NasdaqGS:FPRX

Stock Analysis Report

Executive Summary

Five Prime Therapeutics, Inc., a clinical-stage biotechnology company, focuses on the discovery and development of innovative protein therapeutics.

Rewards

Trading at 53% below its fair value

Revenue is forecast to grow 42.43% per year

Risk Analysis

Currently unprofitable and not forecast to become profitable over the next 3 years

Highly volatile share price over past 3 months

Shareholders have been diluted in the past year



Snowflake Analysis

Flawless balance sheet and fair value.

Share Price & News

How has Five Prime Therapeutics's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

21.8%

FPRX

-1.1%

US Biotechs

0.8%

US Market


1 Year Return

-42.6%

FPRX

12.7%

US Biotechs

25.1%

US Market

Return vs Industry: FPRX underperformed the US Biotechs industry which returned 10.9% over the past year.

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


Shareholder returns

FPRXIndustryMarket
7 Day21.8%-1.1%0.8%
30 Day38.4%-1.5%3.1%
90 Day61.5%15.9%10.9%
1 Year-42.6%-42.6%13.7%12.7%27.7%25.1%
3 Year-86.2%-86.2%28.6%24.4%51.3%41.6%
5 Year-77.6%-77.6%3.5%-1.4%77.2%57.6%

Price Volatility Vs. Market

How volatile is Five Prime Therapeutics's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Five Prime Therapeutics undervalued compared to its fair value and its price relative to the market?

46.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: FPRX ($5.08) is trading below our estimate of fair value ($10.81)

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


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: FPRX is good value based on its PB Ratio (1x) compared to the US Biotechs industry average (3.2x).


Next Steps

Future Growth

How is Five Prime Therapeutics forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

19.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

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

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

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

Revenue vs Market: FPRX's revenue (42.4% per year) is forecast to grow faster than the US market (7.5% per year).

High Growth Revenue: FPRX's revenue (42.4% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

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


Next Steps

Past Performance

How has Five Prime Therapeutics performed over the past 5 years?

-38.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: FPRX is currently unprofitable.

Growing Profit Margin: FPRX is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: FPRX is unprofitable, and losses have increased over the past 5 years at a rate of -38.3% per year.

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

Earnings vs Industry: FPRX is unprofitable, making it difficult to compare its past year earnings growth to the Biotechs industry (103.3%).


Return on Equity

High ROE: FPRX has a negative Return on Equity (-81.04%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Five Prime Therapeutics's financial position?


Financial Position Analysis

Short Term Liabilities: FPRX's short term assets ($197.5M) exceed its short term liabilities ($28.5M).

Long Term Liabilities: FPRX's short term assets ($197.5M) exceed its long term liabilities ($51.6M).


Debt to Equity History and Analysis

Debt Level: FPRX is debt free.

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


Balance Sheet

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

Debt Coverage by Assets: Insufficient data to determine if FPRX'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: FPRX has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: FPRX has sufficient cash runway for 1.6 years if free cash flow continues to reduce at historical rates of -55.7% each year.


Next Steps

Dividend

What is Five Prime Therapeutics's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage2.1%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

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

Growing Dividend: Insufficient data to determine if FPRX'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 FPRX'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 Five Prime Therapeutics's salary, the management and board of directors tenure and is there insider trading?

1.5yrs

Average management tenure


CEO

Bill Ringo (74yo)

0.3yrs

Tenure

US$175,850

Compensation

Mr. William R. Ringo, Jr., also known as Bill, serves as Chief Executive Officer of Five Prime Therapeutics, Inc. since 2019 and was its Interim Chief Executive Officer since September 18, 2019 until 2019. ...


Management Age and Tenure

1.5yrs

Average Tenure

56yo

Average Age

Experienced Management: FPRX's management team is not considered experienced ( 1.5 years average tenure), which suggests a new team.


Board Age and Tenure

5.6yrs

Average Tenure

71yo

Average Age

Experienced Board: FPRX's board of directors are considered experienced (5.6 years average tenure).


Insider Trading

Insider Buying: FPRX insiders have only sold shares in the past 3 months.


Recent Insider Transactions

BuyUS$2,085,83126 Dec 19
BVF Partners LP
EntityCompany
Shares515,020
Max PriceUS$4.05
BuyUS$542,36311 Dec 19
BVF Partners LP
EntityCompany
Shares135,000
Max PriceUS$4.02
SellUS$317,35304 Dec 19
Franklin Berger
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares79,980
Max PriceUS$4.00
BuyUS$3,808,14626 Nov 19
BVF Partners LP
EntityCompany
Shares1,120,010
Max PriceUS$3.40
BuyUS$3,872,44807 Nov 19
BVF Partners LP
EntityCompany
Shares968,112
Max PriceUS$4.00
BuyUS$113,81431 Oct 19
BVF Partners LP
EntityCompany
Shares29,314
Max PriceUS$3.90
BuyUS$634,32225 Oct 19
BVF Partners LP
EntityCompany
Shares169,370
Max PriceUS$3.75
BuyUS$2,250,96208 Oct 19
BVF Partners LP
EntityCompany
Shares601,482
Max PriceUS$3.75

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 7.8%.


