NasdaqGS:ODT

Stock Analysis Report

Executive Summary

Odonate Therapeutics, Inc., a pharmaceutical company, develops therapeutics for the treatment of cancer.


Snowflake Analysis

Excellent balance sheet and slightly overvalued.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: ODT has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-9.4%

ODT

-4.0%

US Pharmaceuticals

-7.6%

US Market


1 Year Return

90.2%

ODT

1.0%

US Pharmaceuticals

10.2%

US Market

Return vs Industry: ODT exceeded the US Pharmaceuticals industry which returned 1% over the past year.

Return vs Market: ODT exceeded the US Market which returned 10.2% over the past year.


Shareholder returns

ODTIndustryMarket
7 Day-9.4%-4.0%-7.6%
30 Day3.9%-5.0%-4.5%
90 Day-8.8%1.3%-0.6%
1 Year90.2%90.2%3.5%1.0%12.5%10.2%
3 Yearn/a20.1%11.5%37.1%28.3%
5 Yearn/a22.9%9.4%60.8%43.2%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Odonate 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

Below Fair Value: ODT ($31.34) is trading below our estimate of fair value ($555.49)

Significantly Below Fair Value: ODT is trading below fair value by more than 20%.


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: ODT is overvalued based on its PB Ratio (6.2x) compared to the US Pharmaceuticals industry average (2.7x).


Next Steps

Future Growth

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

53.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

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

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

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

Revenue vs Market: Insufficient data to determine if ODT's revenue is forecast to grow faster than the US market.

High Growth Revenue: Insufficient data to determine if ODT's revenue 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 ODT's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Odonate Therapeutics performed over the past 5 years?

-66.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ODT is currently unprofitable.

Growing Profit Margin: ODT is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: ODT is unprofitable, and losses have increased over the past 5 years at a rate of -66.2% per year.

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

Earnings vs Industry: ODT is unprofitable, making it difficult to compare its past year earnings growth to the Pharmaceuticals industry (1.9%).


Return on Equity

High ROE: ODT has a negative Return on Equity (-68.9%), as it is currently unprofitable.


Next Steps

Financial Health

How is Odonate Therapeutics's financial position?


Financial Position Analysis

Short Term Liabilities: ODT's short term assets ($183.9M) exceed its short term liabilities ($24.8M).

Long Term Liabilities: ODT's short term assets ($183.9M) exceed its long term liabilities ($1.7M).


Debt to Equity History and Analysis

Debt Level: ODT is debt free.

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


Balance Sheet

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

Debt Coverage by Assets: Insufficient data to determine if ODT'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: ODT has sufficient cash runway for more than a year based on its current free cash flow.

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


Next Steps

Dividend

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


Dividend Yield vs Market

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

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

Growing Dividend: Insufficient data to determine if ODT'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 ODT's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.4yrs

Average management tenure


CEO

Kevin Tang (52yo)

7.1yrs

Tenure

US$1

Compensation

Mr. Kevin C. Tang has been the Chairman and Chief Executive Officer at Odonate Therapeutics, Inc. since 2013. Mr. Tang has experience evaluating, creating and building biotechnology companies that are focu ...


CEO Compensation Analysis

Compensation vs Market: Kevin's total compensation ($USD1.00) is below average for companies of similar size in the US market ($USD2.58M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Kevin Tang
Chairman & CEO7.1yrsUS$1.00no data
John Lemkey
Chief Operating Officer1.3yrsUS$1.53m0.0074% $74.1k
Joseph O'Connell
Chief Medical Officer2.4yrsUS$1.98m0.0054% $54.7k
Michael Hearne
CFO & Principal Accounting Officer1.3yrsno data0.0044% $44.0k
Steven Pfeiffer
Vice President of Technical Operations3.5yrsno datano data
Thomas Wei
Chief Scientific Officer1.3yrsno datano data
Stewart Kroll
Chief Development Officer3.3yrsno datano data

2.4yrs

Average Tenure

52yo

Average Age

Experienced Management: ODT's management team is considered experienced (2.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Kevin Tang
Chairman & CEO7.1yrsUS$1.00no data
Laura Douglass
Independent Director1.2yrsUS$359.39kno data
Aaron Davis
Independent Director3.2yrsno data2.01% $20.2m
Craig Johnson
Independent Director2.6yrsUS$384.39kno data
Robert Rosen
Director2.6yrsUS$359.39kno data

2.6yrs

Average Tenure

54yo

Average Age

Experienced Board: ODT's board of directors are not considered experienced ( 2.6 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 12.9%.


Top Shareholders

Company Information

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


Key Information

  • Name: Odonate Therapeutics, Inc.
  • Ticker: ODT
  • Exchange: NasdaqGS
  • Founded: 2013
  • Industry: Pharmaceuticals
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: US$1.005b
  • Shares outstanding: 32.06m
  • Website: https://www.odonate.com

Number of Employees


Location

  • Odonate Therapeutics, Inc.
  • 4747 Executive Drive
  • Suite 510
  • San Diego
  • California
  • 92121
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
4ODMUN (Boerse Muenchen)YesCommon StockDEEURDec 2017
ODTNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDDec 2017
4ODDB (Deutsche Boerse AG)YesCommon StockDEEURDec 2017

Biography

Odonate Therapeutics, Inc., a pharmaceutical company, develops therapeutics for the treatment of cancer. It is developing tesetaxel, an orally administered chemotherapy agent, which is in Phase III clinical study for patients with locally advanced or metastatic breast cancer; and CONTESSA 2 and CONTESSA TRIO, which is in Phase II clinical study for central nervous system metastases and various cancer treatments. The company was founded in 2013 and is based in San Diego, California. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/27 02:21
End of Day Share Price2020/02/26 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.