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ARNA

Arena PharmaceuticalsNasdaqGS:ARNA Stock Report

Market Cap

US$3.7b

7D

-1.6%

1Y

-18.5%

Updated

26 Sep, 2021

Data

Company Financials +
ARNA fundamental analysis
Snowflake Score
Valuation0/6
Future Growth2/6
Past Performance0/6
Financial Health6/6
Dividends0/6

ARNA Overview

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

Arena Pharmaceuticals Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Arena Pharmaceuticals
Historical stock prices
Current Share PriceUS$60.08
52 Week HighUS$45.50
52 Week LowUS$90.19
Beta0.49
1 Month Change14.59%
3 Month Change-15.73%
1 Year Change-18.47%
3 Year Change30.55%
5 Year Change243.31%
Change since IPO-75.97%

Recent News & Updates

Shareholder Returns

ARNAUS BiotechsUS Market
7D-1.6%-2.3%0.1%
1Y-18.5%26.0%35.3%

Return vs Industry: ARNA underperformed the US Biotechs industry which returned 26% over the past year.

Return vs Market: ARNA underperformed the US Market which returned 35.3% over the past year.

Price Volatility

Is ARNA's price volatile compared to industry and market?
ARNA volatility
ARNA Beta0.49
Industry Beta1.03
Market Beta1

Stable Share Price: ARNA is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: ARNA's weekly volatility (7%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1997363Amit Munshihttps://www.arenapharm.com

Arena Pharmaceuticals, Inc., a biopharmaceutical company, focuses on providing novel medicines with pharmacology and pharmacokinetics to patients worldwide. Its investigational clinical programs include Etrasimod (APD334) that is in Phase III clinical trial for ulcerative colitis, Phase IIb/III clinical trial for Crohn’s disease, Phase II clinical trial for alopecia areata, Phase III clinical trial for atopic dermatitis, and Phase IIb clinical trial for eosinophilic esophagitis; Olorinab (APD371), which is in Phase IIb clinical trial for the treatment of abdominal pain associated with irritable bowel syndrome; APD418 that is in Phase I clinical trial for acute heart failure; and Temanogrel for coronary microvascular obstruction is in Phase II clinical trial. It also develops ralinepag (APD811), which is in Phase III clinical trial for pulmonary arterial hypertension.

Arena Pharmaceuticals Fundamentals Summary

How do Arena Pharmaceuticals's earnings and revenue compare to its market cap?
ARNA fundamental statistics
Market CapUS$3.67b
Earnings (TTM)-US$484.11m
Revenue (TTM)US$57.00k

64.6kx

P/S Ratio

-7.6x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
ARNA income statement (TTM)
RevenueUS$57.00k
Cost of RevenueUS$395.25m
Gross Profit-US$395.19m
ExpensesUS$88.92m
Earnings-US$484.11m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)-7.93
Gross Margin-693,319.30%
Net Profit Margin-849,317.54%
Debt/Equity Ratio0%

How did ARNA perform over the long term?

See historical performance and comparison

Valuation

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

3.78x

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 overvalued based on its PB Ratio (3.8x) compared to the US Biotechs industry average (3.3x).


Future Growth

How is Arena Pharmaceuticals forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?

27.6%

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 (76% per year) is forecast to grow faster than the US market (9.8% per year).

High Growth Revenue: ARNA's revenue (76% 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?

-20.5%

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, and losses have increased over the past 5 years at a rate of 20.5% 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 (4.9%).


Return on Equity

High ROE: ARNA has a negative Return on Equity (-49.85%), 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 ($990.4M) exceed its short term liabilities ($64.8M).

Long Term Liabilities: ARNA's short term assets ($990.4M) exceed its long term liabilities ($48.7M).


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 a year based on its current free cash flow.

Forecast Cash Runway: ARNA has sufficient cash runway for 2 years if free cash flow continues to reduce at historical rates of 3.5% 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?

3.1yrs

Average management tenure


CEO

Amit Munshi (53 yo)

5.33yrs

Tenure

US$6,896,609

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 ($USD6.90M) is above average for companies of similar size in the US market ($USD5.28M).

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


Leadership Team

Experienced Management: ARNA's management team is considered experienced (3.1 years average tenure).


Board Members

Experienced Board: ARNA'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: ARNA 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 5.9%.


Top Shareholders

Company Information

Arena Pharmaceuticals, Inc.'s 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$3.669b
  • Shares outstanding: 61.07m
  • Website: https://www.arenapharm.com

Number of Employees


Location

  • Arena Pharmaceuticals, Inc.
  • 136 Heber Avenue
  • Park City
  • Utah
  • 84060
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/26 22:03
End of Day Share Price2021/09/24 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.