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. More Details
Flawless balance sheet and slightly overvalued.
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's share price has been volatile over the past 3 months.
7 Day Return
1 Year Return
Return vs Industry: RETA underperformed the US Pharmaceuticals industry which returned 12.4% over the past year.
Return vs Market: RETA underperformed the US Market which returned 19.5% over the past year.
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
4 days ago | Simply Wall StAn Intrinsic Calculation For Reata Pharmaceuticals, Inc. (NASDAQ:RETA) Suggests It's 49% Undervalued
1 month ago | Simply Wall StInvestors Who Bought Reata Pharmaceuticals (NASDAQ:RETA) Shares Three Years Ago Are Now Up 226%
2 months ago | Simply Wall StReata Pharmaceuticals, Inc. (NASDAQ:RETA) Insiders Have Been Selling
Is Reata Pharmaceuticals undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: RETA ($113.07) is trading below our estimate of fair value ($214.91)
Significantly Below Fair Value: RETA is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: RETA is unprofitable, so we can't compare its PE Ratio to the US 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 (16.4x) compared to the US Pharmaceuticals industry average (3.2x).
How is Reata Pharmaceuticals forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?
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 (73.1% per year) is forecast to grow faster than the US market (10% per year).
High Growth Revenue: RETA's revenue (73.1% 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
How has Reata Pharmaceuticals performed over the past 5 years?
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 72.5% 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 (12.6%).
Return on Equity
High ROE: RETA has a negative Return on Equity (-148.15%), as it is currently unprofitable.
How is Reata Pharmaceuticals's financial position?
Financial Position Analysis
Short Term Liabilities: RETA's short term assets ($640.5M) exceed its short term liabilities ($47.2M).
Long Term Liabilities: RETA's short term assets ($640.5M) exceed its long term liabilities ($373.6M).
Debt to Equity History and Analysis
Debt Level: RETA is debt free.
Reducing Debt: RETA had no debt 5 years ago.
Cash Runway Analysis
For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.
Stable Cash Runway: RETA has sufficient cash runway for more than a year based on its current free cash flow.
Forecast Cash Runway: RETA has sufficient cash runway for 2.1 years if free cash flow continues to reduce at historical rates of 40.2% each year.
What is Reata Pharmaceuticals's current dividend yield, its reliability and sustainability?
Dividend Yield vs Market
Notable Dividend: Unable to evaluate RETA's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate RETA's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if RETA's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if RETA's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of RETA's dividend in 3 years as they are not forecast to pay a notable one for the US market.
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
J. Huff (66 yo)
Mr. J. Warren Huff has been the Chief Executive Officer and President of Reata Pharmaceuticals, Inc. (formerly, Reata Discovery Inc) since founding in 2002 and has been its Chairman since 2002. Mr. Huff is ...
CEO Compensation Analysis
Compensation vs Market: J.'s total compensation ($USD5.54M) is about average for companies of similar size in the US market ($USD5.61M).
Compensation vs Earnings: J.'s compensation has increased whilst the company is unprofitable.
|COO, CFO & Executive VP||1.17yrs||US$12.61m||0.0089% |
|Executive VP & Chief Legal Officer||5.5yrs||US$2.03m||0% |
|Executive VP and Chief Research & Development Officer||no data||US$2.18m||0.47% |
|Executive VP & Chief Commercial Officer||4.08yrs||US$1.98m||0% |
|VP & Chief Accounting Officer||no data||no data||0.045% |
|VP & Chief Technical Officer||0.33yr||no data||no data|
|Senior VP||0.75yr||no data||no data|
|Vice President of Investor Relations & Corporate Communications||0.75yr||no data||no data|
|VP & Chief Healthcare Compliance Officer||0.25yr||no data||no data|
|Vice President of Marketing||2.33yrs||no data||no data|
|VP & Chief Human Resources Officer||1.5yrs||no data||no data|
Experienced Management: RETA's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.
|Director||0.17yr||no data||no data|
|Independent Director||4.67yrs||US$574.63k||9.45% |
|Lead Independent Director||no data||US$611.77k||0.0053% |
|Independent Director||15.83yrs||US$569.68k||1.08% |
|Independent Director||3.58yrs||US$599.31k||0% |
Experienced Board: RETA's board of directors are considered experienced (4.7 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: RETA insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 11.6%.
Reata Pharmaceuticals, Inc.'s company bio, employee growth, exchange listings and data sources
- Name: Reata Pharmaceuticals, Inc.
- Ticker: RETA
- Exchange: NasdaqGM
- Founded: 2002
- Industry: Pharmaceuticals
- Sector: Pharmaceuticals & Biotech
- Market Cap: US$3.800b
- Shares outstanding: 33.60m
- Website: https://www.reatapharma.com
Number of Employees
- Reata Pharmaceuticals, Inc.
- 5320 Legacy Drive
- United States
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|RETA||NasdaqGM (Nasdaq Global Market)||Yes||Class A Common Stock||US||USD||May 2016|
|2R3||DB (Deutsche Boerse AG)||Yes||Class A Common Stock||DE||EUR||May 2016|
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 cel ...
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2020/10/20 00:43|
|End of Day Share Price||2020/10/19 00:00|
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.