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

Fundamentals

High growth potential with imperfect balance sheet.


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


Market Performance


7 Day Return

107.5%

RETA

-0.1%

US Pharmaceuticals

1.3%

US Market


1 Year Return

153.3%

RETA

-6.6%

US Pharmaceuticals

5.9%

US Market

Return vs Industry: RETA exceeded the US Pharmaceuticals industry which returned -6.6% over the past year.

Return vs Market: RETA exceeded the US Market which returned 5.9% over the past year.


Shareholder returns

RETAIndustryMarket
7 Day107.5%-0.1%1.3%
30 Day83.5%-0.7%-1.9%
90 Day81.7%-2.7%-1.8%
1 Year153.3%153.3%-4.3%-6.6%8.3%5.9%
3 Year532.4%532.4%16.9%8.6%45.6%36.2%
5 Yearn/a27.3%13.9%66.1%47.9%

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?


In this section, we usually try to help investors determine whether Reata Pharmaceuticals is trading at an attractive price based on the cash flow it is expected to produce in the future. But as Reata Pharmaceuticals has not provided consistent financial data, and the stock also has no analyst forecast or coverage, its intrinsic value cannot be reliably calculated by extrapolating past data or using analyst consensus cash flow predictions.

This is quite a rare situation as 89% of companies covered by Simply Wall St do have a valuation analysis.


Next Steps

Future Growth

How is Reata Pharmaceuticals forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

77.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RETA is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2.7%).

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

High Growth Earnings: RETA's loss is forecast to worsen by 0% next year.

Revenue vs Market: RETA's revenue (67.6% per year) is forecast to grow faster than the US market (7.3% per year).

High Growth Revenue: RETA's revenue (67.6% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High 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?

-78.3%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: RETA is unprofitable, and losses have increased over the past 5 years at a rate of -78.3% 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 (24.3%).


Return on Equity

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


Return on Assets

ROA vs Industry: RETA is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: RETA is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is Reata Pharmaceuticals's financial position?


Financial Position Analysis

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

Long Term Liabilities: RETA 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: RETA has negative shareholder equity, which is a more serious situation than a high debt level.

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


Balance Sheet

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

Debt Coverage by Assets: RETA 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: 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 2.875172 years if free cash flow continues to reduce at historical rates of -40% each year.


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.5%markettop25%3.8%industryaverage2.8%forecastin3Years0%

Current dividend yield vs market & industry


Stability and Growth of Payments

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.

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

What is the CEO of Reata Pharmaceuticals's salary, the management and board of directors tenure and is there insider trading?

2.2yrs

Average management tenure


CEO

J. Huff (65yo)

17.8yrs

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 ($USD934.50K) is about average for companies of similar size in the US market ($USD5.10M).

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


Management Age and Tenure

2.2yrs

Average Tenure

48.5yo

Average Age

Experienced Management: RETA's management team is considered experienced (2.2 years average tenure).


Board Age and Tenure

14.8yrs

Average Tenure

57yo

Average Age

Experienced Board: RETA's board of directors are seasoned and experienced ( 14.8 years average tenure).


Insider Trading

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


Recent Insider Transactions

SellUS$5,456,11530 Sep 19
J. Huff
EntityIndividual
Role
Chief Executive Officer
Chairman
Shares82,500
Max PriceUS$86.61
SellUS$586,92007 Mar 19
James Bass
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares5,852
Max PriceUS$100.29
BuyUS$46,28721 Dec 18
James Bass
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares888
Max PriceUS$52.12
BuyUS$63,19412 Dec 18
CPMG, Inc.
EntityCompany
Shares1,078
Max PriceUS$58.62
BuyUS$6,520,64012 Dec 18
CPMG, Inc.
EntityCompany
Shares109,748
Max PriceUS$60.07
BuyUS$99,61519 Nov 18
James Bass
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,679
Max PriceUS$59.33

Ownership Breakdown


Management Team

  • J. Huff (65yo)

    Chairman

    • Tenure: 17.8yrs
    • Compensation: US$934.50k
  • Mike Wortley (71yo)

    Executive VP & Chief Legal Officer

    • Tenure: 4.5yrs
  • Jason Wilson (49yo)

    Executive Vice President of Operations

    • Tenure: 0.2yrs
    • Compensation: US$427.50k
  • Vinny Jindal

    Vice President of Strategy

    • Tenure: 0yrs
  • Colin Meyer (40yo)

    Chief Medical Officer & Executive VP of Product Development

    • Tenure: 0yrs
    • Compensation: US$625.50k
  • Elaine Castellanos

    Vice President of Finance & Accounting

    • Tenure: 0yrs
  • Manmeet Soni (41yo)

    CFO & Executive VP

    • Tenure: 0.2yrs
  • Joel Proksch

    Chief Development Officer & Senior VP of Regulatory

    • Tenure: 0yrs
  • Dawn Bir (48yo)

    Executive VP & Chief Commercial Officer

    • Tenure: 3.1yrs
  • Claudia Bujold

    Vice President of Marketing

    • Tenure: 1.3yrs

Board Members

  • J. Huff (65yo)

    Chairman

    • Tenure: 17.8yrs
    • Compensation: US$934.50k
  • William Rose (51yo)

    Independent Director

    • Tenure: 3.7yrs
    • Compensation: US$263.81k
  • Jack Nielsen (55yo)

    Lead Independent Director

    • Tenure: 0yrs
    • Compensation: US$298.93k
  • Richard McGaughy (47yo)

    Independent Director

    • Tenure: 14.8yrs
    • Compensation: US$260.79k
  • Jim Bass (60yo)

    Independent Director

    • Tenure: 15.3yrs
    • Compensation: US$267.92k
  • Bill McClellan (59yo)

    Independent Director

    • Tenure: 2.6yrs
    • Compensation: US$292.93k

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$4.754b
  • Shares outstanding: 30.11m
  • Website: https://www.reatapharma.com

Number of Employees


Location

  • Reata Pharmaceuticals, Inc.
  • 2801 Gateway Drive
  • Suite 150
  • Irving
  • Texas
  • 75063
  • 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 cel ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/16 00:17
End of Day Share Price2019/10/15 00:00
Earnings2019/06/30
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.