NasdaqGS:CALA

Stock Analysis Report

Executive Summary

Calithera Biosciences, Inc., a clinical-stage bio-pharmaceutical company, focuses on the discovery and development of small molecule drugs directed against tumor metabolism and tumor immunology targets for the treatment of cancer in the United States.

Rewards

Trading at 66.3% below its fair value

Revenue is forecast to grow 55.67% per year

Risk Analysis

Makes less than USD$1m in revenue ($0)

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

Highly volatile share price over past 3 months

Shareholders have been diluted in the past year



Snowflake Analysis

Excellent balance sheet and fair value.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

2.8%

CALA

-1.9%

US Biotechs

-0.09%

US Market


1 Year Return

73.2%

CALA

11.2%

US Biotechs

23.9%

US Market

Return vs Industry: CALA exceeded the US Biotechs industry which returned 10.9% over the past year.

Return vs Market: CALA exceeded the US Market which returned 24.7% over the past year.


Shareholder returns

CALAIndustryMarket
7 Day2.8%-1.9%-0.09%
30 Day15.1%-2.6%3.1%
90 Day151.8%14.9%10.4%
1 Year73.2%73.2%12.2%11.2%26.6%23.9%
3 Year52.7%52.7%26.5%22.4%50.9%41.2%
5 Year-64.2%-64.2%2.5%-2.3%78.1%58.5%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CALA ($7) is trading below our estimate of fair value ($20.76)

Significantly Below Fair Value: CALA is trading below fair value by more than 20%.


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: CALA is good value based on its PB Ratio (3.1x) compared to the US Biotechs industry average (3.2x).


Next Steps

Future Growth

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

38.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

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

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

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

Revenue vs Market: CALA's revenue (55.7% per year) is forecast to grow faster than the US market (7.5% per year).

High Growth Revenue: CALA's revenue (55.7% per year) 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 CALA's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Calithera Biosciences performed over the past 5 years?

-23.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CALA is currently unprofitable.

Growing Profit Margin: CALA is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: CALA is unprofitable, and losses have increased over the past 5 years at a rate of -23.8% per year.

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

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


Return on Equity

High ROE: CALA has a negative Return on Equity (-72.63%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Calithera Biosciences's financial position?


Financial Position Analysis

Short Term Liabilities: CALA's short term assets ($136.8M) exceed its short term liabilities ($18.5M).

Long Term Liabilities: CALA's short term assets ($136.8M) exceed its long term liabilities ($7.2M).


Debt to Equity History and Analysis

Debt Level: CALA is debt free.

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


Balance Sheet

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

Debt Coverage by Assets: Insufficient data to determine if CALA'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: CALA has sufficient cash runway for more than a year based on its current free cash flow.

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


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage2.1%forecastin3Years0%

Current dividend yield vs market & industry

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

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

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

3.4yrs

Average management tenure


CEO

Susan Molineaux (65yo)

9.8yrs

Tenure

US$2,033,057

Compensation

Dr. Susan M. Molineaux, Ph.D., Co-founded Calithera Biosciences, Inc. in June 2010 and has been its Chief Executive Officer and President since June 2010. Dr. Molineaux also serves as Principal Financial O ...


CEO Compensation Analysis

Compensation vs Market: Susan's total compensation ($USD2.03M) is about average for companies of similar size in the US market ($USD1.70M).

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


Management Age and Tenure

3.4yrs

Average Tenure

48yo

Average Age

Experienced Management: CALA's management team is considered experienced (3.4 years average tenure).


Board Age and Tenure

4.7yrs

Average Tenure

55.5yo

Average Age

Experienced Board: CALA's board of directors are considered experienced (4.7 years average tenure).


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

BuyUS$750,84722 Nov 19
BVF Partners LP
EntityCompany
Shares191,954
Max PriceUS$3.91
BuyUS$433,00518 Nov 19
BVF Partners LP
EntityCompany
Shares128,488
Max PriceUS$3.37
BuyUS$6,310,61231 Oct 19
BVF Partners LP
EntityCompany
Shares2,396,485
Max PriceUS$2.70
BuyUS$200,20827 Jun 19
Susan Molineaux
EntityIndividual
Role
Chief Executive Officer
Co-Founder
Shares51,600
Max PriceUS$3.88

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 20.1%.


