NasdaqCM:HRTX

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Executive Summary

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

Rewards

Trading at 76.6% below our estimate of its fair value

Earnings are forecast to grow 65.6% per year

Risk Analysis

No risks detected for HRTX from our risk checks.


Snowflake Analysis

High growth potential with adequate balance sheet.


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 is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: HRTX's weekly volatility (7%) has been stable over the past year.


Market Performance


7 Day Return

-2.3%

HRTX

2.8%

US Biotechs

1.5%

US Market


1 Year Return

-31.7%

HRTX

27.3%

US Biotechs

22.3%

US Market

Return vs Industry: HRTX underperformed the US Biotechs industry which returned 27.2% over the past year.

Return vs Market: HRTX underperformed the US Market which returned 22.1% over the past year.


Shareholder returns

HRTXIndustryMarket
7 Day-2.3%2.8%1.5%
30 Day1.5%7.8%8.8%
90 Day28.0%17.5%10.8%
1 Year-31.7%-31.7%29.5%27.3%25.1%22.3%
3 Year10.2%10.2%26.5%20.1%49.5%39.6%
5 Year-34.2%-34.2%21.0%12.7%105.8%83.3%

Long-Term 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 ($17.57) is trading below our estimate of fair value ($75.18)

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 US 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 (5.8x) compared to the US Biotechs industry average (3.6x).


Next Steps

Future Growth

How is Heron Therapeutics forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

65.6%

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 (2.2%).

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 (46.4% per year) is forecast to grow faster than the US market (10.2% per year).

High Growth Revenue: HRTX's revenue (46.4% 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?

-11.3%

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 11.3% 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 (-11.8%).


Return on Equity

High ROE: HRTX has a negative Return on Equity (-80.43%), as it is currently unprofitable.


Next Steps

Financial Health

How is Heron Therapeutics's financial position?


Financial Position Analysis

Short Term Liabilities: HRTX's short term assets ($351.0M) exceed its short term liabilities ($97.6M).

Long Term Liabilities: HRTX's short term assets ($351.0M) exceed its long term liabilities ($15.3M).


Debt to Equity History and Analysis

Debt Level: HRTX's debt to equity ratio (2.4%) is considered satisfactory.

Reducing Debt: HRTX's debt to equity ratio has increased from 1.5% to 2.4% 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 sufficient cash runway for more than a year 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.


Next Steps

Dividend

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


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.


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

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

3.9yrs

Average management tenure


CEO

Barry Quart (63 yo)

8.92yrs

Tenure

US$5,870,479

Compensation

Dr. Barry D. Quart, Pharm.D., has been the Chief Executive Officer of Heron Therapeutics, Inc. since 2012 and has been its Director since June 2012. Dr. Quart has been Chairman of Heron Therapeutics, Inc. ...


CEO Compensation Analysis

Compensation vs Market: Barry's total compensation ($USD5.87M) is above average for companies of similar size in the US market ($USD4.20M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Barry Quart
Chairman & CEO8.92yrsUS$5.87m0.098%
$ 1.5m
John Poyhonen
President & Chief Commercial Officer0.17yrUS$4.63m0.020%
$ 310.4k
Kimberly Manhard
Executive VP of Drug Development & Director1.17yrsUS$2.51mno data
David Szekeres
Executive VP & COO0.17yrno data0.0039%
$ 61.1k
Lisa Peraza
VP & Chief Accounting Officer0.17yrno data0.012%
$ 192.6k
Sean Ristine
Vice President of Human Resources5.25yrsno datano data
Thomas Ottoboni
Chief Scientific Officer and Senior VP of Pharmaceutical & Translational Sciences6.42yrsno datano data
Michael Mathews
Senior Vice President of Pain Franchise3.92yrsno datano data
Chris Storgard
Chief Medical Officer2.08yrsno datano data

3.9yrs

Average Tenure

57yo

Average Age

Experienced Management: HRTX's management team is considered experienced (3.9 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Barry Quart
Chairman & CEO8.92yrsUS$5.87m0.098%
$ 1.5m
Kimberly Manhard
Executive VP of Drug Development & Director1.17yrsUS$2.51mno data
Stephen Davis
Independent Director1.17yrsUS$511.27k0%
$ 0
Craig Johnson
Lead Independent Director0.17yrUS$385.25k0.00092%
$ 14.3k
Christian Waage
Independent Director4.5yrsUS$297.80k0.0015%
$ 23.9k

1.2yrs

Average Tenure

59yo

Average Age

Experienced Board: HRTX's board of directors are not considered experienced ( 1.2 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.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

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$1.555b
  • Shares outstanding: 90.86m
  • 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 Analysis2020/12/04 23:12
End of Day Share Price2020/12/04 00:00
Earnings2020/09/30
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.