NasdaqGS:PTCT

Stock Analysis Report

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Executive Summary

PTC Therapeutics, Inc., a biopharmaceutical company, focuses on the discovery, development, and commercialization of medicines for the treatment of rare disorders.


Snowflake Analysis

High growth potential and slightly overvalued.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-0.5%

PTCT

-1.9%

US Biotechs

4.3%

US Market


1 Year Return

20.5%

PTCT

22.0%

US Biotechs

10.3%

US Market

Return vs Industry: PTCT underperformed the US Biotechs industry which returned 22.1% over the past year.

Return vs Market: PTCT exceeded the US Market which returned 9.7% over the past year.


Shareholder returns

PTCTIndustryMarket
7 Day-0.5%-1.9%4.3%
30 Day7.6%3.0%11.5%
90 Day-8.3%9.7%7.4%
1 Year20.5%20.5%23.2%22.0%12.7%10.3%
3 Year208.0%208.0%32.4%28.0%37.1%28.0%
5 Year-1.1%-1.1%-4.1%-9.8%64.7%46.2%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

49.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: PTCT ($50.48) is trading below our estimate of fair value ($99.6)

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


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: PTCT is overvalued based on its PB Ratio (6x) compared to the US Biotechs industry average (3.6x).


Next Steps

Future Growth

How is Therapeutics forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

74.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

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

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

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

Revenue vs Market: PTCT's revenue (26.6% per year) is forecast to grow faster than the US market (8.7% per year).

High Growth Revenue: PTCT's revenue (26.6% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: PTCT is forecast to be unprofitable in 3 years.


Next Steps

Past Performance

How has Therapeutics performed over the past 5 years?

-9.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PTCT is currently unprofitable.

Growing Profit Margin: PTCT is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: PTCT is unprofitable, and losses have increased over the past 5 years at a rate of -9.7% per year.

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

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


Return on Equity

High ROE: PTCT has a negative Return on Equity (-55.25%), as it is currently unprofitable.


Next Steps

Financial Health

How is Therapeutics's financial position?


Financial Position Analysis

Short Term Liabilities: PTCT's short term assets ($691.9M) exceed its short term liabilities ($217.7M).

Long Term Liabilities: PTCT's short term assets ($691.9M) do not cover its long term liabilities ($799.2M).


Debt to Equity History and Analysis

Debt Level: PTCT's debt to equity ratio (59.5%) is considered high.

Reducing Debt: Insufficient data to determine if PTCT's debt to equity ratio has reduced over the 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: PTCT has sufficient cash runway for more than 3 years based on its current free cash flow.

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


Next Steps

Dividend

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


Dividend Yield vs Market

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

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

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

1.4yrs

Average management tenure


CEO

Stuart Peltz (59yo)

22.42yrs

Tenure

US$7,759,441

Compensation

Dr. Stuart W. Peltz, Ph.D co-founded PTC Therapeutics Inc. in 1998 and has been its Chief Executive Officer since 1998. Dr. Peltz served as the President of PTC Therapeutics Inc. from 1998 to April 2012. P ...


CEO Compensation Analysis

Compensation vs Market: Stuart's total compensation ($USD7.76M) is above average for companies of similar size in the US market ($USD5.78M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Stuart Peltz
Co-Founder22.42yrsUS$7.76m0.066% $2.1m
Allan Jacobson
Independent Co-Founder20.42yrsUS$416.36k0.011% $345.6k
Emily Hill
CFO & Treasurer1.08yrsUS$2.34m0.0041% $130.1k
Christine Utter
Senior VP of Finance1.08yrsUS$1.70m0.0068% $214.6k
Neil Almstead
Chief Technical Operations Officer1.42yrsUS$2.52m0.028% $877.6k
Mark Boulding
Executive VP & Chief Legal Officer8.25yrsUS$2.51m0.047% $1.5m
Mark Pykett
Chief Scientific Officer1.42yrsno datano data
Alex Kane
Investor Relations Officerno datano datano data
Jane Baj
Vice President of Corporate Communicationsno datano datano data
Martin Rexroad
Senior Vice President of Human Resources6.67yrsno datano data

1.4yrs

Average Tenure

55yo

Average Age

Experienced Management: PTCT's management team is not considered experienced ( 1.4 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Stuart Peltz
Co-Founder22.42yrsUS$7.76m0.066% $2.1m
Allan Jacobson
Independent Co-Founder20.42yrsUS$416.36k0.011% $345.6k
Michael Schmertzler
Independent Chairman of the Board15.58yrsUS$628.71k0.15% $4.9m
David Southwell
Independent Director14.5yrsUS$342.61kno data
Eric Jacobsen
Member of the Scientific Advisory Boardno datano datano data
Jerome Zeldis
Independent Director7.75yrsUS$329.36kno data
Emma Reeve
Independent Director1.5yrsUS$344.11kno data
Joseph Puglisi
Member of Scientific Advisory Board16.58yrsno datano data
Marvin Wickens
Member of Scientific Advisory Boardno datano datano data
Robert Schneider
Member of Scientific Advisory Boardno datano datano data

15.6yrs

Average Tenure

59yo

Average Age

Experienced Board: PTCT's board of directors are seasoned and experienced ( 15.6 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: PTCT 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 7.6%.


Top Shareholders

Company Information

PTC Therapeutics, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: PTC Therapeutics, Inc.
  • Ticker: PTCT
  • Exchange: NasdaqGS
  • Founded: 1998
  • Industry: Biotechnology
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: US$3.174b
  • Shares outstanding: 62.88m
  • Website: https://www.ptcbio.com

Number of Employees


Location

  • PTC Therapeutics, Inc.
  • 100 Corporate Court
  • South Plainfield
  • New Jersey
  • 7080
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PTCTNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDJun 2013
P91DB (Deutsche Boerse AG)YesCommon StockDEEURJun 2013

Biography

PTC Therapeutics, Inc., a biopharmaceutical company, focuses on the discovery, development, and commercialization of medicines for the treatment of rare disorders. The company offers Translarna (ataluren) and Emflaza (deflazacort) for the treatment of nonsense mutation Duchenne muscular dystrophy in ambulatory patients. It is developing Translarna, which is in Phase 2 clinical study for the treatment of nonsense mutation aniridia and nonsense mutation Dravet syndrome/CDKL5; and RG7916 and RO7034067 for the treatment of patients with spinal muscular atrophy, as well as PTC596 and PTC299, a small molecule dihydrooratate dehydrogenase (DHODH) inhibitor that inhibits de novo pyrimidine nucleotide synthesis, which is in Phase 1 clinical development stage to treat cancer patients. The company is also developing gene therapy product candidate that include PTC-AADC for the treatment of Aromatic L-amino acid decarboxylase deficiency. It has collaborations with F. Hoffman-La Roche Ltd and Hoffman-La Roche Inc., and the Spinal Muscular Atrophy Foundation to develop and commercialize compounds identified under its spinal muscular atrophy sponsored research program; research collaboration with Massachusetts General Hospital for the treatment of rare genetic disorders resulting from pre-mRNA; and Akcea Therapeutics, Inc. to commercialize Tegsedi and Waylivra for the treatment of rare diseases in Latin America and the Caribbean. PTC Therapeutics, Inc. was founded in 1998 and is headquartered in South Plainfield, New Jersey. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/06/06 05:17
End of Day Share Price2020/06/05 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.