NasdaqGM:ETNB

Stock Analysis Report

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Executive Summary

89bio, Inc., a clinical-stage biopharmaceutical company, focuses on the development and commercialization of therapies for the treatment of liver and cardio-metabolic diseases. More Details


Snowflake Analysis

Flawless balance sheet and overvalued.

Share Price & News

How has 89bio's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: ETNB is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: ETNB's weekly volatility has decreased from 16% to 7% over the past year.


Market Performance


7 Day Return

-2.1%

ETNB

3.5%

US Biotechs

-0.9%

US Market


1 Year Return

-19.2%

ETNB

36.8%

US Biotechs

19.6%

US Market

Return vs Industry: ETNB underperformed the US Biotechs industry which returned 36% over the past year.

Return vs Market: ETNB underperformed the US Market which returned 21% over the past year.


Shareholder returns

ETNBIndustryMarket
7 Day-2.1%3.5%-0.9%
30 Day-22.0%6.0%3.0%
90 Day-9.7%19.2%11.5%
1 Year-19.2%-19.2%39.1%36.8%22.3%19.6%
3 Yearn/a30.5%23.6%45.3%35.7%
5 Yearn/a43.7%32.8%124.8%99.9%

Long-Term Price Volatility Vs. Market

How volatile is 89bio's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is 89bio undervalued compared to its fair value and its price relative to the market?

1.99x

Price to Book (PB) ratio


Share Price vs. Fair Value

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

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


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: ETNB is good value based on its PB Ratio (2x) compared to the US Biotechs industry average (4.3x).


Next Steps

Future Growth

How is 89bio forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

-21.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

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

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

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

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

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


Next Steps

Past Performance

How has 89bio performed over the past 5 years?

-26.6%

Last years earnings growth


Earnings and Revenue History

Quality Earnings: ETNB is currently unprofitable.

Growing Profit Margin: ETNB is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: Insufficient data to determine if ETNB's year-on-year earnings growth rate was positive over the past 5 years.

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

Earnings vs Industry: ETNB is unprofitable, making it difficult to compare its past year earnings growth to the Biotechs industry (-10.3%).


Return on Equity

High ROE: ETNB has a negative Return on Equity (-26.26%), as it is currently unprofitable.


Next Steps

Financial Health

How is 89bio's financial position?


Financial Position Analysis

Short Term Liabilities: ETNB's short term assets ($222.5M) exceed its short term liabilities ($9.4M).

Long Term Liabilities: ETNB has no long term liabilities.


Debt to Equity History and Analysis

Debt Level: ETNB is debt free.

Reducing Debt: ETNB has not had any debt for past 5 years.


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: ETNB has sufficient cash runway for more than 3 years based on its current free cash flow.

Forecast Cash Runway: ETNB has sufficient cash runway for 2.4 years if free cash flow continues to reduce at historical rates of 68.6% each year.


Next Steps

Dividend

What is 89bio current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

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

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

Growing Dividend: Insufficient data to determine if ETNB'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 ETNB's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

2.1yrs

Average management tenure


CEO

Rohan Palekar (54 yo)

2.5yrs

Tenure

US$1,022,611

Compensation

Mr. Rohan Palekar serves as the Chief Executive Officer and Director at 89bio, Inc. since July 16, 2018. Mr. Palekar served as the Chief Executive Officer and President of Avanir Pharmaceuticals, Inc. sinc...


CEO Compensation Analysis

Compensation vs Market: Rohan's total compensation ($USD1.02M) is below average for companies of similar size in the US market ($USD1.65M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Rohan Palekar
CEO & Director2.5yrsUS$1.02mno data
Quoc Le-Nguyen
Chief Technical Operations Officer & Head of Quality1.83yrsUS$630.52k0%
$ 0
Hank Mansbach
Chief Medical Officer2.08yrsUS$764.94k0%
$ 0
Ryan Martins
Chief Financial Officer1.5yrsno datano data
Ram Waisbourd
COO & Chief Business Officer2.67yrsUS$318.00k0%
$ 0

2.1yrs

Average Tenure

53yo

Average Age

Experienced Management: ETNB's management team is considered experienced (2.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Rohan Palekar
CEO & Director2.5yrsUS$1.02mno data
Lota Zoth
Director0.58yrno datano data
Michael Hayden
Independent Director2.75yrsUS$122.77k0.39%
$ 1.7m
Anat Naschitz
Independent Director3yrsUS$8.33kno data
Steven Altschuler
Independent Chairman of the Board0.83yrno datano data
Gregory Grunberg
Independent Director2.75yrsUS$8.33k0.0043%
$ 18.2k
Derek DiRocco
Independent Director2.75yrsUS$6.67kno data

2.8yrs

Average Tenure

54yo

Average Age

Experienced Board: ETNB's board of directors are not considered experienced ( 2.8 years average tenure), which suggests a new board.


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 been diluted in the past year, with total shares outstanding growing by 44.2%.


Top Shareholders

Company Information

89bio, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: 89bio, Inc.
  • Ticker: ETNB
  • Exchange: NasdaqGM
  • Founded: 2018
  • Industry: Biotechnology
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: US$425.805m
  • Shares outstanding: 19.88m
  • Website: https://www.89bio.com

Number of Employees


Location

  • 89bio, Inc.
  • 142 Sansome Street
  • 2nd Floor
  • San Francisco
  • California
  • 94104
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ETNBNasdaqGM (Nasdaq Global Market)YesCommon StockUSUSDNov 2019

Biography

89bio, Inc., a clinical-stage biopharmaceutical company, focuses on the development and commercialization of therapies for the treatment of liver and cardio-metabolic diseases. Its lead product candidate i...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/01/15 23:37
End of Day Share Price2021/01/15 00:00
Earnings2020/09/30
Annual Earnings2019/12/31


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.