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 adequate balance sheet.

Risks

  • Reata Pharmaceuticals has significant price volatility in the past 3 months.

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

-9.0%

NasdaqGM:RETA

-1.6%

US Pharmaceuticals

-1.9%

US Market


1 Year Return

-5.7%

NasdaqGM:RETA

-8.5%

US Pharmaceuticals

-3.3%

US Market

RETA outperformed the Pharmaceuticals industry which returned -8.4% over the past year.

RETA underperformed the Market in United States of America which returned -3% over the past year.


Share holder returns

RETAIndustryMarket
7 Day-9.0%-1.6%-1.9%
30 Day-21.5%-4.5%-6.2%
90 Day-21.1%-5.5%0.3%
1 Year-5.7%-5.7%-6.3%-8.5%-1.1%-3.3%
3 Year275.3%275.3%8.4%1.0%37.9%28.9%
5 Yearn/a20.1%7.5%50.8%34.1%

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 based on future cash flows and its price relative to the stock 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 expected to perform in the next 1 to 3 years based on estimates from 6 analysts?

74.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Reata Pharmaceuticals's revenue is expected to grow significantly at over 20% yearly.

Reata Pharmaceuticals's earnings are expected to grow significantly at over 20% yearly.

Reata Pharmaceuticals's revenue growth is expected to exceed the United States of America market average.

Reata Pharmaceuticals's earnings growth is expected to exceed the United States of America market average.

Reata Pharmaceuticals's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Reata Pharmaceuticals will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


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

Reata Pharmaceuticals does not make a profit and their year on year earnings growth rate was negative over the past 5 years.

Unable to compare Reata Pharmaceuticals's 1-year earnings growth to the 5-year average as it is not currently profitable.

Unable to compare Reata Pharmaceuticals's 1-year growth to the US Pharmaceuticals industry average as it is not currently profitable.


Return on Equity

It is difficult to establish if Reata Pharmaceuticals has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) due to its liabilities exceeding its assets.


Return on Assets

It is difficult to establish if Reata Pharmaceuticals has efficiently used its assets last year compared to the US Pharmaceuticals industry average (Return on Assets) as it is loss-making.


Return on Capital Employed

It is difficult to establish if Reata Pharmaceuticals improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.


Next Steps

Financial Health

How is Reata Pharmaceuticals's financial position?


Financial Position Analysis

Reata Pharmaceuticals is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Reata Pharmaceuticals's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Reata Pharmaceuticals has negative shareholder equity (liabilities exceed assets), this is a more serious situation compared with a high debt level.

Irrelevant to check if Reata Pharmaceuticals's debt level has increased considering it has negative shareholder equity.


Balance Sheet

Low level of unsold assets.

Reata Pharmaceuticals 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.

Reata Pharmaceuticals has sufficient cash runway for 2.9 years based on current free cash flow.

Reata Pharmaceuticals has sufficient cash runway for 2.3 years if free cash flow continues to grow at historical rates of 40% each year.


Next Steps

Dividend

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


Dividend Yield and Payments Analysis

Unable to evaluate Reata Pharmaceuticals's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate Reata Pharmaceuticals's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as Reata Pharmaceuticals has not reported any payouts.

Unable to verify if Reata Pharmaceuticals's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as Reata Pharmaceuticals has not reported any payouts.


Future Payout to Shareholders

No need to calculate the sustainability of Reata Pharmaceuticals's dividends in 3 years as they are not expected to pay a notable one for United States of America.


Next Steps

Management

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

3.6yrs

Average management tenure


CEO

J. Huff (65yo)

17.6yrs

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

J.'s remuneration is lower than average for companies of similar size in United States of America.

J.'s compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

3.6yrs

Average Tenure

49yo

Average Age

The tenure for the Reata Pharmaceuticals management team is about average.


Board Age and Tenure

14.7yrs

Average Tenure

57yo

Average Age

The average tenure for the Reata Pharmaceuticals board of directors is over 10 years, this suggests they are a seasoned and experienced board.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

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: 17.6yrs
    • Compensation: US$934.50k
  • Mike Wortley (71yo)

    Executive VP & Chief Legal Officer

    • Tenure: 4.3yrs
  • Jason Wilson (49yo)

    CFO & Executive VP of Strategy

    • Tenure: 0.0yrs
    • Compensation: US$427.50k
  • Colin Meyer (40yo)

    Chief Medical Officer & Executive VP of Product Development

    • Tenure: 0.0yrs
    • Compensation: US$625.50k
  • Elaine Castellanos

    Vice President of Finance & Accounting

    • Tenure: 0.0yrs
  • Joel Proksch

    Chief Development Officer & Senior VP of Regulatory

    • Tenure: 0.0yrs
  • Dawn Bir (48yo)

    Executive VP & Chief Commercial Officer

    • Tenure: 2.9yrs
  • Claudia Bujold

    Vice President of Marketing

    • Tenure: 1.2yrs

Board Members

  • J. Huff (65yo)

    Chairman

    • Tenure: 17.6yrs
    • Compensation: US$934.50k
  • William Rose (51yo)

    Director

    • Tenure: 3.5yrs
    • Compensation: US$263.81k
  • Jack Nielsen (55yo)

    Lead Independent Director

    • Tenure: 0.0yrs
    • Compensation: US$298.93k
  • Richard McGaughy (47yo)

    Director

    • Tenure: 14.7yrs
    • Compensation: US$260.79k
  • Jim Bass (60yo)

    Independent Director

    • Tenure: 15.1yrs
    • Compensation: US$267.92k
  • Bill McClellan (59yo)

    Director

    • Tenure: 2.4yrs
    • 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$2.145b
  • 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 Analysis2019/08/26 01:04
End of Day Share Price2019/08/23 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.