NasdaqGS:IONS

Stock Analysis Report

Executive Summary

Ionis Pharmaceuticals, Inc. discovers and develops RNA-targeted therapeutics in the United States.

Rewards

Trading at 0.5% below its fair value

Earnings are forecast to grow 13.82% per year

Became profitable this year

Risk Analysis

Has a high level of debt

Shareholders have been diluted in the past year



Snowflake Analysis

Excellent balance sheet with proven track record.


Similar Companies

BioMarin Pharmaceutical

NasdaqGS:BMRN

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-4.2%

IONS

1.2%

US Biotechs

1.2%

US Market


1 Year Return

3.6%

IONS

12.4%

US Biotechs

24.2%

US Market

Return vs Industry: IONS underperformed the US Biotechs industry which returned 10.9% over the past year.

Return vs Market: IONS underperformed the US Market which returned 24.7% over the past year.


Shareholder returns

IONSIndustryMarket
7 Day-4.2%1.2%1.2%
30 Day-2.5%0.2%3.5%
90 Day9.9%17.5%11.7%
1 Year3.6%3.6%13.4%12.4%26.9%24.2%
3 Year36.8%36.8%30.1%25.8%53.0%43.2%
5 Year-17.5%-17.5%2.6%-2.3%75.3%56.0%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Ionis Pharmaceuticals undervalued compared to its fair value and its price relative to the market?

3.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: IONS ($62.06) is trading below our estimate of fair value ($62.39)

Significantly Below Fair Value: IONS is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: IONS is good value based on its PE Ratio (20x) compared to the Biotechs industry average (20.1x).

PE vs Market: IONS is poor value based on its PE Ratio (20.4x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: IONS is poor value based on its PEG Ratio (1.5x)


Price to Book Ratio

PB vs Industry: IONS is overvalued based on its PB Ratio (6.7x) compared to the US Biotechs industry average (3.2x).


Next Steps

Future Growth

How is Ionis Pharmaceuticals forecast to perform in the next 1 to 3 years based on estimates from 19 analysts?

14.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: IONS's forecast earnings growth (13.8% per year) is above the savings rate (1.7%).

Earnings vs Market: IONS's earnings (14.6% per year) are forecast to grow faster than the US market (14.3% per year).

High Growth Earnings: IONS's earnings are forecast to grow, but not significantly.

Revenue vs Market: IONS's revenue (11.1% per year) is forecast to grow faster than the US market (7.5% per year).

High Growth Revenue: IONS's revenue (11.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: IONS's Return on Equity is forecast to be low in 3 years time (3.3%).


Next Steps

  • Explore growth companies in the Pharmaceuticals & Biotech industry.

Past Performance

How has Ionis Pharmaceuticals performed over the past 5 years?

67.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: IONS has high quality earnings.

Growing Profit Margin: IONS became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: IONS has become profitable over the past 5 years, growing earnings by 67.3% per year.

Accelerating Growth: IONS has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: IONS has become profitable in the last year, making it difficult to compare its past year earnings growth to the Biotechs industry (103.3%).


Return on Equity

High ROE: IONS's Return on Equity (26.8%) is considered high.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Ionis Pharmaceuticals's financial position?


Financial Position Analysis

Short Term Liabilities: IONS's short term assets ($2.4B) exceed its short term liabilities ($231.8M).

Long Term Liabilities: IONS's short term assets ($2.4B) exceed its long term liabilities ($1.2B).


Debt to Equity History and Analysis

Debt Level: IONS's debt to equity ratio (43.8%) is considered high.

Reducing Debt: IONS's debt to equity ratio has reduced from 48.2% to 43.8% over the past 5 years.

Debt Coverage: IONS's debt is well covered by operating cash flow (27.9%).

Interest Coverage: IONS earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

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

Debt Coverage by Assets: IONS's debt is covered by short term assets (assets are 3.7x debt).


Next Steps

Dividend

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

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

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

7.0yrs

Average management tenure


CEO

Brett Monia (58yo)

0yrs

Tenure

US$4,275,699

Compensation

Dr. Brett P. Monia, Ph.D., is a Founder of Ionis Pharmaceuticals, Inc. and has been its Chief Executive Officer since 2020. Dr. Monia is Chief Operating Officer of Ionis Pharmaceuticals, Inc. since January ...


CEO Compensation Analysis

Compensation vs Market: Brett's total compensation ($USD4.28M) is below average for companies of similar size in the US market ($USD6.46M).

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


Management Age and Tenure

7.0yrs

Average Tenure

61yo

Average Age

Experienced Management: IONS's management team is seasoned and experienced (7 years average tenure).


Board Age and Tenure

15.9yrs

Average Tenure

66.5yo

Average Age

Experienced Board: IONS's board of directors are seasoned and experienced ( 15.9 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$250,23705 Apr 19
Patrick O'Neil
EntityIndividual
Role
Chief Legal Officer
Senior VP of Legal
Shares3,000
Max PriceUS$84.25
SellUS$796,25820 Mar 19
Joseph Wender
EntityIndividual
Role
Member of the Board of Directors
Director
Shares10,000
Max PriceUS$79.63

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 7.9%.


