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HRTX

Heron Therapeutics NasdaqCM:HRTX Stock Report

Last Price

US$3.57

Market Cap

US$365.9m

7D

30.3%

1Y

-70.1%

Updated

08 Aug, 2022

Data

Company Financials +
HRTX fundamental analysis
Snowflake Score
Valuation4/6
Future Growth2/6
Past Performance0/6
Financial Health2/6
Dividends0/6

HRTX Stock Overview

Heron Therapeutics, Inc., a biotechnology company, engages in developing treatments to address unmet patient needs.

Heron Therapeutics Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Heron Therapeutics
Historical stock prices
Current Share PriceUS$3.57
52 Week HighUS$12.89
52 Week LowUS$2.19
Beta1.33
1 Month Change7.86%
3 Month Change2.00%
1 Year Change-70.10%
3 Year Change-80.25%
5 Year Change-77.33%
Change since IPO-99.22%

Recent News & Updates

Aug 08

Heron Therapeutics Q2 2022 Earnings Preview

Heron Therapeutics (NASDAQ:HRTX) is scheduled to announce Q2 earnings results on Tuesday, August 9th, before market open. The consensus EPS Estimate is -$0.54 (+12.9% Y/Y) and the consensus Revenue Estimate is $24.65M (+10.0% Y/Y). Over the last 3 months, EPS estimates have seen 1 upward revision and 3 downward. Revenue estimates have seen 1 upward revision and 4 downward.

Jun 30

Heron Therapeutics proposes 34% cut in workforce as part of cost reduction plan

Heron Therapeutics (NASDAQ:HRTX) on Thursday said it was planning to reduce its employee headcount by 34% as part of a restructuring and cost reduction plan. The plan also includes reductions and reallocations to the company's overall sales, general and administrative expenses. "To address the current market realities and the macro headwinds facing many commercial-stage biotechnology companies, we are enacting critical plans to protect Heron's long-term sustainability and growth plans," said HRTX CEO Barry Quart. HRTX expects that the restructuring actions will result in annualized cost savings of $43M and enable the company to extend its cash runway. HRTX stock ended 3.3% higher at $3.17 on Wednesday.

Shareholder Returns

HRTXUS BiotechsUS Market
7D30.3%9.0%1.1%
1Y-70.1%-25.9%-13.0%

Return vs Industry: HRTX underperformed the US Biotechs industry which returned -24.5% over the past year.

Return vs Market: HRTX underperformed the US Market which returned -12.9% over the past year.

Price Volatility

Is HRTX's price volatile compared to industry and market?
HRTX volatility
HRTX Average Weekly Movement11.9%
Biotechs Industry Average Movement12.9%
Market Average Movement7.9%
10% most volatile stocks in US Market17.1%
10% least volatile stocks in US Market3.2%

Stable Share Price: HRTX is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 12% a week.

Volatility Over Time: HRTX's weekly volatility (12%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1983302Barry Quarthttps://www.herontx.com

Heron Therapeutics, Inc., a biotechnology company, engages in developing treatments to address unmet patient needs. The company’s product candidates utilize its proprietary Biochronomer, a drug delivery technology, which delivers therapeutic levels of a range of short-acting pharmacological agents over a period from days to weeks with a single administration. It offers SUSTOL (granisetron), an extended-release injection for the prevention of acute and delayed nausea and vomiting associated with moderately emetogenic chemotherapy, or anthracycline and cyclophosphamide combination chemotherapy regimens; and CINVANTI, an intravenous formulation of aprepitant, a substance P/neurokinin-1 receptor antagonist for the prevention of acute and delayed nausea and vomiting associated with highly emetogenic cancer chemotherapy, as well as nausea and vomiting associated with moderately emetogenic cancer chemotherapy.

Heron Therapeutics Fundamentals Summary

How do Heron Therapeutics's earnings and revenue compare to its market cap?
HRTX fundamental statistics
Market CapUS$365.85m
Earnings (TTM)-US$231.96m
Revenue (TTM)US$89.79m

4.1x

P/S Ratio

-1.6x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
HRTX income statement (TTM)
RevenueUS$89.79m
Cost of RevenueUS$182.94m
Gross Profit-US$93.16m
Other ExpensesUS$138.80m
Earnings-US$231.96m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

Aug 09, 2022

Earnings per share (EPS)-2.26
Gross Margin-103.76%
Net Profit Margin-258.35%
Debt/Equity Ratio622.5%

How did HRTX perform over the long term?

See historical performance and comparison
We’ve recently updated our valuation analysis.

Valuation

Is HRTX undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for HRTX?

Other financial metrics that can be useful for relative valuation.

HRTX key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue4.6x
Enterprise Value/EBITDA-1.8x
PEG Ration/a

Price to Sales Ratio vs Peers

How does HRTX's PS Ratio compare to its peers?

