Oramed Pharmaceuticals (NasdaqCM:ORMP) - Share price, News & Analysis

Q: What is the Fair Price of ORMP when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

ORMP ($4.5) is trading below our estimate of [[fair value]] ($66.33)

ORMP fundamental analysis
Snowflake Score
Valuation	4/6
Future Growth	2/6
Past Performance	0/6
Financial Health	6/6
Dividends	0/6

ORMP Stock Overview

Rewards

Trading at 93.2% below our estimate of its fair value

Revenue is forecast to grow 64% per year

Risk Analysis

Currently unprofitable and not forecast to become profitable over the next 3 years

Volatile share price over the past 3 months

Shareholders have been diluted in the past year

Does not have meaningful revenue ($3M)

Oramed Pharmaceuticals Competitors

Lyra Therapeutics

NasdaqGM:LYRA

US$165.8m

AN2 Therapeutics

NasdaqGS:ANTX

US$153.5m

Ikena Oncology

NasdaqGM:IKNA

US$189.9m

Theseus Pharmaceuticals

NasdaqGS:THRX

US$197.4m

Price History & Performance

Summary of all time highs, changes and price drops for Oramed Pharmaceuticals
Historical stock prices
Current Share Price	US$4.50
52 Week High	US$31.54
52 Week Low	US$3.59
Beta	2.03
1 Month Change	-8.35%
3 Month Change	-47.98%
1 Year Change	-66.37%
3 Year Change	40.63%
5 Year Change	-45.98%
Change since IPO	2,374.89%

Recent News & Updates

Jun 12

Is Oramed Pharmaceuticals (NASDAQ:ORMP) In A Good Position To Invest In Growth?

We can readily understand why investors are attracted to unprofitable companies. For example, although...

Shareholder Returns

	ORMP	US Pharmaceuticals	US Market
7D	6.4%	3.1%	1.6%
1Y	-66.4%	11.3%	-20.8%

Return vs Industry: ORMP underperformed the US Pharmaceuticals industry which returned 11.1% over the past year.

Return vs Market: ORMP underperformed the US Market which returned -20.4% over the past year.

Price Volatility

Is ORMP's price volatile compared to industry and market?
ORMP volatility
ORMP Average Weekly Movement	15.2%
Pharmaceuticals Industry Average Movement	11.9%
Market Average Movement	8.1%
10% most volatile stocks in US Market	16.8%
10% least volatile stocks in US Market	3.2%

Stable Share Price: ORMP is more volatile than 75% of US stocks over the past 3 months, typically moving +/- 15% a week.

Volatility Over Time: ORMP's weekly volatility (15%) has been stable over the past year, but is still higher than 75% of US stocks.

About the Company

Founded	Employees	CEO	Website
2002	n/a	Nadav Kidron	https://www.oramed.com

Oramed Pharmaceuticals Inc. engages in the research and development of pharmaceutical solutions for the treatment of diabetes and for the use of orally ingestible capsules or pills for delivery of polypeptides. Its proprietary flagship product is the ORMD-0801, an orally ingestible insulin capsule, which completed phase II clinical trials for the treatment of individuals with diabetes. It is also developing ORMD-0901, an oral glucagon-like peptide-1 capsule that has completed phase I clinical trials for the treatment of type 2 diabetes; and a weight loss treatment in the form of an oral leptin capsule.

Oramed Pharmaceuticals Fundamentals Summary

How do Oramed Pharmaceuticals's earnings and revenue compare to its market cap?
ORMP fundamental statistics
Market Cap	US$173.54m
Earnings (TTM)	-US$39.76m
Revenue (TTM)	US$2.71m

64.0x

P/S Ratio

-4.4x

P/E Ratio

Is ORMP overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
ORMP income statement (TTM)
Revenue	US$2.71m
Cost of Revenue	US$0
Gross Profit	US$2.71m
Other Expenses	US$42.47m
Earnings	-US$39.76m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	-1.03
Gross Margin	100.00%
Net Profit Margin	-1,466.04%
Debt/Equity Ratio	0%

How did ORMP perform over the long term?

See historical performance and comparison

We’ve recently updated our valuation analysis.

Valuation

Is ORMP undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

Price-To-Book vs Peers
Price-To-Book vs Industry
Price-To-Book vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for ORMP?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for ORMP. This is calculated by dividing ORMP's market cap by their current preferred multiple.
What is ORMP's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	US$173.54m

ORMP key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	11.4x
Enterprise Value/EBITDA	-0.7x
PEG Ratio	n/a

Price to Book Ratio vs Peers

How does ORMP's PB Ratio compare to its peers?

