NasdaqGM:ARRY

Stock Analysis Report

Executive Summary

Array BioPharma Inc., a biopharmaceutical company, focuses on the discovery, development, and commercialization of small molecule drugs to treat patients with cancer and other diseases in North America, Europe, and the Asia Pacific.

Snowflake

Fundamentals

High growth potential with excellent balance sheet.


Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

2.2%

ARRY

4.6%

US Biotechs

3.4%

US Market


1 Year Return

210.9%

ARRY

-10.1%

US Biotechs

5.4%

US Market

Return vs Industry: ARRY exceeded the US Biotechs industry which returned -10.1% over the past year.

Return vs Market: ARRY exceeded the US Market which returned 5.4% over the past year.


Shareholder returns

ARRYIndustryMarket
7 Day2.2%4.6%3.4%
30 Day3.3%-2.4%-1.0%
90 Day114.1%-2.1%-0.4%
1 Year210.9%210.9%-9.4%-10.1%7.7%5.4%
3 Year1072.8%1072.8%14.9%10.9%46.2%36.8%
5 Year1096.3%1096.3%2.3%-2.7%65.6%47.5%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

19.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: ARRY ($47.85) is trading below our estimate of fair value ($59.37)

Significantly Undervalued: ARRY is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

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

PE vs Market: ARRY is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

Low PEG Ratio: Insufficient data to calculate ARRY's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: ARRY is overvalued based on its PB Ratio (35.1x) compared to the US Biotechs industry average (2.6x).


Next Steps

Future Growth

How is Array BioPharma forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

56.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ARRY is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2.7%).

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

High Growth Earnings: ARRY's loss is forecast to worsen by 0% next year.

Revenue vs Market: ARRY's revenue (35.7% per year) is forecast to grow faster than the US market (7.3% per year).

High Growth Revenue: ARRY's revenue (35.7% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: ARRY's Return on Equity is forecast to be low in 3 years time (16.5%).


Next Steps

Past Performance

How has Array BioPharma performed over the past 5 years?

-22.4%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: ARRY is unprofitable, and losses have increased over the past 5 years at a rate of -22.4% per year.

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

Earnings vs Industry: ARRY is unprofitable, making it difficult to compare its past year earnings growth to the Biotechs industry (78.4%).


Return on Equity

High ROE: ARRY has a negative Return on Equity (-41.81%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: ARRY is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: ARRY is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is Array BioPharma's financial position?


Financial Position Analysis

Short Term Liabilities: ARRY's short term assets ($493.9M) exceeds its short term liabilities ($86.7M)

Long Term Liabilities: ARRY's short term assets (493.9M) exceeds its long term liabilities (178.7M)


Debt to Equity History and Analysis

Debt Level: ARRY's debt to equity ratio (44.5%) is considered high

Reducing Debt: ARRY had negative shareholder equity 5 years ago, but is now positive and has therefore improved.


Balance Sheet

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

Debt Coverage by Assets: ARRY's debt is covered by short term assets (assets are 3.679190x 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: ARRY has sufficient cash runway for more than 3 years based on its current free cash flow.

Forecast Cash Runway: ARRY has sufficient cash runway for 2.956665 years if free cash flow continues to reduce at historical rates of -20.8% each year.


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.5%markettop25%3.8%industryaverage2.0%forecastin3Years0%

Current dividend yield vs market & industry


Stability and Growth of Payments

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

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

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

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

4.3yrs

Average management tenure


CEO

Ron Squarer (52yo)

7.3yrs

Tenure

US$5,564,866

Compensation

Mr. Ron Squarer, BSc (Biochemistry), MBA has been the Chief Executive Officer at Array BioPharma Inc. since April 2012. Mr. Squarer has extensive commercial, development and executive leadership expertise  ...


CEO Compensation Analysis

Compensation vs. Market: Ron's total compensation ($USD5.56M) is about average for companies of similar size in the US market ($USD11.18M).

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


Management Age and Tenure

4.3yrs

Average Tenure

52yo

Average Age

Experienced Management: ARRY's management team is considered experienced (4.3 years average tenure).


