NasdaqGM:CARA

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Executive Summary

Cara Therapeutics, Inc., a clinical-stage biopharmaceutical company, focuses on developing and commercializing chemical entities with a primary focus on pruritus and pain by selectively targeting kappa opioid receptors in the United States. More Details


Snowflake Analysis

Excellent balance sheet and slightly overvalued.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: CARA has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-2.5%

CARA

2.1%

US Pharmaceuticals

0.08%

US Market


1 Year Return

-34.4%

CARA

11.1%

US Pharmaceuticals

12.8%

US Market

Return vs Industry: CARA underperformed the US Pharmaceuticals industry which returned 11.1% over the past year.

Return vs Market: CARA underperformed the US Market which returned 12.6% over the past year.


Shareholder returns

CARAIndustryMarket
7 Day-2.5%2.1%0.08%
30 Day-8.2%-1.3%-1.8%
90 Day-16.2%5.1%7.2%
1 Year-34.4%-34.4%14.0%11.1%15.3%12.8%
3 Year11.3%11.3%27.5%18.0%39.2%29.9%
5 Year-10.0%-10.0%48.7%31.6%88.3%67.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Cara Therapeutics 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: CARA ($14.53) is trading below our estimate of fair value ($270.58)

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


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: CARA is overvalued based on its PB Ratio (4.8x) compared to the US Pharmaceuticals industry average (3.2x).


Next Steps

Future Growth

How is Cara Therapeutics forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

64.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

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

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

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

Revenue vs Market: CARA's revenue (65.6% per year) is forecast to grow faster than the US market (9.7% per year).

High Growth Revenue: CARA's revenue (65.6% 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 CARA's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Cara Therapeutics performed over the past 5 years?

-27.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CARA is currently unprofitable.

Growing Profit Margin: CARA is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: CARA is unprofitable, and losses have increased over the past 5 years at a rate of 27.6% per year.

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

Earnings vs Industry: CARA is unprofitable, making it difficult to compare its past year earnings growth to the Pharmaceuticals industry (12.2%).


Return on Equity

High ROE: CARA has a negative Return on Equity (-81.92%), as it is currently unprofitable.


Next Steps

Financial Health

How is Cara Therapeutics's financial position?


Financial Position Analysis

Short Term Liabilities: CARA's short term assets ($141.9M) exceed its short term liabilities ($24.7M).

Long Term Liabilities: CARA's short term assets ($141.9M) exceed its long term liabilities ($3.0M).


Debt to Equity History and Analysis

Debt Level: CARA is debt free.

Reducing Debt: CARA had no debt 5 years ago.


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

Forecast Cash Runway: CARA has less than a year of cash runway if free cash flow continues to reduce at historical rates of 29.9% each year


Next Steps

Dividend

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


Dividend Yield vs Market

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

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

Growing Dividend: Insufficient data to determine if CARA'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 CARA'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?

1.9yrs

Average management tenure


CEO

Derek Chalmers (56 yo)

16yrs

Tenure

US$3,433,617

Compensation

Dr. Derek T. Chalmers, Ph.D., D.Sc. co-founded Cara Therapeutics, Inc. in 2004 and has been its Chief Executive Officer and President since September 2004. Dr. Chalmers served as a Principal Investigator a ...


CEO Compensation Analysis

Compensation vs Market: Derek's total compensation ($USD3.43M) is about average for companies of similar size in the US market ($USD2.96M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Derek Chalmers
Co-Founder16yrsUS$3.43m1.93%
$ 13.1m
Frédérique Menzaghi
Chief Scientific Officer and Senior VP of R&D1.5yrsUS$2.23m0.19%
$ 1.3m
Scott Terrillion
Chief Compliance Officer3.83yrsUS$1.39m0.048%
$ 325.2k
Michael Lewis
Co-Founder & Chief Scientific Advisorno datano datano data
Richard Makara
VP, Head of Accounting0.75yrno data0.0021%
$ 14.5k
Joana Goncalves
Chief Medical Officer1.92yrsUS$3.74m0.041%
$ 281.5k

1.9yrs

Average Tenure

55yo

Average Age

Experienced Management: CARA's management team is not considered experienced ( 1.9 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Derek Chalmers
Co-Founder16yrsUS$3.43m1.93%
$ 13.1m
Martin Vogelbaum
Lead Independent Directorno dataUS$352.52k0.013%
$ 87.2k
Harrison Bains
Independent Director6.17yrsUS$304.52k0.013%
$ 87.2k
Graeme Milligan
Member of the Scientific Advisory Boardno datano datano data
Stanley Watson
Member of the Scientific Advisory Boardno datano datano data
James Kauer
Member of the Scientific Advisory Boardno datano datano data
Philip Portoghese
Member of the Scientific Advisory Boardno datano datano data
Jeffrey L. Ives
Independent Director6.17yrsUS$296.02k0.013%
$ 87.2k
Christopher Posner
Independent Director2.08yrsUS$302.02k0.013%
$ 87.2k
Susan Shiff
Director0.25yrno datano data

6.2yrs

Average Tenure

58yo

Average Age

Experienced Board: CARA's board of directors are considered experienced (6.2 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

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


Key Information

  • Name: Cara Therapeutics, Inc.
  • Ticker: CARA
  • Exchange: NasdaqGM
  • Founded: 2004
  • Industry: Pharmaceuticals
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: US$681.264m
  • Shares outstanding: 46.89m
  • Website: https://www.caratherapeutics.com

Number of Employees


Location

  • Cara Therapeutics, Inc.
  • 4 Stamford Plaza
  • 9th Floor
  • Stamford
  • Connecticut
  • 6902
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CARANasdaqGM (Nasdaq Global Market)YesCommon StockUSUSDJan 2014
69CDB (Deutsche Boerse AG)YesCommon StockDEEURJan 2014
0HTCLSE (London Stock Exchange)YesCommon StockGBUSDJan 2014

Biography

Cara Therapeutics, Inc., a clinical-stage biopharmaceutical company, focuses on developing and commercializing chemical entities with a primary focus on pruritus and pain by selectively targeting kappa opi ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/09/20 07:27
End of Day Share Price2020/09/18 00:00
Earnings2020/06/30
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.