NasdaqGS:PBYI

Stock Analysis Report

Puma Biotechnology

Market Cap

US$379.1m

Last Updated

2020/01/18 00:11 UTC

Data Sources

Company Financials +

Executive Summary

Puma Biotechnology, Inc., a biopharmaceutical company, focuses on the development and commercialization of products to enhance cancer care.

Rewards

Trading at 86.2% below its fair value

Revenue is forecast to grow 8.46% per year

Earnings have grown 5.8% per year over the past 5 years

Risk Analysis

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

Highly volatile share price over past 3 months

Shareholders have been diluted in the past year


Snowflake Analysis

Adequate balance sheet and slightly overvalued.

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Share Price & News

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

Latest Share Price and Events

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

Market Performance

7 Day Return

15.6%

PBYI

0.9%

US Biotechs

2.0%

US Market

1 Year Return

-61.4%

PBYI

11.3%

US Biotechs

23.5%

US Market

Return vs Industry: PBYI underperformed the US Biotechs industry which returned 10.9% over the past year.

Return vs Market: PBYI underperformed the US Market which returned 24.7% over the past year.

Shareholder returns

PBYIIndustryMarket
7 Day15.6%0.9%2.0%
30 Day12.4%1.2%4.3%
90 Day49.7%21.3%12.2%
1 Year-61.4%-61.4%12.2%11.3%26.1%23.5%
3 Year-69.8%-69.8%29.0%24.7%53.1%43.2%
5 Year-95.4%-95.4%4.3%-0.6%75.5%56.1%

Price Volatility Vs. Market

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

Simply Wall St News

1 week ago | Simply Wall St

Have Insiders Been Selling Puma Biotechnology, Inc. (NASDAQ:PBYI) Shares?

4 weeks ago | Simply Wall St

How Does Puma Biotechnology, Inc. (NASDAQ:PBYI) Affect Your Portfolio Volatility?

1 month ago | Simply Wall St

Health Check: How Prudently Does Puma Biotechnology (NASDAQ:PBYI) Use Debt?

Valuation

Is Puma Biotechnology 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: PBYI ($8.34) is trading below our estimate of fair value ($60.33)

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

Price To Earnings Ratio

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

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

Price to Book Ratio

PB vs Industry: PBYI is overvalued based on its PB Ratio (18.9x) compared to the US Biotechs industry average (3.2x).

Next Steps

Future Growth

How is Puma Biotechnology forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

51.0%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

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

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

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

Revenue vs Market: PBYI's revenue (8.5% per year) is forecast to grow faster than the US market (7.5% per year).

High Growth Revenue: PBYI's revenue (8.5% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

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

Next Steps

Past Performance

How has Puma Biotechnology performed over the past 5 years?

5.8%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: PBYI is currently unprofitable.

Growing Profit Margin: PBYI is currently unprofitable.

Past Earnings Growth Analysis

Earnings Trend: PBYI is unprofitable, but has reduced losses over the past 5 years at a rate of 5.8% per year.

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

Earnings vs Industry: PBYI is unprofitable, making it difficult to compare its past year earnings growth to the Biotechs industry (103.3%).

Return on Equity

High ROE: PBYI has a negative Return on Equity (-553.5%), as it is currently unprofitable.

Return on Assets

Return on Capital Employed

Next Steps

Financial Health

How is Puma Biotechnology's financial position?

Financial Position Analysis

Short Term Liabilities: PBYI's short term assets ($151.1M) exceed its short term liabilities ($88.3M).

Long Term Liabilities: PBYI's short term assets ($151.1M) exceed its long term liabilities ($126.5M).

Debt to Equity History and Analysis

Debt Level: PBYI's debt to equity ratio (548.2%) is considered high.

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

Balance Sheet

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

Debt Coverage by Assets: PBYI's debt is covered by short term assets (assets are 1.6x 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: Whilst unprofitable PBYI has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: PBYI is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 52.8% per year.

Next Steps

Dividend

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

Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage2.1%forecastin3Years0%

Current dividend yield vs market & industry

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

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

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

2.4yrs

Average management tenure

CEO

Alan Auerbach (49yo)

8.3yrs

Tenure

US$6,152,550

Compensation

Mr. Alan H. Auerbach is the Founder of Puma Biotechnology, Inc. and has been its Executive Chairman, Chief Executive Officer and President since October 4, 2011 and serves as its Secretary. Mr. Auerbach is ...

CEO Compensation Analysis

Compensation vs Market: Alan's total compensation ($USD6.15M) is above average for companies of similar size in the US market ($USD1.70M).

