NasdaqGM:GWPH

Stock Analysis Report

Executive Summary

GW Pharmaceuticals plc, a biopharmaceutical company, focuses on discovering, developing, and commercializing cannabinoid prescription medicines using botanical extracts derived from the Cannabis plant.

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Fundamentals

Exceptional growth potential with excellent balance sheet.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

1.8%

GWPH

0.2%

US Pharmaceuticals

0.4%

US Market


1 Year Return

-14.8%

GWPH

-4.9%

US Pharmaceuticals

13.1%

US Market

Return vs Industry: GWPH underperformed the US Pharmaceuticals industry which returned -4.9% over the past year.

Return vs Market: GWPH underperformed the US Market which returned 13.1% over the past year.


Shareholder returns

GWPHIndustryMarket
7 Day1.8%0.2%0.4%
30 Day-7.7%2.1%4.0%
90 Day-28.0%3.9%7.4%
1 Year-14.8%-14.8%-2.5%-4.9%15.6%13.1%
3 Year-12.2%-12.2%21.7%13.0%48.2%38.6%
5 Year40.7%40.7%18.8%6.2%62.6%44.6%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is GW Pharmaceuticals 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: GWPH ($111.03) is trading below our estimate of fair value ($386.35)

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


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: GWPH is overvalued based on its PB Ratio (4.8x) compared to the US Pharmaceuticals industry average (2.8x).


Next Steps

Future Growth

How is GW Pharmaceuticals forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?

66.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GWPH is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2.7%).

Earnings vs Market: GWPH is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: GWPH's is expected to become profitable in the next 3 years.

Revenue vs Market: GWPH's revenue (36.4% per year) is forecast to grow faster than the US market (7.3% per year).

High Growth Revenue: GWPH's revenue (36.4% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: GWPH's Return on Equity is forecast to be high in 3 years time (25.6%)


Next Steps

Past Performance

How has GW Pharmaceuticals performed over the past 5 years?

-31.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GWPH has a high level of non-cash earnings.

Growing Profit Margin: GWPH's current net profit margins (-17.4%) are higher than last year (-2317.4%).


Past Earnings Growth Analysis

Earnings Trend: GWPH is unprofitable, and losses have increased over the past 5 years at a rate of -31.4% per year.

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

Earnings vs Industry: GWPH is unprofitable, making it difficult to compare its past year earnings growth to the Pharmaceuticals industry (21.3%).


Return on Equity

High ROE: GWPH has a negative Return on Equity (-5.33%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is GW Pharmaceuticals's financial position?


Financial Position Analysis

Short Term Liabilities: GWPH's short term assets ($698.0M) exceeds its short term liabilities ($95.3M)

Long Term Liabilities: GWPH's short term assets (698.0M) exceeds its long term liabilities (32.9M)


Debt to Equity History and Analysis

Debt Level: GWPH's debt to equity ratio (1.3%) is considered satisfactory

Reducing Debt: GWPH's debt to equity ratio has reduced from 5.1% to 1.3% over the past 5 years.


Balance Sheet

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

Debt Coverage by Assets: GWPH's debt is covered by short term assets (assets are 75.3x 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: GWPH has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if GWPH has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage2.8%forecastin3Years0%

Current dividend yield vs market & industry

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

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

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

4.7yrs

Average management tenure


CEO

Justin Gover (48yo)

20.8yrs

Tenure

US$565,977

Compensation

Mr. Justin D. Gover, BSc, MBA has been the Chief Executive Officer of GW Pharmaceuticals PLC since January 1999. Mr. Gover is responsible for managing GW Pharmaceuticals’s operations, equity financing and  ...


CEO Compensation Analysis

Compensation vs Market: Justin's total compensation ($USD565.98K) is below average for companies of similar size in the US market ($USD5.10M).

Compensation vs Earnings: Justin's compensation has been consistent with company performance over the past year.


