NasdaqGS:SBBP

Stock Analysis Report

Executive Summary

Strongbridge Biopharma plc, a commercial-stage biopharmaceutical company, focuses on the development and commercialization of therapies for rare diseases with unmet needs.

Rewards

Trading at 75.8% below its fair value

Earnings are forecast to grow 48.17% per year

Became profitable this year

Risk Analysis

High level of non-cash earnings

Highly volatile share price over past 3 months

Shareholders have been diluted in the past year



Snowflake Analysis

Very undervalued with flawless balance sheet.

Share Price & News

How has Strongbridge Biopharma's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: SBBP's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

14.2%

SBBP

-2.2%

US Pharmaceuticals

-1.2%

US Market


1 Year Return

-33.1%

SBBP

13.1%

US Pharmaceuticals

22.3%

US Market

Return vs Industry: SBBP underperformed the US Pharmaceuticals industry which returned 12.6% over the past year.

Return vs Market: SBBP underperformed the US Market which returned 24.7% over the past year.


Shareholder returns

SBBPIndustryMarket
7 Day14.2%-2.2%-1.2%
30 Day46.9%0.4%1.6%
90 Day37.3%11.9%8.8%
1 Year-33.1%-33.1%16.0%13.1%25.0%22.3%
3 Year42.3%42.3%39.2%29.2%49.9%40.3%
5 Year222.7%222.7%30.0%16.3%77.6%58.0%

Price Volatility Vs. Market

How volatile is Strongbridge Biopharma's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Strongbridge Biopharma 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: SBBP ($2.28) is trading below our estimate of fair value ($9.41)

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


Price To Earnings Ratio

PE vs Industry: SBBP is good value based on its PE Ratio (2.7x) compared to the Pharmaceuticals industry average (24.9x).

PE vs Market: SBBP is good value based on its PE Ratio (2.7x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: SBBP is good value based on its PEG Ratio (0.1x)


Price to Book Ratio

PB vs Industry: SBBP is good value based on its PB Ratio (1.6x) compared to the US Pharmaceuticals industry average (3.3x).


Next Steps

Future Growth

How is Strongbridge Biopharma forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

48.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SBBP's forecast earnings growth (48.2% per year) is above the savings rate (1.7%).

Earnings vs Market: SBBP's earnings (48.2% per year) are forecast to grow faster than the US market (14.3% per year).

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

Revenue vs Market: SBBP's revenue (48.7% per year) is forecast to grow faster than the US market (7.5% per year).

High Growth Revenue: SBBP's revenue (48.7% 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 SBBP's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Strongbridge Biopharma performed over the past 5 years?

7.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SBBP has a high level of non-cash earnings.

Growing Profit Margin: SBBP became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: SBBP has become profitable over the past 5 years, growing earnings by 7.7% per year.

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

Earnings vs Industry: SBBP has become profitable in the last year, making it difficult to compare its past year earnings growth to the Pharmaceuticals industry (36.8%).


Return on Equity

High ROE: SBBP's Return on Equity (54.7%) is considered outstanding.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Strongbridge Biopharma's financial position?


Financial Position Analysis

Short Term Liabilities: SBBP's short term assets ($87.4M) exceed its short term liabilities ($20.6M).

Long Term Liabilities: SBBP's short term assets ($87.4M) exceed its long term liabilities ($22.7M).


Debt to Equity History and Analysis

Debt Level: SBBP is debt free.

Reducing Debt: SBBP had no debt 5 years ago.

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

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


Balance Sheet

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

Debt Coverage by Assets: Insufficient data to determine if SBBP's debt is covered by short term assets.


Next Steps

Dividend

What is Strongbridge Biopharma's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage2.7%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

High Dividend: Unable to evaluate SBBP's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if SBBP's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if SBBP'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 SBBP'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 Strongbridge Biopharma's salary, the management and board of directors tenure and is there insider trading?

1.8yrs

Average management tenure


CEO

Strongbridge Biopharma has no CEO, or we have no data on them.


Management Age and Tenure

1.8yrs

Average Tenure

53yo

Average Age

Experienced Management: SBBP's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Age and Tenure

5.0yrs

Average Tenure

57yo

Average Age

Experienced Board: SBBP's board of directors are considered experienced (4.8 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 18.3%.


