NasdaqGS:GRTS

Stock Analysis Report

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Executive Summary

Gritstone Oncology, Inc., an immuno-oncology company, engages in developing tumor-specific cancer immunotherapies to fight various cancer types.


Snowflake Analysis

Excellent balance sheet with limited growth.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

1.1%

GRTS

0.07%

US Biotechs

2.9%

US Market


1 Year Return

-32.5%

GRTS

23.9%

US Biotechs

8.9%

US Market

Return vs Industry: GRTS underperformed the US Biotechs industry which returned 23.9% over the past year.

Return vs Market: GRTS underperformed the US Market which returned 8.9% over the past year.


Shareholder returns

GRTSIndustryMarket
7 Day1.1%0.07%2.9%
30 Day-0.3%4.8%10.6%
90 Day-17.0%10.5%5.1%
1 Year-32.5%-32.5%25.1%23.9%11.4%8.9%
3 Yearn/a32.9%28.5%34.3%25.4%
5 Yearn/a-4.4%-10.0%60.7%42.7%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

2.09x

Price to Book (PB) ratio


Share Price vs. Fair Value

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

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


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: GRTS is good value based on its PB Ratio (2.1x) compared to the US Biotechs industry average (3.7x).


Next Steps

Future Growth

How is Gritstone Oncology forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

-13.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

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

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

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

Revenue vs Market: GRTS's revenue (69.9% per year) is forecast to grow faster than the US market (8.8% per year).

High Growth Revenue: GRTS's revenue (69.9% 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 GRTS's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Gritstone Oncology performed over the past 5 years?

-38.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GRTS is currently unprofitable.

Growing Profit Margin: GRTS is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: GRTS is unprofitable, and losses have increased over the past 5 years at a rate of -38.2% per year.

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

Earnings vs Industry: GRTS is unprofitable, making it difficult to compare its past year earnings growth to the Biotechs industry (-4.5%).


Return on Equity

High ROE: GRTS has a negative Return on Equity (-88.94%), as it is currently unprofitable.


Next Steps

Financial Health

How is Gritstone Oncology's financial position?


Financial Position Analysis

Short Term Liabilities: GRTS's short term assets ($112.3M) exceed its short term liabilities ($18.4M).

Long Term Liabilities: GRTS's short term assets ($112.3M) exceed its long term liabilities ($29.2M).


Debt to Equity History and Analysis

Debt Level: GRTS is debt free.

Reducing Debt: GRTS had no debt 5 years ago.


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: GRTS has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: GRTS has less than a year of cash runway if free cash flow continues to reduce at historical rates of 37.2% each year


Next Steps

Dividend

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


Dividend Yield vs Market

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

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

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

3.6yrs

Average management tenure


CEO

Andrew Allen (52yo)

4.75yrs

Tenure

US$2,187,437

Compensation

Dr. Andrew R. Allen, BM, BCh, MA, MRCP, M.D., Ph.D., co-founded Gritstone Oncology Inc. and has been its Chief Executive Officer and President since August 2015. Dr. Allen serves as a Director at TCR2 Ther ...


CEO Compensation Analysis

Compensation vs Market: Andrew's total compensation ($USD2.19M) is above average for companies of similar size in the US market ($USD1.33M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Andrew Allen
Co-Founder4.75yrsUS$2.19m3.89% $9.5m
Karin Jooss
Executive VP of Research & Chief Scientific Officer4.17yrsUS$1.08m0.86% $2.1m
Raphaël Rousseau
Executive VP & Chief Medical Officer3.17yrsUS$1.10mno data
Jean-Marc Bellemin
Executive VP of Finance & CFO2.42yrsUS$1.25mno data
Roman Yelensky
Executive VP & CTO4.67yrsUS$943.05k0.38% $935.3k
Rahsaan Thompson
Executive VP & General Counsel0.17yrno datano data
Mike Forcht
Senior Vice President of People & Corporate Services1.25yrsno datano data
Matthew Hawryluk
Executive VP & Chief Business Officer4.58yrsno data0.38% $935.3k
Erin Jones
Executive Vice President of Global Regulatory Affairs & Quality Assurance4.08yrsno data0.027% $65.3k
Vijay Yabannavar
Executive VP of Manufacturing and Technical Operations0.92yrno datano data

3.6yrs

Average Tenure

48yo

Average Age

Experienced Management: GRTS's management team is considered experienced (3.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Andrew Allen
Co-Founder4.75yrsUS$2.19m3.89% $9.5m
Elaine Jones
Independent Chairman of the Board0.083yrUS$102.72kno data
Nicholas Simon
Independent Director4.75yrsUS$104.45kno data
Thomas Woiwode
Independent Director4.75yrsUS$110.95kno data
Richard Heyman
Independent Director4.58yrsUS$105.95k0.14% $348.2k
Steve Krognes
Independent Director1.92yrsUS$116.95kno data
Timothy Chan
Co-Founder & Member of Scientific Advisory Board3yrsno datano data
Jiaxin Li
Independent Director2.75yrsUS$104.95kno data
Naiyer Rizvi
Co-Founder & Member of Scientific Advisory Board4yrsno datano data
James Gulley
Member of Scientific Advisory Board3yrsno datano data

3.5yrs

Average Tenure

53.5yo

Average Age

Experienced Board: GRTS's board of directors are considered experienced (3.5 years average tenure).


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.


Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 4.3%.


Top Shareholders

Company Information

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


Key Information

  • Name: Gritstone Oncology, Inc.
  • Ticker: GRTS
  • Exchange: NasdaqGS
  • Founded: 2015
  • Industry: Biotechnology
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: US$243.340m
  • Shares outstanding: 37.26m
  • Website: https://gritstoneoncology.com

Number of Employees


Location

  • Gritstone Oncology, Inc.
  • 5959 Horton Street
  • Suite 300
  • Emeryville
  • California
  • 94608
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
GRTSNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDSep 2018
2JQDB (Deutsche Boerse AG)YesCommon StockDEEURSep 2018
2JQBST (Boerse-Stuttgart)YesCommon StockDEEURSep 2018

Biography

Gritstone Oncology, Inc., an immuno-oncology company, engages in developing tumor-specific cancer immunotherapies to fight various cancer types. Its lead product candidate is GRANITE-001, which is in Phase I/II clinical trial for the treatment of solid tumors, including metastatic non-small cell lung cancer, as well as gastroesophageal, bladder and microsatellite stable, and colorectal cancers. Gritstone Oncology, Inc. has a strategic collaboration with bluebird bio, Inc. The company was founded in 2015 and is headquartered in Emeryville, California. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/06/05 05:58
End of Day Share Price2020/06/04 00:00
Earnings2020/03/31
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.