NasdaqGS:INSM

Stock Analysis Report

Executive Summary

Insmed Incorporated, a global biopharmaceutical company, focuses on the development and commercialization of therapies for patients with serious and rare diseases.

Snowflake

High growth potential with mediocre balance sheet.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: INSM has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

3.8%

INSM

3.2%

US Biotechs

0.5%

US Market


1 Year Return

18.6%

INSM

11.1%

US Biotechs

16.1%

US Market

Return vs Industry: INSM exceeded the US Biotechs industry which returned 11.1% over the past year.

Return vs Market: INSM exceeded the US Market which returned 16.1% over the past year.


Shareholder returns

INSMIndustryMarket
7 Day3.8%3.2%0.5%
30 Day10.6%11.1%3.9%
90 Day23.5%9.1%6.6%
1 Year18.6%18.6%12.1%11.1%18.7%16.1%
3 Year38.5%38.5%18.7%14.9%47.2%37.7%
5 Year40.2%40.2%5.4%0.5%61.5%43.7%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Insmed 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: INSM ($20.18) is trading below our estimate of fair value ($53.17)

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


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: INSM is overvalued based on its PB Ratio (5.9x) compared to the US Biotechs industry average (3x).


Next Steps

Future Growth

How is Insmed forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

71.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: INSM is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2.7%).

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

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

Revenue vs Market: INSM's revenue (47.5% per year) is forecast to grow faster than the US market (7.3% per year).

High Growth Revenue: INSM's revenue (47.5% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: INSM is forecast to be unprofitable in 3 years.


Next Steps

Past Performance

How has Insmed performed over the past 5 years?

-28.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: INSM has high quality earnings.

Growing Profit Margin: INSM is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: INSM is unprofitable, and losses have increased over the past 5 years at a rate of -28.7% per year.

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

Earnings vs Industry: INSM is unprofitable, making it difficult to compare its past year earnings growth to the Biotechs industry (86.5%).


Return on Equity

High ROE: INSM has a negative Return on Equity (-96.34%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Insmed's financial position?


Financial Position Analysis

Short Term Liabilities: INSM's short term assets ($595.6M) exceeds its short term liabilities ($85.4M)

Long Term Liabilities: INSM's short term assets ($595.6M) exceeds its long term liabilities (373.7M)


Debt to Equity History and Analysis

Debt Level: INSM's debt to equity ratio (108.9%) is considered high.

Reducing Debt: INSM's debt to equity ratio has increased from 6.7% to 108.9% over the past 5 years.


Balance Sheet

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

Debt Coverage by Assets: INSM's debt is covered by short term assets (assets are 1.8x 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: INSM has sufficient cash runway for more than a year based on its current free cash flow.

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


Next Steps

Dividend

What is Insmed'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 INSM's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

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

Growing Dividend: Insufficient data to determine if INSM'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 INSM'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 Insmed's salary, the management and board of directors tenure and is there insider trading?

6.3yrs

Average management tenure


CEO

Will Lewis (50yo)

7.2yrs

Tenure

US$5,943,159

Compensation

Mr. William H. Lewis, J.D., M.B.A., also known as Will, has been Chief Executive Officer and President at Insmed Incorporated since September 11, 2012 and has been its Chairman of Board since November 6, 2 ...


CEO Compensation Analysis

Compensation vs Market: Will's total compensation ($USD5.94M) is above average for companies of similar size in the US market ($USD3.85M).

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


Management Age and Tenure

6.3yrs

Average Tenure

51yo

Average Age

Experienced Management: INSM's management team is seasoned and experienced (6.3 years average tenure).


Board Age and Tenure

3.8yrs

Average Tenure

62yo

Average Age

Experienced Board: INSM's board of directors are considered experienced (3.8 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

SellUS$415,87426 Jun 19
William Lewis
EntityIndividual
Role
Chief Executive Officer
President
Shares122,316
Max PriceUS$3.40

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 6.1%.


Management Team

  • Christine Pellizzari (51yo)

    Chief Legal Officer & Corporate Secretary

    • Tenure: 6.3yrs
    • Compensation: US$2.03m
  • Will Lewis (50yo)

    President

    • Tenure: 7.2yrs
    • Compensation: US$5.94m
  • Walter Perkins

    Chief Technology Officer

    • Tenure: 8.9yrs
  • Blaine Davis

    Head of Investor Relations & Corporate Communications

    • Tenure: 0yrs
  • S. Schaeffer (51yo)

    Chief People Strategy Officer

    • Tenure: 6.8yrs
    • Compensation: US$1.56m
  • John Soriano (57yo)

    Chief Compliance Officer

    • Tenure: 1.8yrs
  • Roger Adsett (50yo)

    Chief Operating Officer

    • Tenure: 0yrs
    • Compensation: US$2.67m
  • John Goll

    Chief Accounting Officer

    • Tenure: 0.7yrs
  • Drayton Wise

    Senior VP & Head of United States

    • Tenure: 0yrs
  • Paul Streck (55yo)

    • Tenure: 0.8yrs
    • Compensation: US$2.23m

Board Members

  • Steinar Engelsen (68yo)

    Independent Director

    • Tenure: 20yrs
    • Compensation: US$225.00k
  • Davie McGirr (65yo)

    Independent Director

    • Tenure: 6.1yrs
    • Compensation: US$225.00k
  • Mel Sharoky (68yo)

    Independent Director

    • Tenure: 18.5yrs
    • Compensation: US$217.00k
  • Al Altomari (60yo)

    Independent Director

    • Tenure: 7.3yrs
    • Compensation: US$230.00k
  • David Brennan (65yo)

    Lead Independent Director

    • Tenure: 1yrs
    • Compensation: US$215.80k
  • Will Lewis (50yo)

    President

    • Tenure: 7.2yrs
    • Compensation: US$5.94m
  • Clarissa Desjardins (52yo)

    Director

    • Tenure: 0yrs
  • Liz Anderson (62yo)

    Independent Director

    • Tenure: 1yrs
    • Compensation: US$91.97k
  • Leo Lee (49yo)

    Independent Director

    • Tenure: 1.5yrs
    • Compensation: US$190.17k

Company Information

Insmed Incorporated's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Insmed Incorporated
  • Ticker: INSM
  • Exchange: NasdaqGS
  • Founded: 1988
  • Industry: Biotechnology
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: US$1.803b
  • Shares outstanding: 89.34m
  • Website: https://www.insmed.com

Number of Employees


Location

  • Insmed Incorporated
  • Building 10
  • 10 Finderne Avenue
  • Bridgewater
  • New Jersey
  • 8807
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
INSMNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDJun 2000
IM8NDB (Deutsche Boerse AG)YesCommon StockDEEURJun 2000
IM8NBST (Boerse-Stuttgart)YesCommon StockDEEURJun 2000
0JAVLSE (London Stock Exchange)YesCommon StockGBUSDJun 2000
INSM *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNJun 2000

Biography

Insmed Incorporated, a global biopharmaceutical company, focuses on the development and commercialization of therapies for patients with serious and rare diseases. Its first commercial product is ARIKAYCE  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/20 23:37
End of Day Share Price2019/11/20 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.