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Loxo Oncology

Nasdaq:LOXO
Snowflake Description

Flawless balance sheet with weak fundamentals.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
LOXO
Nasdaq
$7B
Market Cap
  1. Home
  2. US
  3. Pharmaceuticals & Biotech
Company description

Loxo Oncology, Inc., a biopharmaceutical company, develops and sells medicines for patients with genetically defined cancers in the United States. The last earnings update was 104 days ago. More info.


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  • Loxo Oncology has significant price volatility in the past 3 months.
LOXO Share Price and Events
7 Day Returns
-0%
NasdaqGM:LOXO
3.1%
US Biotechs
2.3%
US Market
1 Year Returns
117.9%
NasdaqGM:LOXO
-1.9%
US Biotechs
0.9%
US Market
LOXO Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Loxo Oncology (LOXO) -0% 0.5% 56.3% 117.9% 1120.9% -
US Biotechs 3.1% 0.5% 8.8% -1.9% 17% 5.9%
US Market 2.3% 4.2% 5.6% 0.9% 43.6% 40.9%
1 Year Return vs Industry and Market
  • LOXO outperformed the Biotechs industry which returned -1.9% over the past year.
  • LOXO outperformed the Market in United States of America which returned 0.9% over the past year.
Price Volatility
LOXO
Industry
5yr Volatility vs Market
Related Companies

Value

 Is Loxo Oncology undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Loxo Oncology to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data    Our calculation method for this is changing soon.

Below are the data sources, inputs and calculation used to determine the intrinsic value for Loxo Oncology.

NasdaqGM:LOXO Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Extrapolated from most recent financials. See below
Discount Rate (Cost of Equity) See below 13.1%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NasdaqGM:LOXO
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 7.3%
Biotechs Unlevered Beta Simply Wall St/ S&P Global 1.43
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.429 (1 + (1- 21%) (0%))
1.429
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.43
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.429 * 7.27%)
13.12%

Discounted Cash Flow Calculation for NasdaqGM:LOXO using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Loxo Oncology is arrived at by discounting future cash flows to their present value using the 2 stage method. We use analyst's estimates of cash flows going forward 5 years for the 1st stage, the 2nd stage assumes the company grows at a stable rate into perpetuity.

NasdaqGM:LOXO DCF 1st Stage: Next 5 year cash flow forecast
2019 2020 2021 2022 2023
Levered FCF (USD, Millions) 172.31 205.05 241.95 283.09 328.38
Source Est @ 20%, capped from 202.12% Est @ 19%, capped from 202.12% Est @ 18%, capped from 202.12% Est @ 17%, capped from 202.12% Est @ 16%, capped from 202.12%
Present Value
Discounted (@ 13.12%)
152.33 160.25 167.17 172.90 177.31
Present value of next 5 years cash flows $829.96
NasdaqGM:LOXO DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2023 × (1 + g) ÷ (Discount Rate – g)
= $328.38 × (1 + 2.73%) ÷ (13.12% – 2.73%)
$3,247.74
Present Value of Terminal Value = Terminal Value ÷ (1 + r)5
= $3,247.74 ÷ (1 + 13.12%)5
$1,753.64
NasdaqGM:LOXO Total Equity Value
Calculation Result
Total Equity Value = Present value of next 5 years cash flows + Terminal Value
= $829.96 + $1,753.64
$2,583.60
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $2,583.60 / 30.75
$84.01
NasdaqGM:LOXO Discount to Share Price
Calculation Result
Value per share (USD) From above. $84.01
Current discount Discount to share price of $234.66
= -1 x ($234.66 - $84.01) / $84.01
-179.3%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Loxo Oncology is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Loxo Oncology's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Loxo Oncology's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NasdaqGM:LOXO PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-09-30) in USD $-2.09
NasdaqGM:LOXO Share Price ** NasdaqGM (2019-02-14) in USD $234.66
United States of America Biotechs Industry PE Ratio Median Figure of 34 Publicly-Listed Biotechs Companies 22.4x
United States of America Market PE Ratio Median Figure of 3,044 Publicly-Listed Companies 17.23x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Loxo Oncology.