ORMP PB Ratio vs Peers

The above table shows the PB ratio for ORMP vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PB	Estimated Growth	Market Cap
Peer Average	2.3x
LYRA Lyra Therapeutics	5.9x	-11.3%	US$165.8m
ANTX AN2 Therapeutics	1.3x	-8.8%	US$153.5m
IKNA Ikena Oncology	1x	-28.1%	US$189.9m
THRX Theseus Pharmaceuticals	0.8x	-28.9%	US$197.4m
ORMP Oramed Pharmaceuticals	1.1x	34.9%	US$173.5m

Price-To-Book vs Peers: ORMP is good value based on its Price-To-Book Ratio (1.1x) compared to the peer average (2.3x).

Price to Earnings Ratio vs Industry

How does ORMP's PE Ratio compare vs other companies in the US Pharmaceuticals Industry?

Price-To-Book vs Industry: ORMP is good value based on its Price-To-Book Ratio (1.1x) compared to the US Pharmaceuticals industry average (1.8x)

Price to Book Ratio vs Fair Ratio

What is ORMP's PB Ratio compared to its Fair PB Ratio? This is the expected PB Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

ORMP PB Ratio vs Fair Ratio.
Fair Ratio
Current PB Ratio	1.1x
Fair PB Ratio	n/a

Price-To-Book vs Fair Ratio: Insufficient data to calculate ORMP's Price-To-Book Fair Ratio for valuation analysis.

Share Price vs Fair Value

What is the Fair Price of ORMP when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: ORMP ($4.5) is trading below our estimate of fair value ($66.33)

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

Price to Earnings Growth Ratio

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

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Future Growth

How is Oramed Pharmaceuticals forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

Future Growth Score

2/6

Future Growth Score 2/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

34.9%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

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

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

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

Revenue vs Market: ORMP's revenue (64% per year) is forecast to grow faster than the US market (8.3% per year).

High Growth Revenue: ORMP's revenue (64% 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 ORMP's Return on Equity is forecast to be high in 3 years time

Discover growth companies

Past Performance

How has Oramed Pharmaceuticals performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-22.4%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: ORMP is currently unprofitable.

Growing Profit Margin: ORMP is currently unprofitable.

Past Earnings Growth Analysis

Earnings Trend: ORMP is unprofitable, and losses have increased over the past 5 years at a rate of 22.4% per year.

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

Earnings vs Industry: ORMP is unprofitable, making it difficult to compare its past year earnings growth to the Pharmaceuticals industry (14.7%).

Return on Equity

High ROE: ORMP has a negative Return on Equity (-25.53%), as it is currently unprofitable.

Discover strong past performing companies

Financial Health

How is Oramed Pharmaceuticals's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Stable Cash Runway
Forecast Cash Runway

Financial Position Analysis

Short Term Liabilities: ORMP's short term assets ($143.6M) exceed its short term liabilities ($6.3M).

Long Term Liabilities: ORMP's short term assets ($143.6M) exceed its long term liabilities ($3.7M).

Debt to Equity History and Analysis

Debt Level: ORMP is debt free.

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

Balance Sheet

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

Forecast Cash Runway: ORMP has sufficient cash runway for 1.5 years if free cash flow continues to reduce at historical rates of 35.8% each year.

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Dividend

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

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

Dividend Yield vs Market

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

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

Stability and Growth of Payments

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

Growing Dividend: Insufficient data to determine if ORMP's dividend payments have been increasing.

Earnings Payout to Shareholders

Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as ORMP has not reported any payouts.

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Management

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

2.8yrs

Average management tenure

CEO

Nadav Kidron (47 yo)

16.25yrs

Tenure

US$1,233,557

Compensation

Mr. Nadav Kidron, Esq. has been the Chief Executive Officer and President of Oramed Pharmaceuticals Inc. (Alternatively Integrated Security Technologies Inc) since March 08, 2006. Mr. Kidron served as an i...

CEO Compensation Analysis

Compensation vs Market: Nadav's total compensation ($USD1.23M) is about average for companies of similar size in the US market ($USD1.76M).

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

Leadership Team

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

Board Members

Experienced Board: ORMP's board of directors are considered experienced (5.9 years average tenure).

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 22.7%.

Data	Last Updated (UTC time)
Company Analysis	2022/06/29 00:00
End of Day Share Price	2022/06/29 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31