NasdaqCM:AVEO

Stock Analysis Report

Executive Summary

AVEO Pharmaceuticals, Inc., a biopharmaceutical company, develops and commercializes a portfolio of targeted medicines for oncology and other areas of unmet medical need.

Snowflake

Fundamentals

High growth potential with mediocre balance sheet.

Risks

  • AVEO Pharmaceuticals has significant price volatility in the past 3 months.

Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

7.2%

NasdaqCM:AVEO

1.1%

US Biotechs

1.1%

US Market


1 Year Return

-65.5%

NasdaqCM:AVEO

-9.7%

US Biotechs

2.1%

US Market

AVEO underperformed the Biotechs industry which returned -10.3% over the past year.

AVEO underperformed the Market in United States of America which returned 2% over the past year.


Share holder returns

AVEOIndustryMarket
7 Day7.2%1.1%1.1%
30 Day48.6%-0.6%3.7%
90 Day37.1%-0.5%2.3%
1 Year-65.5%-65.5%-8.9%-9.7%4.4%2.1%
3 Year14.0%14.0%7.5%3.8%47.0%37.4%
5 Year-13.8%-13.8%4.6%-0.4%61.6%43.8%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

AVEO Pharmaceuticals's share price is below the future cash flow value, and at a moderate discount (> 20%).

AVEO Pharmaceuticals's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

AVEO Pharmaceuticals is loss making, we can't compare its value to the US Biotechs industry average.

AVEO Pharmaceuticals is loss making, we can't compare the value of its earnings to the United States of America market.


Price Based on Expected Growth

Unable to calculate PEG ratio for AVEO Pharmaceuticals, we can't assess if its growth is good value.


Price Based on Value of Assets

AVEO Pharmaceuticals is overvalued based on assets compared to the US Biotechs industry average.


Next Steps

Future Growth

How is AVEO Pharmaceuticals expected to perform in the next 1 to 3 years based on estimates from 3 analysts?

63.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

AVEO Pharmaceuticals's revenue is expected to grow significantly at over 20% yearly.

AVEO Pharmaceuticals's earnings are expected to grow significantly at over 20% yearly.

AVEO Pharmaceuticals's revenue growth is expected to exceed the United States of America market average.

AVEO Pharmaceuticals's earnings growth is expected to exceed the United States of America market average.

AVEO Pharmaceuticals's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if AVEO Pharmaceuticals will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

How has AVEO Pharmaceuticals performed over the past 5 years?

17.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

AVEO Pharmaceuticals does not make a profit even though their year on year earnings growth rate was positive over the past 5 years.

Unable to compare AVEO Pharmaceuticals's 1-year earnings growth to the 5-year average as it is not currently profitable.

Unable to compare AVEO Pharmaceuticals's 1-year growth to the US Biotechs industry average as it is not currently profitable.


Return on Equity

It is difficult to establish if AVEO Pharmaceuticals has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.


Return on Assets

It is difficult to establish if AVEO Pharmaceuticals has efficiently used its assets last year compared to the US Biotechs industry average (Return on Assets) as it is loss-making.


Return on Capital Employed

It is difficult to establish if AVEO Pharmaceuticals improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.


Next Steps

Financial Health

How is AVEO Pharmaceuticals's financial position?


Financial Position Analysis

AVEO Pharmaceuticals is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

AVEO Pharmaceuticals's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

AVEO Pharmaceuticals's level of debt (1184.6%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (30.4% vs 1184.6% today).


Balance Sheet

Low level of unsold assets.

Debt is covered by short term assets, assets are 2.2x 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.

AVEO Pharmaceuticals has sufficient cash runway for 1.7 years based on current free cash flow.

AVEO Pharmaceuticals has less than a year of cash runway if free cash flow continues to grow at historical rates of 7% each year.


Next Steps

Dividend

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


Dividend Yield and Payments Analysis

Unable to evaluate AVEO Pharmaceuticals's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate AVEO Pharmaceuticals's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as AVEO Pharmaceuticals has not reported any payouts.

Unable to verify if AVEO Pharmaceuticals's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as AVEO Pharmaceuticals has not reported any payouts.


