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GW Pharmaceuticals

Nasdaq:GWPH
Snowflake Description

Exceptional growth potential with excellent balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
GWPH
Nasdaq
$5B
Market Cap
  1. Home
  2. US
  3. Pharmaceuticals & Biotech
Company description

GW Pharmaceuticals plc, a biopharmaceutical company, focuses on discovering, developing, and commercializing cannabinoid prescription medicines using botanical extracts derived from the Cannabis plant. The last earnings update was 69 days ago. More info.


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GWPH Share Price and Events
7 Day Returns
-5.7%
NasdaqGM:GWPH
-4%
US Pharmaceuticals
0.8%
US Market
1 Year Returns
14.6%
NasdaqGM:GWPH
4.1%
US Pharmaceuticals
4.8%
US Market
GWPH Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
GW Pharmaceuticals (GWPH) -5.7% -1.9% 7.7% 14.6% 84.4% 90%
US Pharmaceuticals -4% -0.9% -1.7% 4.1% 1.8% 13%
US Market 0.8% 4.3% 2.8% 4.8% 37.9% 43.5%
1 Year Return vs Industry and Market
  • GWPH outperformed the Pharmaceuticals industry which returned 4.1% over the past year.
  • GWPH outperformed the Market in United States of America which returned 4.8% over the past year.
Price Volatility
GWPH
Industry
5yr Volatility vs Market

Value

 Is GW Pharmaceuticals undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of GW Pharmaceuticals to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for GW Pharmaceuticals.

NasdaqGM:GWPH Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 11 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 8.2%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NasdaqGM:GWPH
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6.7%
Pharmaceuticals Unlevered Beta Simply Wall St/ S&P Global 0.73
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.733 (1 + (1- 19%) (0.72%))
0.824
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.82
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (0.824 * 6.65%)
8.21%

Discounted Cash Flow Calculation for NasdaqGM:GWPH using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for GW Pharmaceuticals is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NasdaqGM:GWPH DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 8.21%)
2020 -135.22 Analyst x2 -124.96
2021 246.38 Analyst x4 210.41
2022 517.14 Analyst x2 408.13
2023 671.34 Analyst x2 489.62
2024 798.86 Est @ 18.99% 538.42
2025 911.62 Est @ 14.12% 567.80
2026 1,009.16 Est @ 10.7% 580.86
2027 1,093.01 Est @ 8.31% 581.38
2028 1,165.53 Est @ 6.64% 572.92
2029 1,229.21 Est @ 5.46% 558.37
Present value of next 10 years cash flows $4,382.95
NasdaqGM:GWPH DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= $1,229.21 × (1 + 2.73%) ÷ (8.21% – 2.73%)
$23,040.34
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $23,040.34 ÷ (1 + 8.21%)10
$10,466.15
NasdaqGM:GWPH Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $4,382.95 + $10,466.15
$14,849.11
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $14,849.11 / 30.72
$483.43
NasdaqGM:GWPH Discount to Share Price
Calculation Result
Value per share (USD) From above. $483.43
Current discount Discount to share price of $167.66
= -1 x ($167.66 - $483.43) / $483.43
65.3%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price GW Pharmaceuticals is available for.
Intrinsic value
>50%
Share price is $167.66 vs Future cash flow value of $483.43
Current Discount Checks
For GW Pharmaceuticals to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • GW Pharmaceuticals's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • GW Pharmaceuticals's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for GW Pharmaceuticals's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are GW Pharmaceuticals's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NasdaqGM:GWPH PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in USD $-8.61
NasdaqGM:GWPH Share Price ** NasdaqGM (2019-07-15) in USD $167.66
United States of America Pharmaceuticals Industry PE Ratio Median Figure of 29 Publicly-Listed Pharmaceuticals Companies 18.11x
United States of America Market PE Ratio Median Figure of 3,084 Publicly-Listed Companies 18.01x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of GW Pharmaceuticals.

