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Spectrum Pharmaceuticals

Nasdaq:SPPI
Snowflake Description

Flawless balance sheet with high growth potential.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
SPPI
Nasdaq
$1B
Market Cap
  1. Home
  2. US
  3. Pharmaceuticals & Biotech
Company description

Spectrum Pharmaceuticals, Inc. develops and commercializes oncology and hematology drug products. The last earnings update was 20 days ago. More info.


Add to Portfolio Compare Print
  • Spectrum Pharmaceuticals has significant price volatility in the past 3 months.
SPPI Share Price and Events
7 Day Returns
-5.9%
NasdaqGS:SPPI
1.6%
US Biotechs
1.2%
US Market
1 Year Returns
-45.5%
NasdaqGS:SPPI
-0.9%
US Biotechs
3%
US Market
SPPI Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Spectrum Pharmaceuticals (SPPI) -5.9% -14.5% 56.7% -45.5% 70.5% 26.7%
US Biotechs 1.6% 1.9% 18.9% -0.9% 17.7% 17.3%
US Market 1.2% 2.1% 14.6% 3% 39% 43.5%
1 Year Return vs Industry and Market
  • SPPI underperformed the Biotechs industry which returned -0.9% over the past year.
  • SPPI underperformed the Market in United States of America which returned 3% over the past year.
Price Volatility
SPPI
Industry
5yr Volatility vs Market

Value

 Is Spectrum Pharmaceuticals undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Spectrum Pharmaceuticals to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Spectrum Pharmaceuticals.

NasdaqGS:SPPI Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 3 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 10.5%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NasdaqGS:SPPI
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Biotechs Unlevered Beta Simply Wall St/ S&P Global 1.44
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.441 (1 + (1- 21%) (0%))
1.295
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.3
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.295 * 5.96%)
10.45%

Discounted Cash Flow Calculation for NasdaqGS:SPPI using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Spectrum Pharmaceuticals is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NasdaqGS:SPPI DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 10.45%)
2019 -78.51 Est @ 11.02% -71.08
2020 -85.21 Est @ 8.54% -69.85
2021 -91.00 Est @ 6.79% -67.54
2022 169.00 Analyst x1 113.56
2023 340.00 Analyst x1 206.84
2024 358.95 Est @ 5.57% 197.71
2025 375.90 Est @ 4.72% 187.46
2026 391.40 Est @ 4.12% 176.72
2027 405.91 Est @ 3.71% 165.93
2028 419.76 Est @ 3.41% 155.36
Present value of next 10 years cash flows $995.11
NasdaqGS:SPPI DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $419.76 × (1 + 2.73%) ÷ (10.45% – 2.73%)
$5,585.45
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $5,585.45 ÷ (1 + 10.45%)10
$2,067.21
NasdaqGS:SPPI Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $995.11 + $2,067.21
$3,062.33
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $3,062.33 / 109.25
$28.03
NasdaqGS:SPPI Discount to Share Price
Calculation Result
Value per share (USD) From above. $28.03
Current discount Discount to share price of $10.01
= -1 x ($10.01 - $28.03) / $28.03
64.3%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Spectrum Pharmaceuticals is available for.
Intrinsic value
>50%
Share price is $10.01 vs Future cash flow value of $28.03
Current Discount Checks
For Spectrum Pharmaceuticals to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Spectrum Pharmaceuticals's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Spectrum Pharmaceuticals's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Spectrum Pharmaceuticals's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Spectrum Pharmaceuticals's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NasdaqGS:SPPI PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in USD $-1.16
NasdaqGS:SPPI Share Price ** NasdaqGS (2019-03-20) in USD $10.01
United States of America Biotechs Industry PE Ratio Median Figure of 35 Publicly-Listed Biotechs Companies 20.03x
United States of America Market PE Ratio Median Figure of 3,058 Publicly-Listed Companies 17.69x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Spectrum Pharmaceuticals.

