NasdaqGS:SGEN

Stock Analysis Report

Executive Summary

Seattle Genetics, Inc., a biotechnology company, develops and commercializes therapies for the treatment of cancer in the United States and internationally.

Snowflake

Fundamentals

High growth potential with excellent balance sheet.


Similar Companies

Share Price & News

How has Seattle Genetics's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

7.7%

SGEN

3.2%

US Biotechs

0.5%

US Market


1 Year Return

111.1%

SGEN

11.1%

US Biotechs

16.1%

US Market

Return vs Industry: SGEN exceeded the US Biotechs industry which returned 11.1% over the past year.

Return vs Market: SGEN exceeded the US Market which returned 16.1% over the past year.


Shareholder returns

SGENIndustryMarket
7 Day7.7%3.2%0.5%
30 Day19.8%11.1%3.9%
90 Day54.2%9.1%6.6%
1 Year111.1%111.1%12.1%11.1%18.7%16.1%
3 Year71.5%71.5%18.7%14.9%47.2%37.7%
5 Year228.5%228.5%5.4%0.5%61.5%43.7%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Seattle Genetics undervalued compared to its fair value and its price relative to the market?

11.62x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: SGEN ($120.84) is trading above our estimate of fair value ($96.77)

Significantly Below Fair Value: SGEN is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: SGEN is unprofitable, so we can't compare its PE Ratio to the Biotechs industry average.

PE vs Market: SGEN is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate SGEN's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: SGEN is overvalued based on its PB Ratio (11.6x) compared to the US Biotechs industry average (3x).


Next Steps

Future Growth

How is Seattle Genetics forecast to perform in the next 1 to 3 years based on estimates from 17 analysts?

76.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

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

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

High Growth Earnings: SGEN's is expected to become profitable in the next 3 years.

Revenue vs Market: SGEN's revenue (28.4% per year) is forecast to grow faster than the US market (7.3% per year).

High Growth Revenue: SGEN's revenue (28.4% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SGEN's Return on Equity is forecast to be low in 3 years time (14.9%).


Next Steps

Past Performance

How has Seattle Genetics performed over the past 5 years?

-20.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SGEN has large one-off items impacting its financial results.

Growing Profit Margin: SGEN is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: SGEN is unprofitable, and losses have increased over the past 5 years at a rate of -20.3% per year.

Accelerating Growth: Unable to compare SGEN's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: SGEN is unprofitable, making it difficult to compare its past year earnings growth to the Biotechs industry (86.5%).


Return on Equity

High ROE: SGEN has a negative Return on Equity (-17.1%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Seattle Genetics's financial position?


Financial Position Analysis

Short Term Liabilities: SGEN's short term assets ($1.2B) exceeds its short term liabilities ($246.2M)

Long Term Liabilities: SGEN's short term assets ($1.2B) exceeds its long term liabilities (71.7M)


Debt to Equity History and Analysis

Debt Level: SGEN is debt free.

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


Balance Sheet

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

Debt Coverage by Assets: SGEN's debt is not covered by short term assets (assets are -8.4186280415646E+16x debt).


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: SGEN has sufficient cash runway for more than 3 years based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if SGEN has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

What is Seattle Genetics's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage2.1%forecastin3Years0%

Current dividend yield vs market & industry

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

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

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

4.5yrs

Average management tenure


CEO

Clay Siegall (58yo)

17yrs

Tenure

US$18,107,037

Compensation

Dr. Clay B. Siegall, Ph.D. co-founded Seattle Genetics, Inc. in 1997 and has been its Chief Executive Officer since November 2002 and its President since June 2000. Dr. Siegall has nearly 20 years of exper ...


CEO Compensation Analysis

Compensation vs Market: Clay's total compensation ($USD18.11M) is above average for companies of similar size in the US market ($USD11.01M).

Compensation vs Earnings: Clay's compensation has increased whilst the company is unprofitable.


Management Age and Tenure

4.5yrs

Average Tenure

58yo

Average Age

Experienced Management: SGEN's management team is considered experienced (4.5 years average tenure).


Board Age and Tenure

14.7yrs

Average Tenure

58yo

Average Age

Experienced Board: SGEN's board of directors are seasoned and experienced ( 14.7 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.


Recent Insider Transactions

SellUS$440,16030 Nov 18
Darren Cline
EntityIndividual
Shares7,000
Max PriceUS$62.88

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 5.9%.


Management Team

  • Todd Simpson (58yo)

    Chief Financial Officer

    • Tenure: 14.1yrs
    • Compensation: US$4.43m
  • Jean Liu (51yo)

    General Counsel

    • Tenure: 5yrs
    • Compensation: US$2.40m
  • Clay Siegall (58yo)

    Co-Founder

    • Tenure: 17yrs
    • Compensation: US$18.11m
  • Vaughn Himes (58yo)

    Chief Technology Officer

    • Tenure: 3.3yrs
    • Compensation: US$3.95m
  • Chris Pawlowicz

    Executive Vice President of Human Resources

    • Tenure: 0yrs
  • Peggy Pinkston

    VP of Investor Relations & Executive Director of Corporate Communications

    • Tenure: 0yrs
  • Natasha Hernday (47yo)

    Senior Vice President of Corporate Development

    • Tenure: 8.6yrs
  • Dennis Benjamin

    Senior Vice President of Translational Research

    • Tenure: 3.1yrs
  • Matt Skelton

    Vice President of Marketing

    • Tenure: 4yrs
  • Roger Dansey (62yo)

    Chief Medical Officer

    • Tenure: 1.5yrs
    • Compensation: US$9.93m

Board Members

  • John Orwin (54yo)

    Independent Director

    • Tenure: 5.8yrs
    • Compensation: US$482.68k
  • Dave Gryska (64yo)

    Independent Director

    • Tenure: 14.7yrs
    • Compensation: US$484.68k
  • Dan Welch (61yo)

    Independent Director

    • Tenure: 12.4yrs
    • Compensation: US$476.82k
  • Clay Siegall (58yo)

    Co-Founder

    • Tenure: 17yrs
    • Compensation: US$18.11m
  • Felix Baker (50yo)

    Lead Independent Director

    • Tenure: 14.8yrs
    • Compensation: US$509.68k
  • Marc Lippman (74yo)

    Independent Director

    • Tenure: 19.4yrs
    • Compensation: US$469.68k
  • Srini Akkaraju (51yo)

    Director

    • Tenure: 16.3yrs
    • Compensation: US$464.68k
  • Nancy Simonian (58yo)

    Independent Director

    • Tenure: 7.7yrs
    • Compensation: US$474.68k
  • Alpna Seth (56yo)

    Independent Director

    • Tenure: 1.7yrs
    • Compensation: US$728.65k

Company Information

Seattle Genetics, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Seattle Genetics, Inc.
  • Ticker: SGEN
  • Exchange: NasdaqGS
  • Founded: 1998
  • Industry: Biotechnology
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: US$20.710b
  • Shares outstanding: 171.39m
  • Website: https://www.seattlegenetics.com

Number of Employees


Location

  • Seattle Genetics, Inc.
  • 21823 30th Drive SE
  • Bothell
  • Washington
  • 98021
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SGENNasdaqGS (Nasdaq Global Select)YesCommon SharesUSUSDMar 2001
SGTDB (Deutsche Boerse AG)YesCommon SharesDEEURMar 2001

Biography

Seattle Genetics, Inc., a biotechnology company, develops and commercializes therapies for the treatment of cancer in the United States and internationally. The company markets ADCETRIS, an antibody-drug c ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/20 23:43
End of Day Share Price2019/11/20 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.