NasdaqGM:GWPH PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGM:GWPH Share Price ÷ EPS (both in USD)

= 167.66 ÷ -8.61

-19.47x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • GW Pharmaceuticals is loss making, we can't compare its value to the US Pharmaceuticals industry average.
  • GW Pharmaceuticals is loss making, we can't compare the value of its earnings to the United States of America market.
Price based on expected Growth
Does GW Pharmaceuticals's expected growth come at a high price?
Raw Data
NasdaqGM:GWPH PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section -19.47x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 11 Analysts
84.7%per year
United States of America Pharmaceuticals Industry PEG Ratio Median Figure of 21 Publicly-Listed Pharmaceuticals Companies 1.82x
United States of America Market PEG Ratio Median Figure of 2,124 Publicly-Listed Companies 1.59x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for GW Pharmaceuticals, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on GW Pharmaceuticals's assets?
Raw Data
NasdaqGM:GWPH PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in USD $20.83
NasdaqGM:GWPH Share Price * NasdaqGM (2019-07-15) in USD $167.66
United States of America Pharmaceuticals Industry PB Ratio Median Figure of 185 Publicly-Listed Pharmaceuticals Companies 3.08x
United States of America Market PB Ratio Median Figure of 5,240 Publicly-Listed Companies 1.81x
NasdaqGM:GWPH PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGM:GWPH Share Price ÷ Book Value per Share (both in USD)

= 167.66 ÷ 20.83

8.05x

* Primary Listing of GW Pharmaceuticals.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • GW Pharmaceuticals is overvalued based on assets compared to the US Pharmaceuticals industry average.
X
Value checks
We assess GW Pharmaceuticals's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Pharmaceuticals industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Pharmaceuticals industry average (and greater than 0)? (1 check)
  5. GW Pharmaceuticals has a total score of 2/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is GW Pharmaceuticals expected to perform in the next 1 to 3 years based on estimates from 11 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
84.7%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is GW Pharmaceuticals expected to grow at an attractive rate?
  • GW Pharmaceuticals's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • GW Pharmaceuticals's earnings growth is expected to exceed the United States of America market average.
  • GW Pharmaceuticals's revenue growth is expected to exceed the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NasdaqGM:GWPH Future Growth Rates Data Sources
Data Point Source Value (per year)
NasdaqGM:GWPH Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 11 Analysts 84.7%
NasdaqGM:GWPH Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 11 Analysts 51.1%
United States of America Pharmaceuticals Industry Earnings Growth Rate Market Cap Weighted Average 16.3%
United States of America Pharmaceuticals Industry Revenue Growth Rate Market Cap Weighted Average 5.8%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14.1%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.5%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NasdaqGM:GWPH Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 11 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NasdaqGM:GWPH Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 1,394 725 786 4
2022-12-31 1,162 461 561 4
2021-12-31 875 199 373 7
2020-12-31 476 -87 0 9
2020-09-30 373 -36 1
2019-12-31 211 -72 -164 11
2019-09-30 210 -68 1
NasdaqGM:GWPH Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-03-31 63 -291 -268
2018-12-31 27 -298 -288
2018-09-30 13 -232 -295
2018-06-30 17 -193 -235
2018-03-31 18 -184 -269
2017-12-31 16 -170 -220
2017-09-30 9 -149 -170
2017-06-30 10 -133 -139
2017-03-31 10 -130 -99
2016-12-31 11 -112 -76
2016-09-30 13 -120 -92
2016-06-30 19 -106 -78

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • GW Pharmaceuticals's earnings are expected to grow significantly at over 20% yearly.
  • GW Pharmaceuticals's revenue is expected to grow significantly at over 20% yearly.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NasdaqGM:GWPH Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 11 Analyst Estimates (S&P Global) See Below

All data from GW Pharmaceuticals Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGM:GWPH Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31 2.03 2.10 1.90 3.00
2022-12-31 1.46 1.95 0.95 4.00
2021-12-31 0.90 1.62 0.33 6.00
2020-12-31 0.00 0.49 -0.23 7.00
2020-09-30 -0.10 -0.10 -0.10 1.00
2019-12-31 -0.46 -0.30 -0.61 8.00
2019-09-30 -0.18 -0.18 -0.18 1.00
NasdaqGM:GWPH Past Financials Data
Date (Data in USD Millions) EPS *
2019-03-31 -8.61
2018-12-31 -9.42
2018-09-30 -10.61
2018-06-30 -8.72
2018-03-31 -10.25
2017-12-31 -8.64
2017-09-30 -6.69
2017-06-30 -5.55
2017-03-31 -4.08
2016-12-31 -3.25
2016-09-30 -4.04
2016-06-30 -3.59