NasdaqGS:SPPI PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGS:SPPI Share Price ÷ EPS (both in USD)

= 10.01 ÷ -1.16

-8.62x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Spectrum Pharmaceuticals is loss making, we can't compare its value to the US Biotechs industry average.
  • Spectrum Pharmaceuticals is loss making, we can't compare the value of its earnings to the United States of America market.
Price based on expected Growth
Does Spectrum Pharmaceuticals's expected growth come at a high price?
Raw Data
NasdaqGS:SPPI PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section -8.62x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 3 Analysts
33.2%per year
United States of America Biotechs Industry PEG Ratio Median Figure of 28 Publicly-Listed Biotechs Companies 1.79x
United States of America Market PEG Ratio Median Figure of 2,103 Publicly-Listed Companies 1.48x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for Spectrum Pharmaceuticals, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Spectrum Pharmaceuticals's assets?
Raw Data
NasdaqGS:SPPI PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in USD $2.61
NasdaqGS:SPPI Share Price * NasdaqGS (2019-03-20) in USD $10.01
United States of America Biotechs Industry PB Ratio Median Figure of 406 Publicly-Listed Biotechs Companies 3.28x
United States of America Market PB Ratio Median Figure of 5,156 Publicly-Listed Companies 1.89x
NasdaqGS:SPPI PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGS:SPPI Share Price ÷ Book Value per Share (both in USD)

= 10.01 ÷ 2.61

3.84x

* Primary Listing of Spectrum Pharmaceuticals.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Spectrum Pharmaceuticals is overvalued based on assets compared to the US Biotechs industry average.
X
Value checks
We assess Spectrum Pharmaceuticals's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Biotechs industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Biotechs industry average (and greater than 0)? (1 check)
  5. Spectrum Pharmaceuticals has a total score of 2/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

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

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
33.2%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Spectrum Pharmaceuticals expected to grow at an attractive rate?
  • Spectrum Pharmaceuticals's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Spectrum Pharmaceuticals's earnings growth is expected to exceed the United States of America market average.
  • Spectrum Pharmaceuticals's revenue growth is expected to exceed the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NasdaqGS:SPPI Future Growth Rates Data Sources
Data Point Source Value (per year)
NasdaqGS:SPPI Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 3 Analysts 33.2%
NasdaqGS:SPPI Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 3 Analysts 34.4%
United States of America Biotechs Industry Earnings Growth Rate Market Cap Weighted Average 18.5%
United States of America Biotechs Industry Revenue Growth Rate Market Cap Weighted Average 14.6%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14.3%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.1%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NasdaqGS:SPPI Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 3 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NasdaqGS:SPPI Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 492 165 172 2
2022-12-31 273 5 2 2
2021-12-31 89 -140 -163 3
2020-12-31 40 -140 -205 2
2019-12-31 27 -130 -175 2
NasdaqGS:SPPI Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2018-12-31 109 -62 -120
2018-09-30 109 -63 -99
2018-06-30 120 -59 -49
2018-03-31 130 -45 -84
2017-12-31 128 -39 -91
2017-09-30 135 -29 -81
2017-06-30 132 -36 -81
2017-03-31 132 -54 -84
2016-12-31 146 -40 -70
2016-09-30 162 -34 -55
2016-06-30 157 -30 -56
2016-03-31 168 5 -35

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Spectrum Pharmaceuticals's earnings are expected to grow significantly at over 20% yearly.
  • Spectrum Pharmaceuticals's revenue is expected to grow significantly at over 20% yearly.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NasdaqGS:SPPI Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 3 Analyst Estimates (S&P Global) See Below

All data from Spectrum Pharmaceuticals Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:SPPI Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31 1.47 2.04 0.89 2.00
2022-12-31 0.04 0.35 -0.27 2.00
2021-12-31 -1.41 -1.37 -1.45 2.00
2020-12-31 -1.69 -1.42 -1.84 3.00
2019-12-31 -1.62 -1.41 -1.89 4.00
NasdaqGS:SPPI Past Financials Data
Date (Data in USD Millions) EPS *
2018-12-31 -1.16
2018-09-30 -0.97
2018-06-30 -0.51
2018-03-31 -0.92
2017-12-31 -1.07
2017-09-30 -1.02
2017-06-30 -1.03
2017-03-31 -1.10
2016-12-31 -0.96
2016-09-30 -0.80
2016-06-30 -0.86
2016-03-31 -0.53

