NasdaqGS:SPPI

Stock Analysis Report

Executive Summary

Spectrum Pharmaceuticals, Inc. develops and commercializes oncology and hematology drug products.

Rewards

Trading at 94.7% below its fair value

Revenue is forecast to grow 38.82% per year

Risk Analysis

Currently unprofitable and not forecast to become profitable over the next 3 years

Highly volatile share price over past 3 months

Shareholders have been diluted in the past year



Snowflake Analysis

Flawless balance sheet and fair value.


Similar Companies

Amgen

NasdaqGS:AMGN

Share Price & News

How has Spectrum Pharmaceuticals's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

2.9%

SPPI

0.06%

US Biotechs

1.8%

US Market


1 Year Return

-75.8%

SPPI

11.0%

US Biotechs

20.1%

US Market

Return vs Industry: SPPI underperformed the US Biotechs industry which returned 10.4% over the past year.

Return vs Market: SPPI underperformed the US Market which returned 20.1% over the past year.


Shareholder returns

SPPIIndustryMarket
7 Day2.9%0.06%1.8%
30 Day-12.7%0.5%1.4%
90 Day-66.0%10.4%8.8%
1 Year-75.8%-75.8%12.0%11.0%22.7%20.1%
3 Year-52.1%-52.1%16.8%13.6%50.1%40.4%
5 Year-62.1%-62.1%-1.2%-6.0%72.9%53.9%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Spectrum Pharmaceuticals 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: SPPI ($2.83) is trading below our estimate of fair value ($53.34)

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


Price To Earnings Ratio

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

PE vs Market: SPPI 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 SPPI's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: SPPI is good value based on its PB Ratio (1.3x) compared to the US Biotechs industry average (3.1x).


Next Steps

Future Growth

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

41.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SPPI is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: SPPI is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: SPPI is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: SPPI's revenue (38.8% per year) is forecast to grow faster than the US market (7.6% per year).

High Growth Revenue: SPPI's revenue (38.8% 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 SPPI's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Spectrum Pharmaceuticals performed over the past 5 years?

-24.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SPPI is currently unprofitable.

Growing Profit Margin: SPPI is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: SPPI is unprofitable, and losses have increased over the past 5 years at a rate of -24.7% per year.

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

Earnings vs Industry: SPPI is unprofitable, making it difficult to compare its past year earnings growth to the Biotechs industry (64%).


Return on Equity

High ROE: SPPI has a negative Return on Equity (-60.38%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Spectrum Pharmaceuticals's financial position?


Financial Position Analysis

Short Term Liabilities: SPPI's short term assets ($272.7M) exceed its short term liabilities ($47.8M).

Long Term Liabilities: SPPI's short term assets ($272.7M) exceed its long term liabilities ($11.3M).


Debt to Equity History and Analysis

Debt Level: SPPI is debt free.

Reducing Debt: SPPI has no debt compared to 5 years ago when its debt to equity ratio was 37%.


Balance Sheet

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

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


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: SPPI has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: SPPI has sufficient cash runway for 2.7 years if free cash flow continues to reduce at historical rates of -36.2% each year.


Next Steps

Dividend

What is Spectrum Pharmaceuticals's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage2.1%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

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

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

2.2yrs

Average management tenure


CEO

Joe Turgeon (61yo)

2.2yrs

Tenure

US$4,722,227

Compensation

Mr. Joseph W. Turgeon, also known as Joe, has been the President of Spectrum Pharmaceuticals, Inc. since April 2014 and its Chief Executive Officer since December 17, 2017. Mr. Turgeon served as the Chief  ...


