NasdaqGS:NGM

Stock Analysis Report

Executive Summary

NGM Biopharmaceuticals, Inc., a clinical-stage biopharmaceutical company, engages in the discovery and development of novel therapeutics for the treatment of cardio-metabolic, liver, oncologic, and ophthalmic diseases.

Snowflake

Fundamentals

Flawless balance sheet and overvalued.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

0.9%

NGM

0.2%

US Pharmaceuticals

0.4%

US Market


1 Year Return

n/a

NGM

-4.9%

US Pharmaceuticals

13.1%

US Market

Return vs Industry: Insufficient data to determine how NGM performed against the US Pharmaceuticals industry.

Return vs Market: Insufficient data to determine how NGM performed against the US Market.


Shareholder returns

NGMIndustryMarket
7 Day0.9%0.2%0.4%
30 Day29.9%2.1%4.0%
90 Day-13.1%3.9%7.4%
1 Yearn/a-2.5%-4.9%15.6%13.1%
3 Yearn/a21.7%13.0%48.2%38.6%
5 Yearn/a18.8%6.2%62.6%44.6%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is NGM Biopharmaceuticals undervalued compared to its fair value and its price relative to the market?

2.53x

Price to Book (PB) ratio


Share Price vs. Fair Value

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

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


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: NGM is good value based on its PB Ratio (2.5x) compared to the US Pharmaceuticals industry average (2.8x).


Next Steps

Future Growth

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

-32.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

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

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

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

Revenue vs Market: NGM's revenue is expected to decline over the next 3 years (-9.2% per year).

High Growth Revenue: NGM's revenue is forecast to decline over the next 3 years (-9.2% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

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


Next Steps

Past Performance

How has NGM Biopharmaceuticals performed over the past 5 years?

25.4%

Last years earnings growth


Earnings and Revenue History

Quality Earnings: Insufficient data to determine if NGM has high quality earnings.

Growing Profit Margin: NGM's current net profit margins (-10.6%) are higher than last year (-20.9%).


Past Earnings Growth Analysis

Earnings Trend: Insufficient data to determine if NGM's year-on-year earnings growth rate was positive over the past 5 years.

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

Earnings vs Industry: NGM is unprofitable, making it difficult to compare its past year earnings growth to the Pharmaceuticals industry (21.3%).


Return on Equity

High ROE: NGM has a negative Return on Equity (-3.74%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is NGM Biopharmaceuticals's financial position?


Financial Position Analysis

Short Term Liabilities: NGM's short term assets ($364.3M) exceeds its short term liabilities ($40.5M)

Long Term Liabilities: NGM's short term assets (364.3M) exceeds its long term liabilities (11.0M)


Debt to Equity History and Analysis

Debt Level: NGM is debt free.

Reducing Debt: NGM has not had any debt for past 5 years.


Balance Sheet

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

Debt Coverage by Assets: Insufficient data to determine if NGM's debt is covered by short term assets.


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: NGM has sufficient cash runway for more than 3 years based on its current free cash flow.

Forecast Cash Runway: NGM has sufficient cash runway for more than 3 years if free cash flow continues to grow at historical rates of 5.2% each year


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage2.8%forecastin3Years0%

Current dividend yield vs market & industry

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

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

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

1.2yrs

Average management tenure


CEO

David Woodhouse (48yo)

1.2yrs

Tenure

0

Dr. David J. Woodhouse, Ph.D. had served as the Chief Financial Officer of NGM Biopharmaceuticals, Inc. since March 2, 2015 until September 2018 and serves as its Chief Executive Officer, Acting Chief Fina ...


Management Age and Tenure

1.2yrs

Average Tenure

52.5yo

Average Age

Experienced Management: NGM's management team is not considered experienced ( 1.2 years average tenure), which suggests a new team.


Board Age and Tenure

10.8yrs

Average Tenure

59yo

Average Age

Experienced Board: NGM's board of directors are seasoned and experienced ( 10.8 years average tenure).


Insider Trading

Insider Buying: NGM insiders have only sold shares in the past 3 months.


