NasdaqGS:PRTA

Stock Analysis Report

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Executive Summary

Prothena Corporation plc, a clinical-stage neuroscience company, focuses on discovery and development of novel therapies for life-threatening diseases in the United States.


Snowflake Analysis

Excellent balance sheet with limited growth.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-5.2%

PRTA

-0.7%

US Biotechs

2.0%

US Market


1 Year Return

21.6%

PRTA

23.4%

US Biotechs

7.1%

US Market

Return vs Industry: PRTA underperformed the US Biotechs industry which returned 23.4% over the past year.

Return vs Market: PRTA exceeded the US Market which returned 7.1% over the past year.


Shareholder returns

PRTAIndustryMarket
7 Day-5.2%-0.7%2.0%
30 Day2.7%3.3%6.0%
90 Day8.4%14.4%-0.05%
1 Year21.6%21.6%24.6%23.4%9.5%7.1%
3 Year-77.2%-77.2%34.6%30.1%30.7%22.1%
5 Year-74.3%-74.3%-3.1%-8.9%55.6%38.0%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

1.81x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: PRTA ($11.56) is trading above our estimate of fair value ($8.2)

Significantly Below Fair Value: PRTA is trading above our estimate of fair value.


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: PRTA is good value based on its PB Ratio (1.8x) compared to the US Biotechs industry average (3.7x).


Next Steps

Future Growth

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

28.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

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

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

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

Revenue vs Market: PRTA's revenue (65% per year) is forecast to grow faster than the US market (8.8% per year).

High Growth Revenue: PRTA's revenue (65% 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 PRTA's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Prothena performed over the past 5 years?

-6.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PRTA is currently unprofitable.

Growing Profit Margin: PRTA is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: PRTA is unprofitable, and losses have increased over the past 5 years at a rate of -6% per year.

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

Earnings vs Industry: PRTA is unprofitable, making it difficult to compare its past year earnings growth to the Biotechs industry (-4.5%).


Return on Equity

High ROE: PRTA has a negative Return on Equity (-31.52%), as it is currently unprofitable.


Next Steps

Financial Health

How is Prothena's financial position?


Financial Position Analysis

Short Term Liabilities: PRTA's short term assets ($359.7M) exceed its short term liabilities ($17.1M).

Long Term Liabilities: PRTA's short term assets ($359.7M) exceed its long term liabilities ($127.3M).


Debt to Equity History and Analysis

Debt Level: PRTA is debt free.

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

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


Next Steps

Dividend

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


Dividend Yield vs Market

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

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

Growing Dividend: Insufficient data to determine if PRTA'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 PRTA'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?

2.9yrs

Average management tenure


CEO

Gene Kinney (50yo)

3.67yrs

Tenure

US$3,213,354

Compensation

Mr. Gene G. Kinney, Ph.D., has been the Chief Executive Officer and President of Prothena Corporation plc since September 26, 2016 and October 3, 2016 respectively and served as its Chief Operating Officer ...


CEO Compensation Analysis

Compensation vs Market: Gene's total compensation ($USD3.21M) is above average for companies of similar size in the US market ($USD2.21M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Gene Kinney
President3.67yrsUS$3.21m0.0070% $32.2k
Tran Nguyen
CFO & COO7.17yrsUS$1.57m0.0080% $36.9k
Michael Malecek
Chief Legal Officer & Company Secretary0.83yrUS$2.48mno data
Carol Karp
Chief Regulatory Officer3.42yrsUS$1.08mno data
Radhika Tripuraneni
Chief Development Officer2.33yrsUS$1.06mno data
Karin Walker
Chief Accounting Officer & Controller7yrsno datano data
Wagner Zago
Chief Scientific Officer2.92yrsUS$3.34mno data
Ellen Rose
Head of Communicationsno datano datano data
Brandon Smith
Chief Business Officer0.17yrno datano data
Martin Koller
Consultant2.25yrsUS$1.67mno data

2.9yrs

Average Tenure

50yo

Average Age

Experienced Management: PRTA's management team is considered experienced (2.9 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Gene Kinney
President3.67yrsUS$3.21m0.0070% $32.2k
Christopher Henney
Independent Director7.17yrsUS$188.44kno data
Richard Collier
Independent Director7.42yrsUS$192.44k0.0031% $14.0k
Lars Ekman
Independent Chairman7.42yrsUS$212.03k0.00061% $2.8k
Shane Cooke
Independent Director7.42yrsUS$193.44kno data
Dennis Selkoe
Independent Director6.83yrsUS$194.16k0.011% $48.5k
Karl Anders Härfstrand
Independent Director5.33yrsUS$178.44kno data
Paula Cobb
Independent Director0.83yrUS$277.47kno data
Oleg Nodelman
Independent Director0.42yrno datano data

6.8yrs

Average Tenure

63yo

Average Age

Experienced Board: PRTA's board of directors are considered experienced (6.8 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.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Prothena Corporation plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Prothena Corporation plc
  • Ticker: PRTA
  • Exchange: NasdaqGS
  • Founded: 2012
  • Industry: Biotechnology
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: US$460.578m
  • Shares outstanding: 39.91m
  • Website: https://www.prothena.com

Number of Employees


Location

  • Prothena Corporation plc
  • 77 Sir John Rogerson’s Quay
  • Block C
  • Dublin
  • Co. Dublin
  • 2
  • Ireland

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PRTANasdaqGS (Nasdaq Global Select)YesOrdinary SharesUSUSDDec 2012
0PTDB (Deutsche Boerse AG)YesOrdinary SharesDEEURDec 2012
0Y3MLSE (London Stock Exchange)YesOrdinary SharesGBUSDDec 2012

Biography

Prothena Corporation plc, a clinical-stage neuroscience company, focuses on discovery and development of novel therapies for life-threatening diseases in the United States. The company is involved in developing PRX002/RG7935 that is in Phase II clinical trial for treating Parkinson’s disease and other related synucleinopathies; and PRX004, an antibody that is in Phase I clinical trial for the treatment of ATTR amyloidosis. Its discovery-stage programs include Tau for treating Alzheimer's disease, progressive supranuclear palsy, frontotemporal dementia, chronic traumatic encephalopathy, and other tauopathies; Aß, or Amyloid Beta, a protein for the treatment of Alzheimer’s disease; TDP-43 for amyotrophic lateral sclerosis and frontotemporal dementia; and other products for neurodegeneration. The company has a license, development, and commercialization agreement with F. Hoffmann-La Roche Ltd and Hoffmann-La Roche Inc. to develop and commercialize antibodies that target alpha-synuclein; and a collaboration agreement with Bristol-Myers Squibb to develop antibodies. Prothena Corporation plc was founded in 2012 and is based in Dublin, Ireland. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/05/28 04:05
End of Day Share Price2020/05/27 00:00
Earnings2020/03/31
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.