NasdaqGS:GTHX

Stock Analysis Report

Executive Summary

G1 Therapeutics, Inc., a clinical-stage biopharmaceutical company, engages in the discovery, development, and commercialization of novel small molecule therapeutics for the treatment of patients with cancer.

Risk Analysis

Earnings are forecast to decline by an average of -0.5% per year for the next 3 years

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 overvalued.

Share Price & News

How has G1 Therapeutics's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

-12.9%

GTHX

-4.1%

US Biotechs

-1.2%

US Market


1 Year Return

10.8%

GTHX

9.1%

US Biotechs

22.3%

US Market

Return vs Industry: GTHX exceeded the US Biotechs industry which returned 8.2% over the past year.

Return vs Market: GTHX underperformed the US Market which returned 25.1% over the past year.


Shareholder returns

GTHXIndustryMarket
7 Day-12.9%-4.1%-1.2%
30 Day-19.9%-3.3%1.6%
90 Day1.8%11.2%8.8%
1 Year10.8%10.8%10.1%9.1%25.0%22.3%
3 Yearn/a23.9%19.8%49.9%40.3%
5 Yearn/a1.3%-3.5%77.6%58.0%

Price Volatility Vs. Market

How volatile is G1 Therapeutics's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is G1 Therapeutics undervalued compared to its fair value and its price relative to the market?

2.9x

Price to Book (PB) ratio


Share Price vs. Fair Value

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

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


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: GTHX is good value based on its PB Ratio (3.3x) compared to the US Biotechs industry average (3.4x).


Next Steps

Future Growth

How is G1 Therapeutics forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

-0.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

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

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

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

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

High Growth Revenue: Insufficient data to determine if GTHX's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

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


Next Steps

Past Performance

How has G1 Therapeutics performed over the past 5 years?

-34.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GTHX is currently unprofitable.

Growing Profit Margin: GTHX is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: GTHX is unprofitable, and losses have increased over the past 5 years at a rate of -34% per year.

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

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


Return on Equity

High ROE: GTHX has a negative Return on Equity (-38.83%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is G1 Therapeutics's financial position?


Financial Position Analysis

Short Term Liabilities: GTHX's short term assets ($303.0M) exceed its short term liabilities ($21.2M).

Long Term Liabilities: GTHX's short term assets ($303.0M) exceed its long term liabilities ($9.8M).


Debt to Equity History and Analysis

Debt Level: GTHX is debt free.

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


Balance Sheet

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

Debt Coverage by Assets: Insufficient data to determine if GTHX'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: GTHX has sufficient cash runway for more than 3 years based on its current free cash flow.

Forecast Cash Runway: GTHX has sufficient cash runway for 1.6 years if free cash flow continues to reduce at historical rates of -40.8% each year.


Next Steps

Dividend

What is G1 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 GTHX's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

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

Growing Dividend: Insufficient data to determine if GTHX'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 GTHX'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 G1 Therapeutics's salary, the management and board of directors tenure and is there insider trading?

2.0yrs

Average management tenure


CEO

Mark Velleca (55yo)

5.7yrs

Tenure

US$1,914,654

Compensation

Dr. Mark A. Velleca, M.D., Ph.D., has been Chief Executive Officer of G1 Therapeutics, Inc. since May 20, 2014 and has been its President since May 2014. Dr. Velleca served as Senior Advisor at Gilead Scie ...


CEO Compensation Analysis

Compensation vs Market: Mark's total compensation ($USD1.91M) is about average for companies of similar size in the US market ($USD2.53M).

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


Management Age and Tenure

2.0yrs

Average Tenure

53.5yo

Average Age

Experienced Management: GTHX's management team is considered experienced (2 years average tenure).


Board Age and Tenure

4.6yrs

Average Tenure

62yo

Average Age

Experienced Board: GTHX's board of directors are considered experienced (4.6 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 diluted in the past year, with total shares outstanding growing by 20.2%.


