NasdaqGS:GERN

Stock Analysis Report

Executive Summary

Geron Corporation, a clinical biopharmaceutical company, focuses on the development and commercialization of therapeutics for hematologic myeloid malignancies.


Snowflake Analysis

Flawless balance sheet and fair value.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-1.8%

GERN

5.3%

US Biotechs

12.5%

US Market


1 Year Return

-35.2%

GERN

-0.7%

US Biotechs

-12.7%

US Market

Return vs Industry: GERN underperformed the US Biotechs industry which returned -0.4% over the past year.

Return vs Market: GERN underperformed the US Market which returned -11.9% over the past year.


Shareholder returns

GERNIndustryMarket
7 Day-1.8%5.3%12.5%
30 Day-7.0%-6.6%-14.7%
90 Day-21.3%-8.3%-21.5%
1 Year-35.2%-35.2%0.1%-0.7%-10.9%-12.7%
3 Year-51.6%-51.6%10.3%7.5%12.6%5.4%
5 Year-70.8%-70.8%-6.1%-10.3%31.9%17.5%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: GERN ($1.07) is trading below our estimate of fair value ($34.04)

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


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: GERN is good value based on its PB Ratio (1.6x) compared to the US Biotechs industry average (2.5x).


Next Steps

Future Growth

How is Geron forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

29.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

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

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

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

Revenue vs Market: GERN's revenue (50.9% per year) is forecast to grow faster than the US market (7.3% per year).

High Growth Revenue: GERN's revenue (50.9% per year) 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 GERN's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Geron performed over the past 5 years?

-19.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GERN is currently unprofitable.

Growing Profit Margin: GERN is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: GERN is unprofitable, and losses have increased over the past 5 years at a rate of -19.8% per year.

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

Earnings vs Industry: GERN is unprofitable, making it difficult to compare its past year earnings growth to the Biotechs industry (22%).


Return on Equity

High ROE: GERN has a negative Return on Equity (-50.72%), as it is currently unprofitable.


Next Steps

  • Explore strong past performing companies in the Pharmaceuticals & Biotech industry.

Financial Health

How is Geron's financial position?


Financial Position Analysis

Short Term Liabilities: GERN's short term assets ($141.6M) exceed its short term liabilities ($28.2M).

Long Term Liabilities: GERN's short term assets ($141.6M) exceed its long term liabilities ($2.2M).


Debt to Equity History and Analysis

Debt Level: GERN is debt free.

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


Balance Sheet

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

Debt Coverage by Assets: GERN's debt is not covered by short term assets (assets are -3.1887286801634E+17x debt).


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

Forecast Cash Runway: GERN has sufficient cash runway for 1.7 years if free cash flow continues to reduce at historical rates of -13.2% each year.


Next Steps

Dividend

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


Dividend Yield vs Market

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

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

Growing Dividend: Insufficient data to determine if GERN'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 GERN'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?

4.2yrs

Average management tenure


CEO

Chip Scarlett (68yo)

8.5s

Tenure

US$2,772,509

Compensation

Dr. John A. Scarlett, also known as Chip, M.D., has been the Chief Executive Officer of Geron Corporation since joining in September 2011 and its President since January 5, 2012. Dr. Scarlett is Chairman o ...


CEO Compensation Analysis

Compensation vs Market: Chip's total compensation ($USD2.77M) is above average for companies of similar size in the US market ($USD1.47M).

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


Leadership Team

NamePositionTenureCompensationOwnership
John Scarlett
CEO, President & Chairman of the Board8.5yrsUS$2.77m0.062% $133.7k
Olivia Bloom
Executive VP of Finance7.25yrsUS$1.22m0.058% $123.9k
Andrew Grethlein
Executive VP & COO1.17yrsUS$1.15m0.0011% $2.4k
Stephen Rosenfield
Executive VP8.17yrsUS$1.01m0.0088% $18.9k
Melissa A. Behrs
Executive VP & Chief Business Officer13.17yrsUS$1.11mno data
Suzanne Messere
Head of Investor Relations & Corporate Communicationsno datano datano data
Shannon Odam
Vice President of Human Resources0.75yrno datano data
Aleksandra Rizo
Executive VP & Chief Medical Officer1.17yrsno datano data
Anil Kapur
Chief Commercial Officer & Executive VP of Corporate Strategy0.25yrno datano data

4.2yrs

Average Tenure

55yo

Average Age

Experienced Management: GERN's management team is considered experienced (4.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
John Scarlett
CEO, President & Chairman of the Board8.5yrsUS$2.77m0.062% $133.7k
Karin Eastham
Lead Independent Director1.25yrsUS$239.40k0.019% $41.8k
V. Lawlis
Independent Director8yrsUS$226.90kno data
Elizabeth O'Farrell
Independent Director1yrno data0.0015% $3.2k
Robert Spiegel
Independent Director9.83yrsUS$221.90k0.048% $103.8k
Susan Molineaux
Independent Director7.5yrsUS$216.90k0.054% $115.5k
Dawn Bir
Independent Director1yrno datano data

1.3yrs

Average Tenure

67yo

Average Age

Experienced Board: GERN's board of directors are not considered experienced ( 1.3 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: GERN 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 7.7%.


Top Shareholders

Company Information

Geron Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Geron Corporation
  • Ticker: GERN
  • Exchange: NasdaqGS
  • Founded: 1990
  • Industry: Biotechnology
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: US$214.369m
  • Shares outstanding: 200.34m
  • Website: https://www.geron.com

Number of Employees


Location

  • Geron Corporation
  • 149 Commonwealth Drive
  • Suite 2070
  • Menlo Park
  • California
  • 94025
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
GERNNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDJul 1996
GONDB (Deutsche Boerse AG)YesCommon StockDEEURJul 1996
0IV3LSE (London Stock Exchange)YesCommon StockGBUSDJul 1996
GONBRSE (Berne Stock Exchange)YesCommon StockCHCHFJul 1996

Biography

Geron Corporation, a clinical biopharmaceutical company, focuses on the development and commercialization of therapeutics for hematologic myeloid malignancies. The company supports the clinical stage development of imetelstat, a telomerase inhibitor for the treatment of hematologic myeloid malignancies. The company was founded in 1990 and is based in Menlo Park, California. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/30 01:37
End of Day Share Price2020/03/27 00:00
Earnings2019/12/31
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.