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Spectrum Pharmaceuticals will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess Spectrum Pharmaceuticals's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Spectrum Pharmaceuticals has a total score of 5/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Spectrum Pharmaceuticals performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Spectrum Pharmaceuticals's growth in the last year to its industry (Biotechs).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Spectrum Pharmaceuticals does not make a profit and their year on year earnings growth rate was negative over the past 5 years.
  • Unable to compare Spectrum Pharmaceuticals's 1-year earnings growth to the 5-year average as it is not currently profitable.
  • Unable to compare Spectrum Pharmaceuticals's 1-year growth to the US Biotechs industry average as it is not currently profitable.
Earnings and Revenue History
Spectrum Pharmaceuticals's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Spectrum Pharmaceuticals Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:SPPI Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 109.33 -120.01 90.70 94.96
2018-09-30 108.50 -99.35 88.51 82.58
2018-06-30 119.63 -48.92 87.20 75.33
2018-03-31 129.76 -83.52 82.17 69.01
2017-12-31 128.37 -91.25 77.17 65.90
2017-09-30 135.03 -81.39 72.02 62.55
2017-06-30 132.03 -80.55 72.96 59.32
2017-03-31 131.68 -84.00 83.16 58.44
2016-12-31 146.44 -69.77 86.02 59.12
2016-09-30 161.54 -55.22 92.36 55.77
2016-06-30 156.77 -56.49 92.31 55.10
2016-03-31 167.80 -34.54 87.24 50.38
2015-12-31 162.56 -52.64 88.06 51.07
2015-09-30 164.09 -49.61 89.78 49.74
2015-06-30 183.45 -42.42 94.50 54.24
2015-03-31 185.32 -43.64 97.34 73.81
2014-12-31 186.83 -45.72 97.41 69.66
2014-09-30 176.49 -82.12 97.94 66.01
2014-06-30 170.93 -78.18 98.52 65.16
2014-03-31 157.31 -84.34 95.00 46.49
2013-12-31 155.85 -62.13 93.62 46.67
2013-09-30 184.44 -15.27 86.09 49.63
2013-06-30 211.05 13.86 84.32 46.08
2013-03-31 246.52 41.93 85.61 44.91
2012-12-31 267.71 94.20 82.52 41.56
2012-09-30 250.58 94.99 90.12 34.05
2012-06-30 232.56 93.72 83.01 31.42
2012-03-31 209.22 82.58 78.53 29.82

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • It is difficult to establish if Spectrum Pharmaceuticals has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.
  • It is difficult to establish if Spectrum Pharmaceuticals has efficiently used its assets last year compared to the US Biotechs industry average (Return on Assets) as it is loss-making.
  • It is difficult to establish if Spectrum Pharmaceuticals improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.
X
Past performance checks
We assess Spectrum Pharmaceuticals's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Biotechs industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Spectrum Pharmaceuticals has a total score of 0/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Spectrum Pharmaceuticals's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Spectrum Pharmaceuticals's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Spectrum Pharmaceuticals is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Spectrum Pharmaceuticals's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Spectrum Pharmaceuticals's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Spectrum Pharmaceuticals has no debt, it does not need to be covered by short term assets.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Spectrum Pharmaceuticals Company Filings, last reported 2 months ago.