Board Age and Tenure

9.9yrs

Average Tenure

61yo

Average Age

Experienced Board: ARRY's board of directors are considered experienced (9.9 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$115,99821 Feb 19
Carrie Cox
EntityIndividual
Role
Chairman of the Board
Chairman of the Board
Shares5,000
Max PriceUS$23.20
SellUS$208,38209 Feb 19
Kyle Lefkoff
EntityIndividual
Role
Member of the Board of Directors
Director
Shares10,000
Max PriceUS$20.85
SellUS$2,295,38608 Feb 19
Andrew Robbins
EntityIndividual
Role
Chief Operating Officer
Chief Operating Officer
Shares114,626
Max PriceUS$20.03
SellUS$88,09102 Jan 19
Victor Sandor
EntityIndividual
Role
Senior Key Executive
Chief Medical Officer
Shares6,268
Max PriceUS$14.05
BuyUS$50,59505 Nov 18
Carrie Cox
EntityIndividual
Role
Chairman of the Board
Chairman of the Board
Shares3,000
Max PriceUS$16.87

Ownership Breakdown


Management Team

  • Ron Squarer (52yo)

    CEO & Director

    • Tenure: 7.3yrs
    • Compensation: US$5.56m
  • Nick Saccomano (60yo)

    Chief Scientific Officer

    • Tenure: 5.2yrs
  • Andy Robbins (43yo)

    Chief Operating Officer

    • Tenure: 4.3yrs
    • Compensation: US$3.21m
  • Victor Sandor (53yo)

    Chief Medical Officer

    • Tenure: 4.8yrs
    • Compensation: US$2.90m
  • Kimberly Pope

    Senior Vice President of Human Resources

    • Tenure: 1.8yrs
  • Andrea Flynn

    Senior Director of Investor Relations & Corporate Communications

    • Tenure: 0yrs
  • Jason Haddock (49yo)

    Chief Financial Officer

    • Tenure: 3yrs
    • Compensation: US$1.83m
  • Rogan Nunn

    Interim General Counsel

    • Tenure: 0.3yrs

Board Members

  • John Orwin (54yo)

    Director

    • Tenure: 6.7yrs
    • Compensation: US$247.43k
  • Carrie Cox (61yo)

    Chairman of the Board

    • Tenure: 0.9yrs
  • Kyle Lefkoff (60yo)

    Director

    • Tenure: 21.2yrs
    • Compensation: US$283.58k
  • Gil Van Lunsen (76yo)

    Director

    • Tenure: 16.8yrs
    • Compensation: US$253.21k
  • Gwen Fyfe (67yo)

    Director

    • Tenure: 7.5yrs
    • Compensation: US$252.78k
  • S. Eckhard

    Member of Scientific Advisory Board

    • Tenure: 15.3yrs
  • Randall Johnson (72yo)

    Member of Scientific Advisory Board

    • Tenure: 15.3yrs
  • Ron Squarer (52yo)

    CEO & Director

    • Tenure: 7.3yrs
    • Compensation: US$5.56m
  • Neil Spector

    Member of Scientific Advisory Board

    • Tenure: 12.3yrs
  • Charles Baum (61yo)

    Director

    • Tenure: 5.3yrs
    • Compensation: US$243.26k

Company Information

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


Key Information

  • Name: Array BioPharma Inc.
  • Ticker: ARRY
  • Exchange: NasdaqGM
  • Founded: 1998
  • Industry: Biotechnology
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: US$10.675b
  • Shares outstanding: 223.10m
  • Website: https://www.arraybiopharma.com

Number of Employees


Location

  • Array BioPharma Inc.
  • 3200 Walnut Street
  • Boulder
  • Colorado
  • 80301
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ARRYNasdaqGM (Nasdaq Global Market)YesCommon StockUSUSDNov 2000
AR2DB (Deutsche Boerse AG)YesCommon StockDEEURNov 2000
AR2BST (Boerse-Stuttgart)YesCommon StockDEEURNov 2000
0HI0LSE (London Stock Exchange)YesCommon StockGBUSDNov 2000

Biography

Array BioPharma Inc., a biopharmaceutical company, focuses on the discovery, development, and commercialization of small molecule drugs to treat patients with cancer and other diseases in North America, Eu ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/07/30 23:32
End of Day Share Price2019/07/29 00:00
Earnings2019/03/31
Annual Earnings2018/06/30


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.