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SAGE

Sage TherapeuticsNasdaqGM:SAGE Stock Report

Market Cap

US$2.8b

7D

3.6%

1Y

-21.8%

Updated

27 Sep, 2021

Data

Company Financials +
SAGE fundamental analysis
Snowflake Score
Valuation6/6
Future Growth5/6
Past Performance4/6
Financial Health6/6
Dividends0/6

SAGE Overview

Sage Therapeutics, Inc., a biopharmaceutical company, develops and commercializes medicines to treat central nervous system disorders.

Price History & Performance

Summary of all time highs, changes and price drops for Sage Therapeutics
Historical stock prices
Current Share PriceUS$46.86
52 Week HighUS$39.77
52 Week LowUS$98.39
Beta1.85
1 Month Change4.51%
3 Month Change-16.89%
1 Year Change-21.76%
3 Year Change-66.26%
5 Year Change2.67%
Change since IPO56.20%

Recent News & Updates

Aug 05
What You Need To Know About The Sage Therapeutics, Inc. (NASDAQ:SAGE) Analyst Downgrade Today

What You Need To Know About The Sage Therapeutics, Inc. (NASDAQ:SAGE) Analyst Downgrade Today

Today is shaping up negative for Sage Therapeutics, Inc. ( NASDAQ:SAGE ) shareholders, with the analysts delivering a...

Jul 25

Sage Therapeutics: Showing Upside, But There Are Plenty Of Unknowns

Shares of Sage Therapeutics, Inc. fell 19% in reaction to Phase 3 data on its lead clinical asset (zuranolone), which achieved its primary endpoint of response in MDD patients. Concerns surrounded the duration of response, which did not separate from placebo at day 42, although additional data suggests the zuranolone’s effect remained consistent. With $2 billion in cash from a debatable Biogen deal, multiple data readouts in 2021, and insider buying after the recent readout-driven sell off, Sage merited a deeper dive. A full investment analysis follows in the paragraphs below.

Jul 12

Sage Therapeutics Needs To Show Improved Data To Regain Investor Trust

Sage provided topline results for Zuranolone in June, and the market was unimpressed. Shares plummeted from $80 to $55. Investors now eagerly await additional data later in 2021 that will determine the regulatory fate of Zuranolone. While there is good potential upside with positive data, there is also substantial downside if their depression franchise falters.

Shareholder Returns

SAGEUS BiotechsUS Market
7D3.6%-0.3%2.0%
1Y-21.8%23.8%32.8%

Return vs Industry: SAGE underperformed the US Biotechs industry which returned 23.8% over the past year.

Return vs Market: SAGE underperformed the US Market which returned 32.8% over the past year.

Price Volatility

Is SAGE's price volatile compared to industry and market?
SAGE volatility
SAGE Beta1.85
Industry Beta1.03
Market Beta1

Stable Share Price: SAGE is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: SAGE's weekly volatility (6%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
2010298Barry Greenehttps://www.sagerx.com

Sage Therapeutics, Inc., a biopharmaceutical company, develops and commercializes medicines to treat central nervous system disorders. Its lead product candidate is ZULRESSO, an intravenous formulation of brexanolone for the treatment of postpartum depression (PPD) in adults. The company’s product pipeline also includes zuranolone, a neuroactive steroid, which is in Phase III clinical trials for treating PPD, major depressive disorders, bipolar depression, and generalized anxiety disorders; and SAGE-324, a compound that is in Phase II clinical trial to treat essential tremors, as well as has completed Phase I clinical trial for epilepsy and Parkinson’s diseases.

Sage Therapeutics Fundamentals Summary

How do Sage Therapeutics's earnings and revenue compare to its market cap?
SAGE fundamental statistics
Market CapUS$2.76b
Earnings (TTM)US$666.15m
Revenue (TTM)US$1.11b

4.1x

P/E Ratio

2.5x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
SAGE income statement (TTM)
RevenueUS$1.11b
Cost of RevenueUS$280.63m
Gross ProfitUS$833.42m
ExpensesUS$167.27m
EarningsUS$666.15m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)11.33
Gross Margin74.81%
Net Profit Margin59.80%
Debt/Equity Ratio0%

How did SAGE perform over the long term?

