NasdaqGS:NKTR

Stock Analysis Report

Executive Summary

Nektar Therapeutics develops drug candidates for cancer, auto-immune disease, and chronic pain in the United States.

Snowflake

Fundamentals

Excellent balance sheet and fair value.


Similar Companies

Share Price & News

How has Nektar Therapeutics's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

10.2%

NKTR

2.8%

US Pharmaceuticals

1.8%

US Market


1 Year Return

-64.1%

NKTR

-6.5%

US Pharmaceuticals

7.3%

US Market

Return vs Industry: NKTR underperformed the US Pharmaceuticals industry which returned -6.5% over the past year.

Return vs Market: NKTR underperformed the US Market which returned 7.3% over the past year.


Shareholder returns

NKTRIndustryMarket
7 Day10.2%2.8%1.8%
30 Day-14.2%1.6%-0.7%
90 Day-44.4%0.01%0.06%
1 Year-64.1%-64.1%-4.3%-6.5%9.7%7.3%
3 Year29.2%29.2%19.4%11.0%46.3%36.9%
5 Year34.1%34.1%25.5%12.3%64.5%46.5%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Nektar Therapeutics undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: NKTR ($17.77) is trading below our estimate of fair value ($101.53)

Significantly Undervalued: NKTR is trading below fair value by more than 20%.


Price To Earnings Ratio

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

PE vs Market: NKTR is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

Low PEG Ratio: Insufficient data to calculate NKTR's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: NKTR is good value based on its PB Ratio (2x) compared to the US Pharmaceuticals industry average (2.9x).


Next Steps

Future Growth

How is Nektar Therapeutics forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

32.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

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

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

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

Revenue vs Market: NKTR's revenue (47.4% per year) is forecast to grow faster than the US market (7.3% per year).

High Growth Revenue: NKTR's revenue (47.4% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: NKTR is forecast to be unprofitable in 3 years.


Next Steps

Past Performance

How has Nektar Therapeutics performed over the past 5 years?

41.1%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: NKTR is unprofitable, but has reduced losses over the past 5 years at a rate of 41.1% per year.

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

Earnings vs Industry: NKTR is unprofitable, making it difficult to compare its past year earnings growth to the Pharmaceuticals industry (24.3%).


Return on Equity

High ROE: NKTR has a negative Return on Equity (-27.15%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: NKTR is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: NKTR is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is Nektar Therapeutics's financial position?


Financial Position Analysis

Short Term Liabilities: NKTR's short term assets ($1.6B) exceeds its short term liabilities ($113.4M)

Long Term Liabilities: NKTR's short term assets (1.6B) exceeds its long term liabilities (429.1M)


Debt to Equity History and Analysis

Debt Level: NKTR's debt to equity ratio (15.9%) is considered satisfactory

Reducing Debt: NKTR had negative shareholder equity 5 years ago, but is now positive and has therefore improved.


Balance Sheet

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

Debt Coverage by Assets: NKTR's debt is covered by short term assets (assets are 6.443420x 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: NKTR has sufficient cash runway for more than 3 years based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if NKTR has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.5%markettop25%3.7%industryaverage2.8%forecastin3Years0%

Current dividend yield vs market & industry


Stability and Growth of Payments

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

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

Stable Dividend: Insufficient data to determine if NKTR's dividends per share have been stable in the past.

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

2.8yrs

Average management tenure


CEO

Howard Robin (66yo)

12.8yrs

Tenure

US$13,330,667

Compensation

Mr. Howard W. Robin has been the Chief Executive Officer and the President of Prime Holdings & Investments Inc. since July 2001. Mr. Robin has been the Chief Executive Officer and President of Nektar Thera ...


CEO Compensation Analysis

Compensation vs. Market: Howard's total compensation ($USD13.33M) is about average for companies of similar size in the US market ($USD5.11M).

