NasdaqGS:CELG

Stock Analysis Report

Executive Summary

Celgene Corporation, a biopharmaceutical company, discovers, develops, and commercializes therapies for the treatment of cancer and inflammatory diseases worldwide.

Rewards

Trading at 33.5% below its fair value

Earnings are forecast to grow 15.57% per year

Earnings grew by 103.3% over the past year

Risk Analysis

Has a high level of debt



Snowflake Analysis

Solid track record and good value.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-2.0%

CELG

0.3%

US Biotechs

0.8%

US Market


1 Year Return

60.3%

CELG

14.5%

US Biotechs

17.8%

US Market

Return vs Industry: CELG exceeded the US Biotechs industry which returned 14.5% over the past year.

Return vs Market: CELG exceeded the US Market which returned 17.8% over the past year.


Shareholder returns

CELGIndustryMarket
7 Day-2.0%0.3%0.8%
30 Day4.7%8.7%1.8%
90 Day13.1%15.7%4.1%
1 Year60.3%60.3%15.6%14.5%20.4%17.8%
3 Year-10.4%-10.4%27.3%23.1%45.9%36.4%
5 Year-3.9%-3.9%7.5%2.3%68.1%49.6%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

33.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CELG ($108.24) is trading below our estimate of fair value ($162.77)

Significantly Below Fair Value: CELG is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: CELG is good value based on its PE Ratio (13x) compared to the Biotechs industry average (18.6x).

PE vs Market: CELG is good value based on its PE Ratio (13x) compared to the US market (18.4x).


Price to Earnings Growth Ratio

PEG Ratio: CELG is good value based on its PEG Ratio (0.8x)


Price to Book Ratio

PB vs Industry: CELG is overvalued based on its PB Ratio (6.4x) compared to the US Biotechs industry average (3.2x).


Next Steps

Future Growth

How is Celgene forecast to perform in the next 1 to 3 years based on estimates from 19 analysts?

15.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CELG's forecast earnings growth (15.6% per year) is above the savings rate (2.7%).

Earnings vs Market: CELG's earnings (15.6% per year) are forecast to grow faster than the US market (14.2% per year).

High Growth Earnings: CELG's earnings are forecast to grow, but not significantly.

Revenue vs Market: CELG's revenue (8.6% per year) is forecast to grow faster than the US market (7.4% per year).

High Growth Revenue: CELG's revenue (8.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CELG's Return on Equity is forecast to be very high in 3 years time (41.9%).


Next Steps

Past Performance

How has Celgene performed over the past 5 years?

23.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CELG has high quality earnings.

Growing Profit Margin: CELG's current net profit margins (34.6%) are higher than last year (19.6%).


Past Earnings Growth Analysis

Earnings Trend: CELG's earnings have grown significantly by 23.7% per year over the past 5 years.

Accelerating Growth: CELG's earnings growth over the past year (103.3%) exceeds its 5-year average (23.7% per year).

Earnings vs Industry: CELG earnings growth over the past year (103.3%) exceeded the Biotechs industry 103.3%.


Return on Equity

High ROE: Whilst CELG's Return on Equity (48.65%) is outstanding, this metric is skewed due to their high level of debt.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Celgene's financial position?


Financial Position Analysis

Short Term Liabilities: CELG's short term assets ($14.5B) exceed its short term liabilities ($5.0B).

Long Term Liabilities: CELG's short term assets ($14.5B) do not cover its long term liabilities ($24.3B).


Debt to Equity History and Analysis

Debt Level: CELG's debt to equity ratio (163.7%) is considered high.

Reducing Debt: CELG's debt to equity ratio has increased from 118.8% to 163.7% over the past 5 years.

Debt Coverage: CELG's debt is well covered by operating cash flow (41.2%).

Interest Coverage: CELG's interest payments on its debt are well covered by EBIT (13.2x coverage).


Balance Sheet

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

Debt Coverage by Assets: CELG's debt is not covered by short term assets (assets are 0.7x debt).


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage2.0%forecastin3Years0%

Current dividend yield vs market & industry

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

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

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

1.3yrs

Average management tenure


CEO

Mark Alles (60yo)

3.7yrs

Tenure

US$16,223,923

Compensation

Mr. Mark J. Alles has been the Chief Executive Officer of Celgene Corporation since March 1, 2016 and its chairman of the board since February 5, 2018. Mr. Alles served as the President and Chief Operating ...


CEO Compensation Analysis

Compensation vs Market: Mark's total compensation ($USD16.22M) is above average for companies of similar size in the US market ($USD10.94M).

Compensation vs Earnings: Mark's compensation has increased by more than 20% in the past year.


