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Array BioPharma

Nasdaq:ARRY
Snowflake Description

Excellent balance sheet with high growth potential.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
ARRY
Nasdaq
$10B
Market Cap
  1. Home
  2. US
  3. Pharmaceuticals & Biotech
Company description

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. The last earnings update was 70 days ago. More info.


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  • Array BioPharma has significant price volatility in the past 3 months.
ARRY Share Price and Events
7 Day Returns
-1%
NasdaqGM:ARRY
-0.8%
US Biotechs
1.1%
US Market
1 Year Returns
171.8%
NasdaqGM:ARRY
-11.2%
US Biotechs
4.7%
US Market
ARRY Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Array BioPharma (ARRY) -1% 56.7% 107.5% 171.8% 1213.6% 1079.9%
US Biotechs -0.8% 3.2% -1.6% -11.2% 9.8% 11.2%
US Market 1.1% 4.3% 2.9% 4.7% 37.7% 43.6%
1 Year Return vs Industry and Market
  • ARRY outperformed the Biotechs industry which returned -11.2% over the past year.
  • ARRY outperformed the Market in United States of America which returned 4.7% over the past year.
Price Volatility
ARRY
Industry
5yr Volatility vs Market

Value

 Is Array BioPharma undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Array BioPharma to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Array BioPharma.

NasdaqGM:ARRY Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 10 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 10%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NasdaqGM:ARRY
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Biotechs Unlevered Beta Simply Wall St/ S&P Global 1.33
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.327 (1 + (1- 21%) (1.3%))
1.228
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.23
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.228 * 5.96%)
10.05%

Discounted Cash Flow Calculation for NasdaqGM:ARRY using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Array BioPharma is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NasdaqGM:ARRY DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 10.05%)
2020 -77.00 Analyst x2 -69.97
2021 234.00 Analyst x3 193.22
2022 544.00 Analyst x2 408.17
2023 789.00 Analyst x2 537.94
2024 976.00 Analyst x2 604.67
2025 1,128.46 Est @ 15.62% 635.29
2026 1,261.10 Est @ 11.75% 645.13
2027 1,375.19 Est @ 9.05% 639.25
2028 1,473.54 Est @ 7.15% 622.42
2029 1,559.37 Est @ 5.83% 598.54
Present value of next 10 years cash flows $4,814.66
NasdaqGM:ARRY DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= $1,559.37 × (1 + 2.73%) ÷ (10.05% – 2.73%)
$21,887.53
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $21,887.53 ÷ (1 + 10.05%)10
$8,401.11
NasdaqGM:ARRY Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $4,814.66 + $8,401.11
$13,215.77
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $13,215.77 / 223.10
$59.24
NasdaqGM:ARRY Discount to Share Price
Calculation Result
Value per share (USD) From above. $59.24
Current discount Discount to share price of $46.37
= -1 x ($46.37 - $59.24) / $59.24
21.7%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Array BioPharma is available for.
Intrinsic value
22%
Share price is $46.37 vs Future cash flow value of $59.24
Current Discount Checks
For Array BioPharma to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Array BioPharma's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Array BioPharma's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Array BioPharma's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Array BioPharma's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NasdaqGM:ARRY PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in USD $-0.59
NasdaqGM:ARRY Share Price ** NasdaqGM (2019-07-16) in USD $46.37
United States of America Biotechs Industry PE Ratio Median Figure of 35 Publicly-Listed Biotechs Companies 19.31x
United States of America Market PE Ratio Median Figure of 3,084 Publicly-Listed Companies 17.98x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Array BioPharma.

NasdaqGM:ARRY PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGM:ARRY Share Price ÷ EPS (both in USD)

= 46.37 ÷ -0.59

-78.92x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Array BioPharma is loss making, we can't compare its value to the US Biotechs industry average.
  • Array BioPharma is loss making, we can't compare the value of its earnings to the United States of America market.
Price based on expected Growth
Does Array BioPharma's expected growth come at a high price?
Raw Data
NasdaqGM:ARRY PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section -78.92x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 10 Analysts
57.1%per year
United States of America Biotechs Industry PEG Ratio Median Figure of 26 Publicly-Listed Biotechs Companies 0.82x
United States of America Market PEG Ratio Median Figure of 2,125 Publicly-Listed Companies 1.58x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for Array BioPharma, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Array BioPharma's assets?
Raw Data
NasdaqGM:ARRY PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in USD $1.36
NasdaqGM:ARRY Share Price * NasdaqGM (2019-07-16) in USD $46.37
United States of America Biotechs Industry PB Ratio Median Figure of 436 Publicly-Listed Biotechs Companies 2.97x
United States of America Market PB Ratio Median Figure of 5,240 Publicly-Listed Companies 1.81x
NasdaqGM:ARRY PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGM:ARRY Share Price ÷ Book Value per Share (both in USD)

