| Snowflake Score | |
|---|---|
| Valuation | 6/6 |
| Future Growth | 5/6 |
| Past Performance | 4/6 |
| Financial Health | 6/6 |
| Dividends | 0/6 |
SAGE Overview
Sage Therapeutics, Inc., a biopharmaceutical company, develops and commercializes medicines to treat central nervous system disorders.
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | US$46.86 |
| 52 Week High | US$39.77 |
| 52 Week Low | US$98.39 |
| Beta | 1.85 |
| 1 Month Change | 4.51% |
| 3 Month Change | -16.89% |
| 1 Year Change | -21.76% |
| 3 Year Change | -66.26% |
| 5 Year Change | 2.67% |
| Change since IPO | 56.20% |
Recent News & Updates
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...
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.
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
| SAGE | US Biotechs | US Market | |
|---|---|---|---|
| 7D | 3.6% | -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
| SAGE volatility | |
|---|---|
| SAGE Beta | 1.85 |
| Industry Beta | 1.03 |
| Market Beta | 1 |
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
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 2010 | 298 | Barry Greene | https://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
| SAGE fundamental statistics | |
|---|---|
| Market Cap | US$2.76b |
| Earnings (TTM) | US$666.15m |
| Revenue (TTM) | US$1.11b |
4.1x
P/E Ratio2.5x
P/S RatioIs SAGE overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| SAGE income statement (TTM) | |
|---|---|
| Revenue | US$1.11b |
| Cost of Revenue | US$280.63m |
| Gross Profit | US$833.42m |
| Expenses | US$167.27m |
| Earnings | US$666.15m |
Last Reported Earnings
Jun 30, 2021
Next Earnings Date
n/a
| Earnings per share (EPS) | 11.33 |
| Gross Margin | 74.81% |
| Net Profit Margin | 59.80% |
| Debt/Equity Ratio | 0% |
How did SAGE perform over the long term?
See historical performance and comparisonValuation
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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/09/27 23:05 |
| End of Day Share Price | 2021/09/27 00:00 |
| Earnings | 2021/06/30 |
| Annual Earnings | 2020/12/31 |
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.