Sarepta Therapeutics (NasdaqGS:SRPT) - Share price, News & Analysis

Q: What is the Fair Price of SRPT when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

SRPT ($75.71) is trading below our estimate of [[fair value]] ($804.56)

SRPT fundamental analysis
Snowflake Score
Valuation	3/6
Future Growth	5/6
Past Performance	0/6
Financial Health	4/6
Dividends	0/6

SRPT Stock Overview

Rewards

Trading at 90.6% below our estimate of its fair value

Earnings are forecast to grow 72.17% per year

Risk Analysis

Shareholders have been diluted in the past year

Sarepta Therapeutics Competitors

Halozyme Therapeutics

NasdaqGS:HALO

US$6.1b

Exelixis

NasdaqGS:EXEL

US$6.9b

Exact Sciences

NasdaqCM:EXAS

US$7.2b

Neurocrine Biosciences

NasdaqGS:NBIX

US$9.5b

Price History & Performance

Summary of all time highs, changes and price drops for Sarepta Therapeutics
Historical stock prices
Current Share Price	US$75.71
52 Week High	US$101.24
52 Week Low	US$61.28
Beta	1.29
1 Month Change	4.28%
3 Month Change	-8.30%
1 Year Change	0.63%
3 Year Change	-49.79%
5 Year Change	120.34%
Change since IPO	94.13%

Recent News & Updates

May 09

Sarepta Therapeutics (NASDAQ:SRPT) Has Debt But No Earnings; Should You Worry?

David Iben put it well when he said, 'Volatility is not a risk we care about. What we care about is avoiding the...

Shareholder Returns

	SRPT	US Biotechs	US Market
7D	0.7%	0.07%	-2.5%
1Y	0.6%	-25.1%	-21.2%

Return vs Industry: SRPT exceeded the US Biotechs industry which returned -27% over the past year.

Return vs Market: SRPT exceeded the US Market which returned -21.7% over the past year.

Price Volatility

Is SRPT's price volatile compared to industry and market?
SRPT volatility
SRPT Average Weekly Movement	6.6%
Biotechs Industry Average Movement	13.2%
Market Average Movement	8.1%
10% most volatile stocks in US Market	16.9%
10% least volatile stocks in US Market	3.2%

Stable Share Price: SRPT is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: SRPT's weekly volatility (7%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1980	840	Doug Ingram	https://www.sarepta.com

Sarepta Therapeutics, Inc., a commercial-stage biopharmaceutical company, focuses on the discovery and development of RNA-targeted therapeutics, gene therapies, and other genetic therapeutic modalities for the treatment of rare diseases. It offers EXONDYS 51 injection to treat duchenne muscular dystrophy (duchenne) in patients with confirmed mutation of the dystrophin gene that is amenable to exon 51 skipping; and VYONDYS 53 for the treatment of duchenne in patients with confirmed mutation of the dystrophin gene that is amenable to exon 53 skipping. The company is also developing AMONDYS 45, a product candidate that uses phosphorodiamidate morpholino oligomer chemistry and exon-skipping technology to skip exon 45 of the dystrophin gene; SRP-5051, a peptide conjugated PMO that binds exon 51 of dystrophin pre-mRNA; SRP-9001, a DMD micro-dystrophin gene therapy program; and SRP-9003, a limb-girdle muscular dystrophies gene therapy program.

Sarepta Therapeutics Fundamentals Summary

How do Sarepta Therapeutics's earnings and revenue compare to its market cap?
SRPT fundamental statistics
Market Cap	US$6.62b
Earnings (TTM)	-US$356.55m
Revenue (TTM)	US$765.79m

8.7x

P/S Ratio

-18.6x

P/E Ratio

Is SRPT overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
SRPT income statement (TTM)
Revenue	US$765.79m
Cost of Revenue	US$875.93m
Gross Profit	-US$110.14m
Other Expenses	US$246.41m
Earnings	-US$356.55m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	-4.07
Gross Margin	-14.38%
Net Profit Margin	-46.56%
Debt/Equity Ratio	128.2%

How did SRPT perform over the long term?

See historical performance and comparison

We’ve recently updated our valuation analysis.

Valuation

Is SRPT undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

Price-To-Sales vs Peers
Price-To-Sales vs Industry
Price-To-Sales vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for SRPT?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for SRPT. This is calculated by dividing SRPT's market cap by their current preferred multiple.
What is SRPT's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	US$6.62b

SRPT key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	7.5x
Enterprise Value/EBITDA	-16.3x
PEG Ratio	n/a

Price to Sales Ratio vs Peers

How does SRPT's PS Ratio compare to its peers?