Compensation vs Earnings: Alan's compensation has increased whilst the company is unprofitable.

Management Age and Tenure

2.4yrs

Average Tenure

52yo

Average Age

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

Board Age and Tenure

4.3yrs

Average Tenure

54.5yo

Average Age

Experienced Board: PBYI's board of directors are considered experienced (4.3 years average tenure).

Insider Trading

Insider Buying: PBYI insiders have only sold shares in the past 3 months.

Recent Insider Transactions

SellUS$11,84703 Jan 20
Douglas Hunt
EntityIndividual
Role
Senior Key Executive
Senior Vice President of Regulatory Affairs
Shares1,405
Max PriceUS$8.43
SellUS$50,47103 Jan 20
Alan Auerbach
EntityIndividual
Role
Chief Executive Officer
Founder
Shares6,016
Max PriceUS$8.39
SellUS$12,73403 Jan 20
Richard Bryce
EntityIndividual
Role
Chief Scientific Officer
Chief Medical & Scientific Officer
Shares1,516
Max PriceUS$8.40
SellUS$4,70003 Dec 19
Alan Auerbach
EntityIndividual
Role
Chief Executive Officer
Founder
Shares455
Max PriceUS$10.33
SellUS$85803 Dec 19
Richard Bryce
EntityIndividual
Role
Chief Scientific Officer
Chief Medical & Scientific Officer
Shares83
Max PriceUS$10.34
SellUS$64905 Nov 19
Richard Bryce
EntityIndividual
Role
Chief Scientific Officer
Chief Medical & Scientific Officer
Shares88
Max PriceUS$7.38
SellUS$3,53705 Nov 19
Alan Auerbach
EntityIndividual
Role
Chief Executive Officer
Founder
Shares478
Max PriceUS$7.40
SellUS$91503 Oct 19
Richard Bryce
EntityIndividual
Role
Chief Scientific Officer
Chief Medical & Scientific Officer
Shares91
Max PriceUS$10.05
SellUS$5,02703 Oct 19
Alan Auerbach
EntityIndividual
Role
Chief Executive Officer
Founder
Shares504
Max PriceUS$9.97
SellUS$19,54025 Sep 19
Douglas Hunt
EntityIndividual
Role
Senior Key Executive
Senior Vice President of Regulatory Affairs
Shares1,711
Max PriceUS$11.42
SellUS$5,31306 Sep 19
Alan Auerbach
EntityIndividual
Role
Chief Executive Officer
Founder
Shares524
Max PriceUS$10.14
SellUS$96005 Sep 19
Richard Bryce
EntityIndividual
Role
Chief Scientific Officer
Chief Medical & Scientific Officer
Shares95
Max PriceUS$10.11
SellUS$4,66805 Aug 19
Alan Auerbach
EntityIndividual
Role
Chief Executive Officer
Founder
Shares517
Max PriceUS$9.03
SellUS$84605 Aug 19
Richard Bryce
EntityIndividual
Role
Chief Scientific Officer
Chief Medical & Scientific Officer
Shares94
Max PriceUS$9.00
SellUS$6,32603 Jul 19
Alan Auerbach
EntityIndividual
Role
Chief Executive Officer
Founder
Shares495
Max PriceUS$12.78
SellUS$1,13703 Jul 19
Richard Bryce
EntityIndividual
Role
Chief Scientific Officer
Chief Medical & Scientific Officer
Shares89
Max PriceUS$12.78
SellUS$1,32606 Jun 19
Richard Bryce
EntityIndividual
Role
Chief Scientific Officer
Chief Medical & Scientific Officer
Shares88
Max PriceUS$15.07
SellUS$7,33205 Jun 19
Alan Auerbach
EntityIndividual
Role
Chief Executive Officer
Founder
Shares483
Max PriceUS$15.18
SellUS$2,75206 May 19
Richard Bryce
EntityIndividual
Role
Chief Scientific Officer
Chief Medical & Scientific Officer
Shares85
Max PriceUS$32.38
SellUS$15,44506 May 19
Alan Auerbach
EntityIndividual
Role
Chief Executive Officer
Founder
Shares477
Max PriceUS$32.38
SellUS$3,14903 Apr 19
Richard Bryce
EntityIndividual
Role
Chief Scientific Officer
Chief Medical & Scientific Officer
Shares88
Max PriceUS$35.78
SellUS$17,57303 Apr 19
Alan Auerbach
EntityIndividual
Role
Chief Executive Officer
Founder
Shares491
Max PriceUS$35.79
SellUS$3,40222 Mar 19
Richard Bryce
EntityIndividual
Role
Chief Scientific Officer
Chief Medical & Scientific Officer
Shares88
Max PriceUS$38.66
SellUS$19,15622 Mar 19
Alan Auerbach
EntityIndividual
Role
Chief Executive Officer
Founder
Shares496
Max PriceUS$38.62
SellUS$2,40506 Feb 19
Charles Eyler
EntityIndividual
Shares87
Max PriceUS$27.64
SellUS$2,47206 Feb 19
Richard Bryce
EntityIndividual
Role
Chief Scientific Officer
Chief Medical & Scientific Officer
Shares89
Max PriceUS$27.77
SellUS$9,59106 Feb 19
Alan Auerbach
EntityIndividual
Role
Chief Executive Officer
Founder
Shares345
Max PriceUS$27.80