Management Team

  • Elizabeth Hougen (57yo)

    Senior VP of Finance & CFO

    • Tenure: 7yrs
    • Compensation: US$2.79m
  • Stan Crooke (74yo)

    Founder

    • Tenure: 28.9yrs
    • Compensation: US$7.63m
  • B. Parshall (65yo)

    Senior Strategic Advisor & Director

    • Tenure: 19.3yrs
    • Compensation: US$6.31m
  • C. Bennett (62yo)

    Chief Scientific Officer

    • Compensation: US$958.87k
  • Richard Geary (61yo)

    Senior Vice President of Development

    • Tenure: 11.4yrs
    • Compensation: US$2.97m
  • Brett Monia (58yo)

    Founder

    • Compensation: US$4.28m
  • Patrick O'Neil (45yo)

    Senior VP of Legal

    • Tenure: 7yrs
    • Compensation: US$2.80m
  • D. Walke

    Vice President of Investor Relations

    • Tenure: 7.5yrs
  • Roslyn Patterson

    Vice President of Corporate Communications

    • Eric Swayze

      Senior Vice President of Research


      Board Members

      • Stan Crooke (74yo)

        Founder

        • Tenure: 28.9yrs
        • Compensation: US$7.63m
      • B. Parshall (65yo)

        Senior Strategic Advisor & Director

        • Tenure: 19.3yrs
        • Compensation: US$6.31m
      • Skip Klein (58yo)

        Director

        • Tenure: 14.1yrs
        • Compensation: US$635.14k
      • Joseph Wender (74yo)

        Director

        • Tenure: 26yrs
        • Compensation: US$662.14k
      • Frederick Muto (66yo)

        Director

        • Tenure: 18.8yrs
        • Compensation: US$628.14k
      • Breaux Castleman (79yo)

        Director

        • Tenure: 6.6yrs
        • Compensation: US$635.14k
      • Spencer Berthelsen (67yo)

        Director

        • Tenure: 17.7yrs
        • Compensation: US$663.14k
      • Joseph Loscalzo (68yo)

        Director

        • Tenure: 5.9yrs
        • Compensation: US$643.14k
      • Peter Reikes (58yo)

        Director

        • Tenure: 1.3yrs
        • Compensation: US$1.29m
      • Brett Monia (58yo)

        Founder

        • Compensation: US$4.28m

      Company Information

      Ionis Pharmaceuticals, Inc.'s company bio, employee growth, exchange listings and data sources


      Key Information

      • Name: Ionis Pharmaceuticals, Inc.
      • Ticker: IONS
      • Exchange: NasdaqGS
      • Founded: 1989
      • Industry: Biotechnology
      • Sector: Pharmaceuticals & Biotech
      • Market Cap: US$8.458b
      • Shares outstanding: 140.66m
      • Website: https://www.ionispharma.com

      Number of Employees


      Location

      • Ionis Pharmaceuticals, Inc.
      • 2855 Gazelle Court
      • Carlsbad
      • California
      • 92010
      • United States

      Listings

      TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
      IONSNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDMay 1991
      ISIDB (Deutsche Boerse AG)YesCommon StockDEEURMay 1991
      IONSSWX (SIX Swiss Exchange)YesCommon StockCHCHFMay 1991
      0JDILSE (London Stock Exchange)YesCommon StockGBUSDMay 1991
      IONS *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNMay 1991

      Biography

      Ionis Pharmaceuticals, Inc. discovers and develops RNA-targeted therapeutics in the United States. The company offers SPINRAZA for spinal muscular atrophy (SMA) in pediatric and adult patients; and TEGSEDI, an injection for the treatment of polyneuropathy of hereditary transthyretin-mediated amyloidosis in adults. It is involved in developing neurology products that include IONIS-HTTRx for Huntington’s diseases; and IONIS-SOD1Rx and IONIS-C9Rx for amyotrophic lateral sclerosis and IONIS-MAPTRx for Alzheimer's diseases. The company is also developing severe and rare disease products, such as WAYLIVRA, a treatment for familial chylomicronemia syndrome; WAYLIVRA, a treatment for familial partial lipodystrophy; AKCEA-TTR-LRx for transthyretin amyloidosis and IONIS-GHR-LRx for acromegaly; and IONIS-TMPRSS6-LRx for beta-thalassemia and iron toxicity, IONIS-PKKRx/IONIS-PKK-LRx for hereditary angioedema, and IONIS-ENAC-2.5Rx for cystic fibrosis. In addition, its cardio metabolic and renal drugs include AKCEA-ANGPTL3-LRx for cardio metabolic disorders, IONIS-FXIRx for clotting disorders, AKCEA-APO(a)-LRx and AKCEA-APOCIII-LRx for cardiovascular diseases, and IONIS-DGAT2Rx for nonalcoholic steatohepatitis; IONIS-AGT-LRX for the treatment of resistant hyper tension; and IONIS-FXI-LRx for clotting disorders and IONIS-AZ4-2.5-LRx for cardiovascular diseases. Further, the company develops products for oncology that include IONIS-AR-2.5Rx and danvatirsen for cancers; and IONIS-HBVRx and IONIS-HBV-LRx for hepatitis b virus infection, and IONIS-FB-LRx for compliment meditated disease, and IONIS-JBI1-2.5Rx for gastrointestinal autoimmune diseases. Ionis Pharmaceuticals, Inc. was founded in 1989 and is based in Carlsbad, California. 


      Company Analysis and Financial Data Status

      All financial data provided by Standard & Poor's Capital IQ.
      DataLast Updated (UTC time)
      Company Analysis2020/01/20 23:40
      End of Day Share Price2020/01/17 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.