NasdaqGM:AXLA

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

Axcella Health Inc., a clinical-stage biotechnology company, researches and develops endogenous metabolic modulators (EMMs) for the treatment of complex diseases and improving health in the United States.


Snowflake Analysis

Adequate balance sheet and overvalued.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

10.7%

AXLA

-0.7%

US Biotechs

2.5%

US Market


1 Year Return

-35.7%

AXLA

30.5%

US Biotechs

15.9%

US Market

Return vs Industry: AXLA underperformed the US Biotechs industry which returned 27.2% over the past year.

Return vs Market: AXLA underperformed the US Market which returned 14.9% over the past year.


Shareholder returns

AXLAIndustryMarket
7 Day10.7%-0.7%2.5%
30 Day-5.9%-0.6%5.8%
90 Day-11.9%10.0%18.2%
1 Year-35.7%-35.7%31.8%30.5%18.4%15.9%
3 Yearn/a31.3%26.8%39.9%30.9%
5 Yearn/a0.09%-5.8%72.9%54.2%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

2.47x

Price to Book (PB) ratio


Share Price vs. Fair Value

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

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


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: AXLA is good value based on its PB Ratio (2.5x) compared to the US Biotechs industry average (3.3x).


Next Steps

Future Growth

How is Axcella Health forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

-24.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

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

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

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

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

High Growth Revenue: Insufficient data to determine if AXLA's revenue 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 AXLA's Return on Equity is forecast to be high in 3 years time


Next Steps

  • Explore growth companies in the Pharmaceuticals & Biotech industry.

Past Performance

How has Axcella Health performed over the past 5 years?

-57.1%

Last years earnings growth


Earnings and Revenue History

Quality Earnings: AXLA is currently unprofitable.

Growing Profit Margin: AXLA is currently unprofitable.


Past Earnings Growth Analysis

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

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

Earnings vs Industry: AXLA is unprofitable, making it difficult to compare its past year earnings growth to the Biotechs industry (-22.5%).


Return on Equity

High ROE: AXLA has a negative Return on Equity (-133.45%), as it is currently unprofitable.


Next Steps

Financial Health

How is Axcella Health's financial position?


Financial Position Analysis

Short Term Liabilities: AXLA's short term assets ($76.8M) exceed its short term liabilities ($7.0M).

Long Term Liabilities: AXLA's short term assets ($76.8M) exceed its long term liabilities ($23.7M).


Debt to Equity History and Analysis

Debt Level: AXLA's debt to equity ratio (53.4%) is considered high.

Reducing Debt: Insufficient data to determine if AXLA's debt to equity ratio has reduced over the past 5 years.


Balance Sheet


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: AXLA has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: AXLA is forecast to have sufficient cash runway for 7 months based on free cash flow estimates, but has since raised additional capital.


Next Steps

Dividend

What is Axcella Health current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

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

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


Stability and Growth of Payments

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

Growing Dividend: Insufficient data to determine if AXLA'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 AXLA's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.1yrs

Average management tenure


CEO

Bill Hinshaw (51 yo)

2.17yrs

Tenure

US$1,345,530

Compensation

Mr. William R. Hinshaw, Jr, also known as Bill, has been President, Chief Executive Officer and Director of Axcella Health Inc. since June 2018. Prior to this role, Mr. Hinshaw held a number of leadership ...


CEO Compensation Analysis

Compensation vs Market: Bill's total compensation ($USD1.35M) is about average for companies of similar size in the US market ($USD1.33M).

Compensation vs Earnings: Bill's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
William Hinshaw
President2.17yrsUS$1.35mno data
Manu Chakravathy
Chief Medical Officer & Senior VP of Clinical Development3yrsUS$1.71mno data
Shreeram Aradhye
Executive VP & Chief Development Officer1.58yrsUS$3.91mno data
Laurent Chardonnet
Senior VP & CFO0.75yrno data0.010%
$ 16.5k
Tony Tramontin
Chief Scientific Officer and Senior VP of Research & Development3.17yrsno datano data
Heidy King-Jones
Senior VP of Legal0.75yrno datano data
Andrew Suchoff
Senior VP & Chief People Officer0.17yrno datano data
Larry Bell
Global Head of Regulatory Affairs & Pharmacovigilance and Senior Vice President5.17yrsno datano data
Stephen Mitchener
Senior VP & Chief Business Officer2yrsUS$892.67kno data
Paul Fehlner
Senior VP & Chief Intellectual Property Officer2.33yrsno datano data

2.1yrs

Average Tenure

51.5yo

Average Age

Experienced Management: AXLA's management team is considered experienced (2.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
William Hinshaw
President2.17yrsUS$1.35mno data
David Epstein
Chairman2.67yrsUS$1.23m0.33%
$ 530.3k
William Baird
Independent Director2.17yrsUS$146.43kno data
Catherine Sohn
Independent Director1yrUS$133.08k0.0028%
$ 4.5k
Gary Pisano
Independent Director8.83yrsUS$131.43kno data
Stephen Hoge
Independent Director6.25yrsUS$129.55kno data
Cristina Rondinone
Independent Director2.17yrsUS$131.30kno data
Grégory Behar
Independent Director4.5yrsUS$131.43kno data

2.4yrs

Average Tenure

54.5yo

Average Age

Experienced Board: AXLA's board of directors are not considered experienced ( 2.4 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: AXLA insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been substantially diluted in the past year, with total shares outstanding growing by 55.8%.


Top Shareholders

Company Information

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


Key Information

  • Name: Axcella Health Inc.
  • Ticker: AXLA
  • Exchange: NasdaqGM
  • Founded: 2008
  • Industry: Biotechnology
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: US$160.916m
  • Shares outstanding: 35.84m
  • Website: https://www.axcellahealth.com

Number of Employees


Location

  • Axcella Health Inc.
  • 840 Memorial Drive
  • Cambridge
  • Massachusetts
  • 2139
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
AXLANasdaqGM (Nasdaq Global Market)YesCommon StockUSUSDMay 2019

Biography

Axcella Health Inc., a clinical-stage biotechnology company, researches and develops endogenous metabolic modulators (EMMs) for the treatment of complex diseases and improving health in the United States. ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/04 00:20
End of Day Share Price2020/08/03 00:00
Earnings2020/03/31
Annual Earnings2019/12/31


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.