NasdaqCM:MTEM

Stock Analysis Report

Executive Summary

Molecular Templates, Inc., a clinical stage oncology company, focuses on the discovery and development of biologic therapeutics for the treatment of cancer and other diseases.

Rewards

Revenue is forecast to grow 18.79% per year

Risk Analysis

Earnings are forecast to decline by an average of -3.1% per year for the next 3 years

Currently unprofitable and not forecast to become profitable over the next 3 years

Highly volatile share price over past 3 months

Shareholders have been diluted in the past year



Snowflake Analysis

Excellent balance sheet with concerning outlook.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: MTEM's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-6.1%

MTEM

-0.6%

US Biotechs

-0.3%

US Market


1 Year Return

178.8%

MTEM

14.9%

US Biotechs

18.6%

US Market

Return vs Industry: MTEM exceeded the US Biotechs industry which returned 14.9% over the past year.

Return vs Market: MTEM exceeded the US Market which returned 18.6% over the past year.


Shareholder returns

MTEMIndustryMarket
7 Day-6.1%-0.6%-0.3%
30 Day33.6%9.4%2.2%
90 Day124.2%14.9%5.6%
1 Year178.8%178.8%15.9%14.9%21.1%18.6%
3 Yearn/a28.1%24.1%45.6%36.2%
5 Yearn/a6.8%1.9%71.1%52.2%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Molecular Templates undervalued compared to its fair value and its price relative to the market?

8.53x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate MTEM's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate MTEM's fair value to establish if it is undervalued.


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: MTEM is overvalued based on its PB Ratio (8.5x) compared to the US Biotechs industry average (3.1x).


Next Steps

Future Growth

How is Molecular Templates forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

-3.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MTEM is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: MTEM is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: MTEM is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: MTEM's revenue (18.8% per year) is forecast to grow faster than the US market (7.4% per year).

High Growth Revenue: MTEM's revenue (18.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if MTEM's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Molecular Templates performed over the past 5 years?

-41.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MTEM is currently unprofitable.

Growing Profit Margin: MTEM is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: MTEM is unprofitable, and losses have increased over the past 5 years at a rate of -41.5% per year.

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

Earnings vs Industry: MTEM is unprofitable, making it difficult to compare its past year earnings growth to the Biotechs industry (103.3%).


Return on Equity

High ROE: MTEM has a negative Return on Equity (-113.5%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Molecular Templates's financial position?


Financial Position Analysis

Short Term Liabilities: MTEM's short term assets ($64.1M) exceed its short term liabilities ($24.1M).

Long Term Liabilities: MTEM's short term assets ($64.1M) exceed its long term liabilities ($16.0M).


Debt to Equity History and Analysis

Debt Level: MTEM's debt to equity ratio (5.7%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if MTEM's debt to equity ratio has reduced over the past 5 years.


Balance Sheet

Inventory Level: MTEM has a high level of physical assets or inventory.

Debt Coverage by Assets: MTEM's debt is covered by short term assets (assets are 21.4x 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: MTEM has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: MTEM has sufficient cash runway for 1.353374 years if free cash flow continues to reduce at historical rates of -27.9% each year.


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage2.1%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate MTEM's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

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

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

2.1yrs

Average management tenure


CEO

Eric Poma (47yo)

10.9yrs

Tenure

US$606,536

Compensation

Dr. Eric E. Poma, Ph.D., is the Chief Executive Officer and Chief Scientific Officer of Molecular Templates, Inc. since 2009 and served as it's President. Dr. Poma served as Vice President of Business Deve ...


CEO Compensation Analysis

Compensation vs Market: Eric's total compensation ($USD0.00) is below average for companies of similar size in the US market ($USD1.71M).

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


Management Age and Tenure

2.1yrs

Average Tenure

45yo

Average Age

Experienced Management: MTEM's management team is considered experienced (2.1 years average tenure).


Board Age and Tenure

2.3yrs

Average Tenure

51.5yo

Average Age

Experienced Board: MTEM's board of directors are not considered experienced ( 2.3 years average tenure), which suggests a new board.


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

BuyUS$7,496,00027 Nov 19
Longitude Capital Management Co., LLC
EntityCompany
Shares937,000
Max PriceUS$8.00
BuyUS$3,750,00025 Nov 19
Caxton Associates LP
EntityCompany
Shares468,750
Max PriceUS$8.00
BuyUS$86,25028 Dec 18
Caxton Associates LP
EntityCompany
Shares25,000
Max PriceUS$3.45

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 35.5%.


Management Team

  • Eric Poma (47yo)

    CEO, Chief Scientific Officer & Director

    • Tenure: 10.9yrs
    • Compensation: US$606.54k
  • Nenad Sarapa

    Senior Vice President of Clinical Development

    • Tenure: 2.1yrs
  • Jason Kim (44yo)

    President & COO

    • Tenure: 9.9yrs
    • Compensation: US$444.74k
  • Adam Cutler (45yo)

    Chief Financial Officer

    • Tenure: 2.1yrs
  • Jack Higgins (39yo)

    Executive VP of Operations & Head of Manufacturing

    • Tenure: 0yrs
  • Erin Willert (37yo)

    Executive Vice President of R&D

    • Tenure: 0yrs
  • Jen-Sing Liu (56yo)

    Executive Vice President of Manufacturing

    • Tenure: 0yrs
  • Roger Waltzman

    Chief Medical Officer

    • Tenure: 0.8yrs
  • Kurt Elster (52yo)

    Executive Vice President of Corporate Development

    • Tenure: 0yrs
  • Conrad Jordaan

    Senior Vice President of Finance & Corporate Controller

    • Tenure: 2.1yrs

Board Members

  • Michel Klein (81yo)

    Member of Scientific Advisory Board

    • Tenure: 0yrs
  • David Hoffmann (74yo)

    Director

    • Tenure: 2.3yrs
  • Barry Selick (65yo)

    Chairman

    • Tenure: 0yrs
  • Kevin Lalande (47yo)

    Director

    • Tenure: 0yrs
  • Eric Poma (47yo)

    CEO, Chief Scientific Officer & Director

    • Tenure: 10.9yrs
    • Compensation: US$606.54k
  • David Hirsch (49yo)

    Director

    • Tenure: 2.3yrs
  • Burkhard Jansen (54yo)

    Member of Scientific Advisory Board

    • Tenure: 0yrs
  • Neil Berinstein

    Member of Scientific Advisory Board

    • Tenure: 0yrs
  • Jonathan Lanfear

    Director

    • Tenure: 1.6yrs
  • Scott Morenstein (43yo)

    Director

    • Tenure: 2.3yrs

Company Information

Molecular Templates, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Molecular Templates, Inc.
  • Ticker: MTEM
  • Exchange: NasdaqCM
  • Founded:
  • Industry: Biotechnology
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: US$532.051m
  • Shares outstanding: 44.64m
  • Website: https://www.mtem.com

Number of Employees


Location

  • Molecular Templates, Inc.
  • 9301 Amberglen Boulevard
  • Suite 100
  • Austin
  • Texas
  • 78729
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MTEMNasdaqCM (Nasdaq Capital Market)YesNew Common SharesUSUSDAug 2017
NZW2DB (Deutsche Boerse AG)YesNew Common SharesDEEURAug 2017

Biography

Molecular Templates, Inc., a clinical stage oncology company, focuses on the discovery and development of biologic therapeutics for the treatment of cancer and other diseases. The company primarily develop ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/08 00:38
End of Day Share Price2019/12/06 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.