NasdaqGS:GRTS

Stock Analysis Report

Executive Summary

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

Rewards

Revenue is forecast to grow 24.31% per year

Revenue grew by 4662.5% over the past year

Risk Analysis

Earnings are forecast to decline by an average of -21.2% per year for the next 3 years

Shareholders have been substantially diluted in the past year

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

Highly volatile share price over past 3 months

+ 1 more risk


Snowflake Analysis

Flawless 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

1.7%

GRTS

0.2%

US Biotechs

0.6%

US Market


1 Year Return

-58.3%

GRTS

17.8%

US Biotechs

20.8%

US Market

Return vs Industry: GRTS underperformed the US Biotechs industry which returned 17.8% over the past year.

Return vs Market: GRTS underperformed the US Market which returned 20.8% over the past year.


Shareholder returns

GRTSIndustryMarket
7 Day1.7%0.2%0.6%
30 Day29.4%9.3%2.5%
90 Day-5.9%15.9%4.9%
1 Year-58.3%-58.3%18.8%17.8%23.5%20.8%
3 Yearn/a27.1%22.9%46.5%37.0%
5 Yearn/a3.0%-2.1%64.6%46.5%

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?

2.11x

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 (3.3x).


Next Steps

Future Growth

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

-21.2%

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 (24.3% per year) is forecast to grow faster than the US market (7.4% per year).

High Growth Revenue: GRTS's revenue (24.3% 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?

-29.7%

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

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 (103.3%).


Return on Equity

High ROE: GRTS has a negative Return on Equity (-53.75%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Gritstone Oncology's financial position?


Financial Position Analysis

Short Term Liabilities: GRTS's short term assets ($154.8M) exceed its short term liabilities ($22.9M).

Long Term Liabilities: GRTS's short term assets ($154.8M) exceed its long term liabilities ($29.4M).


Debt to Equity History and Analysis

Debt Level: GRTS is debt free.

Reducing Debt: GRTS had no debt 5 years ago.


Balance Sheet

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

Debt Coverage by Assets: GRTS's debt is covered by short term assets (assets are 4.3567541320205E+16x 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: GRTS has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: GRTS has sufficient cash runway for 1.590051 years if free cash flow continues to reduce at historical rates of -29.8% each year.


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage2.1%forecastin3Years0%

Current dividend yield vs market & industry

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

High Dividend: Unable to evaluate GRTS'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 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

What is the CEO of Gritstone Oncology's salary, the management and board of directors tenure and is there insider trading?

3.6yrs

Average management tenure


CEO

Andrew Allen (52yo)

4.3yrs

Tenure

US$1,652,416

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 ($USD1.65M) is about average for companies of similar size in the US market ($USD1.69M).

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


Management Age and Tenure

3.6yrs

Average Tenure

48yo

Average Age

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


Board Age and Tenure

3.0yrs

Average Tenure

53.5yo

Average Age

Experienced Board: GRTS's board of directors are considered experienced (3 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

Dilution of Shares: Shareholders have been substantially diluted in the past year, with total shares outstanding growing by 1288.4%.


Management Team

  • Andrew Allen (52yo)

    Co-Founder

    • Tenure: 4.3yrs
    • Compensation: US$1.65m
  • Jean-Marc Bellemin (47yo)

    Executive VP of Finance & CFO

    • Tenure: 1.9yrs
    • Compensation: US$1.25m
  • Raphaël Rousseau (50yo)

    Executive VP & Chief Medical Officer

    • Tenure: 2.7yrs
    • Compensation: US$787.35k
  • Erin Jones (48yo)

    Executive Vice President of Global Regulatory Affairs & Quality Assurance

    • Tenure: 3.6yrs
  • Matthew Hawryluk (41yo)

    Executive VP & Chief Business Officer

    • Tenure: 4.1yrs
  • Roman Yelensky (40yo)

    Executive VP & CTO

    • Tenure: 4.2yrs
    • Compensation: US$943.05k
  • Karin Jooss (54yo)

    Executive VP of Research & Chief Scientific Officer

    • Tenure: 3.7yrs
    • Compensation: US$504.22k
  • Mike Forcht

    Senior Vice President of Human Resources

    • Tenure: 0.8yrs
  • Vijay Yabannavar

    Executive VP of Manufacturing and Technical Operations

    • Tenure: 0.4yrs

Board Members

  • Nick Simon (65yo)

    Independent Director

    • Tenure: 4.3yrs
    • Compensation: US$10.63k
  • Tom Woiwode (47yo)

    Independent Director

    • Tenure: 4.3yrs
    • Compensation: US$12.25k
  • Andrew Allen (52yo)

    Co-Founder

    • Tenure: 4.3yrs
    • Compensation: US$1.65m
  • Rich Heyman (62yo)

    Independent Director

    • Tenure: 4.1yrs
    • Compensation: US$47.00k
  • Steve Krognes (51yo)

    Independent Director

    • Tenure: 1.4yrs
    • Compensation: US$125.75k
  • Timothy Chan

    Co-Founder & Member of Scientific Advisory Board

    • Tenure: 2.5yrs
  • Eugene Zhukovsky (60yo)

    Member of Scientific Advisory Board

    • Tenure: 0.7yrs
  • Judith Li (35yo)

    Independent Director

    • Tenure: 2.3yrs
    • Compensation: US$10.75k
  • Naiyer Rizvi (55yo)

    Co-Founder & Member of Scientific Advisory Board

    • Tenure: 3.5yrs
  • James Gulley

    Member of Scientific Advisory Board

    • Tenure: 2.5yrs

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$330.849m
  • Shares outstanding: 35.81m
  • Website: https://gritstoneoncology.com

Number of Employees


Location

  • Gritstone Oncology, Inc.
  • 5858 Horton Street
  • Suite 210
  • 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 ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/14 01:31
End of Day Share Price2019/12/13 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.