NasdaqGM:RETA

Stock Analysis Report

Executive Summary

Reata Pharmaceuticals, Inc., a clinical stage biopharmaceutical company, develops novel therapeutics for patients with serious or life-threatening diseases by targeting molecular pathways that regulate cellular metabolism and inflammation.


Snowflake Analysis

Adequate balance sheet with limited growth.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-6.4%

RETA

-0.5%

US Pharmaceuticals

-1.0%

US Market


1 Year Return

135.2%

RETA

6.1%

US Pharmaceuticals

18.0%

US Market

Return vs Industry: RETA exceeded the US Pharmaceuticals industry which returned 6.1% over the past year.

Return vs Market: RETA exceeded the US Market which returned 18% over the past year.


Shareholder returns

RETAIndustryMarket
7 Day-6.4%-0.5%-1.0%
30 Day2.1%-2.7%0.6%
90 Day0.6%6.0%7.9%
1 Year135.2%135.2%8.8%6.1%20.4%18.0%
3 Year730.3%730.3%25.4%16.6%48.0%38.5%
5 Yearn/a29.6%15.6%72.2%53.3%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

27.29x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate RETA's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate RETA's fair value to establish if it is undervalued.


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: RETA is overvalued based on its PB Ratio (27.3x) compared to the US Pharmaceuticals industry average (3.1x).


Next Steps

Future Growth

How is Reata Pharmaceuticals forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

55.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

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

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

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

Revenue vs Market: RETA's revenue (62.6% per year) is forecast to grow faster than the US market (7.6% per year).

High Growth Revenue: RETA's revenue (62.6% 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 RETA's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Reata Pharmaceuticals performed over the past 5 years?

-74.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RETA is currently unprofitable.

Growing Profit Margin: RETA is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: RETA is unprofitable, and losses have increased over the past 5 years at a rate of -74.5% per year.

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

Earnings vs Industry: RETA is unprofitable, making it difficult to compare its past year earnings growth to the Pharmaceuticals industry (-0.2%).


Return on Equity

High ROE: RETA has a negative Return on Equity (-112.97%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Reata Pharmaceuticals's financial position?


Financial Position Analysis

Short Term Liabilities: RETA's short term assets ($669.3M) exceed its short term liabilities ($192.0M).

Long Term Liabilities: RETA's short term assets ($669.3M) exceed its long term liabilities ($233.5M).


Debt to Equity History and Analysis

Debt Level: RETA's debt to equity ratio (60.4%) is considered high.

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


Balance Sheet

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

Debt Coverage by Assets: RETA's debt is covered by short term assets (assets are 4.3x 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: RETA has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: RETA has sufficient cash runway for 1.7 years if free cash flow continues to reduce at historical rates of -23.8% each year.


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage2.7%forecastin3Years0%

Current dividend yield vs market & industry

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

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

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

1.3yrs

Average management tenure


CEO

J. Huff (65yo)

18.1yrs

Tenure

US$934,500

Compensation

Mr. J. Warren Huff has been the Chief Executive Officer and President of Reata Pharmaceuticals, Inc. (formerly, Reata Discovery Inc) since founding in 2002 and has been its Chairman since 2002. Mr. Huff is ...


CEO Compensation Analysis

Compensation vs Market: J.'s total compensation ($USD934.50K) is below average for companies of similar size in the US market ($USD6.35M).

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


Leadership Team

NamePositionTenureCompensationOwnership
J. Huff
Chairman18.1yrsUS$934.50k2.62% $183.8m
Colin Meyer
Chief Medical Officer & Executive VP of Product Development0yrsUS$625.50k0.48% $33.7m
Manmeet Soni
CFO & Executive VP0.5yrsno datano data
Jason Wilson
Executive Vice President of Operations0.5yrsUS$427.50k0.080% $5.6m
Elaine Castellanos
VP & Chief Accounting Officer0yrsno data0.046% $3.3m
Robert Reed
CTO & Senior VP of CMC0yrsno datano data
Michael Wortley
Executive VP & Chief Legal Officer4.8yrsno datano data
Vineet Jindal
VP of Corporate Communications & Strategy0yrsno datano data
Claudia Bujold
Vice President of Marketing1.7yrsno datano data
Steve Harman
VP & Chief Human Resources Officer0.8yrsno datano data

1.3yrs

Average Tenure

49yo

Average Age

Experienced Management: RETA's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
J. Huff
Chairman18.1yrsUS$934.50k2.62% $183.8m
William Rose
Independent Director4yrsUS$263.81k9.72% $681.9m
Jack Nielsen
Lead Independent Director0yrsUS$298.93k0.0054% $382.4k
Richard McGaughy
Independent Director15.2yrsUS$260.79k1.11% $77.8m
James Bass
Independent Director15.6yrsUS$267.92k0.30% $21.3m
William McClellan
Independent Director2.9yrsUS$292.93kno data

15.2yrs

Average Tenure

57yo

Average Age

Experienced Board: RETA's board of directors are seasoned and experienced ( 15.2 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.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 9.8%.


Top Shareholders

Company Information

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


Key Information

  • Name: Reata Pharmaceuticals, Inc.
  • Ticker: RETA
  • Exchange: NasdaqGM
  • Founded: 2002
  • Industry: Pharmaceuticals
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: US$7.016b
  • Shares outstanding: 33.23m
  • Website: https://www.reatapharma.com

Number of Employees


Location

  • Reata Pharmaceuticals, Inc.
  • 5320 Legacy Drive
  • Plano
  • Texas
  • 75024
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
RETANasdaqGM (Nasdaq Global Market)YesClass A Common StockUSUSDMay 2016
2R3DB (Deutsche Boerse AG)YesClass A Common StockDEEURMay 2016

Biography

Reata Pharmaceuticals, Inc., a clinical stage biopharmaceutical company, develops novel therapeutics for patients with serious or life-threatening diseases by targeting molecular pathways that regulate cellular metabolism and inflammation. The company is developing Phase III clinical trial programs, including bardoxolone methyl (bardoxolone) for the treatment of patients with chronic kidney disease caused by Alport syndrome, as well as for a form of pulmonary arterial hypertension associated with connective tissue disease; and omaveloxolone that is Phase II clinical trial for the treatment of patients with Friedreich’s ataxia. It is also developing RTA 901, which completed Phase 1 clinical trials for the treatment of neurological diseases, such as diabetic neuropathy; and RORgT Inhibitors that are in the preclinical development phase for the potential treatment of a range of autoimmune, inflammatory, and fibrotic diseases. In addition, the company offers bardoxolone for the treatment of Autosomal Dominant Polycystic Kidney Disease (ADPKD), as well as initiated phase 3 Falcon trial for the treatment of ADPKD. Further, it has a strategic collaboration agreement with Kyowa Kirin Co., Ltd. to develop and commercialize bardoxolone for renal, cardiovascular, diabetes, and various other related metabolic indications in Japan, China, Hong Kong, Macao, South Korea, Taiwan, Thailand, Singapore, the Philippines, Malaysia, Indonesia, Brunei, Vietnam, Laos, Myanmar, and Cambodia; and AbbVie Inc. to jointly research, develop, and commercialize all second- and later-generation Nrf2 activators for all indications other than renal, cardiovascular, and metabolic indications. The company was formerly known as Reata Discovery, Inc. and changed its name to Reata Pharmaceuticals, Inc. in May 2005. Reata Pharmaceuticals, Inc. was founded in 2002 and is headquartered in Plano, Texas. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/22 02:31
End of Day Share Price2020/02/21 00:00
Earnings2019/12/31
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.