NasdaqGM:LOXO PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGM:LOXO Share Price ÷ EPS (both in USD)

= 234.66 ÷ -2.09

-112.4x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Loxo Oncology is loss making, we can't compare its value to the US Biotechs industry average.
  • Loxo Oncology is loss making, we can't compare the value of its earnings to the United States of America market.
Price based on expected Growth
Does Loxo Oncology's expected growth come at a high price?
Raw Data
NasdaqGM:LOXO PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section -112.4x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 0 Analysts
Not available
United States of America Biotechs Industry PEG Ratio Median Figure of 27 Publicly-Listed Biotechs Companies 1.96x
United States of America Market PEG Ratio Median Figure of 2,118 Publicly-Listed Companies 1.41x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for Loxo Oncology, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Loxo Oncology's assets?
Raw Data
NasdaqGM:LOXO PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-09-30) in USD $12.41
NasdaqGM:LOXO Share Price * NasdaqGM (2019-02-14) in USD $234.66
United States of America Biotechs Industry PB Ratio Median Figure of 405 Publicly-Listed Biotechs Companies 3.22x
United States of America Market PB Ratio Median Figure of 5,132 Publicly-Listed Companies 1.85x
NasdaqGM:LOXO PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGM:LOXO Share Price ÷ Book Value per Share (both in USD)

= 234.66 ÷ 12.41

18.91x

* Primary Listing of Loxo Oncology.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Loxo Oncology is overvalued based on assets compared to the US Biotechs industry average.
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Value checks
We assess Loxo Oncology's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Biotechs industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Biotechs industry average (and greater than 0)? (1 check)
  5. Loxo Oncology has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Loxo Oncology expected to perform in the next 1 to 3 years based on estimates from 0 analysts?

In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Loxo Oncology has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by Simply Wall St do have past financial data. You can see them here.

Show me the analysis anyway

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
19.6%
Expected Biotechs industry annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Loxo Oncology expected to grow at an attractive rate?
  • Unable to compare Loxo Oncology's earnings growth to the low risk savings rate as no estimate data is available.
Growth vs Market Checks
  • Unable to compare Loxo Oncology's earnings growth to the United States of America market average as no estimate data is available.
  • Unable to compare Loxo Oncology's revenue growth to the United States of America market average as no estimate data is available.
Annual Growth Rates Comparison
Raw Data
NasdaqGM:LOXO Future Growth Rates Data Sources
Data Point Source Value (per year)
United States of America Biotechs Industry Earnings Growth Rate Market Cap Weighted Average 19.6%
United States of America Biotechs Industry Revenue Growth Rate Market Cap Weighted Average 14.7%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 12.7%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.1%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NasdaqGM:LOXO Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (4 months ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NasdaqGM:LOXO Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2018-12-31 180 -70 6
NasdaqGM:LOXO Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2018-09-30 145 234 -63
2018-06-30 102 233 -109
2018-03-31 60 244 -128
2017-12-31 21 108 -149
2017-09-30 -128 -155
2017-06-30 -80 -100
2017-03-31 -68 -85
2016-12-31 -51 -72
2016-09-30 -47 -58
2016-06-30 -40 -49
2016-03-31 -34 -41
2015-12-31 -30 -36

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Unable to determine if Loxo Oncology is high growth as no earnings estimate data is available.
  • Unable to determine if Loxo Oncology is high growth as no revenue estimate data is available.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NasdaqGM:LOXO Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (4 months ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below

All data from Loxo Oncology Company Filings, last reported 4 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGM:LOXO Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2018-12-31 -2.17 -1.71 -2.59 6.00
NasdaqGM:LOXO Past Financials Data
Date (Data in USD Millions) EPS *
2018-09-30 -2.09
2018-06-30 -3.64
2018-03-31 -4.39
2017-12-31 -5.31
2017-09-30 -5.99
2017-06-30 -4.18
2017-03-31 -3.80
2016-12-31 -3.46
2016-09-30 -2.90
2016-06-30 -2.62
2016-03-31 -2.34
2015-12-31 -2.12

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Loxo Oncology will efficiently use shareholders’ funds in the future without estimates of Return on Equity.

