NasdaqGM:PRTK

Stock Analysis Report

Executive Summary

Paratek Pharmaceuticals, Inc., a commercial-stage biopharmaceutical company, focuses on the development and commercialization of therapeutics based upon biology and tetracycline chemistry in the United States.

Rewards

Trading at 97% below its fair value

Revenue is forecast to grow 42.84% per year

Risk Analysis

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

Shareholders have been diluted in the past year



Snowflake Analysis

Slightly overvalued with limited growth.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-0.3%

PRTK

-0.5%

US Pharmaceuticals

-0.09%

US Market


1 Year Return

-47.2%

PRTK

15.2%

US Pharmaceuticals

23.9%

US Market

Return vs Industry: PRTK underperformed the US Pharmaceuticals industry which returned 12.6% over the past year.

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


Shareholder returns

PRTKIndustryMarket
7 Day-0.3%-0.5%-0.09%
30 Day-19.3%2.3%3.1%
90 Day11.0%15.0%10.4%
1 Year-47.2%-47.2%18.1%15.2%26.6%23.9%
3 Year-75.0%-75.0%42.8%32.6%50.9%41.2%
5 Year-85.3%-85.3%30.6%16.8%78.1%58.5%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Paratek Pharmaceuticals 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: PRTK ($3.64) is trading below our estimate of fair value ($120.73)

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


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: PRTK has negative assets, so we can't compare its PB Ratio to the US Pharmaceuticals industry average.


Next Steps

Future Growth

How is Paratek Pharmaceuticals forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

56.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

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

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

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

Revenue vs Market: PRTK's revenue (42.8% per year) is forecast to grow faster than the US market (7.5% per year).

High Growth Revenue: PRTK's revenue (42.8% 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 PRTK's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Paratek Pharmaceuticals performed over the past 5 years?

-21.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PRTK is currently unprofitable.

Growing Profit Margin: PRTK is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: PRTK is unprofitable, and losses have increased over the past 5 years at a rate of -21.8% per year.

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

Earnings vs Industry: PRTK is unprofitable, making it difficult to compare its past year earnings growth to the Pharmaceuticals industry (36.8%).


Return on Equity

High ROE: PRTK's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Paratek Pharmaceuticals's financial position?


Financial Position Analysis

Short Term Liabilities: PRTK has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.

Long Term Liabilities: PRTK has negative shareholder equity, which is a more serious situation than short term assets not covering long term liabilities.


Debt to Equity History and Analysis

Debt Level: PRTK has negative shareholder equity, which is a more serious situation than a high debt level.

Reducing Debt: PRTK's has negative shareholder equity, so we do not need to check if its debt has reduced over time.


Balance Sheet

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

Debt Coverage by Assets: PRTK has negative shareholder equity (liabilities exceed assets) therefore debt is not 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: PRTK has sufficient cash runway for more than a year based on its current free cash flow.

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


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage2.6%forecastin3Years0%

Current dividend yield vs market & industry

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

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

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

2.0yrs

Average management tenure


CEO

Evan Loh (60yo)

0.6yrs

Tenure

US$2,628,934

Compensation

Dr. Evan Loh, M.D., FACC, FAHA, has been the Chief Executive Officer of Paratek Pharmaceuticals, Inc. since June 25, 2019. Dr. Loh was the President at Paratek Pharmaceuticals, Inc. since June 2014 until J ...


CEO Compensation Analysis

Compensation vs Market: Evan's total compensation ($USD2.63M) is above average for companies of similar size in the US market ($USD519.76K).

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


Management Age and Tenure

2.0yrs

Average Tenure

57yo

Average Age

Experienced Management: PRTK's management team is considered experienced (2 years average tenure).


Board Age and Tenure

5.3yrs

Average Tenure

60yo

Average Age

Experienced Board: PRTK's board of directors are considered experienced (5.3 years average tenure).


Insider Trading

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


Recent Insider Transactions

SellUS$44,99316 Dec 19
Evan Loh
EntityIndividual
Role
Chief Executive Officer
CEO & Director
Shares14,514
Max PriceUS$3.10
SellUS$8,87816 Dec 19
William Haskel
EntityIndividual
Role
Chief Legal Officer
Senior VP
Shares2,864
Max PriceUS$3.10
SellUS$13,64316 Dec 19
Adam Woodrow
EntityIndividual
Shares4,401
Max PriceUS$3.10
SellUS$19,46216 Dec 19
Randall Brenner
EntityIndividual
Role
Chief Technology Officer
Senior Vice President of Regulatory
Shares6,278
Max PriceUS$3.10
SellUS$22,55107 Feb 19
Adam Woodrow
EntityIndividual
Shares3,331
Max PriceUS$6.77

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 6.3%.