Management Team

  • David Smith (59yo)

    Executive VP & CFO

    • Tenure: 1.2yrs
    • Compensation: US$2.43m
  • Bill Ringo (74yo)

    Chairman of the Board & CEO

    • Tenure: 0.3yrs
    • Compensation: US$175.85k
  • David White (55yo)

    Principal Accounting Officer

    • Tenure: 0.9yrs
  • Francis Sarena (48yo)

    Chief Strategy Officer & Secretary

    • Tenure: 9.1yrs
    • Compensation: US$1.31m
  • Martin Forrest

    Vice President of Investor Relations & Corporate Communications

    • Helen Collins (56yo)

      Executive VP & Chief Medical Officer

      • Tenure: 2.8yrs
      • Compensation: US$1.34m
    • Nallakkan Arvindan

      Senior Vice President of Strategic Technology Operations

      • Tenure: 1.9yrs

    Board Members

    • Joseph Goldstein (79yo)

      Member of Scientific Advisory Board

      • Dan Von Hoff (71yo)

        Member of Scientific Advisory Board

        • Bill Ringo (74yo)

          Chairman of the Board & CEO

          • Tenure: 0.3yrs
          • Compensation: US$175.85k
        • Peder Jensen (64yo)

          Independent Director

          • Tenure: 8.5yrs
          • Compensation: US$177.10k
        • Robert Lefkowitz (75yo)

          Member of Scientific Advisory Board

          • Ron Levy

            Member of Scientific Advisory Board

            • Franklin Berger (70yo)

              Independent Director

              • Tenure: 9.3yrs
              • Compensation: US$168.35k
            • Drew Pardoll

              Member of Scientific Advisory Board

              • Art Weiss

                Member of Scientific Advisory Board

                • Garry Nicholson (64yo)

                  Independent Director

                  • Tenure: 2.7yrs
                  • Compensation: US$167.52k

                Company Information

                Five Prime Therapeutics, Inc.'s company bio, employee growth, exchange listings and data sources


                Key Information

                • Name: Five Prime Therapeutics, Inc.
                • Ticker: FPRX
                • Exchange: NasdaqGS
                • Founded: 2001
                • Industry: Biotechnology
                • Sector: Pharmaceuticals & Biotech
                • Market Cap: US$211.818m
                • Shares outstanding: 35.07m
                • Website: https://www.fiveprime.com

                Number of Employees


                Location

                • Five Prime Therapeutics, Inc.
                • 111 Oyster Point Boulevard
                • South San Francisco
                • California
                • 94080
                • United States

                Listings

                TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
                FPRXNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDSep 2013
                5P8DB (Deutsche Boerse AG)YesCommon StockDEEURSep 2013

                Biography

                Five Prime Therapeutics, Inc., a clinical-stage biotechnology company, focuses on the discovery and development of innovative protein therapeutics. The company’s product candidates comprise Bemarituzumab, an antibody that inhibits fibroblast growth factor receptor 2b, or FGFR2b, which is in Phase III clinical trials to treat patients with gastric or gastroesophageal junction and GEJ cancer; and FPA150, a CD8 T cell checkpoint inhibitor antibody that targets B7-H4 in various cancers, as well as FPT155, a soluble CD80 fusion protein that enhances co-stimulation of T cells through CD28. Its product candidates also include Cabiralizumab, an antibody that inhibits colony stimulating factor-1 receptor that is in Phase Ia/Ib clinical trials for the treatment of various cancers in combination with nivolumab; and is in Phase I/II clinical trials for the treatment of pigmented villonodular synovitis tumor. The company’s BMS-986258, an anti-T cell immunoglobulin and mucin domain-3 antibody, which is in clinical trial as a single agent and in combination with Opdivo in patients with advanced malignant tumors. It has license and collaboration agreements with Bristol-Myers Squibb Company, GlaxoSmithKline LLC, INBRX 110 LP, UCB Pharma S.A., and Zai Lab (Shanghai) Co., Ltd.; a collaboration agreement with Roche; and license agreements with Galaxy Biotech, LLC, BioWa, Inc. and Lonza Sales AG. The company was founded in 2001 and is headquartered in South San Francisco, California. 


                Company Analysis and Financial Data Status

                All financial data provided by Standard & Poor's Capital IQ.
                DataLast Updated (UTC time)
                Company Analysis2020/01/22 01:00
                End of Day Share Price2020/01/21 00:00
                Earnings2019/09/30
                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.