CEO Compensation Analysis

Compensation vs Market: Joe's total compensation ($USD4.72M) is above average for companies of similar size in the US market ($USD1.69M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Joseph Turgeon
President2.2yrsUS$4.72m0.38% $1.2m
Kurt Gustafson
Executive VP6.7yrsUS$2.59m0.22% $679.2k
Thomas Riga
Executive VP2.2yrsUS$5.30m0.22% $706.9k
Keith McGahan
Senior VP1.7yrsUS$5.08m0.12% $390.5k
Shivpreet Kapoor
Vice President of Strategic Planning & Investor Relations0yrsno datano data
Bimal Shah
Vice President of Corporate & Business Development0yrsno datano data
Alberto Dejesus
Vice President of Marketing0yrsno datano data
Lisa Croissant
Vice President of Sales0yrsno datano data
Zane Yang
Senior Vice President of Clinical Development3.4yrsno datano data
Michael Grabow
Senior Vice President of Corporate Strategy & Operations1.9yrsno datano data

2.2yrs

Average Tenure

47yo

Average Age

Experienced Management: SPPI's management team is considered experienced (2.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Joseph Turgeon
President2.2yrsUS$4.72m0.38% $1.2m
Raymond Cohen
Independent Director6.7yrsUS$483.22k0.048% $152.4k
Bernice Welles
Independent Director1.7yrsUS$420.72k0.018% $56.6k
Elizabeth Czerepak
Independent Director0.7yrsno data0.0090% $28.3k
William Ashton
Independent Chairman of the Board0.7yrsUS$544.50k0.015% $47.2k
Dolatrai Vyas
Independent Director6.7yrsUS$458.22k0.046% $144.5k
Jeffrey Vacirca
Independent Director1.3yrsUS$213.94k0.029% $90.5k

1.7yrs

Average Tenure

63yo

Average Age

Experienced Board: SPPI's board of directors are not considered experienced ( 1.7 years average tenure), which suggests a new board.


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 7%.


Top Shareholders

Company Information

Spectrum Pharmaceuticals, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Spectrum Pharmaceuticals, Inc.
  • Ticker: SPPI
  • Exchange: NasdaqGS
  • Founded: 1987
  • Industry: Biotechnology
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: US$314.614m
  • Shares outstanding: 111.17m
  • Website: https://www.sppirx.com

Number of Employees


Location

  • Spectrum Pharmaceuticals, Inc.
  • 11500 South Eastern Avenue
  • Suite 240
  • Henderson
  • Nevada
  • 89052
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SPPINasdaqGS (Nasdaq Global Select)YesCommon SharesUSUSDSep 1996
NTRDB (Deutsche Boerse AG)YesCommon SharesDEEURSep 1996

Biography

Spectrum Pharmaceuticals, Inc. develops and commercializes oncology and hematology drug products. The company offers KHAPZORY, a novel folate analog and the pharmacologically active levo-isomer of d, and 1-leucovorin; FOLOTYN, a folate analogue metabolic inhibitor for peripheral T-cell lymphoma (PTCL); ZEVALIN injection to treat non-Hodgkin’s lymphoma; MARQIBO for adult patients with Philadelphia chromosome-negative acute lymphoblastic leukemia; BELEODAQ, a histone deacytelase, or HDAC, inhibitor for the treatment of patients with relapsed or refractory PTCL; and EVOMELA for use as a conditioning treatment prior to autologous stem cell transplant in multiple myeloma patients. It is also developing POZIOTINIB, a pan-HER inhibitor for non-small cell lung cancer tumors; ROLONTIS for chemotherapy-induced neutropenia; and QAPZOLA for non-muscle invasive bladder cancer. The company sells its drugs through group purchasing organizations, wholesalers, and directly to hospitals and cancer centers in the United States; and through distributors in Europe. It has a strategic partnership with Servier Canada, Inc.; licensing and development agreement with Cell Therapeutics, Inc.; license agreements with Merck & Cie AG, Medac Pharma, Inc., Sloan-Kettering Institute for Cancer Research, SRI International, Southern Research Institute, Medac Pharma, Inc., Cydex Pharmaceuticals, Inc., and Mundipharma International Corporation Limited; development and commercialization collaboration agreement with Allergan, Inc.; collaboration agreement with Nippon Kayaku Co., LTD.; licensing and collaboration agreement with Onxeo DK; and co-development and commercialization agreements with Hanmi Pharmaceutical Co. Ltd and The University of Texas MD Anderson Cancer Center. The company was formerly known as NeoTherapeutics, Inc. and changed its name to Spectrum Pharmaceuticals, Inc. in December 2002. Spectrum Pharmaceuticals, Inc. was founded in 1987 and is headquartered in Henderson, Nevada. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/16 00:39
End of Day Share Price2020/02/14 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.