Next steps:

  1. Examine Loxo Oncology's financial health to determine how well-positioned it is against times of financial stress by looking at its level of debt over time and how much cash it has left.
  2. Loxo Oncology's future outlook can be gauged by looking at industry trends and market size, and determining how well-positioned the company is compared to its competitors. Take a look at other high-growth Pharmaceuticals & Biotech companies here
  3. Loxo Oncology's competitive advantages and company strategy can generally be found in its financial reports archived here.
  4. Use fundamentals to screen for another stock to analyse from our database of over 75,000 companies worldwide
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Future performance checks
We assess Loxo Oncology's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Loxo Oncology has a total score of 0/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Loxo Oncology performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Loxo Oncology's growth in the last year to its industry (Biotechs).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Loxo Oncology does not make a profit and their year on year earnings growth rate was negative over the past 5 years.
  • Unable to compare Loxo Oncology's 1-year earnings growth to the 5-year average as it is not currently profitable.
  • Unable to compare Loxo Oncology's 1-year growth to the US Biotechs industry average as it is not currently profitable.
Earnings and Revenue History
Loxo Oncology's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Loxo Oncology Company Filings, last reported 4 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGM:LOXO Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-09-30 144.80 -62.98 56.49
2018-06-30 102.33 -109.23 50.31
2018-03-31 59.73 -127.91 41.08
2017-12-31 21.30 -148.88 33.66
2017-09-30 -155.44 25.01 -34.92
2017-06-30 -99.81 19.01 -20.69
2017-03-31 -85.33 16.28 -8.36
2016-12-31 -72.40 14.90
2016-09-30 -58.07 14.04 44.68
2016-06-30 -49.15 12.91 36.71
2016-03-31 -41.29 11.51 30.09
2015-12-31 -35.88 10.51
2015-09-30 -30.13 9.89 20.38
2015-06-30 -28.11 8.93 19.28
2015-03-31 -23.98 7.71 16.31
2014-12-31 -20.71 6.18 14.52
2014-09-30 -20.60 4.30 16.25
2013-12-31 -15.45 0.87 14.56

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • It is difficult to establish if Loxo Oncology has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.
  • It is difficult to establish if Loxo Oncology has efficiently used its assets last year compared to the US Biotechs industry average (Return on Assets) as it is loss-making.
  • It is difficult to establish if Loxo Oncology improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.
X
Past performance checks
We assess Loxo Oncology's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Biotechs industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Loxo Oncology has a total score of 0/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Loxo Oncology's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Loxo Oncology's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Loxo Oncology is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Loxo Oncology's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Loxo Oncology's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Loxo Oncology has no debt, it does not need to be covered by short term assets.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Loxo Oncology Company Filings, last reported 4 months ago.

NasdaqGM:LOXO Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-09-30 379.22 0.00 622.00
2018-06-30 392.12 0.00 670.99
2018-03-31 384.42 0.00 710.23
2017-12-31 378.21 0.00 626.20
2017-09-30 394.04 0.00 371.67
2017-06-30 461.25 0.00 467.59
2017-03-31 238.96 0.00 240.32
2016-12-31 130.17 0.00 139.31
2016-09-30 154.81 0.00 155.54
2016-06-30 169.43 0.00 171.74
2016-03-31 145.15 0.00 144.84
2015-12-31 154.61 0.00 153.89
2015-09-30 93.86 0.00 93.42
2015-06-30 101.47 0.00 101.80
2015-03-31 107.56 0.00 97.95
2014-12-31 112.67 0.00 106.29
2014-09-30 119.35 0.00 118.62
2013-12-31 14.61 0.00 14.99
  • Loxo Oncology has no debt.
  • Loxo Oncology has not taken on any debt in the past 5 years.
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.

