NasdaqGS:ENTA

Stock Analysis Report

Executive Summary

Enanta Pharmaceuticals, Inc., a biotechnology company, focuses on the research and development of small molecule drugs for the treatment of viral infections and liver diseases.

Snowflake

Fundamentals

Excellent balance sheet with questionable track record.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

2.5%

ENTA

2.0%

US Biotechs

1.0%

US Market


1 Year Return

-21.0%

ENTA

-5.5%

US Biotechs

8.0%

US Market

Return vs Industry: ENTA underperformed the US Biotechs industry which returned -5.5% over the past year.

Return vs Market: ENTA underperformed the US Market which returned 8% over the past year.


Shareholder returns

ENTAIndustryMarket
7 Day2.5%2.0%1.0%
30 Day-15.0%-2.2%-0.07%
90 Day-25.5%-2.0%-1.0%
1 Year-21.0%-21.0%-4.6%-5.5%10.4%8.0%
3 Year147.3%147.3%15.4%11.4%46.2%36.7%
5 Year35.6%35.6%-3.1%-7.8%64.3%46.2%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

18.41x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: ENTA ($60.97) is trading above our estimate of fair value ($12.86)

Significantly Below Fair Value: ENTA is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: ENTA is poor value based on its PE Ratio (18.4x) compared to the Biotechs industry average (16.4x).

PE vs Market: ENTA is poor value based on its PE Ratio (18.4x) compared to the US market (17.6x).


Price to Earnings Growth Ratio

PEG Ratio: ENTA's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: ENTA is overvalued based on its PB Ratio (2.7x) compared to the US Biotechs industry average (2.6x).


Next Steps

Future Growth

How is Enanta Pharmaceuticals forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

-7.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ENTA's earnings are forecast to decline over the next 3 years (-7.3% per year).

Earnings vs Market: ENTA's earnings are forecast to decline over the next 3 years (-7.3% per year).

High Growth Earnings: ENTA's earnings are forecast to decline over the next 3 years.

Revenue vs Market: ENTA's revenue (5.4% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: ENTA's revenue (5.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

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


Next Steps

Past Performance

How has Enanta Pharmaceuticals performed over the past 5 years?

0.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: ENTA's earnings have grown by 0.6% per year over the past 5 years.

Accelerating Growth: ENTA's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: ENTA had negative earnings growth (-20.3%) over the past year, making it difficult to compare to the Biotechs industry average (83.4%).


Return on Equity

High ROE: ENTA's Return on Equity (14.4%) is considered low.


Return on Assets

ROA vs Industry: ENTA's Return on Assets is below or equal to the Biotechs industry average last year.


Return on Capital Employed

ROCE Improving: ENTA has improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Enanta Pharmaceuticals's financial position?


Financial Position Analysis

Short Term Liabilities: ENTA's short term assets ($451.3M) exceeds its short term liabilities ($20.5M)

Long Term Liabilities: ENTA's short term assets (451.3M) exceeds its long term liabilities (4.9M)


Debt to Equity History and Analysis

Debt Level: ENTA's debt to equity ratio (0.4%) is considered satisfactory

Reducing Debt: ENTA's debt to equity ratio has increased from 0.1% to 0.4% over the past 5 years.

Debt Coverage: ENTA's debt is well covered by operating cash flow (5602.8%).

Interest Coverage: ENTA earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

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

Debt Coverage by Assets: ENTA's debt is covered by short term assets (assets are 277.187960x debt).


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage2.3%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

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

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

Stable Dividend: Insufficient data to determine if ENTA's dividends per share have been stable in the past.

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

16.1yrs

Average management tenure


CEO

Jay Luly (63yo)

16.3yrs

Tenure

US$4,508,737

Compensation

Dr. Jay R. Luly, Ph.D. has been the Chief Executive Officer and President of Enanta Pharmaceuticals, Inc. since July 2003. Dr. Luly joined Enanta in July 2003. Previously he was employed at Oxford Bioscien ...


CEO Compensation Analysis

Compensation vs. Market: Jay's total compensation ($USD4.51M) is about average for companies of similar size in the US market ($USD2.67M).

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


Management Age and Tenure

16.1yrs

Average Tenure

64yo

Average Age

Experienced Management: ENTA's management team is seasoned and experienced (16.1 years average tenure).


Board Age and Tenure

4.8yrs

Average Tenure

61.5yo

Average Age

Experienced Board: ENTA's board of directors are considered experienced (4.8 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


Management Team

  • Paul Mellett (64yo)

    Senior VP of Finance & Administration and CFO

    • Tenure: 16.1yrs
    • Compensation: US$1.42m
  • Jay Luly (63yo)

    President

    • Tenure: 16.3yrs
    • Compensation: US$4.51m
  • Yat Or (67yo)

    Senior VP of Research & Development and Chief Scientific Officer

    • Tenure: 19.9yrs
    • Compensation: US$1.52m
  • Nathaniel Gardiner (65yo)

    Senior VP

    • Tenure: 5.4yrs
    • Compensation: US$1.38m
  • Nathalie Adda (53yo)

    Senior VP & Chief Medical Officer

    • Tenure: 4.3yrs
    • Compensation: US$1.51m
  • Carol Miceli

    Director of Investor Relations

    • Tenure: 0yrs

Board Members

  • Bruce L. Carter (76yo)

    Non-Executive Chairman

    • Tenure: 3.8yrs
    • Compensation: US$394.19k
  • Jay Luly (63yo)

    President

    • Tenure: 16.3yrs
    • Compensation: US$4.51m
  • Terry Vance (61yo)

    Independent Director

    • Tenure: 8.3yrs
    • Compensation: US$374.19k
  • Kris Peterson (60yo)

    Independent Director

    • Tenure: 2.1yrs
    • Compensation: US$205.85k
  • George Golumbeski (62yo)

    Independent Director

    • Tenure: 5.7yrs
    • Compensation: US$366.69k
  • Lesley Russell (58yo)

    Independent Director

    • Tenure: 2.9yrs
    • Compensation: US$361.69k

Company Information

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


Key Information

  • Name: Enanta Pharmaceuticals, Inc.
  • Ticker: ENTA
  • Exchange: NasdaqGS
  • Founded: 1995
  • Industry: Biotechnology
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: US$1.200b
  • Shares outstanding: 19.68m
  • Website: https://www.enanta.com

Number of Employees


Location

  • Enanta Pharmaceuticals, Inc.
  • 500 Arsenal Street
  • Watertown
  • Massachusetts
  • 2472
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ENTANasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDMar 2013
9EPDB (Deutsche Boerse AG)YesCommon StockDEEURMar 2013

Biography

Enanta Pharmaceuticals, Inc., a biotechnology company, focuses on the research and development of small molecule drugs for the treatment of viral infections and liver diseases. Its research and development ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/22 00:23
End of Day Share Price2019/10/21 00:00
Earnings2019/06/30
Annual Earnings2018/09/30


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.