= 46.37 ÷ 1.36

34.06x

* Primary Listing of Array BioPharma.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Array BioPharma is overvalued based on assets compared to the US Biotechs industry average.
X
Value checks
We assess Array BioPharma's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Biotechs industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Biotechs industry average (and greater than 0)? (1 check)
  5. Array BioPharma has a total score of 1/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Array BioPharma expected to perform in the next 1 to 3 years based on estimates from 10 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
57.1%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Array BioPharma expected to grow at an attractive rate?
  • Array BioPharma's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Array BioPharma's earnings growth is expected to exceed the United States of America market average.
  • Array BioPharma's revenue growth is expected to exceed the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NasdaqGM:ARRY Future Growth Rates Data Sources
Data Point Source Value (per year)
NasdaqGM:ARRY Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 10 Analysts 57.1%
NasdaqGM:ARRY Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 10 Analysts 35.7%
United States of America Biotechs Industry Earnings Growth Rate Market Cap Weighted Average 23.1%
United States of America Biotechs Industry Revenue Growth Rate Market Cap Weighted Average 18.5%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14.1%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.5%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NasdaqGM:ARRY Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 10 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NasdaqGM:ARRY Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2024-06-30 1,650 906 933 4
2023-06-30 1,361 722 752 4
2022-06-30 1,021 507 491 6
2021-06-30 664 210 177 8
2020-06-30 366 -82 -102 10
2019-06-30 274 -121 -103 10
NasdaqGM:ARRY Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-03-31 194 -116 -126
2018-12-31 180 -93 -111
2018-09-30 126 -137 -134
2018-06-30 93 -120 -147
2018-03-31 85 -74 -124
2017-12-31 51 -67 -137
2017-09-30 47 -43 -126
2017-06-30 44 -39 -117
2017-03-31 42 -64 -112
2016-12-31 40 -51 -100
2016-09-30 32 -65 -100
2016-06-30 31 -70 -93

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Array BioPharma's earnings are expected to grow significantly at over 20% yearly.
  • Array BioPharma's revenue is expected to grow significantly at over 20% yearly.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NasdaqGM:ARRY Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 10 Analyst Estimates (S&P Global) See Below

All data from Array BioPharma Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGM:ARRY Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2024-06-30 3.55 5.46 2.10 3.00
2023-06-30 2.89 4.23 1.88 4.00
2022-06-30 1.94 2.96 1.26 6.00
2021-06-30 0.62 0.96 0.22 7.00
2020-06-30 -0.48 -0.20 -0.81 8.00
2019-06-30 -0.50 -0.39 -0.56 10.00
NasdaqGM:ARRY Past Financials Data
Date (Data in USD Millions) EPS *
2019-03-31 -0.59
2018-12-31 -0.53
2018-09-30 -0.65
2018-06-30 -0.74
2018-03-31 -0.66
2017-12-31 -0.77
2017-09-30 -0.74
2017-06-30 -0.72
2017-03-31 -0.72
2016-12-31 -0.66
2016-09-30 -0.70
2016-06-30 -0.65