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


Management Age and Tenure

2.8yrs

Average Tenure

56.5yo

Average Age

Experienced Management: NKTR's management team is considered experienced (2.8 years average tenure).


Board Age and Tenure

9.7yrs

Average Tenure

65yo

Average Age

Experienced Board: NKTR's board of directors are considered experienced (9.7 years average tenure).


Insider Trading

Insider Buying: NKTR insiders have sold more shares than they have bought in the past 3 months.


Recent Insider Transactions

SellUS$45,54024 Sep 19
Jeffrey Ajer
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares2,250
Max PriceUS$20.24
BuyUS$259,20009 Sep 19
Stephen Doberstein
EntityIndividual
Role
Chief Scientific Officer
Chief Scientific Fellow
Shares15,000
Max PriceUS$17.28
SellUS$32,83319 Aug 19
Jillian Thomsen
EntityIndividual
Role
Chief Accounting Officer
Senior VP of Finance & Chief Accounting Officer
Shares1,809
Max PriceUS$18.15
SellUS$227,80119 Aug 19
Howard Robin
EntityIndividual
Role
Chief Executive Officer
CEO, President & Director
Shares12,551
Max PriceUS$18.15
SellUS$69,31519 Aug 19
John Nicholson
EntityIndividual
Shares3,819
Max PriceUS$18.15
SellUS$91,89319 Aug 19
Gilbert Labrucherie
EntityIndividual
Role
Chief Financial Officer
CFO & COO
Shares5,063
Max PriceUS$18.15
SellUS$58,89719 Aug 19
Stephen Doberstein
EntityIndividual
Role
Chief Scientific Officer
Chief Scientific Fellow
Shares3,245
Max PriceUS$18.15
SellUS$60,48118 May 19
Jillian Thomsen
EntityIndividual
Role
Chief Accounting Officer
Senior VP of Finance & Chief Accounting Officer
Shares1,928
Max PriceUS$31.37
SellUS$419,82518 May 19
Howard Robin
EntityIndividual
Role
Chief Executive Officer
CEO, President & Director
Shares13,383
Max PriceUS$31.37
SellUS$118,17118 May 19
Gilbert Labrucherie
EntityIndividual
Role
Chief Financial Officer
CFO & COO
Shares3,767
Max PriceUS$31.37
SellUS$76,82518 May 19
Maninder Hora
EntityIndividual
Shares2,449
Max PriceUS$31.37
SellUS$108,57218 May 19
Stephen Doberstein
EntityIndividual
Role
Chief Scientific Officer
Chief Scientific Fellow
Shares3,461
Max PriceUS$31.37
SellUS$76,64122 Feb 19
Jillian Thomsen
EntityIndividual
Role
Chief Accounting Officer
Senior VP of Finance & Chief Accounting Officer
Shares1,808
Max PriceUS$42.39
SellUS$376,50822 Feb 19
Howard Robin
EntityIndividual
Role
Chief Executive Officer
CEO, President & Director
Shares8,882
Max PriceUS$42.39
SellUS$162,01522 Feb 19
John Nicholson
EntityIndividual
Shares3,822
Max PriceUS$42.39
SellUS$152,26522 Feb 19
Gilbert Labrucherie
EntityIndividual
Role
Chief Financial Officer
CFO & COO
Shares3,592
Max PriceUS$42.39
SellUS$101,14322 Feb 19
Maninder Hora
EntityIndividual
Shares2,386
Max PriceUS$42.39
SellUS$140,31122 Feb 19
Stephen Doberstein
EntityIndividual
Role
Chief Scientific Officer
Chief Scientific Fellow
Shares3,310
Max PriceUS$42.39
SellUS$153,61219 Nov 18
Jillian Thomsen
EntityIndividual
Role
Chief Accounting Officer
Senior VP of Finance & Chief Accounting Officer
Shares4,016
Max PriceUS$38.25
SellUS$586,22019 Nov 18
Howard Robin
EntityIndividual
Role
Chief Executive Officer
CEO, President & Director
Shares15,326
Max PriceUS$38.25
SellUS$228,81219 Nov 18
John Nicholson
EntityIndividual
Shares5,982
Max PriceUS$38.25
SellUS$249,19919 Nov 18
Gilbert Labrucherie
EntityIndividual
Role
Chief Financial Officer
CFO & COO
Shares6,515
Max PriceUS$38.25
SellUS$179,54619 Nov 18
Maninder Hora
EntityIndividual
Shares4,694
Max PriceUS$38.25
SellUS$173,04319 Nov 18
Stephen Doberstein
EntityIndividual
Role
Chief Scientific Officer
Chief Scientific Fellow
Shares4,524
Max PriceUS$38.25

