NasdaqCM:HRTX

Stock Analysis Report

Executive Summary

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

Rewards

Trading at 80.7% below its fair value

Earnings are forecast to grow 69.83% per year

Risk Analysis

Highly volatile share price over past 3 months

Shareholders have been diluted in the past year



Snowflake Analysis

Excellent balance sheet with high growth potential.


Similar Companies

Share Price & News

How has Heron Therapeutics's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: HRTX's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-2.1%

HRTX

0.5%

US Biotechs

0.7%

US Market


1 Year Return

-4.9%

HRTX

14.8%

US Biotechs

18.2%

US Market

Return vs Industry: HRTX underperformed the US Biotechs industry which returned 14.8% over the past year.

Return vs Market: HRTX underperformed the US Market which returned 18.2% over the past year.


Shareholder returns

HRTXIndustryMarket
7 Day-2.1%0.5%0.7%
30 Day19.3%8.0%1.5%
90 Day29.6%14.9%5.0%
1 Year-4.9%-4.9%15.8%14.8%20.8%18.2%
3 Year81.1%81.1%28.1%24.0%45.2%35.8%
5 Year182.5%182.5%8.9%3.8%71.6%52.7%

Price Volatility Vs. Market

How volatile is Heron Therapeutics's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Heron Therapeutics 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: HRTX ($25.62) is trading below our estimate of fair value ($132.97)

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


Price To Earnings Ratio

PE vs Industry: HRTX is unprofitable, so we can't compare its PE Ratio to the Biotechs industry average.

PE vs Market: HRTX 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 HRTX's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: HRTX is overvalued based on its PB Ratio (7.2x) compared to the US Biotechs industry average (3.1x).


Next Steps

Future Growth

How is Heron Therapeutics forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

69.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HRTX is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.7%).

Earnings vs Market: HRTX is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: HRTX's is expected to become profitable in the next 3 years.

Revenue vs Market: HRTX's revenue (44.1% per year) is forecast to grow faster than the US market (7.4% per year).

High Growth Revenue: HRTX's revenue (44.1% 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


Next Steps

Past Performance

How has Heron Therapeutics performed over the past 5 years?

-19.5%

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 -19.5% 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 (103.3%).


Return on Equity

High ROE: HRTX has a negative Return on Equity (-68.8%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Heron Therapeutics's financial position?


Financial Position Analysis

Short Term Liabilities: HRTX's short term assets ($364.1M) exceed its short term liabilities ($96.7M).

Long Term Liabilities: HRTX's short term assets ($364.1M) exceed its long term liabilities ($10.8M).


Debt to Equity History and Analysis

Debt Level: HRTX's debt to equity ratio (1.9%) is considered satisfactory.

Reducing Debt: HRTX's debt to equity ratio has increased from 1.8% to 1.9% over the past 5 years.


Balance Sheet

Inventory Level: HRTX has a low level of unsold assets or inventory.

Debt Coverage by Assets: HRTX's debt is covered by short term assets (assets are 68x 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: HRTX has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: HRTX has sufficient cash runway for 1.525311 years if free cash flow continues to reduce at historical rates of -7.4% each year.


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage2.1%forecastin3Years0%

Current dividend yield vs market & industry

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

High Dividend: Unable to evaluate HRTX'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 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.


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 HRTX's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

3.3yrs

Average management tenure


CEO

Barry Quart (62yo)

6.6yrs

Tenure

US$5,991,297

Compensation

Dr. Barry D. Quart, Pharm.D., has been the Chief Executive Officer of Heron Therapeutics, Inc. since May 02, 2013 and has been its Director since June 2012. He also serves as President at Heron Therapeutic ...


CEO Compensation Analysis

Compensation vs Market: Barry's total compensation ($USD5.99M) is above average for companies of similar size in the US market ($USD3.90M).

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


Management Age and Tenure

3.3yrs

Average Tenure

57.5yo

Average Age

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


Board Age and Tenure

5.9yrs

Average Tenure

58yo

Average Age

Experienced Board: HRTX's board of directors are considered experienced (5.9 years average tenure).