  • Whilst loss making Loxo Oncology has sufficient cash runway for more than 3 years if it maintains the current positive free cash flow level.
  • Whilst loss making Loxo Oncology has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by -91% per year.
X
Financial health checks
We assess Loxo Oncology's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Loxo Oncology has a total score of 6/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from Loxo Oncology dividends.
If you bought $2,000 of Loxo Oncology shares you are expected to receive $0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate Loxo Oncology's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Loxo Oncology's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NasdaqGM:LOXO Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
Global Biotechs Industry Average Dividend Yield Market Cap Weighted Average of 22 Stocks 2.4%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2000 Stocks 2.5%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.6%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NasdaqGM:LOXO Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2018-12-31 0.00 2.00

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as Loxo Oncology has not reported any payouts.
  • Unable to verify if Loxo Oncology's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Loxo Oncology's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Loxo Oncology has not reported any payouts.
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess Loxo Oncology's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Loxo Oncology afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Loxo Oncology has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Josh Bilenker
COMPENSATION $3,914,458
AGE 46
TENURE AS CEO 5.7 years
CEO Bio

Dr. Joshua H. Bilenker, also known as Josh, MD, serves as an Operating Partner at Aisling Capital LLC since November 2013. Dr. Bilenker has been the Chief Executive Officer at Loxo Oncology, Inc., since June 2013, which he founded in May 2013. He was the President of Loxo Oncology, Inc until February 15, 2019. He joined Aisling Capital LLC in April 2006. He previously served as a Principal at the firm. Dr. Bilenker served as the Chief Financial Officer and Principal Accounting Officer at Loxo Oncology, Inc. Prior to Aisling Capital LLC, he served as a Medical Officer in the Office of Oncology Drug Products at the United States Food and Drug Administration (FDA) from August 2004 to April 2006. While at the FDA, Dr. Bilenker conducted clinical reviews of IND-stage and licensed biologic oncology products. He has been a Director of Gossamer Bio, Inc. since December 14, 2018. He was a Director of NCCN Foundation at National Comprehensive Cancer Network since August 2012. He was a Director at Loxo Oncology, Inc. since June 2013 until February 15, 2019. He serves as a Director of Seachaid Pharmaceuticals, Inc. He served as a Director of T2 Biosystems, Inc. from August 10, 2011 to January 17, 2017. He served as a Director of BioEnterprise Corporation until February 13, 2017. Dr. Bilenker served as a Director of ViewRay, Inc. since January 2008 until June 19, 2017 and served as its Independent Director since January 2008 to October 19, 2015. He served as a Director of Roka Bioscience, Inc. from December 2011 to March 2015. Dr. Bilenker also served as a Director of LENSAR, Inc. He served as a Board Observer of Aragon Pharmaceuticals. Dr. Bilenker has extensive service as a Director or Officer and as an Investor in, other healthcare companies. He trained at the University of Pennsylvania in Internal Medicine and Medical Oncology, earned board certification in these specialties. He received an M.D. from The Johns Hopkins School of Medicine. He holds an A.B. in English, awarded summa cum laude from Princeton University.

CEO Compensation
  • Josh's compensation has been consistent with company performance over the past year.
  • Josh's remuneration is lower than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Loxo Oncology management team in years:

1.1
Average Tenure
46
Average Age
  • The average tenure for the Loxo Oncology management team is less than 2 years, this suggests a new team.
Management Team