NasdaqGS:SPPI Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 283.26 0.00 203.99
2018-09-30 286.78 35.36 220.56
2018-06-30 344.12 39.43 269.66
2018-03-31 324.29 38.82 231.92
2017-12-31 351.34 38.22 227.57
2017-09-30 304.74 101.77 247.72
2017-06-30 198.77 100.16 138.56
2017-03-31 217.37 98.59 137.44
2016-12-31 236.03 97.04 158.47
2016-09-30 250.80 104.14 171.85
2016-06-30 235.90 102.52 156.01
2016-03-31 208.32 100.93 132.55
2015-12-31 212.86 99.38 139.99
2015-09-30 214.74 100.19 136.77
2015-06-30 234.14 98.87 145.58
2015-03-31 230.37 97.57 126.67
2014-12-31 254.55 96.30 133.25
2014-09-30 256.59 95.04 147.54
2014-06-30 265.65 93.81 135.71
2014-03-31 265.85 92.63 134.80
2013-12-31 281.61 91.48 159.78
2013-09-30 302.36 25.00 75.29
2013-06-30 279.24 50.00 124.42
2013-03-31 285.57 75.00 163.38
2012-12-31 288.68 75.00 143.01
2012-09-30 279.69 75.00 146.59
2012-06-30 262.75 0.00 193.70
2012-03-31 239.45 0.00 186.32
  • Spectrum Pharmaceuticals has no debt.
  • Spectrum Pharmaceuticals has no debt compared to 5 years ago when it was 32.5%.
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.

  • Spectrum Pharmaceuticals has sufficient cash runway for more than 3 years based on current free cash flow.
  • Spectrum Pharmaceuticals has sufficient cash runway for 2.3 years if free cash flow continues to grow at historical rates of 50.2% each year.
X
Financial health checks
We assess Spectrum Pharmaceuticals's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Spectrum Pharmaceuticals has a total score of 6/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from Spectrum Pharmaceuticals dividends.
If you bought $2,000 of Spectrum Pharmaceuticals shares you are expected to receive $0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate Spectrum Pharmaceuticals's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Spectrum Pharmaceuticals's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NasdaqGS:SPPI Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 3 Analyst Estimates (S&P Global) See Below
Global Biotechs Industry Average Dividend Yield Market Cap Weighted Average of 22 Stocks 2.3%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2004 Stocks 2.5%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.6%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NasdaqGS:SPPI Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31
2020-12-31
2019-12-31

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as Spectrum Pharmaceuticals has not reported any payouts.
  • Unable to verify if Spectrum Pharmaceuticals's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Spectrum Pharmaceuticals's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Spectrum Pharmaceuticals has not reported any payouts.
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess Spectrum Pharmaceuticals's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Spectrum Pharmaceuticals afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Spectrum Pharmaceuticals has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Spectrum Pharmaceuticals's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Joe Turgeon
COMPENSATION $2,350,385
AGE 60
TENURE AS CEO 1.3 years
CEO Bio

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 Operating Officer of Spectrum Pharmaceuticals, Inc. from April 2014 to December 17, 2017. He served as the Chief Commercial Officer and Senior Vice President at Spectrum Pharmaceuticals, Inc. from October 2012 to April 2014. Mr. Turgeon served as Senior Vice President of Sales and Commercial Operations at Spectrum Pharmaceuticals, Inc. from October 29, 2012 to January 2013. He is a Director at Spectrum Pharmaceuticals, Inc. from December 2017. Mr. Turgeon came to Spectrum from Amgen where he spent more than 22 years including as Vice President of Sales, Oncology. He has over 30 years of relevant biotech and pharmaceutical experience. He is a Visionary leader and has built and led sales organizations at Amgen across multiple areas, including oncology, inflammation and bone health. Mr. Turgeon holds a Bachelor of Science in Microbiology and Economics from Jacksonville University.