Management Age and Tenure

4.7yrs

Average Tenure

54yo

Average Age

Experienced Management: GWPH's management team is considered experienced (4.7 years average tenure).


Board Age and Tenure

8.0yrs

Average Tenure

61.5yo

Average Age

Experienced Board: GWPH's board of directors are considered experienced (8 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 16.6%.


Management Team

  • Steve Schultz

    Vice President of Investor Relations

    • Tenure: 6.7yrs
  • Geoffrey Guy (65yo)

    Founder & Chairman

    • Tenure: 21.8yrs
    • Compensation: US$8.75m
  • Justin Gover (48yo)

    CEO & Executive Director

    • Tenure: 20.8yrs
    • Compensation: US$565.98k
  • Doug Snyder (55yo)

    Chief Legal Officer

    • Tenure: 2.3yrs
    • Compensation: US$2.53m
  • Chris Tovey (54yo)

    Chief Operating Officer

    • Tenure: 7.1yrs
    • Compensation: US$763.06k
  • Volker Knappertz (54yo)

    Chief Medical Officer

    • Tenure: 2.5yrs
    • Compensation: US$490.44k
  • Adam George (49yo)

    MD of UK & Company Secretary

    • Tenure: 12.8yrs
    • Compensation: US$705.86k
  • Darren Cline (55yo)

    U.S. Chief Commercial Officer

    • Tenure: 0.6yrs
  • Scott Giacobello (49yo)

    Chief Financial Officer

    • Tenure: 2.7yrs
    • Compensation: US$377.05k
  • Ben Whalley

    Head of Discovery Research

    • Tenure: 2.5yrs

Board Members

  • Cabot Brown (58yo)

    Independent Director

    • Tenure: 6.8yrs
    • Compensation: US$330.72k
  • James Noble (60yo)

    Deputy Chairman & Senior Independent Director

    • Tenure: 12.8yrs
    • Compensation: US$332.72k
  • Geoffrey Guy (65yo)

    Founder & Chairman

    • Tenure: 21.8yrs
    • Compensation: US$8.75m
  • Tom Lynch (63yo)

    Non-Executive Director

    • Tenure: 9.3yrs
    • Compensation: US$240.72k
  • Justin Gover (48yo)

    CEO & Executive Director

    • Tenure: 20.8yrs
    • Compensation: US$565.98k
  • William Waldegrave (72yo)

    Independent Director

    • Tenure: 1.9yrs
    • Compensation: US$428.35k
  • Kitty Mackey (64yo)

    Independent Director

    • Tenure: 1.9yrs
    • Compensation: US$432.86k
  • Alicia Secor (56yo)

    Independent Director

    • Tenure: 1.9yrs
    • Compensation: US$430.29k

Company Information

GW Pharmaceuticals plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: GW Pharmaceuticals plc
  • Ticker: GWPH
  • Exchange: NasdaqGM
  • Founded: 1998
  • Industry: Pharmaceuticals
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: US$3.432b
  • Shares outstanding: 30.91m
  • Website: https://www.gwpharm.com

Number of Employees


Location

  • GW Pharmaceuticals plc
  • Sovereign House
  • Vision Park
  • Cambridge
  • Cambridgeshire
  • CB24 9BZ
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
GWPR.FOTCPK (Pink Sheets LLC)Ordinary SharesUSUSDJun 2001
GWPHNasdaqGM (Nasdaq Global Market)YesADS EA REPR 12 ORD GBP0.00USUSDMay 2013
GW2ADB (Deutsche Boerse AG)YesADS EA REPR 12 ORD GBP0.00DEEURMay 2013
0IT7LSE (London Stock Exchange)YesADS EA REPR 12 ORD GBP0.00GBUSDMay 2013

Biography

GW Pharmaceuticals plc, a biopharmaceutical company, focuses on discovering, developing, and commercializing cannabinoid prescription medicines using botanical extracts derived from the Cannabis plant. Its ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/14 00:40
End of Day Share Price2019/11/13 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.