NasdaqGM:GWPH

Stock Analysis Report

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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.


Snowflake Analysis

High growth potential with adequate 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

0.3%

GWPH

1.4%

US Pharmaceuticals

1.6%

US Market


1 Year Return

-28.7%

GWPH

-0.3%

US Pharmaceuticals

4.8%

US Market

Return vs Industry: GWPH underperformed the US Pharmaceuticals industry which returned -0.3% over the past year.

Return vs Market: GWPH underperformed the US Market which returned 4.8% over the past year.


Shareholder returns

GWPHIndustryMarket
7 Day0.3%1.4%1.6%
30 Day-1.5%-2.6%2.3%
90 Day53.2%9.0%29.5%
1 Year-28.7%-28.7%2.3%-0.3%7.1%4.8%
3 Year25.1%25.1%24.2%15.1%37.1%28.1%
5 Year4.1%4.1%27.9%13.3%67.2%48.6%

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 ($125.35) is trading below our estimate of fair value ($591.01)

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


Price To Earnings Ratio

PE vs Industry: GWPH is poor value based on its PE Ratio (117.7x) compared to the Pharmaceuticals industry average (20.7x).

PE vs Market: GWPH is poor value based on its PE Ratio (117.7x) compared to the US market (16.5x).


Price to Earnings Growth Ratio

PEG Ratio: GWPH is poor value based on its PEG Ratio (1.9x)


Price to Book Ratio

PB vs Industry: GWPH is overvalued based on its PB Ratio (5.4x) compared to the US Pharmaceuticals industry average (3.3x).


Next Steps

Future Growth

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

61.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GWPH's forecast earnings growth (61% per year) is above the savings rate (2.2%).

Earnings vs Market: GWPH's earnings (61% per year) are forecast to grow faster than the US market (22.8% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: GWPH's revenue (26.3% per year) is forecast to grow faster than the US market (9.3% per year).

High Growth Revenue: GWPH's revenue (26.3% 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 low in 3 years time (16.6%).


Next Steps

Past Performance

How has GW Pharmaceuticals performed over the past 5 years?

-11.4%

Historical annual earnings growth


Earnings and Revenue History

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

Growing Profit Margin: GWPH became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: GWPH has become profitable over the past 5 years, growing earnings by -11.4% per year.

Accelerating Growth: GWPH has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: GWPH has become profitable in the last year, making it difficult to compare its past year earnings growth to the Pharmaceuticals industry (16.1%).


Return on Equity

High ROE: GWPH's Return on Equity (4.6%) is considered low.


Next Steps

Financial Health

How is GW Pharmaceuticals's financial position?


Financial Position Analysis

Short Term Liabilities: GWPH's short term assets ($672.7M) exceed its short term liabilities ($103.5M).

Long Term Liabilities: GWPH's short term assets ($672.7M) exceed its long term liabilities ($35.9M).


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 5.6% to 1.3% over the past 5 years.

Debt Coverage: GWPH's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: Insufficient data to determine if GWPH's interest payments on its debt are well covered by EBIT.


Balance Sheet


Next Steps

Dividend

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


Dividend Yield vs Market

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

High Dividend: Unable to evaluate GWPH'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 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

How experienced are the management team and are they aligned to shareholders interests?

3.3yrs

Average management tenure


CEO

Justin Gover (49yo)

21.5yrs

Tenure

US$7,864,303

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 ($USD7.86M) is above average for companies of similar size in the US market ($USD5.84M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Justin Gover
CEO & Executive Director21.5yrsUS$7.86m0.70% $27.2m
Scott Giacobello
Chief Financial Officer3.33yrsUS$2.73m0.033% $1.3m
Douglas Snyder
Chief Legal Officer3yrsUS$2.89m0.0026% $102.5k
Volker Knappertz
Chief Medical Officer3.17yrsUS$3.00m0.021% $809.9k
Christopher Tovey
Chief Operating Officer7.75yrsUS$763.06k0.00067% $26.1k
Stephen Schultz
Vice President of Investor Relations7.33yrsno datano data
Tina St. Leger
Chief Human Resources Officer1yrno datano data
Ben Whalley
Head of Discovery Research3.17yrsno datano data
Darren Cline
U.S. Chief Commercial Officer1.25yrsno data0.018% $696.5k
Adam George
MD of UK & Company Secretary13.5yrsUS$705.86k0.010% $393.1k

3.3yrs

Average Tenure

55yo

Average Age

Experienced Management: GWPH's management team is considered experienced (3.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Justin Gover
CEO & Executive Director21.5yrsUS$7.86m0.70% $27.2m
Cabot Brown
Independent Director7.42yrsUS$374.84k0.0019% $75.2k
James Noble
Independent Deputy Chairman & Senior Independent Director13.5yrsUS$372.77k0.0074% $287.5k
Geoffrey Guy
Founder & Executive Chairman22.5yrsUS$3.92m1.51% $58.8m
William Waldegrave
Independent Director2.58yrsUS$345.77kno data
Catherine Mackey
Independent Director2.58yrsUS$357.82k0.0018% $68.2k
Alicia Secor
Independent Director2.58yrsUS$349.96k0.0018% $68.6k

7.4yrs

Average Tenure

61yo

Average Age

Experienced Board: GWPH's board of directors are considered experienced (7.4 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 not been meaningfully diluted in the past year.


Top Shareholders

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$3.895b
  • Shares outstanding: 31.08m
  • 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 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. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/02 23:55
End of Day Share Price2020/07/02 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.