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CMPS

COMPASS Pathways NasdaqGS:CMPS Stock Report

Last Price

US$18.36

Market Cap

US$780.5m

7D

-8.5%

1Y

-39.3%

Updated

13 Aug, 2022

Data

Company Financials +
CMPS fundamental analysis
Snowflake Score
Valuation1/6
Future Growth2/6
Past Performance0/6
Financial Health6/6
Dividends0/6

CMPS Stock Overview

COMPASS Pathways plc operates as a mental health care company primarily in the United Kingdom and the United States.

COMPASS Pathways Competitors

Price History & Performance

Summary of all time highs, changes and price drops for COMPASS Pathways
Historical stock prices
Current Share PriceUS$18.36
52 Week HighUS$49.52
52 Week LowUS$6.54
Beta0
1 Month Change61.58%
3 Month Change140.56%
1 Year Change-39.34%
3 Year Changen/a
5 Year Changen/a
Change since IPO-36.71%

Recent News & Updates

Aug 13
Here's Why We're Not Too Worried About COMPASS Pathways' (NASDAQ:CMPS) Cash Burn Situation

Here's Why We're Not Too Worried About COMPASS Pathways' (NASDAQ:CMPS) Cash Burn Situation

Just because a business does not make any money, does not mean that the stock will go down. For example, although...

