NasdaqGS:AVRO

Stock Analysis Report

Executive Summary

AVROBIO, Inc., a clinical-stage gene therapy company, focuses on developing ex vivo lentiviral-based gene therapies to treat rare diseases following a single dose in the United States.

Risk Analysis

Earnings are forecast to decline by an average of -13.5% per year for the next 3 years

Shareholders have been substantially diluted in the past year

Currently unprofitable and not forecast to become profitable over the next 3 years

Highly volatile share price over past 3 months



Snowflake Analysis

Flawless balance sheet and overvalued.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

9.8%

AVRO

-1.3%

US Biotechs

-1.2%

US Market


1 Year Return

-29.3%

AVRO

11.0%

US Biotechs

15.5%

US Market

Return vs Industry: AVRO underperformed the US Biotechs industry which returned 11% over the past year.

Return vs Market: AVRO underperformed the US Market which returned 15.5% over the past year.


Shareholder returns

AVROIndustryMarket
7 Day9.8%-1.3%-1.2%
30 Day23.4%8.3%1.4%
90 Day-15.3%13.6%4.7%
1 Year-29.3%-29.3%12.0%11.0%18.0%15.5%
3 Yearn/a27.4%23.4%44.8%35.4%
5 Yearn/a4.9%0.02%67.3%48.9%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

2.72x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate AVRO's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate AVRO's fair value to establish if it is undervalued.


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: AVRO is good value based on its PB Ratio (2.7x) compared to the US Biotechs industry average (3x).


Next Steps

Future Growth

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

-13.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

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

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

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

Revenue vs Market: Insufficient data to determine if AVRO's revenue is forecast to grow faster than the US market.

High Growth Revenue: Insufficient data to determine if AVRO's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: AVRO is forecast to be unprofitable in 3 years.


Next Steps

Past Performance

How has AVROBIO performed over the past 5 years?

-64.9%

Last years earnings growth


Earnings and Revenue History

Quality Earnings: AVRO is currently unprofitable.

Growing Profit Margin: AVRO is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: Insufficient data to determine if AVRO's year-on-year earnings growth rate was positive over the past 5 years.

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

Earnings vs Industry: AVRO is unprofitable, making it difficult to compare its past year earnings growth to the Biotechs industry (103.3%).


Return on Equity

High ROE: AVRO has a negative Return on Equity (-32.08%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is AVROBIO's financial position?


Financial Position Analysis

Short Term Liabilities: AVRO's short term assets ($213.7M) exceed its short term liabilities ($9.9M).

Long Term Liabilities: AVRO's short term assets ($213.7M) exceed its long term liabilities ($535.0K).


Debt to Equity History and Analysis

Debt Level: AVRO is debt free.

Reducing Debt: AVRO has not had any debt for past 5 years.


Balance Sheet

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

Debt Coverage by Assets: Insufficient data to determine if AVRO's debt is covered by short term assets.


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: AVRO has sufficient cash runway for more than 3 years based on its current free cash flow.

Forecast Cash Runway: AVRO has sufficient cash runway for 2.152536 years if free cash flow continues to reduce at historical rates of -66.1% each year.


Next Steps

Dividend

What is AVROBIO'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 AVRO's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate AVRO'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 AVRO's dividends per share have been stable in the past.

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

1.0yrs

Average management tenure


CEO

Geoff MacKay (53yo)

4.1yrs

Tenure

US$2,866,434

Compensation

Mr. Geoff MacKay, BSc, serves as Chief Executive Officer and President of AVROBIO Inc. Mr. MacKay served as Interim Chief Executive Officer at Egenesis Inc. Mr. MacKay is an Atlas Advisor at Atlas Venture  ...


CEO Compensation Analysis

Compensation vs Market: Geoff's total compensation ($USD2.87M) is above average for companies of similar size in the US market ($USD1.71M).

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


Management Age and Tenure

1.0yrs

Average Tenure

57yo

Average Age

Experienced Management: AVRO's management team is not considered experienced ( 1 years average tenure), which suggests a new team.


Board Age and Tenure

1.9yrs

Average Tenure

58yo

Average Age

Experienced Board: AVRO's board of directors are not considered experienced ( 1.9 years average tenure), which suggests a new board.


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

SellUS$13,333,47206 Aug 19
Clarus Ventures, LLC
EntityCompany
Shares580,000
Max PriceUS$23.11

Ownership Breakdown

Dilution of Shares: Shareholders have been substantially diluted in the past year, with total shares outstanding growing by 217.3%.


Management Team

  • Deanna Petersen (57yo)

    Chief Business Officer

    • Tenure: 0yrs
  • Geoff MacKay (53yo)

    Co- Founder

    • Tenure: 4.1yrs
    • Compensation: US$2.87m
  • Kim Warren

    Head of Operations

    • Tenure: 0yrs
  • Erik Ostrowski (46yo)

    CFO & Treasurer

    • Tenure: 0.9yrs
  • Birgitte Volck (57yo)

    President of Research & Development

    • Tenure: 1yrs
    • Compensation: US$4.60m
  • Chris Mason

    Chief Science Officer

    • Tenure: 0yrs
  • Jeffrey Medin

    Scientific Founder

    • Tenure: 0yrs
  • Steven Avruch (58yo)

    VP, General Counsel & Secretary

    • Tenure: 1yrs
  • Kathryn McNaughton

    Senior Vice President of Portfolio & Program Management

    • Tenure: 3.1yrs
  • Georgette Verdin

    Chief Human Resources Officer

    • Tenure: 0.3yrs

Board Members

  • Ian Clark (59yo)

    Independent Director

    • Tenure: 1.9yrs
    • Compensation: US$264.13k
  • Phil Donenberg (58yo)

    Non-Employee Director

    • Tenure: 1.5yrs
    • Compensation: US$278.50k
  • Geoff MacKay (53yo)

    Co- Founder

    • Tenure: 4.1yrs
    • Compensation: US$2.87m
  • Bruce Booth (45yo)

    Independent Chairman of the Board

    • Tenure: 3.8yrs
    • Compensation: US$41.25k
  • Phil Vickers (59yo)

    Independent Director

    • Tenure: 0.9yrs
  • Annalisa Jenkins (54yo)

    Independent Director

    • Tenure: 1.7yrs
    • Compensation: US$319.46k
  • Christopher Paige (66yo)

    Independent Director

    • Tenure: 3.9yrs
    • Compensation: US$26.25k

Company Information

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


Key Information

  • Name: AVROBIO, Inc.
  • Ticker: AVRO
  • Exchange: NasdaqGS
  • Founded: 2015
  • Industry: Biotechnology
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: US$528.113m
  • Shares outstanding: 31.60m
  • Website: https://www.avrobio.com

Number of Employees


Location

  • AVROBIO, Inc.
  • Building 300
  • Suite 201
  • Cambridge
  • Massachusetts
  • 2139
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
AVRONasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDJun 2018

Biography

AVROBIO, Inc., a clinical-stage gene therapy company, focuses on developing ex vivo lentiviral-based gene therapies to treat rare diseases following a single dose in the United States. Its gene therapies e ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/06 00:52
End of Day Share Price2019/12/05 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.