NasdaqCM:CSBR

Stock Analysis Report

Executive Summary

Champions Oncology, Inc. develops and sells technology solutions and products to personalize the development and use of oncology drugs in the United States.

Rewards

Trading at 40.5% below its fair value

Earnings are forecast to grow 101.91% per year

Risk Analysis

Highly volatile share price over past 3 months

Shareholders have been diluted in the past year

Does not have a meaningful market cap ($99M)



Snowflake Analysis

Excellent balance sheet with reasonable growth potential.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-1.9%

CSBR

-1.2%

US Life Sciences

-1.2%

US Market


1 Year Return

-16.8%

CSBR

27.7%

US Life Sciences

22.3%

US Market

Return vs Industry: CSBR underperformed the US Life Sciences industry which returned 29.7% over the past year.

Return vs Market: CSBR underperformed the US Market which returned 24.7% over the past year.


Shareholder returns

CSBRIndustryMarket
7 Day-1.9%-1.2%-1.2%
30 Day6.9%2.1%1.6%
90 Day49.5%13.1%8.8%
1 Year-16.8%-16.8%27.9%27.7%25.0%22.3%
3 Year90.3%90.3%105.4%104.0%49.9%40.3%
5 Year52.6%52.6%137.6%134.4%77.6%58.0%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

41.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CSBR ($8.39) is trading below our estimate of fair value ($14.11)

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


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: CSBR is overvalued based on its PB Ratio (46.1x) compared to the US Life Sciences industry average (5.3x).


Next Steps

Future Growth

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

101.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

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

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

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

Revenue vs Market: CSBR's revenue (19.1% per year) is forecast to grow faster than the US market (7.5% per year).

High Growth Revenue: CSBR's revenue (19.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

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


Next Steps

Past Performance

How has Champions Oncology performed over the past 5 years?

47.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CSBR is currently unprofitable.

Growing Profit Margin: CSBR is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: CSBR is unprofitable, but has reduced losses over the past 5 years at a rate of 47.7% per year.

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

Earnings vs Industry: CSBR is unprofitable, making it difficult to compare its past year earnings growth to the Life Sciences industry (34.6%).


Return on Equity

High ROE: CSBR has a negative Return on Equity (-45.22%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Champions Oncology's financial position?


Financial Position Analysis

Short Term Liabilities: CSBR's short term assets ($7.1M) do not cover its short term liabilities ($8.3M).

Long Term Liabilities: CSBR's short term assets ($7.1M) exceed its long term liabilities ($3.6M).


Debt to Equity History and Analysis

Debt Level: CSBR is debt free.

Reducing Debt: CSBR currently has no debt however we can't compare to 5 years ago as we have no data for that period.


Balance Sheet

Inventory Level: CSBR has a high level of physical assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if CSBR'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: Whilst unprofitable CSBR has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: CSBR is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 95.5% per year.


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage0.3%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

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

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

2.0yrs

Average management tenure


CEO

Ronnie Morris (53yo)

3yrs

Tenure

US$146,281

Compensation

Dr. Ronnie Morris, M.D. has been Chief Executive Officer at Champions Oncology, Inc. since January 31, 2017. Dr. Morris served as the President at Champions oncology, Inc., since October 26, 2010 until Jan ...


CEO Compensation Analysis

Compensation vs Market: Ronnie's total compensation ($USD146.28K) is below average for companies of similar size in the US market ($USD519.76K).

Compensation vs Earnings: Ronnie's compensation has been consistent with company performance over the past year.


Management Age and Tenure

2.0yrs

Average Tenure

53yo

Average Age

Experienced Management: CSBR's management team is considered experienced (2 years average tenure).


Board Age and Tenure

6.8yrs

Average Tenure

54yo

Average Age

Experienced Board: CSBR's board of directors are considered experienced (6.8 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.


Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 4.7%.