SRPT PS Ratio vs Peers

The above table shows the PS ratio for SRPT vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PS	Estimated Growth	Market Cap
Peer Average	7.3x
HALO Halozyme Therapeutics	13x	21.1%	US$6.1b
EXEL Exelixis	4.5x	12.0%	US$6.9b
EXAS Exact Sciences	3.9x	14.6%	US$7.2b
NBIX Neurocrine Biosciences	7.9x	15.9%	US$9.5b
SRPT Sarepta Therapeutics	8.7x	32.8%	US$6.6b

Forward PS

Price-To-Sales vs Peers: SRPT is expensive based on its Price-To-Sales Ratio (8.7x) compared to the peer average (7.3x).

Price to Earnings Ratio vs Industry

How does SRPT's PE Ratio compare vs other companies in the US Biotechs Industry?

Price-To-Sales vs Industry: SRPT is good value based on its Price-To-Sales Ratio (8.7x) compared to the US Biotechs industry average (13.4x)

Price to Sales Ratio vs Fair Ratio

What is SRPT's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

SRPT PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio	8.7x
Fair PS Ratio	4.6x

Price-To-Sales vs Fair Ratio: SRPT is expensive based on its Price-To-Sales Ratio (8.7x) compared to the estimated Fair Price-To-Sales Ratio (4.6x).

Share Price vs Fair Value

What is the Fair Price of SRPT when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: SRPT ($75.71) is trading below our estimate of fair value ($804.56)

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

Price to Earnings Growth Ratio

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

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Future Growth

How is Sarepta Therapeutics forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?

Future Growth Score

5/6

Future Growth Score 5/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

72.2%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: SRPT is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.9%).

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

High Growth Earnings: SRPT is expected to become profitable in the next 3 years.

Revenue vs Market: SRPT's revenue (32.8% per year) is forecast to grow faster than the US market (8.2% per year).

High Growth Revenue: SRPT's revenue (32.8% per year) is forecast to grow faster than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: SRPT is forecast to be unprofitable in 3 years.

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Past Performance

How has Sarepta Therapeutics performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-24.6%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: SRPT is currently unprofitable.

Growing Profit Margin: SRPT is currently unprofitable.

Past Earnings Growth Analysis

Earnings Trend: SRPT is unprofitable, and losses have increased over the past 5 years at a rate of 24.6% per year.

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

Earnings vs Industry: SRPT is unprofitable, making it difficult to compare its past year earnings growth to the Biotechs industry (98.2%).

Return on Equity

High ROE: SRPT has a negative Return on Equity (-41.61%), as it is currently unprofitable.

Discover strong past performing companies

Financial Health

How is Sarepta Therapeutics's financial position?

Financial Health Score

4/6

Financial Health Score 4/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Stable Cash Runway
Forecast Cash Runway

Financial Position Analysis

Short Term Liabilities: SRPT's short term assets ($2.5B) exceed its short term liabilities ($455.0M).

Long Term Liabilities: SRPT's short term assets ($2.5B) exceed its long term liabilities ($1.7B).

Debt to Equity History and Analysis

Debt Level: SRPT has more cash than its total debt.

Reducing Debt: SRPT's debt to equity ratio has increased from 3.2% to 128.2% over the 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: SRPT has sufficient cash runway for more than 3 years based on its current free cash flow.

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

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Dividend

What is Sarepta Therapeutics's current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

Dividend Yield vs Market

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

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

Growing Dividend: Insufficient data to determine if SRPT's dividend payments have been increasing.

Earnings Payout to Shareholders

Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as SRPT has not reported any payouts.

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Management

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

2.0yrs

Average management tenure

CEO

Doug Ingram (59 yo)

5yrs

Tenure

US$1,546,324

Compensation

Mr. Douglas S. Ingram, also known as Doug, J.D., Esq., has been Chief Executive Officer and President of Sarepta Therapeutics, Inc. since June 26, 2017. Mr. Ingram serves as an Independent Director of Rela...

CEO Compensation Analysis

Compensation vs Market: Doug's total compensation ($USD1.55M) is below average for companies of similar size in the US market ($USD8.30M).

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

Leadership Team

Experienced Management: SRPT's management team is considered experienced (2 years average tenure).

Board Members

Experienced Board: SRPT's board of directors are considered experienced (6 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 9.7%.

Data	Last Updated (UTC time)
Company Analysis	2022/07/01 00:00
End of Day Share Price	2022/07/01 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31