Ownership Breakdown


Management Team

  • Howard Robin (66yo)

    CEO, President & Director

    • Tenure: 12.8yrs
    • Compensation: US$13.33m
  • Gilbert Labrucherie (47yo)

    CFO & COO

    • Tenure: 3.3yrs
    • Compensation: US$5.73m
  • Brian Kotzin (70yo)

    Senior VP of Clinical Development & Head of Immunology Program

    • Tenure: 2.4yrs
  • Steve Doberstein (60yo)

    Chief Scientific Fellow

    • Tenure: 0.8yrs
    • Compensation: US$4.81m
  • Mary Tagliaferri (53yo)

    Chief Medical Officer

    • Tenure: 1.9yrs
  • Jillian Thomsen (53yo)

    Senior VP of Finance & Chief Accounting Officer

    • Tenure: 11.5yrs
    • Compensation: US$6.23m
  • Dorian Hirth

    Senior Vice President of Human Resources and Facilities Operations

    • Tenure: 0yrs
  • Jonathan Zalevsky

    Chief Research & Development Officer

    • Tenure: 0yrs
  • Jennifer Ruddock

    Senior Vice President of Strategy & Corporate Affairs

    • Tenure: 0.8yrs
  • Mark Wilson

    Senior VP

    • Tenure: 3.3yrs

Board Members

  • Karin Eastham (70yo)

    Independent Director

    • Tenure: 1.1yrs
    • Compensation: US$1.14m
  • Rob Chess (62yo)

    Independent Chairman of the Board

    • Tenure: 20.5yrs
    • Compensation: US$741.55k
  • R. Greer (61yo)

    Independent Director

    • Tenure: 9.7yrs
    • Compensation: US$732.55k
  • Roy Whitfield (65yo)

    Lead Independent Director

    • Tenure: 0.8yrs
    • Compensation: US$708.30k
  • Howard Robin (66yo)

    CEO, President & Director

    • Tenure: 12.8yrs
    • Compensation: US$13.33m
  • Lutz Lingnau (76yo)

    Independent Director

    • Tenure: 12.2yrs
    • Compensation: US$715.30k
  • Jeff Ajer (57yo)

    Independent Director

    • Tenure: 2.1yrs
    • Compensation: US$709.05k

Company Information

Nektar Therapeutics's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Nektar Therapeutics
  • Ticker: NKTR
  • Exchange: NasdaqGS
  • Founded: 1990
  • Industry: Pharmaceuticals
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: US$3.115b
  • Shares outstanding: 175.27m
  • Website: https://www.nektar.com

Number of Employees


Location

  • Nektar Therapeutics
  • 455 Mission Bay Boulevard South
  • San Francisco
  • California
  • 94158
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NKTRNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDMay 1994
ITHDB (Deutsche Boerse AG)YesCommon StockDEEURMay 1994
0UNLLSE (London Stock Exchange)YesCommon StockGBUSDMay 1994
NKTR *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNMay 1994

Biography

Nektar Therapeutics develops drug candidates for cancer, auto-immune disease, and chronic pain in the United States. The company develops NKTR-181, an orally-available mu-opioid analgesic molecule, which i ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/17 23:36
End of Day Share Price2019/10/17 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.