NasdaqCM:EARS

Stock Analysis Report

Executive Summary

Auris Medical Holding Ltd., a development-stage biopharmaceutical company, focuses on the development of novel products for the treatment of inner ear and vestibular disorders.

Rewards

Earnings have grown 9.5% per year over the past 5 years

Risk Analysis

Earnings are forecast to decline by an average of -8.2% per year for the next 3 years

Has less than 1 year of cash runway

Shareholders have been substantially diluted in the past year

Does not have a meaningful market cap ($5M)

+ 2 more risks


Snowflake Analysis

Adequate balance sheet and overvalued.

Share Price & News

How has Auris Medical Holding's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

-4.9%

EARS

-0.5%

US Pharmaceuticals

-0.09%

US Market


1 Year Return

-83.3%

EARS

15.2%

US Pharmaceuticals

23.9%

US Market

Return vs Industry: EARS underperformed the US Pharmaceuticals industry which returned 12.6% over the past year.

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


Shareholder returns

EARSIndustryMarket
7 Day-4.9%-0.5%-0.09%
30 Day-0.7%2.3%3.1%
90 Day-13.5%15.0%10.4%
1 Year-83.3%-83.3%18.1%15.2%26.6%23.9%
3 Year-99.4%-99.4%42.8%32.6%50.9%41.2%
5 Year-99.8%-99.8%30.6%16.8%78.1%58.5%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Auris Medical Holding undervalued compared to its fair value and its price relative to the market?

0.52x

Price to Book (PB) ratio


Share Price vs. Fair Value

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

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


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: EARS is good value based on its PB Ratio (0.5x) compared to the US Pharmaceuticals industry average (3.3x).


Next Steps

Future Growth

How is Auris Medical Holding forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

-8.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

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

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

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

Revenue vs Market: Insufficient data to determine if EARS's revenue is forecast to grow faster than the US market.

High Growth Revenue: Insufficient data to determine if EARS's revenue 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 EARS's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Auris Medical Holding performed over the past 5 years?

9.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: EARS is currently unprofitable.

Growing Profit Margin: EARS is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: EARS is unprofitable, but has reduced losses over the past 5 years at a rate of 9.5% per year.

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

Earnings vs Industry: EARS is unprofitable, making it difficult to compare its past year earnings growth to the Pharmaceuticals industry (36.8%).


Return on Equity

High ROE: EARS has a negative Return on Equity (-114.79%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Auris Medical Holding's financial position?


Financial Position Analysis

Short Term Liabilities: EARS's short term assets (CHF6.3M) exceed its short term liabilities (CHF1.8M).

Long Term Liabilities: EARS's short term assets (CHF6.3M) exceed its long term liabilities (CHF998.6K).


Debt to Equity History and Analysis

Debt Level: EARS is debt free.

Reducing Debt: EARS had no debt 5 years ago.


Balance Sheet

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

Debt Coverage by Assets: Insufficient data to determine if EARS'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: EARS has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: EARS has less than a year of cash runway if free cash flow continues to grow at historical rates of 27.6% each year.


Next Steps

Dividend

What is Auris Medical Holding's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage2.6%forecastin3Years0%

Current dividend yield vs market & industry

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

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

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

1.1yrs

Average board tenure


CEO

Thomas Meyer (51yo)

0yrs

Tenure

CHF625,501

Compensation

Dr. Thomas Meyer, Ph.D. Founded Auris Medical Holding AG in April 2003 and serves as Managing Director, Chairman and Chief Executive Officer. Dr. Meyer served as the Chief Executive Officer at Disetronic H ...


CEO Compensation Analysis

Compensation vs Market: Thomas's total compensation ($USD645.91K) is about average for companies of similar size in the US market ($USD519.76K).

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


Board Age and Tenure

1.1yrs

Average Tenure

64yo

Average Age

Experienced Board: EARS's board of directors are not considered experienced ( 1.1 years average tenure), which suggests a new board.