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 2.1%.

Management Team

  • Alan Auerbach (49yo)

    Founder

    • Tenure: 8.3yrs
    • Compensation: US$6.15m

  • Mariann Ohanesian

    Senior Director of Investor Relations

    • Tenure: 8.2yrs

  • Richard Bryce (62yo)

    Chief Medical & Scientific Officer

    • Tenure: 2.4yrs
    • Compensation: US$1.89m

  • Douglas Hunt (54yo)

    Senior Vice President of Regulatory Affairs

    • Tenure: 2yrs
    • Compensation: US$6.75m

  • Charon Spencer

    Vice President of Human Resources

    • Maximo Nougues (50yo)

      CFO & Principal Accounting Officer

      • Tenure: 1.2yrs
      • Compensation: US$2.28m

    Board Members

    • Jay Moyes (65yo)

      Lead Independent Director

      • Compensation: US$385.52k

    • Mike Miller (62yo)

      Independent Director

      • Tenure: 1.9yrs
      • Compensation: US$1.24m

    • Troy Wilson (50yo)

      Independent Director

      • Tenure: 6.3yrs
      • Compensation: US$355.52k

    • Alan Auerbach (49yo)

      Founder

      • Tenure: 8.3yrs
      • Compensation: US$6.15m

    • Frank Zavrl (53yo)

      Independent Director

      • Tenure: 4.3yrs
      • Compensation: US$358.02k

    • Adrian Senderowicz (55yo)

      Independent Director

      • Tenure: 4.4yrs
      • Compensation: US$353.02k

    • Hugh O’Dowd (54yo)

      Director

      • Tenure: 0.3yrs

    • Ann Miller (62yo)

      Director

      • Tenure: 0.2yrs

    Company Information

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

    Key Information

    • Name: Puma Biotechnology, Inc.
    • Ticker: PBYI
    • Exchange: NasdaqGS
    • Founded: 2010
    • Industry: Biotechnology
    • Sector: Pharmaceuticals & Biotech
    • Market Cap: US$379.090m
    • Shares outstanding: 38.96m
    • Website: https://www.pumabiotechnology.com

    Number of Employees

    Location

    • Puma Biotechnology, Inc.
    • 10880 Wilshire Boulevard
    • Suite 2150
    • Los Angeles
    • California
    • 90024
    • United States

    Listings

    TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
    PBYINasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDApr 2012
    0PBDB (Deutsche Boerse AG)YesCommon StockDEEURApr 2012

    Biography

    Puma Biotechnology, Inc., a biopharmaceutical company, focuses on the development and commercialization of products to enhance cancer care. Its drug candidates include PB272 neratinib (oral) for the treatment of early stage breast cancer, metastatic breast cancer, non-small cell lung cancer, HER2 mutation-positive solid tumors, and HER2-mutated non-amplified breast cancer; and PB272 neratinib (intravenous). The company also develops PB357, an orally administered agent that is an irreversible tyrosine kinase inhibitor that blocks signal transduction through the epidermal growth factor receptors, HER1, HER2, and HER4. It has a license agreement with Pfizer, Inc. for the development, manufacture, and commercialization of PB272 neratinib (oral), PB272 neratinib (intravenous), PB357, and certain related compounds. Puma Biotechnology, Inc. was founded in 2010 and is headquartered in Los Angeles, California. 

    Company Analysis and Financial Data Status

    All financial data provided by Standard & Poor's Capital IQ.
    DataLast Updated (UTC time)
    Company Analysis2020/01/18 00:11
    End of Day Share Price2020/01/17 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.