Josh Bilenker

TITLE
Founder & CEO
COMPENSATION
$4M
AGE
46
TENURE
5.7 yrs

Jennifer Burstein

TITLE
Senior Vice President of Finance
COMPENSATION
$786K
AGE
46

Jake Van Naarden

TITLE
Chief Operating Officer
COMPENSATION
$2M
AGE
33
TENURE
0.1 yrs

Lori Kunkel

TITLE
Consultant
COMPENSATION
$594K
AGE
60

Darren Carroll

TITLE
President & Director

Jennifer Kronick

TITLE
Vice President of Human Resources
TENURE
1.1 yrs

Nisha Nanda

TITLE
Chief Development Officer
AGE
43
TENURE
2.1 yrs

Katie Cairati

TITLE
Head of Regulatory Affairs & Executive Director
TENURE
0.1 yrs

Phil Johnson

TITLE
Vice President

Bronwen Mantlo

TITLE
Secretary
Board of Directors Tenure

Average tenure of the Loxo Oncology board of directors in years:

5.3
Average Tenure
  • The tenure for the Loxo Oncology board of directors is about average.
Board of Directors

Katie Cairati

TITLE
Head of Regulatory Affairs & Executive Director
TENURE
0.1 yrs

Phil Johnson

TITLE
Vice President

Keith Flaherty

TITLE
Chairman of Scientific Advisory Board
COMPENSATION
$660K
AGE
47
TENURE
5.3 yrs

Darren Carroll

TITLE
President & Director

Ross Levine

TITLE
Member of Scientific Advisory Board
AGE
46
TENURE
5.3 yrs

Ben Ho Park

TITLE
Member of Scientific Advisory Board
TENURE
5.3 yrs

David Solit

TITLE
Member of Scientific Advisory Board
TENURE
5.3 yrs

Pasi Janne

TITLE
Member of Scientific Advisory Board

Gordon Brooks

TITLE
Director
Who owns this company?
Recent Insider Trading
  • More shares have been bought than sold by Loxo Oncology insiders in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
17. Dec 18 Buy Avi Naider Individual 13. Dec 18 13. Dec 18 725 $138.92 $100,716
12. Jul 18 Sell Aisling Capital LLC Company 10. Jul 18 10. Jul 18 -1,400,000 $179.43 $-251,202,000
X
Management checks
We assess Loxo Oncology's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Loxo Oncology has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Who Has Been Buying Loxo Oncology, Inc. (NASDAQ:LOXO) Shares?

We often see insiders buying up shares in companies that perform well over the long term. … So we'll take a look at whether insiders have been buying or selling shares in Loxo Oncology, Inc. … The Last 12 Months Of Insider Transactions At Loxo Oncology.

Simply Wall St -

When Will Loxo Oncology Inc (NASDAQ:LOXO) Become Profitable?

Loxo Oncology Inc's (NASDAQ:LOXO):. … The US$5.32b market-cap posted a loss in its most recent financial year of -US$148.88m and a latest trailing-twelve-month loss of -US$127.91m shrinking the gap between loss and breakeven. … See our latest analysis for Loxo Oncology

Simply Wall St -

Loxo Oncology Inc (NASDAQ:LOXO): Should The Recent Earnings Drop Worry You?

Investors with a long-term horizong may find it valuable to assess Loxo Oncology Inc's (NASDAQ:LOXO) earnings trend over time and against its industry benchmark as opposed to simply looking at a sincle earnings announcement at one point in time. … See our latest analysis for Loxo Oncology Commentary On LOXO's Past Performance I use data from the most recent 12 months, which annualizes the most recent half-year data, or in some cases, the latest annual report is already the most recent financial year data. … For Loxo Oncology, its most recent trailing-twelve-month earnings is -US$127.91M, which, relative to the prior year's figure, has become more negative.

