NasdaqGS:NXTC

Stock Analysis Report

Executive Summary

NextCure, Inc., a biopharmaceutical company, engages in discovering and developing immunomedicines to treat cancer and other immune-related diseases by restoring normal immune function.

Snowflake

Fundamentals

Excellent balance sheet with limited growth.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-56.5%

NXTC

0.5%

US Biotechs

0.7%

US Market


1 Year Return

n/a

NXTC

6.7%

US Biotechs

12.9%

US Market

Return vs Industry: Insufficient data to determine how NXTC performed against the US Biotechs industry.

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


Shareholder returns

NXTCIndustryMarket
7 Day-56.5%0.5%0.7%
30 Day32.9%10.1%4.4%
90 Day34.4%5.8%7.0%
1 Yearn/a7.6%6.7%15.4%12.9%
3 Yearn/a16.8%13.1%49.1%39.5%
5 Yearn/a6.0%1.0%62.7%44.7%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

4.8x

Price to Book (PB) ratio


Share Price vs. Fair Value

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

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


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: NXTC is overvalued based on its PB Ratio (4.8x) compared to the US Biotechs industry average (2.8x).


Next Steps

Future Growth

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

-29.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

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

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

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

Revenue vs Market: NXTC's revenue (22% per year) is forecast to grow faster than the US market (7.3% per year).

High Growth Revenue: NXTC's revenue (22% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

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


Next Steps

Past Performance

How has NextCure performed over the past 5 years?

-41.6%

Last years earnings growth


Earnings and Revenue History

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

Growing Profit Margin: Insufficient data to determine if NXTC's profit margins have improved over the past year.


Past Earnings Growth Analysis

Earnings Trend: Unable to establish if NXTC's year-on-year earnings growth rate was positive over the past 5 years as it has been trading publicly for less than 3 years.

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

Earnings vs Industry: NXTC is unprofitable, making it difficult to compare its past year earnings growth to the Biotechs industry (86.5%).


Return on Equity

High ROE: NXTC has a negative Return on Equity (-17.39%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is NextCure's financial position?


Financial Position Analysis

Short Term Liabilities: NXTC's short term assets ($189.1M) exceeds its short term liabilities ($12.6M)

Long Term Liabilities: NXTC's short term assets (189.1M) exceeds its long term liabilities (21.9M)


Debt to Equity History and Analysis

Debt Level: NXTC's debt to equity ratio (2.9%) is considered satisfactory

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


Balance Sheet

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

Debt Coverage by Assets: NXTC's debt is covered by short term assets (assets are 37.8x 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: NXTC has sufficient cash runway for more than 3 years based on its current free cash flow.

Forecast Cash Runway: NXTC has sufficient cash runway for more than 3 years if free cash flow continues to grow at historical rates of 112.9% each year


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.6%industryaverage2.1%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

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

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

1.3yrs

Average management tenure


CEO

Michael Richman (58yo)

4.1yrs

Tenure

US$2,501,597

Compensation

Mr. Michael S. Richman, MSBA, Co-founded NextCure, Inc. since 2015 and has been its Chief Executive Officer, President & Director since October 2015. Mr. Richman served as the Chief Executive Officer and P ...


CEO Compensation Analysis

Compensation vs Market: Michael's total compensation ($USD2.50M) is about average for companies of similar size in the US market ($USD2.62M).

Compensation vs Earnings: Insufficient data to compare Michael's compensation with company performance.


Management Age and Tenure

1.3yrs

Average Tenure

55.5yo

Average Age

Experienced Management: NXTC's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.


Board Age and Tenure

3.9yrs

Average Tenure

58.5yo

Average Age

Experienced Board: NXTC's board of directors are considered experienced (3.9 years average tenure).


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$6,000,00015 May 19
Sofinnova Investment, Inc.
EntityCompany
Shares400,000
Max PriceUS$15.00
BuyUS$5,250,00013 May 19
OrbiMed Advisors LLC
EntityCompany
Shares350,000
Max PriceUS$15.00
BuyUS$1,875,00013 May 19
Quan Capital
EntityCompany
Shares125,000
Max PriceUS$15.00
BuyUS$750,00013 May 19
Canaan Partners
EntityCompany
Shares50,000
Max PriceUS$15.00

Ownership Breakdown

Dilution of Shares: Shareholders have been substantially diluted in the past year, with total shares outstanding growing by 76.6%.


Management Team

  • Michael Richman (58yo)

    Co-Founder

    • Tenure: 4.1yrs
    • Compensation: US$2.50m
  • Sol Langermann (60yo)

    Chief Scientific Officer

    • Tenure: 0.9yrs
    • Compensation: US$882.29k
  • Steve Cobourn (56yo)

    Chief Financial Officer

    • Tenure: 1.8yrs
    • Compensation: US$1.01m
  • James Bingham (53yo)

    Chief Development Officer

    • Tenure: 0.9yrs
  • Lieping Chen (62yo)

    Co-Founder & Chairman of Scientific Advisory Board

    • Tenure: 0yrs
  • Linda Liu (53yo)

    Senior Vice President of Research

    • Tenure: 0.9yrs
  • Kevin Heller (48yo)

    Chief Medical Officer

    • Tenure: 1.6yrs
  • Tim Mayer (55yo)

    Chief Operating Officer

    • Tenure: 0.08yrs

Board Members

  • Elaine Jones (64yo)

    Independent Director

    • Tenure: 3.9yrs
  • David Kabakoff (71yo)

    Independent Chairman of the Board

    • Tenure: 3.9yrs
    • Compensation: US$182.89k
  • Michael Richman (58yo)

    Co-Founder

    • Tenure: 4.1yrs
    • Compensation: US$2.50m
  • Tim Shannon (60yo)

    Independent Director

    • Tenure: 3.9yrs
  • Stephen Webster (58yo)

    Independent Director

    • Tenure: 0.6yrs
  • Chau Khuong (43yo)

    Independent Director

    • Tenure: 3.9yrs
  • Briggs Morrison (59yo)

    Independent Director

    • Tenure: 0.6yrs
  • Lieping Chen (62yo)

    Co-Founder & Chairman of Scientific Advisory Board

    • Tenure: 0yrs
  • Judith Li (35yo)

    Independent Director

    • Tenure: 3.9yrs
  • Stella Xu (49yo)

    Independent Director

    • Tenure: 1yrs

Company Information

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


Key Information

  • Name: NextCure, Inc.
  • Ticker: NXTC
  • Exchange: NasdaqGS
  • Founded: 2015
  • Industry: Biotechnology
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: US$967.263m
  • Shares outstanding: 26.83m
  • Website: https://www.nextcure.com

Number of Employees


Location

  • NextCure, Inc.
  • 9000 Virginia Manor Road
  • Suite 200
  • Beltsville
  • Maryland
  • 20705
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NXTCNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDMay 2019
2USMUN (Boerse Muenchen)YesCommon StockDEEURMay 2019
2USDB (Deutsche Boerse AG)YesCommon StockDEEURMay 2019

Biography

NextCure, Inc., a biopharmaceutical company, engages in discovering and developing immunomedicines to treat cancer and other immune-related diseases by restoring normal immune function. Its lead product ca ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/17 00:30
End of Day Share Price2019/11/15 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.