Management Age and Tenure

1.3yrs

Average Tenure

55yo

Average Age

Experienced Management: CELG's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.


Board Age and Tenure

8.3yrs

Average Tenure

67yo

Average Age

Experienced Board: CELG's board of directors are considered experienced (8.3 years average tenure).


Insider Trading

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


Recent Insider Transactions

SellUS$672,24419 Sep 19
Terrie Curran
EntityIndividual
Role
Unit President
President of Global Inflammation & Immunology
Shares6,838
Max PriceUS$98.31
BuyUS$179,98014 Feb 19
Ernest Mario
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares2,000
Max PriceUS$89.99

Ownership Breakdown

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


Management Team

  • Peter Kellogg (63yo)

    Executive VP & Chief Corporate Strategy Officer

    • Tenure: 5.3yrs
    • Compensation: US$6.24m
  • Brian Gill

    VP of Corporate Communications and Senior Director of Public Relation & IR

    • Tenure: 16.7yrs
  • David Elkins (51yo)

    Executive VP & CFO

    • Tenure: 1.3yrs
  • Terrie Curran (50yo)

    President of Global Inflammation & Immunology

    • Tenure: 2.6yrs
    • Compensation: US$4.24m
  • Patrick Flanigan

    Corporate Vice President of Investor Relations

    • Tenure: 0yrs
  • Mark Alles (60yo)

    Chairman & CEO

    • Tenure: 3.7yrs
    • Compensation: US$16.22m
  • Jazz Tobaccowalla (52yo)

    Senior VP and Chief Digital & Information Officer

    • Tenure: 1.3yrs
  • Alise Reicin (58yo)

    President of Global Clinical Development

    • Tenure: 1yrs
    • Compensation: US$6.05m
  • Jonathan Biller (55yo)

    Executive VP & General Counsel

    • Tenure: 1.3yrs
  • Toni-Ann Citera

    Senior VP & Chief Compliance Officer

    • Tenure: 1yrs

Board Members

  • Mike Bonney (61yo)

    Independent Director

    • Tenure: 4.6yrs
    • Compensation: US$535.75k
  • Mike Casey (73yo)

    Independent Lead Director

    • Tenure: 12.4yrs
    • Compensation: US$590.01k
  • Ernie Mario (80yo)

    Independent Director

    • Tenure: 12.3yrs
    • Compensation: US$560.01k
  • Carrie Cox (61yo)

    Independent Director

    • Tenure: 9.9yrs
    • Compensation: US$535.75k
  • John Weiland (63yo)

    Independent Director

    • Tenure: 1.8yrs
    • Compensation: US$822.31k
  • Richard Barker (70yo)

    Independent Director

    • Tenure: 7.8yrs
    • Compensation: US$537.51k
  • James Loughlin (76yo)

    Independent Director

    • Tenure: 12.8yrs
    • Compensation: US$565.01k
  • Michael Friedman (75yo)

    Independent Director

    • Tenure: 8.8yrs
    • Compensation: US$530.01k
  • Julia Haller (64yo)

    Independent Director

    • Tenure: 4.1yrs
    • Compensation: US$537.51k
  • Mark Alles (60yo)

    Chairman & CEO

    • Tenure: 3.7yrs
    • Compensation: US$16.22m

Company Information

Celgene Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Celgene Corporation
  • Ticker: CELG
  • Exchange: NasdaqGS
  • Founded: 1980
  • Industry: Biotechnology
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: US$77.036b
  • Shares outstanding: 711.71m
  • Website: https://www.celgene.com

Number of Employees


Location

  • Celgene Corporation
  • 86 Morris Avenue
  • Summit
  • New Jersey
  • 7901
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CELGNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDJul 1987
CG3DB (Deutsche Boerse AG)YesCommon StockDEEURJul 1987
CG3XTRA (XETRA Trading Platform)YesCommon StockDEEURJul 1987
CELG *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNJul 1987
CELGSWX (SIX Swiss Exchange)YesCommon StockCHCHFJul 1987
0QYALSE (London Stock Exchange)YesCommon StockGBUSDJul 1987
CELGWBAG (Wiener Boerse AG)YesCommon StockATEURJul 1987
CLGN34BOVESPA (Bolsa de Valores de Sao Paulo)EACH BDR REPR 1 COM USD0.01BRBRLNov 2015
CELGBASE (Buenos Aires Stock Exchange)CEDEAR EACH 5 REP 1 COM USD0.01ARARSApr 2019

Biography

Celgene Corporation, a biopharmaceutical company, discovers, develops, and commercializes therapies for the treatment of cancer and inflammatory diseases worldwide. It offers REVLIMID, an oral immunomodula ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/20 23:33
End of Day Share Price2019/11/20 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.