Insider Trading

Insider Buying: HRTX insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$4,999,99507 Oct 19
Tang Capital Management, LLC
EntityCompany
Shares285,714
Max PriceUS$17.50
BuyUS$90,00304 Oct 19
John Poyhonen
EntityIndividual
Role
Member of the Board of Directors
Executive VP
Shares5,143
Max PriceUS$17.50
BuyUS$79,99304 Oct 19
Barry Quart
EntityIndividual
Role
Chief Executive Officer
President
Shares4,571
Max PriceUS$17.50
BuyUS$52,65023 May 19
John Poyhonen
EntityIndividual
Role
Member of the Board of Directors
Executive VP
Shares3,000
Max PriceUS$17.55
BuyUS$25,26216 May 19
Christian Waage
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,400
Max PriceUS$18.04

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 16.1%.


Management Team

  • Paul Blake (71yo)

    Chief Medical Officer

    • Tenure: 2yrs
  • Robert Hoffman (53yo)

    CFO & Senior VP of Finance

    • Tenure: 2.7yrs
    • Compensation: US$1.72m
  • Barry Quart (62yo)

    President

    • Tenure: 6.6yrs
    • Compensation: US$5.99m
  • John Poyhonen (59yo)

    Executive VP

    • Tenure: 5.9yrs
    • Compensation: US$811.31k
  • Tom Ottoboni (60yo)

    Chief Scientific Officer and Senior VP of Pharmaceutical & Translational Sciences

    • Tenure: 5.4yrs
  • Kimberly Manhard (59yo)

    Executive VP of Drug Development & Director

    • Tenure: 0.2yrs
    • Compensation: US$2.43m
  • Mike Mathews (56yo)

    Senior Vice President of Pain Franchise

    • Tenure: 2.9yrs
  • David Szekeres (45yo)

    Senior VP of Business Development

    • Tenure: 3.8yrs
  • Sean Ristine (49yo)

    Vice President of Human Resources

    • Tenure: 4.3yrs
  • Anita Gupta (43yo)

    Senior Vice President of Medical Strategy & Government Affairs

    • Tenure: 2.3yrs

Board Members

  • Steve Davis (58yo)

    Director

    • Tenure: 0.2yrs
    • Compensation: US$22.12k
  • Kevin Tang (52yo)

    Chairman of the Board

    • Tenure: 7.4yrs
    • Compensation: US$255.48k
  • Barry Quart (62yo)

    President

    • Tenure: 6.6yrs
    • Compensation: US$5.99m
  • John Poyhonen (59yo)

    Executive VP

    • Tenure: 5.9yrs
    • Compensation: US$811.31k
  • Kimberly Manhard (59yo)

    Executive VP of Drug Development & Director

    • Tenure: 0.2yrs
    • Compensation: US$2.43m
  • Craig Johnson (57yo)

    Independent Director

    • Tenure: 5.9yrs
    • Compensation: US$365.59k
  • Christian Waage (52yo)

    Independent Director

    • Tenure: 3.5yrs
    • Compensation: US$305.48k

Company Information

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


Key Information

  • Name: Heron Therapeutics, Inc.
  • Ticker: HRTX
  • Exchange: NasdaqCM
  • Founded: 1983
  • Industry: Biotechnology
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: US$2.307b
  • Shares outstanding: 90.05m
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
HRTXNasdaqCM (Nasdaq Capital Market)YesCommon StockUSUSDAug 1987
AXD2DB (Deutsche Boerse AG)YesCommon StockDEEURAug 1987
0J4VLSE (London Stock Exchange)YesCommon StockGBUSDAug 1987

Biography

Heron Therapeutics, Inc., a biotechnology company, engages in developing treatments to address unmet medical needs. The company’s product candidates utilize its proprietary Biochronomer drug delivery techn ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/09 23:30
End of Day Share Price2019/12/09 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.