Aug 11

COMPASS Pathways And The Trillion Dollar Opportunity

COMPASS Pathways is developing a psychedelic drug to treat many mental illnesses. The drug appears to be safe and effective for a wide range of mental health problems. If the drug gets authorized and approved, it will be the only available pharmacological treatment for millions and has a chance of generating trillions of dollars in revenue. There is some evidence that the US administration is preparing to authorize and approve the drug within two years. The most challenging-to-treat mental health disorders, including PTSD, major depressive disorders, addictions to alcohol and drugs, anxiety, and eating disorders, lead to the deaths of thousands of people each year and to untold suffering for the patients and their families. Many patients do not respond to current treatments, and no pharmacological therapy is available for many serious mental illnesses. COMPASS Pathways plc (CMPS) is a UK-based company trying to use the Psychedelic drug Psilocybin to treat some of the most challenging mental illnesses. I will present my view that: 1. The drug has an unusually high chance of passing its upcoming phase III trial. 2. The regulatory infrastructure in the U.S. is likely to approve the drug within two years. 3. If approved, the drug will be the first entrant into a multi-trillion dollar total addressable market ("TAM"). Getting Approved To be approved, a drug must be safe to use and effective. That is the purpose of a medical trial. Psychedelic compounds have been used by humans for many years (in some cases, centuries), sometimes as part of religious ceremonies but often for their hallucinogenic properties. Psilocybin is the active ingredient in Magic Mushrooms, extensively used in the past. As a result of this usage we already know two important facts: They are well tolerated by Humans. They affect the way the brain works. Many companies are trying to develop treatments using a variety of psychedelic compounds. I will be working through them and writing about them in the coming months, looking for more to invest in and for those to avoid. In this article, I will be concentrating on COMPASS Pathways. I started my research by examining what medical trials are taking place now and built the following table. Ongoing trials in the field (Author generated) The table is not exhaustive; however, it contains the companies I could find currently running a trial and the drug tested. (Trials of psychedelics in other areas, e.g., severe pain, are also ongoing put not on the table.) The compound with the most trials in place is Psilocybin 9 phase two trials looking at six different mental illnesses. Those six various illnesses represent more than a 350 million patient population. CMPS is running three of these trials. Having decided to look at CMPS, I investigated evidence around its candidate drug COMP360, a proprietary Psilocybin compound. Does Psilocybin Work? A search of the National Library of Medicine delivered 22 hits for Meta-Analysis Psilocybin. (meta-analysis is a research article looking at multiple trials) The latest was from February 2022 and looked at single or multi-dose trials of Psilocybin. It looked at ten studies and reported:- The present study demonstrates that single- or two-dose psilocybin administration has rapid and sustained antidepressant effects for up to 6 months, with favorable cardiovascular safety and acceptability. Of the 22 Meta-Analysis, nine covered depression (three included anxiety), two looked at addiction, one behavioral disorder, five were general reports, and the rest looked at side effects. All 22 studies were positive for Psilocybin, showing very few significant side effects and sustained and significant improvement in all patient populations. One general analysis considered 13 trials between 1969 and 2020, concluding that the different psychedelic drugs have different neuropsychological consequences. It also said Psychedelic compounds have shown the ability to increase neuroplasticity. They offer a chance to alter brain activity, reduce the suffering of victims, and perhaps ultimately a cure to many mental illnesses for a large percentage of sufferers. My study of published meta-analysis suggests that Psilocybin has a pronounced and durable effect on many mental illnesses and has few severe side effects. The problem is that the available studies are not of the standard that the FDA will need to authorize these compounds for use. CMPS Psilocybin drug trials. Last month, COMPASS Pathways released the results of the highly anticipated phase II trial of its Psilocybin assisted therapy. The FDA granted COMPASS Pathways Breakthrough Therapy Designation ((BTD)) in October 2018. It was an important step and means the FDA has been working with CMPS to accelerate the drug's approval process. The BTD followed the 2015 Phase I study when compass dosed 19 patients with its Psilcoybin compound and found promising signals in treatment-resistant depression. A fuller explanation is in this article quoted below The FDA designates a drug as a Breakthrough Therapy if preliminary clinical evidence shows that it may demonstrate substantial improvement over available therapy. Breakthrough Therapies are supported by the FDA throughout the clinical development programme to ensure as efficient a process as possible. In the Phase 2 trial, designed to work out the correct dosage for larger stage 3 trials, CMPS tested its psilocybin formula COMP360 for patients with treatment-resistant depression ((TRD)). TRD patients have tried at least two other forms of treatment without benefit and are considered the hardest subset of major depressive illness patients to treat. Market reaction to Phase II results The market did not receive the trial results well, and the stock price fell. It is my view that the market completely misinterpreted these results. Given that the patient group had already tried two forms of treatment, 25% of them meeting the primary endpoint of a sustained response on the ((MADRS)) scale at 12 weeks is a very positive outcome. It did mean that 75% of patients did not respond, which shows the drug will not be a panacea for eliminating depression, and we do not have data on the durability beyond 12 weeks from this study. However, the results are better than any other treatment for this group of patients. Safety, this again was misinterpreted in my view; five patients reported suicidal ideation or behavior and self-injury. Compass CEO said the five patients were in the non-responder group; The Pollan effect may be the case here. Bearing in mind the nature of the group, this may well explain this negative impact, and COMP360 may not be a cause at all. Patients in the study may have raised their hopes so much that they may have become desperate when the drug did not help them. In April this year, a further study was presented; twelve patients who had previously tried at least five anti-depressant treatments were given a single 25mg dose with therapy support. 58% of patients showed the required MADRS response at 12 weeks and reported no adverse events or suicidal tendencies. CMPS expects to begin the phase III trial in Q3 2022; the protocols have been submitted to the FDA before launching this large-scale multi-center international trial. The results will be pivotal for CMPS, the FDA will approve the drug, or not, when they receive the results. Anorexia Nervosa The preoccupation with weight and shape is one of the most challenging disorders to treat and currently has no pharmacological treatment. In April, COMPASS presented the results of an investigator lead study into Anorexia Nervosa. This serious mental illness carries the highest mortality rate of psychiatric disorders, with up to 40% of deaths coming from suicide. In the trial, 40% of patients experienced clinically significant reductions in eating disorder psychopathology at the 3-month follow-up, and 50% demonstrated statistically significant decreases in eating concerns. 90% of patients thought the treatment had helped them, and no adverse reactions were recorded. COMPASS announced in July 2022 that they would be pressing on with a double-blind, randomized controlled phase II trial of COMP360 in anorexia nervosa. The trial will be of FDA standard and take place in the UK and the US with 60 patients. COMPASS has also initiated a Phase II trial looking at COMP360 with patients who have PTSD. How can one drug be expected to treat all of these different mental disorders? The brain's capacity to change, its neuroplasticity, makes a cure possible. This video explains that Psilocybin affects the serotonin system in the brain, a widespread complex system of receptors of which one, Serotonin 2A, involved in regulating mood, sleep, and thinking process, is affected by Psilocybin. The compound increases the brain's neuroplasticity, allowing different brain regions to connect in new ways; connections causing unhealthy states such as depression and addiction can be reset healthily. The drug allows the brain to reset unhealthy patterns and, as a result, may work on all unhealthy patterns. Which explains the positive effects found in every study in every area investigated.

