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

Flawless balance sheet with high growth potential.

Risks

  • Nektar Therapeutics has significant price volatility in the past 3 months.

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

-3.8%

NasdaqGS:NKTR

-0.05%

US Pharmaceuticals

0.9%

US Market


1 Year Return

-70.5%

NasdaqGS:NKTR

-6.7%

US Pharmaceuticals

0.3%

US Market

NKTR underperformed the Pharmaceuticals industry which returned -6.9% over the past year.

NKTR underperformed the Market in United States of America which returned -0.5% over the past year.


Share holder returns

NKTRIndustryMarket
7 Day-3.8%-0.05%0.9%
30 Day-44.1%-1.4%-1.9%
90 Day-46.5%-3.1%1.6%
1 Year-70.5%-70.5%-4.4%-6.7%2.6%0.3%
3 Year0.2%0.2%9.4%2.0%41.0%31.8%
5 Year25.6%25.6%24.0%10.9%55.2%38.0%

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 based on future cash flows and its price relative to the stock market?

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Nektar Therapeutics's share price is below the future cash flow value, and at a moderate discount (> 20%).

Nektar Therapeutics's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

Nektar Therapeutics is loss making, we can't compare its value to the US Pharmaceuticals industry average.

Nektar Therapeutics is loss making, we can't compare the value of its earnings to the United States of America market.


Price Based on Expected Growth

Unable to calculate PEG ratio for Nektar Therapeutics, we can't assess if its growth is good value.


Price Based on Value of Assets

Nektar Therapeutics is good value based on assets compared to the US Pharmaceuticals industry average.


Next Steps

Future Growth

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

32.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Nektar Therapeutics's revenue is expected to grow significantly at over 20% yearly.

Nektar Therapeutics's earnings are expected to grow significantly at over 20% yearly.

Nektar Therapeutics's revenue growth is expected to exceed the United States of America market average.

Nektar Therapeutics's earnings growth is expected to exceed the United States of America market average.

Nektar Therapeutics's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Nektar Therapeutics will efficiently use shareholders’ funds in the future (Return on Equity greater than 20%) as it is not expected to be profitable.


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

Nektar Therapeutics does not make a profit even though their year on year earnings growth rate was positive over the past 5 years.

Unable to compare Nektar Therapeutics's 1-year earnings growth to the 5-year average as it is not currently profitable.

Unable to compare Nektar Therapeutics's 1-year growth to the US Pharmaceuticals industry average as it is not currently profitable.


Return on Equity

It is difficult to establish if Nektar Therapeutics has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.


Return on Assets

It is difficult to establish if Nektar Therapeutics has efficiently used its assets last year compared to the US Pharmaceuticals industry average (Return on Assets) as it is loss-making.


Return on Capital Employed

It is difficult to establish if Nektar Therapeutics improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.


Next Steps

Financial Health

How is Nektar Therapeutics's financial position?


Financial Position Analysis

Nektar Therapeutics is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Nektar Therapeutics's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Nektar Therapeutics's level of debt (15.9%) compared to net worth is satisfactory (less than 40%).

Nektar Therapeutics had negative shareholder equity 5 years ago, it is now positive therefore their debt level has improved.


Balance Sheet

Low level of unsold assets.

Debt is covered by short term assets, assets are 6.4x 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.

Nektar Therapeutics has sufficient cash runway for more than 3 years based on current free cash flow.

Nektar Therapeutics has sufficient cash runway for more than 3 years if free cash flow continues to reduce at historical rates of -71.4% each year.


Next Steps

Dividend

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


Dividend Yield and Payments Analysis

Unable to evaluate Nektar Therapeutics's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate Nektar Therapeutics's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as Nektar Therapeutics has not reported any payouts.

Unable to verify if Nektar Therapeutics's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as Nektar Therapeutics has not reported any payouts.


Future Payout to Shareholders

No need to calculate the sustainability of Nektar Therapeutics's dividends in 3 years as they are not expected to pay a notable one for United States of America.


Next Steps

Management

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

3.2yrs

Average management tenure


CEO

Howard Robin (66yo)

12.6yrs

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

Howard's remuneration is higher than average for companies of similar size in United States of America.

Howard's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

3.2yrs

Average Tenure

56.5yo

Average Age

The tenure for the Nektar Therapeutics management team is about average.


Board Age and Tenure

9.5yrs

Average Tenure

65yo

Average Age

The tenure for the Nektar Therapeutics board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

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
Senior VP & CFO
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
Senior Key Executive
Chief Research & Development Officer
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$162,01522 Feb 19
John Nicholson
EntityIndividual
Role
Chief Operating Officer
Senior VP & COO
Shares3,822
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$152,26522 Feb 19
Gilbert Labrucherie
EntityIndividual
Role
Chief Financial Officer
Senior VP & CFO
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
Senior Key Executive
Chief Research & Development Officer
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
Role
Chief Operating Officer
Senior VP & COO
Shares5,982
Max PriceUS$38.25
SellUS$249,19919 Nov 18
Gilbert Labrucherie
EntityIndividual
Role
Chief Financial Officer
Senior VP & CFO
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
Senior Key Executive
Chief Research & Development Officer
Shares4,524
Max PriceUS$38.25

Ownership Breakdown


Management Team

  • Howard Robin (66yo)

    CEO, President & Director

    • Tenure: 12.6yrs
    • Compensation: US$13.33m
  • Gilbert Labrucherie (47yo)

    Senior VP & CFO

    • Tenure: 3.2yrs
    • Compensation: US$5.73m
  • Steve Doberstein (60yo)

    Chief Research & Development Officer

    • Tenure: 9.6yrs
    • Compensation: US$4.81m
  • Mary Tagliaferri (53yo)

    Chief Medical Officer

    • Tenure: 1.8yrs
  • John Nicholson (67yo)

    Senior VP & COO

    • Tenure: 3.2yrs
    • Compensation: US$7.83m
  • Jillian Thomsen (53yo)

    Senior VP of Finance & Chief Accounting Officer

    • Tenure: 11.3yrs
    • Compensation: US$6.23m
  • Dorian Hirth

    Senior Vice President of Human Resources and Facilities Operations

    • Tenure: 0.0yrs
  • Jonathan Zalevsky

    Chief Scientific Officer

    • Tenure: 1.8yrs
  • Jennifer Ruddock

    Senior Vice President of Strategy & Corporate Affairs

    • Tenure: 0.6yrs
  • Mark Wilson

    Senior VP

    • Tenure: 3.1yrs

Board Members

  • Karin Eastham (70yo)

    Independent Director

    • Tenure: 0.9yrs
    • Compensation: US$1.14m
  • Rob Chess (62yo)

    Chairman of the Board

    • Tenure: 20.3yrs
    • Compensation: US$741.55k
  • R. Greer (61yo)

    Independent Director

    • Tenure: 9.5yrs
    • Compensation: US$732.55k
  • Roy Whitfield (65yo)

    Lead Independent Director

    • Tenure: 0.6yrs
    • Compensation: US$708.30k
  • Howard Robin (66yo)

    CEO, President & Director

    • Tenure: 12.6yrs
    • Compensation: US$13.33m
  • Lutz Lingnau (76yo)

    Independent Director

    • Tenure: 12.0yrs
    • Compensation: US$715.30k
  • Jeff Ajer (57yo)

    Independent Director

    • Tenure: 1.9yrs
    • 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$3.132b
  • 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 Analysis2019/08/19 23:38
End of Day Share Price2019/08/19 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.