NasdaqGM:ARQL

Stock Analysis Report

Executive Summary

ArQule, Inc., a biopharmaceutical company, researches and develops therapeutics for the treatment of cancer and rare diseases in the United States.

Snowflake

Fundamentals

Adequate balance sheet with limited growth.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-20.5%

ARQL

1.0%

US Biotechs

0.3%

US Market


1 Year Return

93.5%

ARQL

6.7%

US Biotechs

12.5%

US Market

Return vs Industry: ARQL exceeded the US Biotechs industry which returned 6.7% over the past year.

Return vs Market: ARQL exceeded the US Market which returned 12.5% over the past year.


Shareholder returns

ARQLIndustryMarket
7 Day-20.5%1.0%0.3%
30 Day-10.3%11.0%4.1%
90 Day-14.5%5.2%5.6%
1 Year93.5%93.5%7.6%6.7%15.0%12.5%
3 Year450.0%450.0%12.4%8.9%49.1%39.4%
5 Year521.0%521.0%6.4%1.4%62.8%44.7%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

6.07x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: ARQL ($7.7) is trading above our estimate of fair value ($3.75)

Significantly Below Fair Value: ARQL is trading above our estimate of fair value.


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: ARQL is overvalued based on its PB Ratio (6.1x) compared to the US Biotechs industry average (2.8x).


Next Steps

Future Growth

How is ArQule forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

33.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

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

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

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

Revenue vs Market: ARQL's revenue (64.9% per year) is forecast to grow faster than the US market (7.2% per year).

High Growth Revenue: ARQL's revenue (64.9% 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 ARQL's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has ArQule performed over the past 5 years?

-7.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: Insufficient data to determine if ARQL has high quality earnings.

Growing Profit Margin: ARQL's current net profit margins (-808.1%) are lower than last year (-64.6%).


Past Earnings Growth Analysis

Earnings Trend: ARQL is unprofitable, and losses have increased over the past 5 years at a rate of -7.5% per year.

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

Earnings vs Industry: ARQL is unprofitable, making it difficult to compare its past year earnings growth to the Biotechs industry (67.8%).


Return on Equity

High ROE: ARQL has a negative Return on Equity (-25.2%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is ArQule's financial position?


Financial Position Analysis

Short Term Liabilities: ARQL's short term assets ($128.0M) exceeds its short term liabilities ($15.5M)

Long Term Liabilities: ARQL's short term assets (128.0M) exceeds its long term liabilities (11.7M)


Debt to Equity History and Analysis

Debt Level: ARQL's debt to equity ratio (9.5%) is considered satisfactory

Reducing Debt: ARQL's debt to equity ratio has increased from 3.9% to 9.5% over the past 5 years.


Balance Sheet

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

Debt Coverage by Assets: ARQL's debt is covered by short term assets (assets are 8.8x 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: ARQL has sufficient cash runway for more than 3 years based on its current free cash flow.

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


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage2.1%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

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


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if ARQL's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if ARQL'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 ARQL'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 ArQule's salary, the management and board of directors tenure and is there insider trading?

5.2yrs

Average management tenure


CEO

Paolo Pucci (58yo)

11.4yrs

Tenure

US$1,744,527

Compensation

Mr. Paolo Pucci has been Chief Executive Officer of ArQule Inc. since June 2008. Prior to joining ArQule in 2008, Mr. Pucci served as the President of Global Specialty Business Unit and Senior Vice Preside ...


CEO Compensation Analysis

Compensation vs Market: Paolo's total compensation ($USD1.74M) is below average for companies of similar size in the US market ($USD2.64M).

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


Management Age and Tenure

5.2yrs

Average Tenure

57yo

Average Age

Experienced Management: ARQL's management team is seasoned and experienced (5.2 years average tenure).


Board Age and Tenure

14.8yrs

Average Tenure

66.5yo

Average Age

Experienced Board: ARQL's board of directors are seasoned and experienced ( 14.8 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

BuyUS$2,999,99701 Jul 19
Pontifax Ltd.
EntityCompany
Shares307,692
Max PriceUS$9.75

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 20.4%.


Management Team

  • Peter Lawrence (56yo)

    President

    • Tenure: 11.6yrs
    • Compensation: US$1.17m
  • Brian Schwartz (57yo)

    Chief Medical Officer & Senior VP

    • Tenure: 11.3yrs
    • Compensation: US$1.06m
  • Paolo Pucci (58yo)

    CEO & Director

    • Tenure: 11.4yrs
    • Compensation: US$1.74m
  • Dawn Schottlandt

    Vice President of Investor Relations & Corporate Communications

    • Tenure: 4.4yrs
  • Deb Wall

    Senior Manager of Human Resources

    • Tenure: 5.2yrs
  • Marc Schegerin

    CFO, Head of Strategy & Treasurer

    • Tenure: 0.7yrs
  • Blaine Schamber

    Principal Accounting Officer

    • Tenure: 0.7yrs

Board Members

  • Tim Barabe (66yo)

    Independent Director

    • Tenure: 18yrs
    • Compensation: US$92.44k
  • Dan Von Hoff (71yo)

    Member of Scientific Advisory Board

    • Tenure: 15.3yrs
  • Werner Cautreels (67yo)

    Member of Scientific Advisory Board

    • Tenure: 0yrs
    • Compensation: US$8.00k
  • Pat Zenner (72yo)

    Independent Chairman

    • Tenure: 15.5yrs
    • Compensation: US$110.49k
  • Ronald Lindsay (71yo)

    Independent Director

    • Tenure: 14.4yrs
    • Compensation: US$106.19k
  • Chiang Li (54yo)

    Chairman of Scientific Advisory Board

    • Tenure: 12.8yrs
    • Compensation: US$805.69k
  • Bob Weinberg

    Member of Scientific Advisory Board

    • Tenure: 0yrs
  • Arthur Pardee

    Member of Scientific Advisory Board

    • Tenure: 0yrs
  • William Messenger (58yo)

    Independent Director

    • Tenure: 14.8yrs
    • Compensation: US$97.44k
  • Paolo Pucci (58yo)

    CEO & Director

    • Tenure: 11.4yrs
    • Compensation: US$1.74m

Company Information

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


Key Information

  • Name: ArQule, Inc.
  • Ticker: ARQL
  • Exchange: NasdaqGM
  • Founded: 1993
  • Industry: Biotechnology
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: US$929.649m
  • Shares outstanding: 120.73m
  • Website: https://www.arqule.com

Number of Employees


Location

  • ArQule, Inc.
  • One Wall Street
  • Burlington
  • Massachusetts
  • 1803
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ARQLNasdaqGM (Nasdaq Global Market)YesCommon SharesUSUSDOct 1996
AQLDB (Deutsche Boerse AG)YesCommon SharesDEEUROct 1996

Biography

ArQule, Inc., a biopharmaceutical company, researches and develops therapeutics for the treatment of cancer and rare diseases in the United States. The company’s pipeline includes ARQ 531, an orally bioava ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/11 23:31
End of Day Share Price2019/11/11 00:00
Earnings2019/09/30
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.