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Array BioPharma is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Array BioPharma's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Array BioPharma has a total score of 5/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Array BioPharma performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Array BioPharma's growth in the last year to its industry (Biotechs).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Array BioPharma does not make a profit and their year on year earnings growth rate was negative over the past 5 years.
  • Unable to compare Array BioPharma's 1-year earnings growth to the 5-year average as it is not currently profitable.
  • Unable to compare Array BioPharma's 1-year growth to the US Biotechs industry average as it is not currently profitable.
Earnings and Revenue History
Array BioPharma's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Array BioPharma Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGM:ARRY Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 193.98 -126.12 108.98 188.15
2018-12-31 180.09 -111.47 90.21 193.96
2018-09-30 126.28 -134.16 71.34 188.17
2018-06-30 92.81 -147.35 58.50 185.82
2018-03-31 84.93 -124.49 51.35 219.98
2017-12-31 50.51 -136.96 46.30 194.70
2017-09-30 47.26 -126.20 43.52 184.84
2017-06-30 43.66 -116.82 39.34 178.20
2017-03-31 41.51 -112.24 38.98 188.61
2016-12-31 40.42 -99.60 35.67 191.34
2016-09-30 31.93 -100.46 36.77 186.22
2016-06-30 30.55 -92.84 36.27 160.66
2016-03-31 27.40 -80.56 34.07 129.77
2015-12-31 26.56 0.42 33.85 92.78
2015-09-30 45.39 15.98 31.99 63.25
2015-06-30 44.89 9.37 31.43 54.44
2015-03-31 44.26 -6.13 28.92 50.33
2014-12-31 46.77 -89.37 26.13 52.64
2014-09-30 33.92 -97.17 23.53 50.31
2014-06-30 42.08 -85.26 21.31 47.62
2014-03-31 61.48 -74.67 20.69 49.96
2013-12-31 63.66 -71.33 20.28 50.94
2013-09-30 67.98 -65.85 19.42 55.39
2013-06-30 69.58 -61.94 19.62 59.42
2013-03-31 64.83 -52.32 18.86 57.46
2012-12-31 73.99 -38.89 17.09 58.45
2012-09-30 78.84 -31.77 16.26 57.66

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • It is difficult to establish if Array BioPharma has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.
  • It is difficult to establish if Array BioPharma has efficiently used its assets last year compared to the US Biotechs industry average (Return on Assets) as it is loss-making.
  • It is difficult to establish if Array BioPharma improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.
X
Past performance checks
We assess Array BioPharma's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Biotechs industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Array BioPharma has a total score of 0/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Array BioPharma's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Array BioPharma's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Array BioPharma is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Array BioPharma's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Array BioPharma's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 3.7x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Array BioPharma Company Filings, last reported 3 months ago.

NasdaqGM:ARRY Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 301.63 134.25 423.09
2018-12-31 285.35 132.65 477.06
2018-09-30 219.07 131.09 414.39
2018-06-30 219.74 111.78 412.49
2018-03-31 265.15 107.36 438.41
2017-12-31 242.18 105.96 419.27
2017-09-30 226.62 135.67 463.51
2017-06-30 11.73 133.91 234.32
2017-03-31 27.71 131.49 206.75
2016-12-31 52.05 128.34 213.93
2016-09-30 -52.12 125.55 116.65
2016-06-30 -37.93 113.66 109.94
2016-03-31 -14.80 112.00 117.86
2015-12-31 5.87 110.39 119.88
2015-09-30 24.10 108.81 159.30
2015-06-30 42.65 107.28 178.33
2015-03-31 50.15 107.99 190.07
2014-12-31 -13.93 106.61 141.56
2014-09-30 -37.58 105.26 110.70
2014-06-30 -25.72 101.52 111.00
2014-03-31 -23.34 102.68 109.89
2013-12-31 -5.35 101.43 119.68
2013-09-30 -13.16 100.20 123.17
2013-06-30 -21.91 99.02 108.24
2013-03-31 -52.42 95.77 86.58
2012-12-31 -31.72 94.90 109.18
2012-09-30 -96.42 93.86 67.33
  • Array BioPharma's level of debt (44.5%) compared to net worth is high (greater than 40%).
  • Array BioPharma had negative shareholder equity 5 years ago, it is now positive therefore their debt level has improved.
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.

  • Array BioPharma has sufficient cash runway for more than 3 years based on current free cash flow.
  • Array BioPharma has sufficient cash runway for more than 3 years if free cash flow continues to grow at historical rates of 20.8% each year.
X
Financial health checks
We assess Array BioPharma's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Array BioPharma has a total score of 5/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from Array BioPharma dividends. Estimated to be 0% next year.
If you bought $2,000 of Array BioPharma shares you are expected to receive $0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate Array BioPharma's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Array BioPharma's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NasdaqGM:ARRY Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 10 Analyst Estimates (S&P Global) See Below
Global Biotechs Industry Average Dividend Yield Market Cap Weighted Average of 19 Stocks 2.3%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2017 Stocks 2.4%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NasdaqGM:ARRY Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2024-06-30
2023-06-30
2022-06-30
2021-06-30 0.00 1.00
2020-06-30 0.00 1.00
2019-06-30 0.00 1.00

