NasdaqGS:BGNE

Stock Analysis Report

Executive Summary

BeiGene, Ltd., a commercial-stage biotechnology company, develops and commercializes molecularly-targeted and immuno-oncology drugs for the treatment of cancer in the People’s Republic of China, the United States, and internationally.

Snowflake

Fundamentals

Excellent balance sheet and slightly overvalued.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

-0.9%

BGNE

0.8%

US Biotechs

1.0%

US Market


1 Year Return

-5.4%

BGNE

-8.3%

US Biotechs

6.7%

US Market

Return vs Industry: BGNE exceeded the US Biotechs industry which returned -8.3% over the past year.

Return vs Market: BGNE underperformed the US Market which returned 6.7% over the past year.


Share holder returns

BGNEIndustryMarket
7 Day-0.9%0.8%1.0%
30 Day-11.0%-3.9%-1.8%
90 Day-1.4%-3.5%-1.8%
1 Year-5.4%-5.4%-7.5%-8.3%9.1%6.7%
3 Year267.2%267.2%13.6%9.6%46.1%36.6%
5 Yearn/a3.3%-1.7%66.9%48.6%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

41%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Undervalued: BGNE ($119.45) is trading below our estimate of fair value ($203.29)

Significantly Undervalued: BGNE is trading below fair value by more than 20%.


Price Based on Earnings

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

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


Price Based on Expected Growth

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


Price Based on Value of Assets

PB vs Industry: BGNE is overvalued based on its PB Ratio (4.6x) compared to the US Biotechs industry average (2.5x).


Next Steps

Future Growth

How is BeiGene expected to perform in the next 1 to 3 years based on estimates from 18 analysts?

51.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

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

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

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

Revenue vs Market: BGNE's revenue (43.3% per year) is forecast to grow faster than the US market (7.3% per year).

High Growth Revenue: BGNE's revenue (43.3% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Estimates


Future Return on Equity

High Future ROE: BGNE's Return on Equity is forecast to be low in 3 years time (0.3%).


Next Steps

Past Performance

How has BeiGene performed over the past 5 years?

-67.1%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: BGNE is unprofitable, and losses have increased over the past 5 years at a rate of -67.1% per year.

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

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


Return on Equity

High ROE: BGNE has a negative Return on Equity (-42.34%), as it is currently unprofitable.


Return on Assets

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


Return on Capital Employed

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


Next Steps

Financial Health

How is BeiGene's financial position?


Financial Position Analysis

Short Term Liabilities: BGNE's short term assets ($1.8B) exceeds its short term liabilities ($271.7M)

Long Term Liabilities: BGNE's short term assets (1.8B) exceeds its long term liabilities (307.4M)


Debt to Equity History and Analysis

Debt Level: BGNE's debt to equity ratio (15.8%) is considered satisfactory

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


Balance Sheet

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

Debt Coverage by Assets: BGNE's debt is covered by short term assets (assets are 7.092220x 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: BGNE has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if BGNE has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.5%markettop25%3.8%industryaverage1.0%forecastin3Years0%

Current dividend yield vs market & industry


Dividend Yield and Payments Analysis

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

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

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

4.3yrs

Average management tenure


CEO

John Oyler (51yo)

9.8yrs

Tenure

US$27,895,819

Compensation

Mr. John V. Oyler Co-Founded BeiGene, Ltd. and has been its Chief Executive Officer since 2010. Mr. Oyler Co-founded BioDuro, LLC and served as its Chief Executive Officer and President from 2005 to 2009.  ...


CEO Compensation Analysis

Compensation vs. Market: John's total compensation ($USD27.90M) is about average for companies of similar size in the US market ($USD6.81M).

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


Management Age and Tenure

4.3yrs

Average Tenure

56yo

Average Age

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


Board Age and Tenure

5.8yrs

Average Tenure

58yo

Average Age

Experienced Board: BGNE's board of directors are considered experienced (5.8 years average tenure).