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • GW Pharmaceuticals is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
X
Future performance checks
We assess GW Pharmaceuticals's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
GW Pharmaceuticals has a total score of 6/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has GW Pharmaceuticals performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare GW Pharmaceuticals's growth in the last year to its industry (Pharmaceuticals).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • GW Pharmaceuticals does not make a profit and their year on year earnings growth rate was negative over the past 5 years.
  • Unable to compare GW Pharmaceuticals's 1-year earnings growth to the 5-year average as it is not currently profitable.
  • Unable to compare GW Pharmaceuticals's 1-year growth to the US Pharmaceuticals industry average as it is not currently profitable.
Earnings and Revenue History
GW Pharmaceuticals's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from GW Pharmaceuticals Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGM:GWPH Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 62.82 -268.23 225.24 64.13
2018-12-31 26.62 -287.62 196.33 77.24
2018-09-30 12.74 -295.17 141.82 119.01
2018-06-30 17.00 -234.97 99.86 148.94
2018-03-31 17.79 -268.57 85.27 171.54
2017-12-31 16.10 -220.37 70.83 157.59
2017-09-30 8.63 -170.46 58.02 112.25
2017-06-30 10.08 -139.26 45.71 135.49
2017-03-31 9.62 -99.04 36.37 127.73
2016-12-31 10.75 -76.00 28.40 124.20
2016-09-30 12.73 -91.70 33.19 104.38
2016-06-30 18.93 -78.41 23.21 134.59
2016-03-31 29.58 -98.22 21.37 138.95
2015-12-31 35.75 -86.80 22.70 126.95
2015-09-30 43.19 -67.43 19.02 116.19
2015-06-30 47.75 -50.40 14.82 101.98
2015-03-31 43.60 -26.07 13.09 80.48
2014-12-31 47.57 -23.76 10.70 78.48
2014-09-30 48.74 -23.78 11.90 71.19
2014-06-30 50.88 -30.09 10.77 69.96
2014-03-31 49.00 -21.14 8.00 65.04
2013-12-31 49.04 -15.60 6.68 60.18
2013-09-30 44.19 -7.37 5.76 53.80
2013-06-30 42.19 -6.25 5.23 51.70
2013-03-31 53.08 8.79 5.33 47.68
2012-12-31 53.24 9.96 5.60 47.00
2012-09-30 53.40 4.01 5.84 46.56

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • It is difficult to establish if GW Pharmaceuticals has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.
  • It is difficult to establish if GW Pharmaceuticals has efficiently used its assets last year compared to the US Pharmaceuticals industry average (Return on Assets) as it is loss-making.
  • It is difficult to establish if GW Pharmaceuticals improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.
X
Past performance checks
We assess GW Pharmaceuticals's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Pharmaceuticals industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
GW Pharmaceuticals has a total score of 0/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is GW Pharmaceuticals's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up GW Pharmaceuticals's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • GW Pharmaceuticals is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • GW Pharmaceuticals's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of GW Pharmaceuticals's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 37.5x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from GW Pharmaceuticals Company Filings, last reported 3 months ago.