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as Array BioPharma has not reported any payouts.
  • Unable to verify if Array BioPharma's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Array BioPharma's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Array BioPharma has not reported any payouts.
Future Payout to shareholders
  • No need to calculate the sustainability of Array BioPharma's dividends in 3 years as they are not expected to pay a notable one for United States of America.
X
Income/ dividend checks
We assess Array BioPharma's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Array BioPharma afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Array BioPharma has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Array BioPharma's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Ron Squarer
COMPENSATION $5,564,866
AGE 52
TENURE AS CEO 7.3 years
CEO Bio

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 from a 20-year career in the pharmaceutical industry. Mr. Squarer has substantial experience in late-stage drug development and commercialization. Mr. Squarer served as Corporate Vice President of Global Strategy & Business Development at Hospira Australia Pty Ltd. since February 1, 2007 and also served as its Senior Vice President of Business Development. He served as the Chief Commercial Officer and Senior Vice President of Hospira Inc., since February 2010 to April 2012, where he was responsible for delivering $4 billion in annual revenue and leading more than 2,000 employees worldwide. Mr. Squarer served as Senior Vice President of Global Marketing & Corporate Development at Hospira Inc. since January 2009 to 2010, responsible for strategy, new product development and commercialization, acquisitions, partnerships and portfolio prioritization and served as its Corporate Vice President of Business Development & Global Strategy from February 1, 2007 to 2008. Mr. Squarer served as Senior Vice President of Global Corporate and Business Development at Mayne Pharma Limited since 2006 to 2007. Mr. Squarer has 20 years experience in the bio-pharmaceutical industry specifically in relation to licensing, strategy and brand management. From 2004 to 2006, he served as the Oncology Therapy Area Commercial Development Leader at Pfizer Inc., a global pharmaceuticals company, focused on global oncology commercial development. Prior to Pfizer, Mr. Squarer served various positions at SmithKline Beecham Pharmaceuticals (now GlaxoSmithKline) in the US and Europe in brand management, country management and business development. Mr. Squarer has been an Independent Director at Retrophin, Inc. since April 12, 2017. He has been a Director of Array BioPharma Inc. since April 2012. Mr. Squarer earned a Bachelor's degree in Biochemistry from the University of California at Berkeley and a Master's degree in Business Administration from the Kellogg Graduate School of Management at Northwestern University.

CEO Compensation
  • Ron's compensation has increased whilst company is loss making.
  • Ron's remuneration is lower than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Array BioPharma management team in years:

4.3
Average Tenure
52
Average Age
  • The tenure for the Array BioPharma management team is about average.
Management Team

Ron Squarer

TITLE
CEO & Director
COMPENSATION
$6M
AGE
52
TENURE
7.3 yrs

Jason Haddock

TITLE
Chief Financial Officer
COMPENSATION
$2M
AGE
49
TENURE
3 yrs

Andy Robbins

TITLE
Chief Operating Officer
COMPENSATION
$3M
AGE
43
TENURE
4.3 yrs

Victor Sandor

TITLE
Chief Medical Officer
COMPENSATION
$3M
AGE
53
TENURE
4.8 yrs

Nick Saccomano

TITLE
Chief Scientific Officer
AGE
60
TENURE
5.2 yrs

Andrea Flynn

TITLE
Senior Director of Investor Relations & Corporate Communications

Kimberly Pope

TITLE
Senior Vice President of Human Resources
TENURE
1.8 yrs

Rogan Nunn

TITLE
Interim General Counsel
TENURE
0.4 yrs
Board of Directors Tenure

Average tenure and age of the Array BioPharma board of directors in years:

9.9
Average Tenure
61
Average Age
  • The tenure for the Array BioPharma board of directors is about average.
Board of Directors

