets ($1.1B) exceed its long term liabilities ($52.2M).
Debt to Equity History and Analysis
Debt Level: ARNA is debt free.
Reducing Debt: ARNA has not had any debt for past 5 years.
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: ARNA has sufficient cash runway for more than 3 years based on its current free cash flow.
Forecast Cash Runway: ARNA has sufficient cash runway for 2.5 years if free cash flow continues to grow at historical rates of 12.8% each year.
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
Management
How experienced are the management team and are they aligned to shareholders interests?
2.7yrs
Average management tenure
CEO
Amit Munshi (52 yo)
4.92yrs
Tenure
US$8,931,402
Compensation
Mr. Amit D. Munshi, MBA, serves as the Chairman of the Board at Galecto, Inc. since May 2020. Mr. Munshi has been the Chief Executive Officer and President of Arena Pharmaceuticals, Inc. since May 11, 2016...
CEO Compensation Analysis
Compensation vs Market: Amit's total compensation ($USD8.93M) is above average for companies of similar size in the US market ($USD5.19M).
Compensation vs Earnings: Amit's compensation has increased whilst the company is unprofitable.
Leadership Team
Experienced Management: ARNA's management team is considered experienced (2.7 years average tenure).
Board Members
Experienced Board: ARNA's board of directors are considered experienced (3.3 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 20.1%.
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$3.724b
- Shares outstanding: 60.33m
- Website: https://www.arenapharm.com
Number of Employees
Location
- Arena Pharmaceuticals, Inc.
- 136 Heber Avenue
- Park City
- Utah
- 84060
- United States
Listings
Biography
Arena Pharmaceuticals, Inc., a biopharmaceutical company, focuses on providing novel medicines with pharmacology and pharmacokinetics to patients worldwide. Its investigational clinical programs include Et...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/04/15 23:06 |
| End of Day Share Price | 2021/04/15 00:00 |
| Earnings | 2020/12/31 |
| Annual Earnings | 2020/12/31 |
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.