Management Team

  • Terry Murdock (59yo)

    Senior Vice President of Development Operations

    • Tenure: 2.4yrs
    • Compensation: US$2.75m
  • Mark Velleca (55yo)

    CEO, President & Director

    • Tenure: 5.7yrs
    • Compensation: US$1.91m
  • Lex Smith

    Vice President of Technical Operations

    • Tenure: 4.8yrs
  • Blake Jensen

    Vice President of Quality & Compliance

    • Tenure: 2yrs
  • Jay Strum (55yo)

    Chief Scientific Officer

    • Tenure: 11yrs
  • John Demaree (52yo)

    Chief Commercial Officer

    • Tenure: 1.5yrs
    • Compensation: US$7.47m
  • Jennifer Moses (44yo)

    Chief Financial Officer

    • Tenure: 0.7yrs
  • JoAnne Zellner

    Head of Human Resources

    • Tenure: 2yrs
  • Jeff Macdonald

    Head of Investor & Public Relations

    • Tenure: 2yrs
  • James Hanson (47yo)

    General Counsel

    • Tenure: 1.6yrs
    • Compensation: US$5.06m

Board Members

  • Seth Rudnick (70yo)

    Director & Member of Clinical Advisory Board

    • Tenure: 6yrs
    • Compensation: US$340.47k
  • Glenn Muir (60yo)

    Independent Director

    • Tenure: 4.3yrs
    • Compensation: US$317.47k
  • Joseph Bailes (62yo)

    Scientific & Clinical Advisor

    • Fred Eshelman (70yo)

      Independent Director

      • Tenure: 4.9yrs
      • Compensation: US$304.97k
    • George Demetri (62yo)

      Scientific & Clinical Advisor

      • Mark Velleca (55yo)

        CEO, President & Director

        • Tenure: 5.7yrs
        • Compensation: US$1.91m
      • Cynthia Schwalm (59yo)

        Independent Director

        • Tenure: 1.6yrs
        • Compensation: US$583.72k
      • Garry Nicholson (64yo)

        Independent Chairman of the Board

        • Tenure: 0.6yrs
        • Compensation: US$922.81k
      • Kwok-Kin Wong

        Co-Founder & Member of Scientific Advisory Board

        • Geoffrey Shapiro

          Scientific & Clinical Advisor

          Company Information

          G1 Therapeutics, Inc.'s company bio, employee growth, exchange listings and data sources


          Key Information

          • Name: G1 Therapeutics, Inc.
          • Ticker: GTHX
          • Exchange: NasdaqGS
          • Founded: 2008
          • Industry: Biotechnology
          • Sector: Pharmaceuticals & Biotech
          • Market Cap: US$830.176m
          • Shares outstanding: 37.58m
          • Website: https://www.g1therapeutics.com

          Number of Employees


          Location

          • G1 Therapeutics, Inc.
          • 700 Park Offices Drive
          • Suite 200
          • Research Triangle Park
          • North Carolina
          • 27709
          • United States

          Listings

          TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
          GTHXNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDMay 2017
          G1HDB (Deutsche Boerse AG)YesCommon StockDEEURMay 2017

          Biography

          G1 Therapeutics, Inc., a clinical-stage biopharmaceutical company, engages in the discovery, development, and commercialization of novel small molecule therapeutics for the treatment of patients with cancer. It is developing trilaciclib, an intravenous cyclin-dependent kinases (CDK) 4/6 inhibitor that is in Phase Ib/II clinical trials for patients with extensive-stage small cell lung cancer, as well as Phase II clinical trial for patients with first-/second-/third-line metastatic triple-negative breast cancer; lerociclib, an oral CDK4/6 inhibitor that is in Phase Ib/IIa clinical trials for the treatment of breast cancer and in Phase Ib/II clinical trial for non-small cell lung cancer; and G1T48, an oral selective estrogen receptor degrader, which is in Phase I clinical trial. G1 Therapeutics, Inc. has a collaboration with Quantum Leap Healthcare Collaborative to evaluate trilaciclib for neoadjuvant treatment of locally advanced breast cancer. The company was founded in 2008 and is headquartered in Research Triangle Park, North Carolina. 


          Company Analysis and Financial Data Status

          All financial data provided by Standard & Poor's Capital IQ.
          DataLast Updated (UTC time)
          Company Analysis2020/01/27 01:21
          End of Day Share Price2020/01/24 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.