Management Team

  • Rich Kollender (50yo)

    Chief Operating Officer

    • Tenure: 0.3yrs
    • Compensation: US$290.53k
  • Steve Long (53yo)

    Chief Legal Officer & Company Secretary

    • Tenure: 4.8yrs
  • Fred Cohen (54yo)

    Chief Medical Officer

    • Tenure: 3.2yrs
    • Compensation: US$1.23m
  • John Johnson (61yo)

    Executive Chairman

    • Tenure: 4.8yrs
    • Compensation: US$312.03k
  • Dave Bonnell

    Senior Vice President of Sales & Marketing

    • Tenure: 3yrs
  • Per Marin

    Founder and Senior Clinical Advisor

    • Rob Lutz (50yo)

      Chief Financial Officer

      • Tenure: 0.3yrs
      • Compensation: US$292.48k
    • Pete Valentinsson

      Senior Vice President of Global Technical Operations

      • Tenure: 2.8yrs
    • Brian Conner

      Chief Compliance Officer

      • Emily Doyle

        Senior Vice President of Global Human Resources

        • Tenure: 0.8yrs

      Board Members

      • David Gill (64yo)

        Director

        • Tenure: 0.3yrs
      • Hilde Furberg (53yo)

        Independent Director

        • Tenure: 6yrs
        • Compensation: US$268.53k
      • John Johnson (61yo)

        Executive Chairman

        • Tenure: 4.8yrs
        • Compensation: US$312.03k
      • Beverly Biller

        Member of Scientific Advisory Board

        • Mårten Steen (44yo)

          Independent Director

          • Tenure: 5.1yrs
          • Compensation: US$277.53k
        • Richard Auchus

          Member of Scientific Advisory Board

          • Thierry Brue

            Member of Scientific Advisory Board

            • Frederic Castinetti

              Member of Scientific Advisory Board

              • Maria Fleseriu

                Member of Scientific Advisory Board

                • Eliza Geer

                  Member of Scientific Advisory Board

                  Company Information

                  Strongbridge Biopharma plc's company bio, employee growth, exchange listings and data sources


                  Key Information

                  • Name: Strongbridge Biopharma plc
                  • Ticker: SBBP
                  • Exchange: NasdaqGS
                  • Founded: 1996
                  • Industry: Pharmaceuticals
                  • Sector: Pharmaceuticals & Biotech
                  • Market Cap: US$169.664m
                  • Shares outstanding: 54.21m
                  • Website: https://www.strongbridgebio.com

                  Number of Employees


                  Location

                  • Strongbridge Biopharma plc
                  • 900 Northbrook Drive
                  • Suite 200
                  • Trevose
                  • Pennsylvania
                  • 19053
                  • United States

                  Listings

                  TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
                  SBBPNasdaqGS (Nasdaq Global Select)YesOrdinary SharesUSUSDJan 2000
                  69BNDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 2000

                  Biography

                  Strongbridge Biopharma plc, a commercial-stage biopharmaceutical company, focuses on the development and commercialization of therapies for rare diseases with unmet needs. The company’s commercial products include Keveyis, an oral carbonic anhydrase inhibitor for treating hyperkalemic, hypokalemic, and related variants of primary periodic paralysis in the United States; and Macrilen, an oral growth hormone secretagogue receptor agonist for use in the diagnosis of patients with adult growth hormone deficiency. Its clinical-stage product candidates are Recorlev, a cortisol synthesis inhibitor, which is in a Phase III clinical trial that is used for the treatment of endogenous Cushing's syndrome; and Veldoreotide, a somatostatin analog that completed Phase II clinical trial for the treatment of acromegaly. The company was formerly known as Cortendo plc and changed its name to Strongbridge Biopharma plc in September 2015. Strongbridge Biopharma plc was founded in 1996 and is based in Trevose, Pennsylvania. 


                  Company Analysis and Financial Data Status

                  All financial data provided by Standard & Poor's Capital IQ.
                  DataLast Updated (UTC time)
                  Company Analysis2020/01/27 01:04
                  End of Day Share Price2020/01/24 00:00
                  Earnings2019/09/30
                  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.