See historical performance and comparison

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SAGE ($46.86) is trading below our estimate of fair value ($165.94)

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


Price To Earnings Ratio

PE vs Industry: SAGE is good value based on its PE Ratio (4.1x) compared to the US Biotechs industry average (24.8x).

PE vs Market: SAGE is good value based on its PE Ratio (4.1x) compared to the US market (18.1x).


Price to Earnings Growth Ratio

PEG Ratio: SAGE is good value based on its PEG Ratio (0.2x)


Price to Book Ratio

PB vs Industry: SAGE is good value based on its PB Ratio (1.4x) compared to the US Biotechs industry average (3.3x).


Future Growth

How is Sage Therapeutics forecast to perform in the next 1 to 3 years based on estimates from 22 analysts?

25.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SAGE's forecast earnings growth (25.2% per year) is above the savings rate (2%).

Earnings vs Market: SAGE's earnings (25.2% per year) are forecast to grow faster than the US market (15% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: SAGE's revenue (28.8% per year) is forecast to grow faster than the US market (9.8% per year).

High Growth Revenue: SAGE's revenue (28.8% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

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


Past Performance

How has Sage Therapeutics performed over the past 5 years?

13.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SAGE has high quality earnings.

Growing Profit Margin: SAGE became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: SAGE has become profitable over the past 5 years, growing earnings by 13.1% per year.

Accelerating Growth: SAGE has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: SAGE has become profitable in the last year, making it difficult to compare its past year earnings growth to the Biotechs industry (4.9%).


Return on Equity

High ROE: SAGE's Return on Equity (34.5%) is considered high.


Financial Health

How is Sage Therapeutics's financial position?


Financial Position Analysis

Short Term Liabilities: SAGE's short term assets ($2.0B) exceed its short term liabilities ($71.9M).

Long Term Liabilities: SAGE's short term assets ($2.0B) exceed its long term liabilities ($14.1M).


Debt to Equity History and Analysis

Debt Level: SAGE is debt free.

Reducing Debt: SAGE has not had any debt for past 5 years.

Debt Coverage: SAGE has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: SAGE has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Dividend

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


Dividend Yield vs Market

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

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

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

5.2yrs

Average management tenure


CEO

Barry Greene (58 yo)

0.75

Tenure

US$826,052

Compensation

Mr. Barry E. Greene serves as President and Chief Executive Officer at Sage Therapeutics, Inc. since December 15, 2020 and its Director since October 1, 2020. He is a Director at BCLS Acquisition Corp., si...


CEO Compensation Analysis

Compensation vs Market: Barry's total compensation ($USD826.05K) is below average for companies of similar size in the US market ($USD5.22M).

Compensation vs Earnings: Insufficient data to compare Barry's compensation with company performance.


Leadership Team

Experienced Management: SAGE's management team is seasoned and experienced (5.2 years average tenure).


Board Members

Experienced Board: SAGE's board of directors are considered experienced (7.2 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: SAGE 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 13.2%.


Top Shareholders

Company Information

Sage Therapeutics, Inc.'s employee growth, exchange listings and data sources


Key Information

  • Name: Sage Therapeutics, Inc.
  • Ticker: SAGE
  • Exchange: NasdaqGM
  • Founded: 2010
  • Industry: Biotechnology
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: US$2.756b
  • Shares outstanding: 58.81m
  • Website: https://www.sagerx.com

Number of Employees


Location

  • Sage Therapeutics, Inc.
  • 215 First Street
  • Cambridge
  • Massachusetts
  • 2142
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/27 23:05
End of Day Share Price2021/09/27 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.