Aug 03

COMPASS Pathways ADS Q2 2022 Earnings Preview

COMPASS Pathways ADS (NASDAQ:CMPS) is scheduled to announce Q2 earnings results on Wednesday, August 3rd, after market close. The consensus EPS Estimate is -$0.60 (-36.4% Y/Y) and the consensus Revenue Estimate is $0M Over the last 3 months, EPS estimates have seen 5 upward revisions and 0 downward.

Shareholder Returns

CMPSUS BiotechsUS Market
7D-8.5%1.2%3.2%
1Y-39.3%-21.7%-10.2%

Return vs Industry: CMPS underperformed the US Biotechs industry which returned -21.7% over the past year.

Return vs Market: CMPS underperformed the US Market which returned -10.1% over the past year.

Price Volatility

Is CMPS's price volatile compared to industry and market?
CMPS volatility
CMPS Average Weekly Movement12.2%
Biotechs Industry Average Movement12.5%
Market Average Movement7.7%
10% most volatile stocks in US Market16.9%
10% least volatile stocks in US Market3.2%

Stable Share Price: CMPS is more volatile than 75% of US stocks over the past 3 months, typically moving +/- 12% a week.

Volatility Over Time: CMPS's weekly volatility (12%) has been stable over the past year, but is still higher than 75% of US stocks.

About the Company

FoundedEmployeesCEOWebsite
2020116Kabir Nathhttps://compasspathways.com

COMPASS Pathways plc operates as a mental health care company primarily in the United Kingdom and the United States. It develops COMP360, a psilocybin therapy that has completed Phase IIb clinical trials for the treatment of treatment-resistant depression; and is in Phase II clinical trials for the treatment of post-traumatic stress disorder. The company was formerly known as COMPASS Rx Limited and changed its name to COMPASS Pathways plc in August 2020.

COMPASS Pathways Fundamentals Summary

How do COMPASS Pathways's earnings and revenue compare to its market cap?
CMPS fundamental statistics
Market CapUS$780.50m
Earnings (TTM)-US$83.71m
Revenue (TTM)n/a

0.0x

P/S Ratio

-9.3x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
CMPS income statement (TTM)
RevenueUS$0
Cost of RevenueUS$0
Gross ProfitUS$0
Other ExpensesUS$83.71m
Earnings-US$83.71m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)-1.97
Gross Margin0.00%
Net Profit Margin0.00%
Debt/Equity Ratio0%

How did CMPS perform over the long term?

See historical performance and comparison
We’ve recently updated our valuation analysis.

Valuation

Is CMPS undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

1/6

Valuation Score 1/6

  • Price-To-Book vs Peers

  • Price-To-Book vs Industry

  • Price-To-Book vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for CMPS?

Other financial metrics that can be useful for relative valuation.

CMPS key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenuen/a
Enterprise Value/EBITDA-6.4x
PEG Ration/a

Price to Book Ratio vs Peers

How does CMPS's PB Ratio compare to its peers?

CMPS PB Ratio vs Peers
The above table shows the PB ratio for CMPS vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPBEstimated GrowthMarket Cap
Peer Average5.1x
BCYC Bicycle Therapeutics
2.5x-16.5%US$779.0m
NRIX Nurix Therapeutics
3x-6.8%US$787.0m
PMVP PMV Pharmaceuticals
2.8x-7.4%US$771.0m
ADCT ADC Therapeutics
6.9x11.5%US$791.1m
CMPS COMPASS Pathways
3.5x12.5%US$780.5m

Price-To-Book vs Peers: CMPS is good value based on its Price-To-Book Ratio (3.5x) compared to the peer average (5.1x).