Management Team

  • Mike Bigham (61yo)

    Executive Chairman

    • Tenure: 5.6yrs
    • Compensation: US$2.83m
  • Bill Haskel (57yo)

    Senior VP

    • Tenure: 4.6yrs
    • Compensation: US$1.87m
  • Evan Loh (60yo)

    CEO & Director

    • Tenure: 0.6yrs
    • Compensation: US$2.63m
  • Regina Paglia

    Senior Vice President of Human Resources

    • Tenure: 4.3yrs
  • Doug Pagán (47yo)

    Consultant

    • Tenure: 0.8yrs
    • Compensation: US$1.48m
  • Randy Brenner

    Senior Vice President of Regulatory

    • Tenure: 3yrs
  • Judith Steenbergen

    Vice President of Medical Strategy & Communications

    • Tenure: 2yrs
  • Sarah Higgins (44yo)

    VP, Controller and Interim Principal Financial & Accounting Officer

    • Tenure: 0.8yrs
  • Christine Coyne

    Vice President of Marketing

    • Tenure: 2yrs
  • Ben Strain

    Executive Director of Investor Relations & Corporate Communications


    Board Members

    • Mike Bigham (61yo)

      Executive Chairman

      • Tenure: 5.6yrs
      • Compensation: US$2.83m
    • Jeff Stein (64yo)

      Independent Director

      • Tenure: 5.3yrs
      • Compensation: US$217.14k
    • Tom Dietz (55yo)

      Outside Director

      • Tenure: 5.3yrs
      • Compensation: US$240.39k
    • Kris Peterson (60yo)

      Outside Director

      • Tenure: 3.8yrs
      • Compensation: US$206.64k
    • Tim Franson (67yo)

      Outside Director

      • Tenure: 4.5yrs
      • Compensation: US$204.89k
    • Bob Radie (56yo)

      Outside Director

      • Tenure: 5.3yrs
      • Compensation: US$210.39k
    • Rolf Hoffmann (60yo)

      Director

      • Tenure: 1.8yrs
      • Compensation: US$258.99k
    • Evan Loh (60yo)

      CEO & Director

      • Tenure: 0.6yrs
      • Compensation: US$2.63m

    Company Information

    Paratek Pharmaceuticals, Inc.'s company bio, employee growth, exchange listings and data sources


    Key Information

    • Name: Paratek Pharmaceuticals, Inc.
    • Ticker: PRTK
    • Exchange: NasdaqGM
    • Founded: 1996
    • Industry: Pharmaceuticals
    • Sector: Pharmaceuticals & Biotech
    • Market Cap: US$120.835m
    • Shares outstanding: 33.29m
    • Website: https://paratekpharma.com

    Number of Employees


    Location

    • Paratek Pharmaceuticals, Inc.
    • 75 Park Plaza
    • 4th Floor
    • Boston
    • Massachusetts
    • 2116
    • United States

    Listings

    TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
    PRTKNasdaqGM (Nasdaq Global Market)YesCommon StockUSUSDOct 2014
    N4CNDB (Deutsche Boerse AG)YesCommon StockDEEUROct 2014

    Biography

    Paratek Pharmaceuticals, Inc., a commercial-stage biopharmaceutical company, focuses on the development and commercialization of therapeutics based upon biology and tetracycline chemistry in the United States. Its lead product candidates include omadacycline, an intravenous and oral antibiotic for use as a monotherapy antibiotic for acute bacterial skin and skin structure infections, community-acquired bacterial pneumonia, urinary tract infections, and other community-acquired bacterial infections; and Sarecycline, a tetracycline-derived compound designed for use in the treatment of acne and rosacea. The company has license and collaboration agreements with Zai Lab (Shanghai) Co., Ltd. and Allergan plc; license agreement with Tufts University to develop and commercialize products for the treatment or prevention of bacterial or microbial diseases, or medical conditions; and cooperative research and development agreement with the U.S. Army Medical Research Institute of Infectious Diseases to study omadacycline against pathogenic agents causing infectious diseases. Paratek Pharmaceuticals, Inc. was founded in 1996 and is headquartered in Boston, Massachusetts. 


    Company Analysis and Financial Data Status

    All financial data provided by Standard & Poor's Capital IQ.
    DataLast Updated (UTC time)
    Company Analysis2020/01/24 00:30
    End of Day Share Price2020/01/23 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.