NasdaqGS:PDLI

Stock Analysis Report

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Executive Summary

PDL BioPharma, Inc. acquires, manages, and commercializes commercial stage pharmaceutical assets and late clinical stage pharmaceutical products in North America, Europe, Asia, and internationally.

Rewards

Trading at 50.2% below our estimate of its fair value

Earnings are forecast to grow 61.95% per year

Risk Analysis

No risks detected for PDLI from our risk checks.


Snowflake Analysis

Adequate balance sheet with reasonable growth potential.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-5.4%

PDLI

-2.8%

US Biotechs

-0.04%

US Market


1 Year Return

21.4%

PDLI

30.6%

US Biotechs

17.1%

US Market

Return vs Industry: PDLI underperformed the US Biotechs industry which returned 31% over the past year.

Return vs Market: PDLI exceeded the US Market which returned 16.8% over the past year.


Shareholder returns

PDLIIndustryMarket
7 Day-5.4%-2.8%-0.04%
30 Day17.3%-4.1%5.1%
90 Day1.0%4.6%19.5%
1 Year46.4%21.4%32.7%30.6%19.6%17.1%
3 Year37.5%14.0%31.0%24.8%42.5%33.3%
5 Year-30.0%-47.4%4.5%-2.9%75.1%56.2%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is PDL BioPharma 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: PDLI ($3.18) is trading below our estimate of fair value ($6.39)

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


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: PDLI is good value based on its PB Ratio (0.7x) compared to the US Biotechs industry average (3.4x).


Next Steps

Future Growth

How is PDL BioPharma forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

61.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PDLI is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2.2%).

Earnings vs Market: PDLI is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: PDLI's is expected to become profitable in the next 3 years.

Revenue vs Market: PDLI's revenue (16.6% per year) is forecast to grow faster than the US market (9.4% per year).

High Growth Revenue: PDLI's revenue (16.6% 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 PDLI's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has PDL BioPharma performed over the past 5 years?

-69.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PDLI is currently unprofitable.

Growing Profit Margin: PDLI is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: PDLI is unprofitable, and losses have increased over the past 5 years at a rate of 69.1% per year.

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

Earnings vs Industry: PDLI is unprofitable, making it difficult to compare its past year earnings growth to the Biotechs industry (-8.3%).


Return on Equity

High ROE: PDLI has a negative Return on Equity (-7.22%), as it is currently unprofitable.


Next Steps

Financial Health

How is PDL BioPharma's financial position?


Financial Position Analysis

Short Term Liabilities: PDLI's short term assets ($551.3M) exceed its short term liabilities ($41.7M).

Long Term Liabilities: PDLI's short term assets ($551.3M) exceed its long term liabilities ($64.9M).


Debt to Equity History and Analysis

Debt Level: PDLI's debt to equity ratio (2.2%) is considered satisfactory.

Reducing Debt: PDLI's debt to equity ratio has reduced from 66.9% to 2.2% over the past 5 years.

Debt Coverage: PDLI's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: Insufficient data to determine if PDLI's interest payments on its debt are well covered by EBIT.


Balance Sheet


Next Steps

Dividend

What is PDL BioPharma current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

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

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

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


Current Payout to Shareholders

Dividend Coverage: PDLI is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of PDLI'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?

2.6yrs

Average management tenure


CEO

Dominique Monnet (59 yo)

1.67yrs

Tenure

US$6,701,000

Compensation

Mr. Dominique P. Monnet serves as Member of Advisory Board at Antibe Therapeutics Inc. since October 2018. Mr. Monnet has been President at PDL BioPharma, Inc. since September 11, 2017 and has been its Chi ...


CEO Compensation Analysis

Compensation vs Market: Dominique's total compensation ($USD6.70M) is above average for companies of similar size in the US market ($USD2.02M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Dominique Monnet
CEO, President & Director1.67yrsUS$6.70m1.08%
$ 3.9m
Edward Imbrogno
VP, CFO & Chief Accounting Officer0.75yrUS$814.14k0.20%
$ 738.0k
Christopher Stone
VP, General Counsel & Secretary11.5yrsUS$2.45m0.54%
$ 2.0m
Nathan Kryszak
Deputy General Counsel & Assistant Secretary3.58yrsno datano data

2.6yrs

Average Tenure

56yo

Average Age

Experienced Management: PDLI's management team is considered experienced (2.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Dominique Monnet
CEO, President & Director1.67yrsUS$6.70m1.08%
$ 3.9m
David Gryska
Independent Director6.42yrsUS$282.50k0.19%
$ 698.1k
Paul Sandman
Independent Director11.83yrsUS$302.50k0.23%
$ 835.7k
John McLaughlin
Director11.83yrsUS$370.00k0.44%
$ 1.6m
Elizabeth O'Farrell
Independent Chairperson of the Board0.58yrUS$270.04k0.056%
$ 201.3k
Alan Bazaar
Independent Director0.50yrno data0.0067%
$ 24.2k
Natasha Hernday
Independent Director1.17yrsUS$202.78k0.044%
$ 159.0k

1.7yrs

Average Tenure

59yo

Average Age

Experienced Board: PDLI's board of directors are not considered experienced ( 1.7 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 not been meaningfully diluted in the past year.


Top Shareholders

Company Information

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


Key Information

  • Name: PDL BioPharma, Inc.
  • Ticker: PDLI
  • Exchange: NasdaqGS
  • Founded: 1986
  • Industry: Biotechnology
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: US$362.344m
  • Shares outstanding: 113.94m
  • Website: https://www.pdl.com

Number of Employees


Location

  • PDL BioPharma, Inc.
  • 932 Southwood Boulevard
  • Incline Village
  • Nevada
  • 89451
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PDLINasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDJan 1992
PDLDB (Deutsche Boerse AG)YesCommon StockDEEURJan 1992

Biography

PDL BioPharma, Inc. acquires, manages, and commercializes commercial stage pharmaceutical assets and late clinical stage pharmaceutical products in North America, Europe, Asia, and internationally. The com ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/12 00:19
End of Day Share Price2020/08/11 00:00
Earnings2020/06/30
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.