NasdaqGM:GWPH Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 639.73 10.13 521.67
2018-12-31 674.08 14.24 591.50
2018-09-30 415.16 14.75 354.91
2018-06-30 503.51 10.63 440.72
2018-03-31 560.61 11.45 486.77
2017-12-31 618.77 11.15 560.65
2017-09-30 380.82 15.71 322.15
2017-06-30 410.25 10.96 368.95
2017-03-31 443.59 10.68 383.56
2016-12-31 475.74 10.65 444.79
2016-09-30 518.89 11.96 487.51
2016-06-30 273.32 12.00 254.16
2016-03-31 308.84 13.12 277.52
2015-12-31 338.17 13.20 323.42
2015-09-30 371.14 13.31 355.41
2015-06-30 402.68 13.58 399.51
2015-03-31 221.19 12.56 220.81
2014-12-31 242.44 12.94 244.05
2014-09-30 257.25 13.21 266.84
2014-06-30 269.86 0.00 287.81
2014-03-31 152.92 0.00 159.33
2013-12-31 54.87 0.00 58.42
2013-09-30 57.32 0.00 61.64
2013-06-30 57.39 0.00 66.24
2013-03-31 31.92 0.00 42.35
2012-12-31 34.51 0.00 47.68
2012-09-30 34.23 0.00 47.30
  • GW Pharmaceuticals's level of debt (2.5%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (2.1% vs 2.5% today).
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.

  • GW Pharmaceuticals has sufficient cash runway for 1.4 years based on current free cash flow.
  • GW Pharmaceuticals has sufficient cash runway for 1.3 years if free cash flow continues to grow at historical rates of 40.4% each year.
X
Financial health checks
We assess GW Pharmaceuticals's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. GW Pharmaceuticals has a total score of 5/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from GW Pharmaceuticals dividends. Estimated to be 0% next year.
If you bought $2,000 of GW Pharmaceuticals shares you are expected to receive $0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate GW Pharmaceuticals's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate GW Pharmaceuticals's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NasdaqGM:GWPH Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 11 Analyst Estimates (S&P Global) See Below
United States of America Pharmaceuticals Industry Average Dividend Yield Market Cap Weighted Average of 10 Stocks 2.8%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2018 Stocks 2.4%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NasdaqGM:GWPH Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31 0.00 1.00
2020-12-31 0.00 1.00
2020-09-30 0.00 1.00
2019-12-31 0.00 1.00
2019-09-30 0.00 1.00

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as GW Pharmaceuticals has not reported any payouts.
  • Unable to verify if GW Pharmaceuticals's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of GW Pharmaceuticals's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as GW Pharmaceuticals has not reported any payouts.
Future Payout to shareholders
  • No need to calculate the sustainability of GW Pharmaceuticals's dividends in 3 years as they are not expected to pay a notable one for United States of America.
X
Income/ dividend checks
We assess GW Pharmaceuticals's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can GW Pharmaceuticals afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. GW Pharmaceuticals has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Justin Gover
COMPENSATION $565,977
AGE 48
TENURE AS CEO 20.5 years
CEO Bio

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 business development activities. Mr. Gover has 13 years’ of experience in the biotech industry. He served as Managing Director of GW Pharmaceuticals PLC at GW Pharmaceuticals PLC since January 1999. Previously, he served as the Head of Corporate Affairs at Ethical Holdings plc, where he was responsible for strategic corporate activities, including mergers and acquisitions, equity financing and investor relations. He serves as an Executive Director at GW Pharmaceuticals PLC. He served as a Member of the Advisory Committee of Dawn Capital. Mr. Gover holds an MBA degree from the INSEAD business school in France. He holds BSc from Bristol University.

CEO Compensation
  • Justin's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Justin's remuneration is lower than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the GW Pharmaceuticals management team in years:

2.3
Average Tenure
54
Average Age
  • The tenure for the GW Pharmaceuticals management team is about average.
Management Team

Geoffrey Guy

TITLE
Founder & Chairman
COMPENSATION
$512K
AGE
65
TENURE
21.5 yrs

Justin Gover

TITLE
CEO & Executive Director
COMPENSATION
$566K
AGE
48
TENURE
20.5 yrs

Scott Giacobello

TITLE
Chief Financial Officer
COMPENSATION
$377K
AGE
49
TENURE
2.3 yrs

Doug Snyder

TITLE
Chief Legal Officer
COMPENSATION
$3M
AGE
55
TENURE
2 yrs

Volker Knappertz

TITLE
Chief Medical Officer
COMPENSATION
$490K
AGE
54
TENURE
2.2 yrs

Chris Tovey

TITLE
Chief Operating Officer
COMPENSATION
$763K
AGE
54
TENURE
6.8 yrs

Steve Schultz

TITLE
Vice President of Investor Relations
TENURE
6.3 yrs

Adam George

TITLE
MD of UK & Company Secretary
COMPENSATION
$706K
AGE
49
TENURE
2.3 yrs

Ben Whalley

TITLE
Head of Discovery Research
TENURE
2.2 yrs

Darren Cline

TITLE
U.S. Chief Commercial Officer
AGE
55
TENURE
0.3 yrs
Board of Directors Tenure