Price to Earnings Ratio vs Industry

How does CMPS's PE Ratio compare vs other companies in the US Biotechs Industry?

Price-To-Book vs Industry: CMPS is expensive based on its Price-To-Book Ratio (3.5x) compared to the US Biotechs industry average (1.9x)


Price to Book Ratio vs Fair Ratio

What is CMPS's PB Ratio compared to its Fair PB Ratio? This is the expected PB Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

CMPS PB Ratio vs Fair Ratio.
Fair Ratio
Current PB Ratio3.5x
Fair PB Ration/a

Price-To-Book vs Fair Ratio: Insufficient data to calculate CMPS's Price-To-Book Fair Ratio for valuation analysis.


Share Price vs Fair Value

What is the Fair Price of CMPS when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: Insufficient data to calculate CMPS's fair value for valuation analysis.

Significantly Below Fair Value: Insufficient data to calculate CMPS's fair value for valuation analysis.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.


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Future Growth

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

Future Growth Score

2/6

Future Growth Score 2/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


12.5%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

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

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

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

Revenue vs Market: CMPS's revenue (92% per year) is forecast to grow faster than the US market (7.9% per year).

High Growth Revenue: CMPS's revenue (92% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CMPS is forecast to be unprofitable in 3 years.


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Past Performance

How has COMPASS Pathways performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-42.4%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: CMPS is currently unprofitable.

Growing Profit Margin: CMPS is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: CMPS is unprofitable, and losses have increased over the past 5 years at a rate of 42.4% per year.

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

Earnings vs Industry: CMPS is unprofitable, making it difficult to compare its past year earnings growth to the Biotechs industry (24.5%).


Return on Equity

High ROE: CMPS has a negative Return on Equity (-37.27%), as it is currently unprofitable.


Discover strong past performing companies

Financial Health

How is COMPASS Pathways's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Stable Cash Runway

  • Forecast Cash Runway

Financial Position Analysis

Short Term Liabilities: CMPS's short term assets ($232.0M) exceed its short term liabilities ($13.2M).

Long Term Liabilities: CMPS's short term assets ($232.0M) exceed its long term liabilities ($818.0K).


Debt to Equity History and Analysis

Debt Level: CMPS is debt free.

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

Forecast Cash Runway: CMPS has sufficient cash runway for 1.4 years if free cash flow continues to reduce at historical rates of 51.5% each year.


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Dividend

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

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage

Dividend Yield vs Market

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

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

Growing Dividend: Insufficient data to determine if CMPS's dividend payments have been increasing.


Earnings Payout to Shareholders

Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as CMPS has not reported any payouts.


Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

0.6yrs

Average management tenure


CEO

Kabir Nath

no data

Tenure

Mr. Kabir Nath M.A., M.B.A., is Chief Executive Officer of COMPASS Pathways plc from August 1, 2022. He serves as President & CEO at Otsuka America Pharmaceutical, Inc. He served as President and Chief Exe...


Leadership Team

Experienced Management: CMPS's management team is not considered experienced ( 0.6 years average tenure), which suggests a new team.


Board Members

Experienced Board: CMPS's board of directors are considered experienced (4.3 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.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

COMPASS Pathways plc's employee growth, exchange listings and data sources


Key Information

  • Name: COMPASS Pathways plc
  • Ticker: CMPS
  • Exchange: NasdaqGS
  • Founded: 2020
  • Industry: Biotechnology
  • Sector: Pharmaceuticals & Biotech
  • Implied Market Cap: US$780.499m
  • Shares outstanding: 42.52m
  • Website: https://compasspathways.com

Number of Employees


Location

  • COMPASS Pathways plc
  • 33 Broadwick Street
  • London
  • Greater London
  • W1F 0DQ
  • United Kingdom

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/08/13 00:00
End of Day Share Price2022/08/12 00:00
Earnings2022/06/30
Annual Earnings2021/12/31


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.