Insider Trading

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


Recent Insider Transactions

BuyUS$122,18512 Aug 19
Thomas Meyer
EntityIndividual
Role
Chief Executive Officer
Founder
Shares45,000
Max PriceUS$2.83
BuyUS$105,78113 Jun 19
Thomas Meyer
EntityIndividual
Role
Chief Executive Officer
Founder
Shares39,729
Max PriceUS$2.85

Ownership Breakdown

Dilution of Shares: Shareholders have been substantially diluted in the past year, with total shares outstanding growing by 562.3%.


Management Team

  • Thomas Meyer (51yo)

    Founder

    • Compensation: CHF625.50k
  • Elmar Schaerli

    Chief Financial Officer

    • Tenure: 0.2yrs
  • Raoul Dias

    General Counsel & Secretary

    • Tenure: 1.5yrs
  • Colleen DeVries

    SVP of Cogency Global Inc.


    Board Members

    • Armando Anido (61yo)

      Non-Executive Director

      • Tenure: 3.8yrs
      • Compensation: CHF70.99k
    • Alain Munoz (70yo)

      Non-Executive Director

      • Tenure: 1.8yrs
      • Compensation: CHF57.70k
    • Thomas Meyer (51yo)

      Founder

      • Compensation: CHF625.50k
    • Cal Roberts (67yo)

      Non-Executive Director

      • Tenure: 4.8yrs
      • Compensation: CHF71.80k
    • Mats Blom (54yo)

      Non-Executive Director

      • Tenure: 2.8yrs
      • Compensation: CHF68.10k
    • Wolfgang Arnold (77yo)

      Member of Tinnitus's Scientific Advisory Board

      • Tenure: 0.4yrs
    • David Baguley

      Member of Tinnitus's Scientific Advisory Board

      • Tenure: 0.4yrs
    • Richard Salvi

      Member of Tinnitus's Scientific Advisory Board

      • Tenure: 0.4yrs
    • Hinrich Staecker

      Member of Tinnitus's Scientific Advisory Board

      • Tenure: 0.4yrs

    Company Information

    Auris Medical Holding Ltd.'s company bio, employee growth, exchange listings and data sources


    Key Information

    • Name: Auris Medical Holding Ltd.
    • Ticker: EARS
    • Exchange: NasdaqCM
    • Founded: 1998
    • Industry: Pharmaceuticals
    • Sector: Pharmaceuticals & Biotech
    • Market Cap: US$4.855m
    • Shares outstanding: 3.30m
    • Website: https://www.aurismedical.com

    Number of Employees


    Location

    • Auris Medical Holding Ltd.
    • Clarendon House
    • 2 Church Street
    • Hamilton
    • HM 11
    • Bermuda

    Listings

    TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
    EARSNasdaqCM (Nasdaq Capital Market)YesCommon SharesUSUSDAug 2014
    2QAADB (Deutsche Boerse AG)YesCommon SharesDEEURAug 2014

    Biography

    Auris Medical Holding Ltd., a development-stage biopharmaceutical company, focuses on the development of novel products for the treatment of inner ear and vestibular disorders. The company’s Phase 3 programs under the development include Keyzilen (AM-101) for the treatment of acute inner ear tinnitus; and Sonsuvi (AM-111) for the treatment of acute inner ear hearing loss. It is also developing AM-125 for the intranasal treatment of vertigo; and intranasal betahistine for the prevention of weight gain and drowsiness, which are side effects of various antipsychotic drugs. The company has a collaboration and license agreement with Xigen S.A. to develop, manufacture, and commercialize pharmaceutical products, as well as drug delivery devices and formulations for local administration of therapeutic substances to the inner ear for the treatment of ear disorders. Auris Medical Holding Ltd. was founded in 1998 and is based in Hamilton, Bermuda. 


    Company Analysis and Financial Data Status

    All financial data provided by Standard & Poor's Capital IQ.
    DataLast Updated (UTC time)
    Company Analysis2020/01/24 01:20
    End of Day Share Price2020/01/23 00:00
    Earnings2019/06/30
    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.