HRTX PS Ratio vs Peers
The above table shows the PS ratio for HRTX vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPSEstimated GrowthMarket Cap
Peer Average21.1x
ZYME Zymeworks
12.8x54.0%US$405.2m
VYGR Voyager Therapeutics
7.7x-14.3%US$237.7m
PSTX Poseida Therapeutics
9.4x9.4%US$306.1m
ICVX Icosavax
54.6x6.1%US$348.4m
HRTX Heron Therapeutics
4.1x31.6%US$365.9m

Price-To-Sales vs Peers: HRTX is good value based on its Price-To-Sales Ratio (4.1x) compared to the peer average (21.1x).


Price to Earnings Ratio vs Industry

How does HRTX's PE Ratio compare vs other companies in the US Biotechs Industry?

Price-To-Sales vs Industry: HRTX is good value based on its Price-To-Sales Ratio (4.1x) compared to the US Biotechs industry average (17.1x)


Price to Sales Ratio vs Fair Ratio

What is HRTX's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

HRTX PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio4.1x
Fair PS Ratio1.3x

Price-To-Sales vs Fair Ratio: HRTX is expensive based on its Price-To-Sales Ratio (4.1x) compared to the estimated Fair Price-To-Sales Ratio (1.3x).


Share Price vs Fair Value

What is the Fair Price of HRTX when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: HRTX ($3.22) is trading below our estimate of fair value ($86.53)

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


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.


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Future Growth

How is Heron Therapeutics forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

Future Growth Score

2/6

Future Growth Score 2/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


57.3%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HRTX is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: HRTX is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: HRTX is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: HRTX's revenue (31.6% per year) is forecast to grow faster than the US market (8% per year).

High Growth Revenue: HRTX's revenue (31.6% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if HRTX's Return on Equity is forecast to be high in 3 years time


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Past Performance

How has Heron Therapeutics performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-4.7%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: HRTX is currently unprofitable.

Growing Profit Margin: HRTX is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: HRTX is unprofitable, and losses have increased over the past 5 years at a rate of 4.7% per year.

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

Earnings vs Industry: HRTX is unprofitable, making it difficult to compare its past year earnings growth to the Biotechs industry (40.8%).


Return on Equity

High ROE: HRTX has a negative Return on Equity (-968.18%), as it is currently unprofitable.


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Financial Health

How is Heron Therapeutics's financial position?

Financial Health Score

2/6

Financial Health Score 2/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Stable Cash Runway

  • Forecast Cash Runway

Financial Position Analysis

Short Term Liabilities: HRTX's short term assets ($222.6M) exceed its short term liabilities ($93.0M).

Long Term Liabilities: HRTX's short term assets ($222.6M) exceed its long term liabilities ($156.8M).


Debt to Equity History and Analysis

Debt Level: HRTX's net debt to equity ratio (155.4%) is considered high.

Reducing Debt: HRTX's debt to equity ratio has increased from 51.9% to 622.5% over the past 5 years.


Balance Sheet


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: HRTX has less than a year of cash runway based on its current free cash flow.

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


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Dividend

What is Heron Therapeutics's current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage

Dividend Yield vs Market

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

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

Growing Dividend: Insufficient data to determine if HRTX's dividend payments have been increasing.


Earnings Payout to Shareholders

Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as HRTX has not reported any payouts.


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Management

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

5.6yrs

Average management tenure


CEO

Barry Quart (65 yo)

10.58yrs

Tenure

US$5,430,828

Compensation

Dr. Barry D. Quart, Pharm D., has been the Chief Executive Officer of Heron Therapeutics, Inc. since 2013 and has been its Director since 2013. Dr. Quart has been Chairman of Heron Therapeutics, Inc. since...


CEO Compensation Analysis

Compensation vs Market: Barry's total compensation ($USD5.43M) is above average for companies of similar size in the US market ($USD2.70M).

Compensation vs Earnings: Barry's compensation has increased whilst the company is unprofitable.


Leadership Team

Experienced Management: HRTX's management team is seasoned and experienced (5.6 years average tenure).


Board Members

Experienced Board: HRTX's board of directors are not considered experienced ( 2.8 years average tenure), which suggests a new board.


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

Heron Therapeutics, Inc.'s employee growth, exchange listings and data sources


Key Information

  • Name: Heron Therapeutics, Inc.
  • Ticker: HRTX
  • Exchange: NasdaqCM
  • Founded: 1983
  • Industry: Biotechnology
  • Sector: Pharmaceuticals & Biotech
  • Implied Market Cap: US$365.852m
  • Shares outstanding: 102.48m
  • Website: https://www.herontx.com

Number of Employees


Location

  • Heron Therapeutics, Inc.
  • 4242 Campus Point Court
  • Suite 200
  • San Diego
  • California
  • 92121
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/08/08 00:00
End of Day Share Price2022/08/08 00:00
Earnings2022/03/31
Annual Earnings2021/12/31


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.