Average tenure and age of the GW Pharmaceuticals board of directors in years:

7.7
Average Tenure
61
Average Age
  • The tenure for the GW Pharmaceuticals board of directors is about average.
Board of Directors

Justin Gover

TITLE
CEO & Executive Director
COMPENSATION
$566K
AGE
48
TENURE
20.5 yrs

James Noble

TITLE
Deputy Chairman & Senior Independent Director
COMPENSATION
$333K
AGE
60
TENURE
12.5 yrs

Geoffrey Guy

TITLE
Founder & Chairman
COMPENSATION
$512K
AGE
65
TENURE
21.5 yrs

Tom Lynch

TITLE
Non-Executive Director
COMPENSATION
$241K
AGE
62
TENURE
9 yrs

Cabot Brown

TITLE
Independent Director
COMPENSATION
$331K
AGE
58
TENURE
6.4 yrs

Kitty Mackey

TITLE
Independent Director
COMPENSATION
$433K
AGE
64
TENURE
1.6 yrs

William Waldegrave

TITLE
Independent Director
COMPENSATION
$426K
AGE
72
TENURE
1.6 yrs

Alicia Secor

TITLE
Independent Director
COMPENSATION
$430K
AGE
56
TENURE
1.6 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
X
Management checks
We assess GW Pharmaceuticals's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. GW Pharmaceuticals has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

How Much Did GW Pharmaceuticals plc's (NASDAQ:GWPH) CEO Pocket Last Year?

First, this article will compare CEO compensation with compensation at similar sized companies. … See our latest analysis for GW Pharmaceuticals How Does Justin Gover's Compensation Compare With Similar Sized Companies? … Boasting a total shareholder return of 84% over three years, GW Pharmaceuticals plc has done well by shareholders.

Simply Wall St -

Why GW Pharmaceuticals plc (NASDAQ:GWPH) Could Have A Place In Your Portfolio

In the case of GWPH, it is a company with impressive financial health as well as a excellent future outlook. … Exceptional growth potential with excellent balance sheet One reason why investors are attracted to GWPH is its notable earnings growth potential in the near future of 83%. … GWPH has plenty of financial flexibility, without large debt obligations to meet in the short term, as well as the headroom to raise debt should it need to in the future.

Simply Wall St -

Is GW Pharmaceuticals plc (NASDAQ:GWPH) A Financially Strong Company?

GWPH’s financial liquidity and debt position will be analysed in this article, to get an idea of whether the company can fund opportunities for strategic growth and maintain strength through economic downturns. … Don’t forget that this is a general and concentrated examination of GW Pharmaceuticals's financial health, so you should conduct further analysis. … View our latest analysis for GW Pharmaceuticals

Simply Wall St -

Announcing: GW Pharmaceuticals (NASDAQ:GWPH) Stock Increased An Energizing 180% In The Last Five Years

GW Pharmaceuticals isn't currently profitable, so most analysts would look to revenue growth to get an idea of how fast the underlying business is growing. … Shareholders of unprofitable companies usually expect strong revenue growth. … As you can imagine, fast revenue growth, when maintained, often leads to fast profit growth.