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

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

4.4yrs

Average management tenure


CEO

Michael Bailey (54yo)

4.7yrs

Tenure

US$3,110,562

Compensation

Mr. Michael P. Bailey has been Chief Executive Officer and President of AVEO Pharmaceuticals, Inc. since January 7, 2015 and served as its Secretary. Mr. Bailey served as the Principal Financial Officer of ...


CEO Compensation Analysis

Michael's remuneration is higher than average for companies of similar size in United States of America.

Michael's compensation has increased whilst company is loss making.


Management Age and Tenure

4.4yrs

Average Tenure

56.5yo

Average Age

The tenure for the AVEO Pharmaceuticals management team is about average.


Board Age and Tenure

10.2yrs

Average Tenure

70yo

Average Age

The average tenure for the AVEO Pharmaceuticals board of directors is over 10 years, this suggests they are a seasoned and experienced board.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

BuyUS$4,956,52308 Apr 19
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VR Adviser, LLC
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Max PriceUS$2.05
BuyUS$336,10721 Nov 18
New Enterprise Associates
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Shares170,000
Max PriceUS$1.98
BuyUS$2,237,97120 Nov 18
New Enterprise Associates
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Shares1,200,000
Max PriceUS$1.88
SellUS$2,140,52716 Nov 18
VR Adviser, LLC
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Shares1,147,068
Max PriceUS$1.90

Ownership Breakdown


Management Team

  • Mike Needle (59yo)

    Chief Medical Officer

    • Tenure: 4.7yrs
    • Compensation: US$1.10m
  • Michael Bailey (54yo)

    CEO, President & Director

    • Tenure: 4.7yrs
    • Compensation: US$3.11m
  • Emile Farhan

    Vice President of Technical Operations

    • Tenure: 0yrs
  • Karuna Rubin (42yo)

    Senior VP & General Counsel

    • Tenure: 4.2yrs
    • Compensation: US$1.00m
  • Nikhil Mehta (60yo)

    Senior Vice President of Regulatory & Quality Assurance

    • Tenure: 1.8yrs
    • Compensation: US$1.29m

Board Members

  • Tony Evnin (78yo)

    Director

    • Tenure: 17.5yrs
    • Compensation: US$102.30k
  • Ken Bate (69yo)

    Lead Outside Director

    • Tenure: 0yrs
    • Compensation: US$124.92k
  • Raju Kucherlapati (76yo)

    Member of Scientific Advisory Board

    • Tenure: 0yrs
    • Compensation: US$3.00k
  • Robert Young (79yo)

    Director

    • Tenure: 10.2yrs
    • Compensation: US$95.47k
  • Michael Bailey (54yo)

    CEO, President & Director

    • Tenure: 4.7yrs
    • Compensation: US$3.11m
  • H. Horvitz

    Member of Scientific Advisory Board

    • Tenure: 0yrs
  • Tyler Jacks (58yo)

    Member of Scientific Advisory Board

    • Tenure: 0yrs
  • Lynda Chin

    Member of Scientific Advisory Board

    • Tenure: 0yrs
  • Lewis Cantley (70yo)

    Member of Scientific Advisory Board

    • Tenure: 0yrs
  • Douglas Hanahan

    Member of Scientific Advisory Board

    • Tenure: 0yrs

Company Information

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


Key Information

  • Name: AVEO Pharmaceuticals, Inc.
  • Ticker: AVEO
  • Exchange: NasdaqCM
  • Founded: 2001
  • Industry: Biotechnology
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: US$159.362m
  • Shares outstanding: 160.74m
  • Website: https://www.aveooncology.com

Number of Employees


Location

  • AVEO Pharmaceuticals, Inc.
  • One Broadway
  • 14th Floor
  • Cambridge
  • Massachusetts
  • 2142
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
AVEONasdaqCM (Nasdaq Capital Market)YesCommon StockUSUSDMar 2010
VPADB (Deutsche Boerse AG)YesCommon StockDEEURMar 2010
0HJQLSE (London Stock Exchange)YesCommon StockGBUSDMar 2010

Biography

AVEO Pharmaceuticals, Inc., a biopharmaceutical company, develops and commercializes a portfolio of targeted medicines for oncology and other areas of unmet medical need. It markets its lead candidate, tiv ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/17 00:10
End of Day Share Price2019/09/16 00:00
Earnings2019/06/30
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.