CEO Compensation
  • Joe's compensation has increased whilst company is loss making.
  • Joe's remuneration is about average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Spectrum Pharmaceuticals management team in years:

1.3
Average Tenure
50
Average Age
  • The average tenure for the Spectrum Pharmaceuticals management team is less than 2 years, this suggests a new team.
Management Team

Joe Turgeon

TITLE
President
COMPENSATION
$2M
AGE
60
TENURE
1.3 yrs

Kurt Gustafson

TITLE
Executive VP & CFO
COMPENSATION
$2M
AGE
50
TENURE
5.8 yrs

Tom Riga

TITLE
Executive VP
COMPENSATION
$1M
AGE
42
TENURE
1.3 yrs

Shiv Kapoor

TITLE
Vice President of Strategic Planning & Investor Relations

Keith McGahan

TITLE
Senior VP
TENURE
1.2 yrs

Bimal Shah

TITLE
Vice President of Corporate & Business Development

Al Dejesus

TITLE
Vice President of Marketing

Lisa Croissant

TITLE
Vice President of Sales

Zane Yang

TITLE
Senior Vice President of Clinical Development
TENURE
2.5 yrs

Michael Grabow

TITLE
Senior Vice President of Corporate Strategy & Operations
TENURE
1 yrs
Board of Directors Tenure

Average tenure and age of the Spectrum Pharmaceuticals board of directors in years:

1.3
Average Tenure
65
Average Age
  • The average tenure for the Spectrum Pharmaceuticals board of directors is less than 3 years, this suggests a new board.
Board of Directors

Stuart Krassner

TITLE
Chairman of the Board
COMPENSATION
$189K
AGE
82
TENURE
1.3 yrs

Joe Turgeon

TITLE
President
COMPENSATION
$2M
AGE
60
TENURE
1.3 yrs

Anthony Maida

TITLE
Independent Director
COMPENSATION
$202K
AGE
66
TENURE
15.3 yrs

Ray Cohen

TITLE
Independent Director
COMPENSATION
$206K
AGE
59
TENURE
5.8 yrs

Gilles Gagnon

TITLE
Director
COMPENSATION
$179K
AGE
64
TENURE
7 yrs

Dinesh Vyas

TITLE
Independent Director
COMPENSATION
$187K
AGE
74
TENURE
5.8 yrs

Bill Ashton

TITLE
Director
AGE
67
TENURE
1.1 yrs

Bernice Welles

TITLE
Director
AGE
65
TENURE
0.8 yrs

Jeff Vacirca

TITLE
Director
AGE
49
TENURE
0.3 yrs
Who owns this company?
Recent Insider Trading
  • Spectrum Pharmaceuticals insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
25. Jan 19 Sell Dolatrai Vyas Individual 22. Jan 19 22. Jan 19 -6,010 $10.62 $-63,826
12. Oct 18 Sell Gilles Gagnon Individual 09. Oct 18 09. Oct 18 -10,000 $15.33 $-153,349
18. May 18 Sell Stuart Krassner Individual 17. May 18 17. May 18 -21,113 $18.94 $-399,880
15. May 18 Sell Raymond Cohen Individual 14. May 18 14. May 18 -9,275 $18.32 $-169,918
X
Management checks
We assess Spectrum Pharmaceuticals's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Spectrum Pharmaceuticals has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Is Spectrum Pharmaceuticals's Share Price Gain Of 103% Well Earned?

To some, the recent share price pullback wouldn't be surprising after such a good run. … Spectrum Pharmaceuticals isn't currently profitable, so most analysts would look to revenue growth to get an idea of how fast the underlying business is growing. … Spectrum Pharmaceuticals actually saw its revenue drop by 14% per year over three years.

Simply Wall St -

Should You Be Worried About Insider Transactions At Spectrum Pharmaceuticals, Inc. (NASDAQ:SPPI)?

We've lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. … So we'll take a look at whether insiders have been buying or selling shares in Spectrum Pharmaceuticals, Inc. … Spectrum Pharmaceuticals Insider Transactions Over The Last Year.

Simply Wall St -

Spectrum Pharmaceuticals, Inc.'s (NASDAQ:SPPI) Path To Profitability

With the latest financial year loss of -US$91.2m and a trailing-twelve month of -US$99.3m, the US$1.2b market-cap amplifies its loss by moving further away from its breakeven target. … In this article, I will touch on the expectations for SPPI’s growth and when analysts expect the company to become profitable … Check out our latest analysis for Spectrum Pharmaceuticals

Simply Wall St -

Before You Buy Spectrum Pharmaceuticals Inc (NASDAQ:SPPI), Consider Its Volatility

If you're interested in Spectrum Pharmaceuticals Inc (NASDAQ:SPPI), then you might want to consider its beta (a measure of share price volatility) in order to understand how the stock could impact your portfolio. … Every stock in the market is exposed to this volatility, which is linked to the fact that stocks prices are correlated in an efficient market. … Beta can be a useful tool to understand how much a stock is influenced by market risk (volatility).