Management Team

  • Philip Breitfeld (66yo)

    Chief Strategy & Innovation Officer and Director

    • Tenure: 3.8yrs
    • Compensation: US$33.30k
  • Ronnie Morris (53yo)

    CEO & Director

    • Tenure: 3yrs
    • Compensation: US$146.28k
  • David Miller (50yo)

    Chief Financial Officer

    • Tenure: 6.6yrs
    • Compensation: US$250.00k
  • Karin Heidemann

    Vice President of Scientific Operations

    • Tenure: 1yrs

Board Members

  • Scott Tobin (48yo)

    Independent Director

    • Tenure: 8.6yrs
    • Compensation: US$39.96k
  • Joel Ackerman (54yo)

    Chairman of the Board

    • Tenure: 3yrs
    • Compensation: US$66.60k
  • David Sidransky (59yo)

    Lead Director

    • Tenure: 3.2yrs
    • Compensation: US$33.30k
  • Manuel Hidalgo (51yo)

    Scientific Advisor

    • Dan Mendelson (54yo)

      Independent Director

      • Tenure: 6.8yrs
      • Compensation: US$39.96k
    • Harvey Pass

      Scientific Advisor

      • Abba Poliakoff (67yo)

        Independent Director

        • Tenure: 11.8yrs
        • Compensation: US$39.96k
      • Philip Breitfeld (66yo)

        Chief Strategy & Innovation Officer and Director

        • Tenure: 3.8yrs
        • Compensation: US$33.30k
      • Misti Ushio (48yo)

        Board Observer

        • Ronnie Morris (53yo)

          CEO & Director

          • Tenure: 3yrs
          • Compensation: US$146.28k

        Company Information

        Champions Oncology, Inc.'s company bio, employee growth, exchange listings and data sources


        Key Information

        • Name: Champions Oncology, Inc.
        • Ticker: CSBR
        • Exchange: NasdaqCM
        • Founded: 1985
        • Industry: Life Sciences Tools and Services
        • Sector: Pharmaceuticals & Biotech
        • Market Cap: US$95.750m
        • Shares outstanding: 11.62m
        • Website: https://www.championsoncology.com

        Number of Employees


        Location

        • Champions Oncology, Inc.
        • One University Plaza
        • Suite 307
        • Hackensack
        • New Jersey
        • 7601
        • United States

        Listings

        TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
        CSBRNasdaqCM (Nasdaq Capital Market)YesCommon StockUSUSDNov 1988
        2I3DB (Deutsche Boerse AG)YesCommon StockDEEURNov 1988

        Biography

        Champions Oncology, Inc. develops and sells technology solutions and products to personalize the development and use of oncology drugs in the United States. Its Tumorgraft Technology Platform is an approach to personalizing cancer care based upon the implantation of human tumors in immune-deficient mice. The company, through its Tumorgraft Technology Platform, provides Personalized Oncology Solutions (POS) that assist physicians in developing personalized treatment options for cancer patients through tumor specific data obtained from drug panels and related personalized oncology services. It also offers POS products, including personalized tumor boards that are designed to provide access to oncologists with expertise in particular tumor types; and provides access to gene sequencing that analyzes the genetic makeup of patient’s tumor for the purpose of identifying potentially useful drugs. In addition, the company offers Translational Oncology Solutions, including a preclinical Tumorgraft Technology Platform to pharmaceutical and biotechnology companies. It markets its products through Internet, word of mouth, and sales force to patients and physicians. The company was formerly known as Champions Biotechnology, Inc. and changed its name to Champions Oncology, Inc. in April 2011. Champions Oncology, Inc. was incorporated in 1985 and is headquartered in Hackensack, New Jersey. 


        Company Analysis and Financial Data Status

        All financial data provided by Standard & Poor's Capital IQ.
        DataLast Updated (UTC time)
        Company Analysis2020/01/26 23:34
        End of Day Share Price2020/01/24 00:00
        Earnings2019/10/31
        Annual Earnings2019/04/30


        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.