NasdaqGS:SGEN

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Excellent balance sheet with high growth potential.


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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

5.3%

SGEN

2.2%

US Biotechs

-1.5%

US Market


1 Year Return

142.2%

SGEN

32.0%

US Biotechs

12.9%

US Market

Return vs Industry: SGEN exceeded the US Biotechs industry which returned 31.2% over the past year.

Return vs Market: SGEN exceeded the US Market which returned 12.8% over the past year.


Shareholder returns

SGENIndustryMarket
7 Day5.3%2.2%-1.5%
30 Day14.9%1.7%-1.8%
90 Day5.7%-1.6%6.6%
1 Year142.2%142.2%34.2%32.0%15.4%12.9%
3 Year241.6%241.6%17.4%11.7%39.6%30.2%
5 Year385.4%385.4%27.0%18.0%93.4%71.7%

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?

26.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SGEN ($180.94) is trading below our estimate of fair value ($245.94)

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


Price To Earnings Ratio

PE vs Industry: SGEN is unprofitable, so we can't compare its PE Ratio to the US 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 (17.3x) compared to the US Biotechs industry average (3.6x).


Next Steps

Future Growth

How is Seattle Genetics forecast to perform in the next 1 to 3 years based on estimates from 19 analysts?

76.9%

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 (2.2%).

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 (32.4% per year) is forecast to grow faster than the US market (9.8% per year).

High Growth Revenue: SGEN's revenue (32.4% 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 (13.5%).


Next Steps

Past Performance

How has Seattle Genetics performed over the past 5 years?

-18.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SGEN is currently unprofitable.

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 18.4% 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 (-3.2%).


Return on Equity

High ROE: SGEN has a negative Return on Equity (-14.09%), as it is currently unprofitable.


Next Steps

Financial Health

How is Seattle Genetics's financial position?


Financial Position Analysis

Short Term Liabilities: SGEN's short term assets ($1.3B) exceed its short term liabilities ($282.6M).

Long Term Liabilities: SGEN's short term assets ($1.3B) exceed its long term liabilities ($67.9M).


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


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 a year 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

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

High Dividend: Unable to evaluate SGEN'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 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

How experienced are the management team and are they aligned to shareholders interests?

4.8yrs

Average management tenure


CEO

Clay Siegall (59 yo)

17.83yrs

Tenure

US$14,521,495

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 ($USD14.52M) is about average for companies of similar size in the US market ($USD11.35M).

Compensation vs Earnings: Clay's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Clay Siegall
Co-Founder17.83yrsUS$14.52m0.32%
$ 101.2m
Todd Simpson
Chief Financial Officer14.92yrsUS$4.49m0.045%
$ 14.2m
Jean Liu
General Counsel5.83yrsUS$3.97m0.0096%
$ 3.0m
Roger Dansey
Chief Medical Officer2.33yrsUS$6.72m0.019%
$ 6.0m
Vaughn Himes
Chief Technology Officer4.08yrsUS$3.95m0.084%
$ 26.5m
Peggy Pinkston
VP of Investor Relations & Executive Director of Corporate Communicationsno datano datano data
Natasha Hernday
Senior Vice President of Corporate Development9.42yrsno datano data
Matt Skelton
Vice President of Marketing4.83yrsno datano data
Christopher Pawlowicz
Executive Vice President of Human Resourcesno datano datano data
Charles Romp
Executive Vice President of Commercialno datano data0.0056%
$ 1.8m
Dennis Benjamin
Senior Vice President of Translational Research3.92yrsno datano data
Rachel Lenington
Senior Vice President of Program & Portfolio Management0.67yrno datano data

4.8yrs

Average Tenure

59yo

Average Age

Experienced Management: SGEN's management team is considered experienced (4.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Clay Siegall
Co-Founder17.83yrsUS$14.52m0.32%
$ 101.2m
John Orwin
Independent Director6.67yrsUS$442.77k0.013%
$ 3.9m
David Gryska
Independent Director15.5yrsUS$445.63k0.026%
$ 8.2m
Daniel Welch
Independent Director13.25yrsUS$431.04k0.030%
$ 9.5m
Felix Baker
Lead Independent Director15.58yrsUS$482.74k0.11%
$ 36.2m
Ted Love
Director0.083yrno data0.0010%
$ 324.3k
Marc Lippman
Independent Director20.25yrsUS$427.60k0.073%
$ 23.0m
Nancy Simonian
Independent Director8.5yrsUS$435.63k0.013%
$ 3.9m
Alpna Seth
Independent Director2.5yrsUS$433.04k0%
$ 0

13.3yrs

Average Tenure

59yo

Average Age

Experienced Board: SGEN's board of directors are seasoned and experienced ( 13.3 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if 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 2.4%.


Top Shareholders

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: 1997
  • Industry: Biotechnology
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: US$31.483b
  • Shares outstanding: 174.00m
  • 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 Analysis2020/09/21 05:43
End of Day Share Price2020/09/18 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.