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.

Snowflake

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


Market Performance


7 Day Return

-4.1%

NasdaqGM:GWPH

-0.9%

US Pharmaceuticals

-1.2%

US Market


1 Year Return

13.2%

NasdaqGM:GWPH

3.7%

US Pharmaceuticals

3.4%

US Market

GWPH outperformed the Pharmaceuticals industry which returned 4.7% over the past year.

GWPH outperformed the Market in United States of America which returned 3.9% over the past year.


Share holder returns

GWPHIndustryMarket
7 Day-4.1%-0.9%-1.2%
30 Day-5.9%-4.0%1.2%
90 Day6.2%0.8%1.7%
1 Year13.2%13.2%6.2%3.7%5.7%3.4%
3 Year74.8%74.8%7.8%0.2%45.0%35.5%
5 Year94.9%94.9%25.6%12.1%59.3%41.6%

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 based on future cash flows and its price relative to the stock market?

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

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 Based on Earnings

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

Unable to calculate PEG ratio for GW Pharmaceuticals, we can't assess if its growth is good value.


Price Based on Value of Assets

GW Pharmaceuticals is overvalued based on assets compared to the US Pharmaceuticals industry average.


Next Steps

Future Growth

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

84.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

GW Pharmaceuticals's revenue is expected to grow significantly at over 20% yearly.

GW Pharmaceuticals's earnings are expected to grow significantly at over 20% yearly.

GW Pharmaceuticals's revenue growth is expected to exceed the United States of America market average.

GW Pharmaceuticals's earnings growth is expected to exceed the United States of America market average.

GW Pharmaceuticals's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

GW Pharmaceuticals is expected to make outstanding use of shareholders’ funds in the future (Return on Equity greater than 40%).


Next Steps

Past Performance

How has GW Pharmaceuticals performed over the past 5 years?

-46.4%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

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.


Return on Equity

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.


Return on Assets

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.


Return on Capital Employed

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.


Next Steps

Financial Health

How is GW Pharmaceuticals's financial position?


Financial Position Analysis

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.


Debt to Equity History and Analysis

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).


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 37.5x 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.

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.


Next Steps

Dividend

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


Dividend Yield and Payments Analysis

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.

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

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.


Next Steps

Management

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

2.3yrs

Average management tenure


CEO

Justin Gover (48yo)

20.5yrs

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

Justin's remuneration is lower than average for companies of similar size in United States of America.

Justin's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

2.3yrs

Average Tenure

54yo

Average Age

The tenure for the GW Pharmaceuticals management team is about average.


Board Age and Tenure

7.7yrs

Average Tenure

61yo

Average Age

The tenure for the GW Pharmaceuticals board of directors is about average.


Insider Trading

No 3 month individual insider trading information.


Ownership Breakdown


Management Team

  • Volker Knappertz (54yo)

    Chief Medical Officer

    • Tenure: 2.2yrs
    • Compensation: $490.44k
  • Darren Cline (55yo)

    U.S. Chief Commercial Officer

    • Tenure: 0.3yrs
  • Steve Schultz

    Vice President of Investor Relations

    • Tenure: 6.3yrs
  • Adam George (49yo)

    MD of UK & Company Secretary

    • Tenure: 2.3yrs
    • Compensation: $705.86k
  • Scott Giacobello (49yo)

    Chief Financial Officer

    • Tenure: 2.3yrs
    • Compensation: $377.05k
  • Justin Gover (48yo)

    CEO & Executive Director

    • Tenure: 20.5yrs
    • Compensation: $565.98k
  • Ben Whalley

    Head of Discovery Research

    • Tenure: 2.2yrs
  • Geoffrey Guy (65yo)

    Founder & Chairman

    • Tenure: 21.5yrs
    • Compensation: $512.33k
  • Chris Tovey (54yo)

    Chief Operating Officer

    • Tenure: 6.8yrs
    • Compensation: $763.06k
  • Doug Snyder (55yo)

    Chief Legal Officer

    • Tenure: 2.0yrs
    • Compensation: $2.53m

Board Members

  • Cabot Brown (58yo)

    Independent Director

    • Tenure: 6.4yrs
    • Compensation: $330.72k
  • James Noble (60yo)

    Deputy Chairman & Senior Independent Director

    • Tenure: 12.5yrs
    • Compensation: $332.72k
  • Geoffrey Guy (65yo)

    Founder & Chairman

    • Tenure: 21.5yrs
    • Compensation: $512.33k
  • Tom Lynch (62yo)

    Non-Executive Director

    • Tenure: 9.0yrs
    • Compensation: $240.72k
  • Justin Gover (48yo)

    CEO & Executive Director

    • Tenure: 20.5yrs
    • Compensation: $565.98k
  • William Waldegrave (72yo)

    Independent Director

    • Tenure: 1.6yrs
    • Compensation: $426.07k
  • Kitty Mackey (64yo)

    Independent Director

    • Tenure: 1.6yrs
    • Compensation: $432.86k
  • Alicia Secor (56yo)

    Independent Director

    • Tenure: 1.6yrs
    • Compensation: $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$5.082b
  • Shares outstanding: 30.72m
  • Website: Click here

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
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
GWPR.FOTCPK (Pink Sheets LLC)Ordinary SharesUSUSDJun 2001

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 Analysis2019/07/20 00:33
End of Day Share Price2019/07/19 00:00
Earnings2019/03/31
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.