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

Fundamentals

High growth potential with adequate balance sheet.

Risks

  • Insmed has significant price volatility in the past 3 months.

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


Market Performance


7 Day Return

5.5%

NasdaqGS:INSM

1.7%

US Biotechs

2.1%

US Market


1 Year Return

-23.6%

NasdaqGS:INSM

-9.1%

US Biotechs

-0.04%

US Market

INSM underperformed the Biotechs industry which returned -8.8% over the past year.

INSM underperformed the Market in United States of America which returned 0.2% over the past year.


Share holder returns

INSMIndustryMarket
7 Day5.5%1.7%2.1%
30 Day-24.2%0.7%-3.2%
90 Day-37.9%2.4%2.8%
1 Year-23.6%-23.6%-8.3%-9.1%2.2%-0.04%
3 Year26.7%26.7%11.9%8.1%41.5%32.3%
5 Year18.2%18.2%5.2%0.3%55.0%37.8%

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 based on future cash flows and its price relative to the stock market?

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Insmed's share price is below the future cash flow value, and at a moderate discount (> 20%).

Insmed's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

Insmed is loss making, we can't compare its value to the US Biotechs industry average.

Insmed is loss making, we can't compare the value of its earnings to the United States of America market.


Price Based on Expected Growth

Unable to calculate PEG ratio for Insmed, we can't assess if its growth is good value.


Price Based on Value of Assets

Insmed is overvalued based on assets compared to the US Biotechs industry average.


Next Steps

Future Growth

How is Insmed expected to perform in the next 1 to 3 years based on estimates from 7 analysts?

73.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Insmed's revenue is expected to grow significantly at over 20% yearly.

Insmed's earnings are expected to grow significantly at over 20% yearly.

Insmed's revenue growth is expected to exceed the United States of America market average.

Insmed's earnings growth is expected to exceed the United States of America market average.

Insmed's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Insmed will efficiently use shareholders’ funds in the future (Return on Equity greater than 20%) as it is not expected to be profitable.


Next Steps

Past Performance

How has Insmed performed over the past 5 years?

-30.4%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Insmed does not make a profit and their year on year earnings growth rate was negative over the past 5 years.

Unable to compare Insmed's 1-year earnings growth to the 5-year average as it is not currently profitable.

Unable to compare Insmed's 1-year growth to the US Biotechs industry average as it is not currently profitable.


Return on Equity

It is difficult to establish if Insmed has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.


Return on Assets

It is difficult to establish if Insmed has efficiently used its assets last year compared to the US Biotechs industry average (Return on Assets) as it is loss-making.


Return on Capital Employed

It is difficult to establish if Insmed improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.


Next Steps

Financial Health

How is Insmed's financial position?


Financial Position Analysis

Insmed is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Insmed's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Insmed's level of debt (91.5%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (13.2% vs 91.5% today).


Balance Sheet

Low level of unsold assets.

Debt is covered by short term assets, assets are 2x 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.

Insmed has sufficient cash runway for 1.9 years based on current free cash flow.

Insmed has sufficient cash runway for 1.7 years if free cash flow continues to grow at historical rates of 31.7% each year.


Next Steps

Dividend

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


Dividend Yield and Payments Analysis

Unable to evaluate Insmed's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate Insmed's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as Insmed has not reported any payouts.

Unable to verify if Insmed's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as Insmed has not reported any payouts.


Future Payout to Shareholders

No need to calculate the sustainability of Insmed's dividends in 3 years as they are not expected to pay a notable one for United States of America.


Next Steps

Management

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

2.9yrs

Average management tenure


CEO

Will Lewis (50yo)

6.9yrs

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

Will's remuneration is higher than average for companies of similar size in United States of America.

Will's compensation has increased whilst company is loss making.


Management Age and Tenure

2.9yrs

Average Tenure

51yo

Average Age

The tenure for the Insmed management team is about average.


Board Age and Tenure

3.5yrs

Average Tenure

63.5yo

Average Age

The tenure for the Insmed board of directors is about average.


Insider Trading

Insmed individual insiders have only sold shares 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
BuyUS$320,21113 Nov 18
Melvin Sharoky
EntityIndividual
Role
Member of the Board of Directors
Director
Shares20,000
Max PriceUS$16.35
BuyUS$253,99302 Nov 18
Steinar Engelsen
EntityIndividual
Role
Member of the Board of Directors
Director
Shares16,085
Max PriceUS$15.79
BuyUS$47,90702 Nov 18
Roger Adsett
EntityIndividual
Role
Senior Key Executive
Chief Commercial Officer
Shares3,000
Max PriceUS$15.97
BuyUS$249,60002 Nov 18
William Lewis
EntityIndividual
Role
Chief Executive Officer
President
Shares15,700
Max PriceUS$15.90

Ownership Breakdown


Management Team

  • Christine Pellizzari (51yo)

    Chief Legal Officer & Corporate Secretary

    • Tenure: 6.1yrs
    • Compensation: US$2.03m
  • Will Lewis (50yo)

    President

    • Tenure: 6.9yrs
    • Compensation: US$5.94m
  • Walter Perkins

    Chief Technology Officer

    • Tenure: 8.7yrs
  • Blaine Davis

    VP & Head of Investor Relations

    • Tenure: 0.0yrs
  • Gene Sullivan (54yo)

    Chief Product Strategy Officer

    • Tenure: 2.3yrs
    • Compensation: US$1.69m
  • S. Schaeffer (51yo)

    Chief People Strategy Officer

    • Tenure: 6.6yrs
    • Compensation: US$1.56m
  • John Soriano (57yo)

    Chief Compliance Officer

    • Tenure: 1.6yrs
  • Roger Adsett (50yo)

    Chief Commercial Officer

    • Tenure: 2.9yrs
    • Compensation: US$2.67m
  • John Goll

    Chief Accounting Officer

    • Tenure: 0.4yrs
  • Paul Streck (55yo)

    • Tenure: 0.6yrs
    • Compensation: US$2.23m

Board Members

  • Steinar Engelsen (68yo)

    Director

    • Tenure: 19.8yrs
    • Compensation: US$225.00k
  • Davie McGirr (65yo)

    Director

    • Tenure: 5.8yrs
    • Compensation: US$225.00k
  • Mel Sharoky (68yo)

    Director

    • Tenure: 18.3yrs
    • Compensation: US$217.00k
  • Al Altomari (60yo)

    Director

    • Tenure: 7.0yrs
    • Compensation: US$230.00k
  • David Brennan (65yo)

    Lead Independent Director

    • Tenure: 0.8yrs
    • Compensation: US$215.80k
  • Will Lewis (50yo)

    President

    • Tenure: 6.9yrs
    • Compensation: US$5.94m
  • Liz Anderson (62yo)

    Director

    • Tenure: 0.8yrs
    • Compensation: US$91.97k
  • Leo Lee (49yo)

    Director

    • Tenure: 1.3yrs
    • 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$1.458b
  • Shares outstanding: 89.21m
  • 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

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 Analysis2019/08/22 23:37
End of Day Share Price2019/08/22 00:00
Earnings2019/06/30
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.