Simply Wall St -

A Spotlight On GW Pharmaceuticals plc's (NASDAQ:GWPH) Fundamentals

GW Pharmaceuticals plc (NASDAQ:GWPH) is a stock with outstanding fundamental characteristics. … When we build an investment case, we need to look at the stock with a holistic perspective. … In the case of GWPH, it

Simply Wall St -

Brief Commentary On GW Pharmaceuticals plc's (NASDAQ:GWPH) Fundamentals

I've been keeping an eye on GW Pharmaceuticals plc (NASDAQ:GWPH) because I'm attracted to its fundamentals. … Looking at the company as a whole, as a potential stock investment, I believe GWPH has a lot to offer. … is a company with

Simply Wall St -

GW Pharmaceuticals plc's (NASDAQ:GWPH) Profit Outlook

GW Pharmaceuticals plc, a biopharmaceutical company, engages in discovering, developing, and commercializing cannabinoid prescription medicines using botanical extracts derived from the Cannabis plant. … As path to profitability is the topic on GWPH’s investors mind, I’ve decided to gauge market sentiment … In this article, I will touch on the expectations for GWPH’s growth and when analysts expect the company to become profitable.

Simply Wall St -

What Does GW Pharmaceuticals plc's (NASDAQ:GWPH) Share Price Indicate?

Great news for investors – GW Pharmaceuticals is still trading at a fairly cheap price. … What’s more interesting is that, GW Pharmaceuticals’s share price is quite volatile, which gives us more chances to buy since the share price could sink lower (or rise higher) in the future. … Although value investors would argue that it’s the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price.

Simply Wall St -

Is GW Pharmaceuticals plc (NASDAQ:GWPH) A Financially Strong Company?

With this debt payback, GWPH currently has UK£241.18M remaining in cash and short-term investments for investing into the business. … GWPH’s level of debt is low relative to its total equity, at 3.26%. … Next Steps: Although GWPH’s debt level is relatively low, its cash flow levels still could not copiously cover its borrowings.

Simply Wall St -

When Will GW Pharmaceuticals plc (NASDAQ:GWPH) Become Profitable?

I’ve put together a brief outline of industry analyst expectations for GWPH, its year of breakeven and its implied growth rate. … Therefore, GWPH is expected to breakeven roughly 2 years from today. … Next Steps: There are too many aspects of GWPH to cover in one brief article, but the key fundamentals for the company can all be found in one place – GWPH’s company page on Simply Wall St.

Simply Wall St -

Company Info

Description

GW Pharmaceuticals plc, a biopharmaceutical company, focuses on discovering, developing, and commercializing cannabinoid prescription medicines using botanical extracts derived from the Cannabis plant. Its lead product is Epidiolex, an oral medicine for the treatment of refractory childhood epilepsies, as well as for the treatment of Dravet syndrome, Lennox-Gastaut syndrome, tuberous sclerosis complex, and infantile spasms. The company also develops and markets Sativex, an oromucosal spray for the treatment of spasticity due to multiple sclerosis. In addition, it develops various product candidates for the treatment of glioblastoma, neonatal hypoxic-ischemic encephalopathy, and schizophrenia. Further, the company has license and development agreements with Almirall S.A.; Bayer HealthCare AG; Ipsen Biopharm Ltd; and Neopharm Group. It primarily operates in Europe, the United Kingdom, the United States, Canada, and Asia. GW Pharmaceuticals plc was founded in 1998 and is based in Cambridge, the United Kingdom.

Details
Name: GW Pharmaceuticals plc
GWPH
Exchange: NasdaqGM
Founded: 1998
$5,149,843,721
30,715,995
Website: http://www.gwpharm.com
Address: GW Pharmaceuticals plc
Sovereign House,
Vision Park,
Cambridge,
Cambridgeshire, CB24 9BZ,
United Kingdom
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGM GWPH ADS EA REPR 12 ORD GBP0.00 Nasdaq Global Market US USD 02. May 2013
DB GW2A ADS EA REPR 12 ORD GBP0.00 Deutsche Boerse AG DE EUR 02. May 2013
LSE 0IT7 ADS EA REPR 12 ORD GBP0.00 London Stock Exchange GB USD 02. May 2013
OTCPK GWPR.F Ordinary Shares Pink Sheets LLC US USD 28. Jun 2001
Number of employees
Current staff
Staff numbers
791
GW Pharmaceuticals employees.
Industry
Pharmaceuticals
Pharmaceuticals & Biotech
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/07/16 00:40
End of day share price update: 2019/07/15 00:00
Last estimates confirmation: 2019/07/14
Last earnings filing: 2019/05/08
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.