Insider Trading

Insider Buying: BGNE insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$102,75527 Aug 19
Yung-cheng Chen
EntityIndividual
Shares714
Max PriceUS$143.91
SellUS$741,54602 May 19
Xiaobin Wu
EntityIndividual
Role
President
GM of China & President
Shares5,955
Max PriceUS$125.55
SellUS$2,037,82518 Mar 19
Donald Glazer
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares14,973
Max PriceUS$136.10

Ownership Breakdown


Management Team

  • John Oyler (51yo)

    Co-Founder

    • Tenure: 9.8yrs
    • Compensation: US$27.90m
  • Howard Liang (56yo)

    CFO & Chief Strategy Officer

    • Tenure: 4.3yrs
    • Compensation: US$3.94m
  • Scott Samuels

    Senior VP & General Counsel

    • Tenure: 0yrs
  • Luo Lusong

    Head of Discovery Biology & Senior VP

    • Tenure: 9yrs
  • Wei Min

    Head of Molecular Sciences and Senior Vice President

    • Tenure: 3.1yrs
  • Xiaodong Wang (56yo)

    Co-Founder

    • Tenure: 8.8yrs
    • Compensation: US$6.06m
  • Steve Young

    Acting Head of Medicinal Chemistry & Member of Scientific Advisory Board

    • Tenure: 0yrs
  • Jane Huang (46yo)

    Chief Medical Officer of Hematology

    • Tenure: 3.1yrs
    • Compensation: US$3.46m
  • Lucy Li

    Investor Contact

    • Tenure: 0yrs
  • Xiaobin Wu (57yo)

    GM of China & President

    • Tenure: 1.4yrs

Board Members

  • John Oyler (51yo)

    Co-Founder

    • Tenure: 9.8yrs
    • Compensation: US$27.90m
  • Thomas Malley (50yo)

    Independent Non-Executive Director

    • Tenure: 3.8yrs
    • Compensation: US$368.54k
  • Donald Glazer (75yo)

    Independent Non-Executive Director

    • Tenure: 6.7yrs
    • Compensation: US$358.54k
  • Ron Levy

    Member of Scientific Advisory Board

    • Tenure: 0yrs
  • Neal Rosen (69yo)

    Member of Scientific Advisory Board

    • Tenure: 0yrs
  • Charles Sawyers (60yo)

    Member of Scientific Advisory Board

    • Tenure: 0yrs
  • David Schenkein (62yo)

    Member of Scientific Advisory Board

    • Tenure: 0yrs
  • Xiaodong Wang (56yo)

    Co-Founder

    • Tenure: 8.8yrs
    • Compensation: US$6.06m
  • Steve Young

    Acting Head of Medicinal Chemistry & Member of Scientific Advisory Board

    • Tenure: 0yrs
  • Michael Yi (47yo)

    Independent Non-Executive Director

    • Tenure: 5yrs
    • Compensation: US$373.54k

Company Information

BeiGene, Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: BeiGene, Ltd.
  • Ticker: BGNE
  • Exchange: NasdaqGS
  • Founded: 2010
  • Industry: Biotechnology
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: US$7.243b
  • Shares outstanding: 60.63m
  • Website: https://www.beigene.com

Number of Employees


Location

  • BeiGene, Ltd.
  • No.30 Science Park Road
  • Zhong-Guan-Cun Life Science Park
  • Beijing
  • 102206
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BGNENasdaqGS (Nasdaq Global Select)YesSPON ADS EACH REPR 13 ORDUSUSDFeb 2016
49BADB (Deutsche Boerse AG)YesSPON ADS EACH REPR 13 ORDDEEURFeb 2016
BGNE NBMV (Bolsa Mexicana de Valores)YesSPON ADS EACH REPR 13 ORDMXMXNFeb 2016
49BDB (Deutsche Boerse AG)USD0.0001DEEURAug 2018
6160SEHK (The Stock Exchange of Hong Kong Ltd.)USD0.0001HKHKDAug 2018

Biography

BeiGene, Ltd., a commercial-stage biotechnology company, develops and commercializes molecularly-targeted and immuno-oncology drugs for the treatment of cancer in the People’s Republic of China, the United ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/14 03:24
End of Day Share Price2019/10/11 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.

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