Carrie Cox

TITLE
Chairman of the Board
AGE
61
TENURE
0.9 yrs

Ron Squarer

TITLE
CEO & Director
COMPENSATION
$6M
AGE
52
TENURE
7.3 yrs

Gil Van Lunsen

TITLE
Director
COMPENSATION
$253K
AGE
76
TENURE
16.8 yrs

John Orwin

TITLE
Director
COMPENSATION
$247K
AGE
54
TENURE
6.7 yrs

Charles Baum

TITLE
Director
COMPENSATION
$243K
AGE
61
TENURE
5.3 yrs

Kyle Lefkoff

TITLE
Director
COMPENSATION
$284K
AGE
60
TENURE
21.2 yrs

S. Eckhard

TITLE
Member of Scientific Advisory Board
TENURE
15.4 yrs

Randall Johnson

TITLE
Member of Scientific Advisory Board
AGE
72
TENURE
15.4 yrs

Neil Spector

TITLE
Member of Scientific Advisory Board
TENURE
12.3 yrs

Gwen Fyfe

TITLE
Director
COMPENSATION
$253K
AGE
67
TENURE
7.5 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
21. Feb 19 Buy Carrie Cox Individual 19. Feb 19 19. Feb 19 5,000 $23.20 $115,998
09. Feb 19 Sell Kyle Lefkoff Individual 06. Feb 19 06. Feb 19 -10,000 $20.85 $-208,382
08. Feb 19 Sell Andrew Robbins Individual 06. Feb 19 06. Feb 19 -114,626 $20.03 $-2,295,386
02. Jan 19 Sell Victor Sandor Individual 27. Dec 18 27. Dec 18 -6,268 $14.05 $-88,091
05. Nov 18 Buy Carrie Cox Individual 01. Nov 18 01. Nov 18 3,000 $16.87 $50,595
X
Management checks
We assess Array BioPharma's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Array BioPharma has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Is Array BioPharma Inc. (NASDAQ:ARRY) Trading At A 49% Discount?

Generally we assume that a dollar today is more valuable than a dollar in the future, so we discount the value of these future cash flows to their estimated value in today's dollars: 10-year free cash flow (FCF) estimate 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Levered FCF ($, Millions) $-89.67 $-76.50 $234.67 $544.00 $789.00 $998.62 $1.19k $1.36k $1.51k $1.64k Growth Rate Estimate Source Analyst x3 Analyst x2 Analyst x3 Analyst x2 Analyst x2 Est @ 26.57% Est @ 19.42% Est @ 14.41% Est @ 10.91% Est @ 8.45% Present Value ($, Millions) Discounted @ 10.31% $-81.28 $-62.87 $174.82 $367.37 $483.01 $554.19 $599.92 $622.21 $625.56 $615.02 Present Value of 10-year Cash Flow (PVCF)= $3.90b "Est" = FCF growth rate estimated by Simply Wall St The second stage is also known as Terminal Value, this is the business's cash flow after the first stage. … In the same way as with the 10-year 'growth' period, we discount future cash flows to today's value, using a cost of equity of 10.3%. … Terminal Value (TV) = FCF2029 × (1 + g) ÷ (r – g) = US$1.6b × (1 + 2.7%) ÷ (10.3% – 2.7%) = US$22b Present Value of Terminal Value (PVTV) = TV / (1 + r)10 = $US$22b ÷ ( 1 + 10.3%)10 = $8.33b The total value is the sum of cash flows for the next ten years plus the discounted terminal value, which results in the Total Equity Value, which in this case is $12.23b.

Simply Wall St -

Shareholders Are Raving About How The Array BioPharma (NASDAQ:ARRY) Share Price Increased 644%

Check out our latest analysis for Array BioPharma Array BioPharma isn't a profitable company, so it is unlikely we'll see a strong correlation between its share price and its earnings per share (EPS). … Array BioPharma's revenue trended up 68% each year over three years. … It is all well and good that insiders have been buying shares, but we suggest you check here to see what price insiders were buying at.

Simply Wall St -

How Financially Strong Is Array BioPharma Inc. (NASDAQ:ARRY)?

Stocks with market capitalization between $2B and $10B, such as Array BioPharma Inc. … Let’s take a look at ARRY’s debt concentration and assess their financial liquidity to get an idea of their ability to fund strategic acquisitions and grow through cyclical pressures. … Check out our latest analysis for Array BioPharma

Simply Wall St -

When Will Array BioPharma Inc. (NASDAQ:ARRY) Breakeven?

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. … I’ve put together a brief outline of industry analyst expectations for ARRY, its year of breakeven and its implied growth rate … Consensus from the 11 Biotechs analysts is ARRY is on the verge of breakeven.

Simply Wall St -

Should You Worry About Array BioPharma Inc.'s (NASDAQ:ARRY) CEO Pay Cheque?

This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. … How Does Ron Squarer's Compensation Compare With Similar Sized Companies. … is worth US$5.1b, and total annual CEO compensation is US$5.6m.

Simply Wall St -

Read This Before Buying Array BioPharma Inc. (NASDAQ:ARRY) Shares

So shareholders might well want to know whether insiders have been buying or selling shares in Array BioPharma Inc. … Array BioPharma Insider Transactions Over The Last Year. … Over the last year, we can see that the biggest insider sale was by Chief Medical Officer Victor Sandor for US$88k worth of shares, at about US$14.05 per share.