Simply Wall St -

Spectrum Pharmaceuticals Inc (NASDAQ:SPPI): Financial Strength Analysis

Stocks with market capitalization between $2B and $10B, such as Spectrum Pharmaceuticals Inc (NASDAQ:SPPI) with a size of US$2.20b, do not attract as much attention from the investing community as do the small-caps and large-caps. … Don’t forget that this is a general and concentrated examination of Spectrum Pharmaceuticals's financial health, so you should conduct further analysis. … View our latest analysis for Spectrum Pharmaceuticals

Simply Wall St -

Spectrum Pharmaceuticals Inc's (NASDAQ:SPPI) Shift From Loss To Profit

Spectrum Pharmaceuticals Inc's (NASDAQ:SPPI):. … With the latest financial year loss of -US$91.25m and a trailing-twelve month of -US$83.52m, the US$2.24b market-cap alleviates its loss by moving closer towards its target of breakeven? … See our latest analysis for Spectrum Pharmaceuticals

Simply Wall St -

Brokers' Outlook On Spectrum Pharmaceuticals Inc (NASDAQ:SPPI)

SPPI has high near term liquidity, with short term assets (cash and other liquid assets) amply covering upcoming one-year liabilities, as well as long-term commitments. … One reason I do like SPPI as a business is its low level of fixed assets on its balance sheet (1.27% of total assets). … SPPI has virtually no fixed assets, which minimizes its downside risk.

Simply Wall St -

Spectrum Pharmaceuticals Inc (NASDAQ:SPPI): Are Analysts Optimistic?

Many investors are wondering the rate at which SPPI will turn a profit, with the big question being “when will the company breakeven?” Below I will provide a high-level summary of the industry analysts’ expectations for SPPI. … View our latest analysis for Spectrum Pharmaceuticals Expectation from analysts is SPPI is on the verge of breakeven. … Next Steps: This article is not intended to be a comprehensive analysis on SPPI, so if you are interested in understanding the company at a deeper level, take a look at SPPI’s company page on Simply Wall St.

Simply Wall St -

Is Spectrum Pharmaceuticals Inc (SPPI) On The Right Side Of Disruption?

The growth in development of new drugs for unmet needs, as well as the ongoing and increasing need for biotech drugs as Baby Boomer generation continues to age, are growth drivers for the positive outlook in the biotech industry over the long term. … SPPI lags the pack with its negative growth rate of -23.41% over the past year, which indicates the company will be growing at a slower pace than its biotech peers. … NasdaqGS:SPPI PE PEG Gauge Nov 19th 17 The biotech industry is trading at a PE ratio of 27x, higher than the rest of the US stock market PE of 22x.

Simply Wall St -

Company Info

Description

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.

Details
Name: Spectrum Pharmaceuticals, Inc.
SPPI
Exchange: NasdaqGS
Founded: 1987
$1,093,571,068
109,247,859
Website: http://www.sppirx.com
Address: Spectrum Pharmaceuticals, Inc.
11500 South Eastern Avenue,
Suite 240,
Henderson,
Nevada, 89052,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGS SPPI Common Shares Nasdaq Global Select US USD 26. Sep 1996
DB NTR Common Shares Deutsche Boerse AG DE EUR 26. Sep 1996
Number of employees
Current staff
Staff numbers
235
Spectrum Pharmaceuticals employees.
Industry
Biotechnology
Pharmaceuticals & Biotech
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/03/20 23:41
End of day share price update: 2019/03/20 00:00
Last estimates confirmation: 2019/03/15
Last earnings filing: 2019/02/28
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.