Management Team

  • Susan Molineaux (65yo)

    Co-Founder

    • Tenure: 9.8yrs
    • Compensation: US$2.03m
  • Christopher Molineaux (66yo)

    Senior Vice President of Development

    • Tenure: 6.8yrs
    • Compensation: US$446.60k
  • Eric Sjogren (62yo)

    Senior Vice President of Drug Discovery

    • Tenure: 9.6yrs
    • Compensation: US$959.51k
  • Stephanie Wong (45yo)

    Senior VP of Finance & Secretary

    • Sumita Ray (45yo)

      Senior VP

      • Tenure: 2.3yrs
      • Compensation: US$1.26m
    • Hagit Glickman

      Head of People & Culture

      • Curtis Hecht (48yo)

        Chief Business Officer

        • Tenure: 1yrs
        • Compensation: US$883.44k
      • Keith Orford (47yo)

        Chief Medical Officer

        • Tenure: 3.7yrs
        • Compensation: US$1.14m
      • Jennifer McNealey

        Vice President of Investor Relations & Strategy

        • Tenure: 3.1yrs
      • Sam Whiting

        Senior Vice President of Clinical Development

        • Tenure: 1yrs

      Board Members

      • Jean George (61yo)

        Independent Director

        • Tenure: 7.3yrs
        • Compensation: US$98.30k
      • Henry Wolff (70yo)

        Independent Director

        • Tenure: 5.1yrs
        • Compensation: US$97.30k
      • Deepa Pakianathan (54yo)

        Lead Independent Director

        • Tenure: 3yrs
        • Compensation: US$120.30k
      • Susan Molineaux (65yo)

        Co-Founder

        • Tenure: 9.8yrs
        • Compensation: US$2.03m
      • John Drachman (57yo)

        Independent Director

        • Tenure: 6.1yrs
        • Compensation: US$87.30k
      • Sunil Agarwal (49yo)

        Independent Director

        • Tenure: 4.3yrs
        • Compensation: US$93.80k
      • Suzy Jones (53yo)

        Independent Director

        • Tenure: 3.4yrs
        • Compensation: US$89.80k
      • Blake Wise (48yo)

        Director

        • Tenure: 2.3yrs
        • Compensation: US$86.05k

      Company Information

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


      Key Information

      • Name: Calithera Biosciences, Inc.
      • Ticker: CALA
      • Exchange: NasdaqGS
      • Founded: 2010
      • Industry: Biotechnology
      • Sector: Pharmaceuticals & Biotech
      • Market Cap: US$381.805m
      • Shares outstanding: 53.78m
      • Website: https://www.calithera.com

      Number of Employees


      Location

      • Calithera Biosciences, Inc.
      • 343 Oyster Point Boulevard
      • Suite 200
      • South San Francisco
      • California
      • 94080
      • United States

      Listings

      TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
      CALANasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDOct 2014
      2CBDB (Deutsche Boerse AG)YesCommon StockDEEUROct 2014

      Biography

      Calithera Biosciences, Inc., a clinical-stage bio-pharmaceutical company, focuses on the discovery and development of small molecule drugs directed against tumor metabolism and tumor immunology targets for the treatment of cancer in the United States. Its lead product candidate is CB-839, an inhibitor of glutaminase, which is in Phase II clinical trial to treat solid tumors. The company also offers INCB001158, an oral inhibitor of arginase that is in Phase I/II clinical trial for the treatment of hematology and oncology. The company is also developing CB-280, an oral arginase inhibitor for the treatment of cystic fibrosis; and CB-708, an orally administered small molecule inhibitor of CD73. It has a license agreement with Mars, Inc. to develop and commercialize Symbioscience’s portfolio of arginase inhibitors for use in human healthcare. The company also has clinical trial collaboration with Bristol-Myers Squibb Company to evaluate nivolumab in combination with CB-839. In addition, it has a collaboration and license agreement with Incyte Corporation for the research, development, and commercialization of INCB001158, a small molecule arginase inhibitor for the treatment of hematology and oncology. Calithera Biosciences, Inc. was founded in 2010 and is headquartered in South San Francisco, California. 


      Company Analysis and Financial Data Status

      All financial data provided by Standard & Poor's Capital IQ.
      DataLast Updated (UTC time)
      Company Analysis2020/01/23 01:04
      End of Day Share Price2020/01/22 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.