Recent Insider Transactions

BuyUS$100,82406 Nov 19
The Column Group LLC
EntityCompany
Shares8,409
Max PriceUS$11.99
SellUS$134,69404 Nov 19
Jin-Long Chen
EntityIndividual
Role
Member of the Board of Directors
Founder
Shares10,986
Max PriceUS$12.26
BuyUS$52,35224 Oct 19
The Column Group LLC
EntityCompany
Shares4,387
Max PriceUS$12.00
BuyUS$982,60321 Oct 19
The Column Group LLC
EntityCompany
Shares84,939
Max PriceUS$11.94
BuyUS$1,061,93016 Oct 19
The Column Group LLC
EntityCompany
Shares103,000
Max PriceUS$10.36
BuyUS$555,29311 Oct 19
The Column Group LLC
EntityCompany
Shares53,172
Max PriceUS$10.57
BuyUS$3,145,29409 Aug 19
Ponoi Capital
EntityCompany
Shares224,664
Max PriceUS$14.00
BuyUS$85,72707 Aug 19
Ponoi Capital
EntityCompany
Shares6,134
Max PriceUS$13.98
BuyUS$61,24405 Aug 19
Ponoi Capital
EntityCompany
Shares4,382
Max PriceUS$13.98
BuyUS$383,92231 Jul 19
Ponoi Capital
EntityCompany
Shares28,056
Max PriceUS$13.91
BuyUS$1,212,43026 Jul 19
Ponoi Capital
EntityCompany
Shares89,866
Max PriceUS$13.59
BuyUS$913,91523 Jul 19
Ponoi Capital
EntityCompany
Shares67,742
Max PriceUS$13.99
BuyUS$275,60317 Jul 19
Ponoi Capital
EntityCompany
Shares20,088
Max PriceUS$13.86
BuyUS$442,51615 Jul 19
Ponoi Capital
EntityCompany
Shares31,884
Max PriceUS$13.88
BuyUS$168,65026 Jun 19
Ponoi Capital
EntityCompany
Shares12,240
Max PriceUS$13.78
BuyUS$477,84921 Jun 19
Ponoi Capital
EntityCompany
Shares34,377
Max PriceUS$14.03
BuyUS$418,18414 Jun 19
Ponoi Capital
EntityCompany
Shares29,760
Max PriceUS$14.13
BuyUS$322,89411 Jun 19
Ponoi Capital
EntityCompany
Shares23,500
Max PriceUS$13.83
BuyUS$337,64906 Jun 19
Ponoi Capital
EntityCompany
Shares25,200
Max PriceUS$13.40
BuyUS$675,00022 May 19
Ponoi Capital
EntityCompany
Shares50,000
Max PriceUS$13.50
BuyUS$248,23413 May 19
Ponoi Capital
EntityCompany
Shares17,923
Max PriceUS$13.85
BuyUS$803,70009 May 19
Ponoi Capital
EntityCompany
Shares57,000
Max PriceUS$14.10
BuyUS$320,00010 Apr 19
Peter Svennilson
EntityIndividual
Role
Member of the Board of Directors
Director
Shares20,000
Max PriceUS$16.00
BuyUS$30,000,00010 Apr 19
Ponoi Capital
EntityCompany
Shares1,875,000
Max PriceUS$16.00
BuyUS$240,00010 Apr 19
Timothy Kutzkey
EntityIndividual
Shares15,000
Max PriceUS$16.00
BuyUS$112,00010 Apr 19
Suzanne Hooper
EntityIndividual
Shares7,000
Max PriceUS$16.00
BuyUS$65,946,92809 Apr 19
Merck & Co., Inc.
EntityCompany
Shares4,121,683
Max PriceUS$16.00

Ownership Breakdown

Dilution of Shares: Shareholders have been substantially diluted in the past year, with total shares outstanding growing by 467.1%.


Management Team

  • Bill Rieflin (59yo)

    Executive Chairman of the Board of Directors

    • Tenure: 1.2yrs
    • Compensation: US$1.81m
  • Jin-Long Chen (56yo)

    Founder

    • Tenure: 11.8yrs
    • Compensation: US$1.65m
  • Valerie Pierce (56yo)

    Senior VP

    • Tenure: 0.08yrs
  • Alex DePaoli

    Chief Translational Officer & Senior VP

    • Tenure: 0yrs
  • Hsiao Lieu (49yo)

    Chief Medical Officer & Senior VP

    • Tenure: 0.7yrs
  • Hui Tian

    Senior Vice President of Research

    • Tenure: 0yrs
  • Aetna Trombley (40yo)

    President & COO

    • Tenure: 1.2yrs
  • David Shen

    Senior Vice President of Biologics and CMC

    • Tenure: 0yrs
  • David Woodhouse (48yo)

    CEO, Acting CFO & Director

    • Tenure: 1.2yrs

Board Members

  • Mark Leschly (50yo)

    Director

    • Tenure: 11.8yrs
  • Mac Tichenor (64yo)

    Director

    • Tenure: 9.7yrs
  • David Goeddel (67yo)

    Lead Independent Director

    • Tenure: 1.2yrs
  • Bill Rieflin (59yo)

    Executive Chairman of the Board of Directors

    • Tenure: 1.2yrs
    • Compensation: US$1.81m
  • Michael Brown (78yo)

    Chairman of the Scientific Advisory Board

    • Tenure: 0yrs
  • Joseph Goldstein (79yo)

    Member of the Scientific Advisory Board

    • Tenure: 0yrs
  • David Schnell (59yo)

    Director

    • Tenure: 11.8yrs
  • Peter Svennilson (57yo)

    Director

    • Tenure: 11.8yrs
  • Jin-Long Chen (56yo)

    Founder

    • Tenure: 11.8yrs
    • Compensation: US$1.65m
  • David Woodhouse (48yo)

    CEO, Acting CFO & Director

    • Tenure: 1.2yrs

Company Information

NGM Biopharmaceuticals, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: NGM Biopharmaceuticals, Inc.
  • Ticker: NGM
  • Exchange: NasdaqGS
  • Founded: 2007
  • Industry: Pharmaceuticals
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: US$855.314m
  • Shares outstanding: 66.05m
  • Website: https://www.ngmbio.com

Number of Employees


Location

  • NGM Biopharmaceuticals, Inc.
  • 333 Oyster Point Boulevard
  • South San Francisco
  • California
  • 94080
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NGMNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDApr 2019
0IKDB (Deutsche Boerse AG)YesCommon StockDEEURApr 2019

Biography

NGM Biopharmaceuticals, Inc., a clinical-stage biopharmaceutical company, engages in the discovery and development of novel therapeutics for the treatment of cardio-metabolic, liver, oncologic, and ophthal ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/14 00:59
End of Day Share Price2019/11/13 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.