Simply Wall St -

Investors Are Undervaluing Loxo Oncology Inc (NASDAQ:LOXO) By 41%

Today, I will calculate the stock's intrinsic value by taking the foreast future cash flows of the company and discounting them back to today's value. … 5-year cash flow forecast 2018 2019 2020 2021 2022 Levered FCF ($, Millions) $262.00 $197.16 $-102.74 $214.70 $791.77 Source Analyst x1 Analyst x2 Analyst x2 Analyst x2 Analyst x2 Present Value Discounted @ 10.51% $237.07 $161.43 $-76.12 $143.93 $480.30 Present Value of 5-year Cash Flow (PVCF)= $947 After calculating the present value of future cash flows in the intial 5-year period we need to calculate the Terminal Value, which accounts for all the future cash flows beyond the first stage. … Terminal Value (TV) = FCF2022 × (1 + g) ÷ (r – g) = $792 × (1 + 2.5%) ÷ (10.5% – 2.5%) = $10,086 Present Value of Terminal Value (PVTV) = TV / (1 + r)5 = $10,086 / ( 1 + 10.5%)5 = $6,118 The total value, or equity value, is then the sum of the present value of the cash flows, which in this case is $7,065.

Simply Wall St -

Breakeven On The Horizon For Loxo Oncology Inc (NASDAQ:LOXO)

Loxo Oncology Inc's (NASDAQ:LOXO): Loxo Oncology, Inc., a biopharmaceutical company, develops and sells medicines for patients with genetically defined cancers in the United States. … In this article, I will touch on the expectations for LOXO’s growth and when analysts expect the company to become profitable. … If this rate turns out to be too aggressive, LOXO may become profitable much later than analysts predict.

Simply Wall St -

What You Must Know About Loxo Oncology Inc's (NASDAQ:LOXO) Financial Health

See our latest analysis for Loxo Oncology Is LOXO’s debt level acceptable? … For Loxo Oncology, investors should not worry about its debt levels because the company has none! … I suggest you continue to research Loxo Oncology to get a more holistic view of the stock by looking at: Future Outlook: What are well-informed industry analysts predicting for LOXO’s future growth?

Simply Wall St -

Company Info

Map
Description

Loxo Oncology, Inc., a biopharmaceutical company, develops and sells medicines for patients with genetically defined cancers in the United States. Its lead product candidate comprises larotrectinib, an oral selective inhibitor of tropomyosin receptor kinase (TRK), which is in adult Phase 1 trial, a pediatric Phase 1/2 trial, and an adult/adolescent Phase 2 trial for the treatment of patients with tumor types, such as lung, head and neck, melanoma, colorectal, sarcoma, and breast cancer. The company’s preclinical programs include LOXO-195, a drug candidate in preclinical development to address predicted acquired resistance mechanisms; RET inhibitor that optimizes potency for rearranged during transfection (RET) fusion proteins, mutations, and anticipated mechanisms of acquired resistance; and FGFR inhibitor that enables potently inhibiting FGFR isoforms comprising four isoforms with tyrosine kinase domains. It has a drug discovery collaboration agreement with Array BioPharma, Inc. to obtain various rights to TRK inhibitor program and oncology targets; strategic partnership with Illumina, Inc. to develop and commercialize a multi-gene panel for broad tumor profiling; and research collaboration agreement with Veracyte, Inc. to develop medicines for patients with genetically defined cancers. Loxo Oncology, Inc. was founded in 2013 and is headquartered in Stamford, Connecticut.

Details
Name: Loxo Oncology, Inc.
LOXO
Exchange: NasdaqGM
Founded: 2013
$7,216,882,414
30,754,634
Website: http://www.loxooncology.com
Address: Loxo Oncology, Inc.
281 Tresser Boulevard,
9th Floor,
Stamford,
Connecticut, 06901,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGM LOXO Common Stock Nasdaq Global Market US USD 01. Aug 2014
DB L95 Common Stock Deutsche Boerse AG DE EUR 01. Aug 2014
BMV LOXO * Common Stock Bolsa Mexicana de Valores MX MXN 01. Aug 2014
Number of employees
Current staff
Staff numbers
96
Loxo Oncology employees.
Industry
Biotechnology
Pharmaceuticals & Biotech
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/02/20 07:52
End of day share price update: 2019/02/14 00:00
Last estimates confirmation: 2019/02/18
Last earnings filing: 2018/11/08
Last earnings reported: 2018/09/30
Last annual earnings reported: 2017/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.