NasdaqGM:CATB

Stock Analysis Report

Executive Summary

Catabasis Pharmaceuticals, Inc., a clinical-stage biopharmaceutical company, focuses on the discovery, development, and commercialization of therapeutics based on safely metabolized and rationally targeted (SMART) linker drug discovery platform in the United States.

Rewards

Earnings are forecast to grow 61.57% per year

Risk Analysis

Shareholders have been substantially diluted in the past year

Makes less than USD$1m in revenue ($250K)

Highly volatile share price over past 3 months

Does not have a meaningful market cap ($95M)



Snowflake Analysis

Flawless balance sheet with moderate growth potential.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

4.4%

CATB

0.7%

US Biotechs

0.5%

US Market


1 Year Return

16.1%

CATB

15.7%

US Biotechs

20.3%

US Market

Return vs Industry: CATB matched the US Biotechs industry which returned 15.7% over the past year.

Return vs Market: CATB underperformed the US Market which returned 20.3% over the past year.


Shareholder returns

CATBIndustryMarket
7 Day4.4%0.7%0.5%
30 Day-16.5%2.7%2.0%
90 Day12.4%8.7%9.4%
1 Year16.1%16.1%16.6%15.7%22.8%20.3%
3 Year-53.2%-53.2%25.3%21.9%50.1%40.4%
5 Yearn/a2.8%-1.9%73.1%54.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

1.71x

Price to Book (PB) ratio


Share Price vs. Fair Value

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

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


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: CATB is good value based on its PB Ratio (1.7x) compared to the US Biotechs industry average (3.2x).


Next Steps

Future Growth

How is Catabasis Pharmaceuticals forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

61.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CATB is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.7%).

Earnings vs Market: CATB is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: CATB's is expected to become profitable in the next 3 years.

Revenue vs Market: CATB is forecast to have no revenue next year.

High Growth Revenue: CATB is forecast to have no revenue next year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if CATB's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Catabasis Pharmaceuticals performed over the past 5 years?

1.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CATB is currently unprofitable.

Growing Profit Margin: CATB is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: CATB is unprofitable, but has reduced losses over the past 5 years at a rate of 1% per year.

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

Earnings vs Industry: CATB is unprofitable, making it difficult to compare its past year earnings growth to the Biotechs industry (64%).


Return on Equity

High ROE: CATB has a negative Return on Equity (-67.26%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Catabasis Pharmaceuticals's financial position?


Financial Position Analysis

Short Term Liabilities: CATB's short term assets ($42.7M) exceed its short term liabilities ($5.6M).

Long Term Liabilities: CATB has no long term liabilities.


Debt to Equity History and Analysis

Debt Level: CATB is debt free.

Reducing Debt: CATB has no debt compared to 5 years ago when its debt to equity ratio was 36.7%.


Balance Sheet

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

Debt Coverage by Assets: CATB's debt is not covered by short term assets (assets are -129.5x 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: CATB has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: CATB has sufficient cash runway for 1.7 years if free cash flow continues to reduce at historical rates of -1.5% each year.


Next Steps

Dividend

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

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

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

2.9yrs

Average management tenure


CEO

Jill Milne (51yo)

11.7yrs

Tenure

US$1,136,169

Compensation

Ms. Jill C. Milne, PhD is a Co-founder of Catabasis Pharmaceuticals, Inc., has been its President and Chief Executive Officer since June 2008. She served as Principal Financial Officer at Catabasis Pharmac ...


CEO Compensation Analysis

Compensation vs Market: Jill's total compensation ($USD1.14M) is above average for companies of similar size in the US market ($USD521.92K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Jill Milne
Co-Founder11.7yrsUS$1.14m0.15% $146.4k
Andrew Nichols
Chief Scientific Officer3.3yrsUS$715.27kno data
Joanne Donovan
Chief Medical Officer & Senior VP of Clinical Development8.6yrsUS$827.09k0.00023% $218.4
Noah Clauser
VP of Finance & Principal Financial Officer0.2yrsno datano data
Andrew Komjathy
Chief Commercial Officer0.4yrsno datano data
Andrea Matthews
Vice President of Corporate Affairs2.4yrsno datano data

2.9yrs

Average Tenure

54.5yo

Average Age

Experienced Management: CATB's management team is considered experienced (2.9 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Jill Milne
Co-Founder11.7yrsUS$1.14m0.15% $146.4k
Michael Kishbauch
Independent Director3.8yrsUS$66.85kno data
Kenneth Bate
Independent Chairman of the Board4yrsUS$91.85kno data
Gregory Lapointe
Independent Director1.1yrsno datano data
Johannes Jacob Kastelein
Member of Scientific Advisory Board0yrsno datano data
Michael Jirousek
Member of Scientific Advisory Board4.3yrsUS$589.63kno data
Jay Horton
Member of Scientific Advisory Board0yrsno datano data
Roger Ulrich
Member of Scientific Advisory Board0yrsno datano data
Eric Brass
Member of Scientific Advisory Board0yrsno datano data
Sekar Kathiresan
Member of Scientific Advisory Board0yrsno datano data

4.0yrs

Average Tenure

62.5yo

Average Age

Experienced Board: CATB's board of directors are considered experienced (4 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 been substantially diluted in the past year, with total shares outstanding growing by 159.5%.


Top Shareholders

Company Information

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


Key Information

  • Name: Catabasis Pharmaceuticals, Inc.
  • Ticker: CATB
  • Exchange: NasdaqGM
  • Founded: 2008
  • Industry: Biotechnology
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: US$94.962m
  • Shares outstanding: 17.03m
  • Website: https://www.catabasis.com

Number of Employees


Location

  • Catabasis Pharmaceuticals, Inc.
  • Building 1400E
  • Suite B14202
  • Cambridge
  • Massachusetts
  • 2139
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CATBNasdaqGM (Nasdaq Global Market)YesCommon SharesUSUSDJun 2015
209ADB (Deutsche Boerse AG)YesCommon SharesDEEURJun 2015

Biography

Catabasis Pharmaceuticals, Inc., a clinical-stage biopharmaceutical company, focuses on the discovery, development, and commercialization of therapeutics based on safely metabolized and rationally targeted (SMART) linker drug discovery platform in the United States. The company’s lead product candidate is Edasalonexent, an oral small molecule that inhibits nuclear factor kappa-light-chain-enhancer of activate B cells, which is in Phase III clinical trial for the treatment of duchenne muscular dystrophy (DMD). It is also involved in developing CAT-5571 for the treatment of cystic fibrosis. Catabasis Pharmaceuticals, Inc. has a pre-clinical joint research collaboration agreement with Sarepta Therapeutics, Inc. to explore a combination drug treatment approach for DMD; and collaboration with the University of Texas Southwestern to study the potential benefits of edasalonexent treatment. The company also has a preclinical research collaboration with the Jain Foundation to study edasalonexent (CAT-1004) in Dysferlinopathy. The company was founded in 2008 and is based in Cambridge, Massachusetts. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/20 04:06
End of Day Share Price2020/02/19 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.