Simply Wall St -

Investors Are Undervaluing Array BioPharma Inc. (NASDAQ:ARRY) By 39.1%

In this article I am going to calculate the intrinsic value of Array BioPharma Inc. … by taking the expected future cash flows and discounting them to today's value. … Anyone interested in learning a bit more about intrinsic value should have a read of the Simply Wall St analysis model

Simply Wall St -

Analysts Expect Breakeven For Array BioPharma Inc. (NASDAQ:ARRY)

Array BioPharma Inc.'s (NASDAQ:ARRY):. … The US$3.2b market-cap company’s loss lessens since it announced a -US$147.3m bottom-line in the full financial year, compared to the latest trailing-twelve-month loss of -US$134.2m, as it approaches breakeven. … View our latest analysis for Array BioPharma

Simply Wall St -

Does Array BioPharma Inc's (NASDAQ:ARRY) CEO Pay Matter?

First, this article will compare CEO compensation with compensation at similar sized companies. … How Does Ron Squarer's Compensation Compare With Similar Sized Companies. … According to our data, Array BioPharma Inc has a market capitalization of US$3.3b, and pays its CEO total annual compensation worth US$5.6m.

Simply Wall St -

Does Array BioPharma Inc's (NASDAQ:ARRY) Debt Level Pose A Problem?

Small and large cap stocks are widely popular for a variety of reasons, however, mid-cap companies such as Array BioPharma Inc (NASDAQ:ARRY), with a market cap of US$3.5b, often get neglected by retail investors. … Remember this is a very top-level look that focuses exclusively on financial health, so I recommend a deeper analysis. … See our latest analysis for Array BioPharma

Simply Wall St -

Company Info

Description

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. It provides BRAFTOVITM (encorafenib) capsules in combination with MEKTOVI (binimetinib) tablets for the treatment of patients with unresectable or metastatic melanoma with a BRAF mutation. The company’s lead clinical programs include encorafenib and binimetinib that are investigated in approximately 30 clinical trials for various solid tumor indications, including a Phase III trial in BRAF-mutant colorectal cancer. Its product pipeline also includes ipatasertib, an AKT inhibitor that is in Phase III trial to treat prostate or breast cancers; selumetinib, a MEK inhibitor for cancer; larotrectinib, a PanTrk inhibitor that is in a Phase II/registration clinical trial for cancer; tucatinib, a HER2 inhibitor for breast cancer, which is in Phase II/registration trial; and ARRY-797 that is in Phase III clinical trial for Lamin A/C-related dilated cardiomyopathy. In addition, the company is developing varlitinib/ASLAN001, a Pan-HER2 inhibitor for gastric cancer; ARRY-382, a CSF1R inhibitor that is in Phase II clinical trial to treat cancer; motolimod/VTX-2337, a Toll-like receptor that is in Phase II clinical trial for cancer; and prexasertib/LY2606368, a CHK-1 inhibitor, which is in multiple Phase I or II clinical trials for cancer. Further, its drug candidates in Phase I clinical trials include GDC-0575, a CHK-1 inhibitor for cancer; LOXO-292, a RET inhibitor to treat cancer; and LOXO-195, a Trk inhibitor for cancer. Additionally, its drug candidates include Ganovo/danoprevir, a protease inhibitor for hepatitis C virus. The company was founded in 1998 and is headquartered in Boulder, Colorado.

Details
Name: Array BioPharma Inc.
ARRY
Exchange: NasdaqGM
Founded: 1998
$10,344,934,579
223,095,419
Website: http://www.arraybiopharma.com
Address: Array BioPharma Inc.
3200 Walnut Street,
Boulder,
Colorado, 80301,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGM ARRY Common Stock Nasdaq Global Market US USD 17. Nov 2000
DB AR2 Common Stock Deutsche Boerse AG DE EUR 17. Nov 2000
BST AR2 Common Stock Boerse-Stuttgart DE EUR 17. Nov 2000
LSE 0HI0 Common Stock London Stock Exchange GB USD 17. Nov 2000
Number of employees
Current staff
Staff numbers
298
Array BioPharma employees.
Industry
Biotechnology
Pharmaceuticals & Biotech
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/07/16 23:32
End of day share price update: 2019/07/16 00:00
Last estimates confirmation: 2019/07/12
Last earnings filing: 2019/05/07
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/06/30


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.