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 Analysis

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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-2.8%

GWPH

-2.5%

US Pharmaceuticals

-4.2%

US Market


1 Year Return

-21.0%

GWPH

3.7%

US Pharmaceuticals

14.0%

US Market

Return vs Industry: GWPH underperformed the US Pharmaceuticals industry which returned 3.7% over the past year.

Return vs Market: GWPH underperformed the US Market which returned 14% over the past year.


Shareholder returns

GWPHIndustryMarket
7 Day-2.8%-2.5%-4.2%
30 Day5.4%-3.3%-1.8%
90 Day20.2%2.5%2.6%
1 Year-21.0%-21.0%6.3%3.7%16.3%14.0%
3 Year-3.3%-3.3%23.1%14.3%43.2%34.0%
5 Year51.8%51.8%26.3%12.5%65.9%47.6%

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 ($120.72) is trading below our estimate of fair value ($573.23)

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 (5.2x) compared to the US Pharmaceuticals industry average (2.9x).


Next Steps

Future Growth

How is GW Pharmaceuticals forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?

52.8%

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 (1.7%).

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 (30.6% per year) is forecast to grow faster than the US market (7.6% per year).

High Growth Revenue: GWPH's revenue (30.6% 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 (33.3%)


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 is currently unprofitable.

Growing Profit Margin: GWPH is currently unprofitable.


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 (2.4%).


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) exceed its short term liabilities ($95.3M).

Long Term Liabilities: GWPH's short term assets ($698.0M) exceed 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%1.5%markettop25%3.8%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

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

2.8yrs

Average management tenure


CEO

Justin Gover (48yo)

21.1yrs

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 ($USD565.98K) is below average for companies of similar size in the US market ($USD4.91M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Geoffrey Guy
Founder & Chairman22.1yrsUS$8.75m1.87% $69.9m
Justin Gover
CEO & Executive Director21.1yrsUS$565.98k0.69% $25.7m
Scott Giacobello
Chief Financial Officer2.9yrsUS$377.05k0.0067% $251.1k
Douglas Snyder
Chief Legal Officer2.6yrsUS$2.53m0.020% $741.5k
Volker Knappertz
Chief Medical Officer2.8yrsUS$490.44k0.0047% $175.8k
Christopher Tovey
Chief Operating Officer7.3yrsUS$763.06k0.0014% $50.4k
Stephen Schultz
Vice President of Investor Relations6.9yrsno datano data
Tina St. Leger
Chief Human Resources Officer0.6yrsno datano data
Ben Whalley
Head of Discovery Research2.8yrsno datano data
Darren Cline
U.S. Chief Commercial Officer0.8yrsno datano data

2.8yrs

Average Tenure

54yo

Average Age

Experienced Management: GWPH's management team is considered experienced (2.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Geoffrey Guy
Founder & Chairman22.1yrsUS$8.75m1.87% $69.9m
Justin Gover
CEO & Executive Director21.1yrsUS$565.98k0.69% $25.7m
Cabot Brown
Independent Director7yrsUS$330.72k0.065% $2.4m
James Noble
Deputy Chairman & Senior Independent Director13.1yrsUS$332.72k0.0074% $276.5k
Thomas Lynch
Non-Executive Director9.6yrsUS$240.72kno data
William Waldegrave
Independent Director2.2yrsUS$428.35kno data
Catherine Mackey
Independent Director2.2yrsUS$432.86k0.0048% $178.4k
Alicia Secor
Independent Director2.2yrsUS$430.29k0.0048% $178.4k

8.3yrs

Average Tenure

61.5yo

Average Age

Experienced Board: GWPH's board of directors are considered experienced (8.3 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 been diluted in the past year, with total shares outstanding growing by 16.6%.


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$3.732b
  • 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 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 Analysis2020/02/25 01:09
End of Day Share Price2020/02/24 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.