NasdaqGM:SURF

Stock Analysis Report

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Executive Summary

Surface Oncology, Inc., a clinical-stage immuno-oncology company, engages in the development of cancer therapies.


Snowflake Analysis

Adequate balance sheet and overvalued.

Share Price & News

How has Surface Oncology's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

7.5%

SURF

3.1%

US Biotechs

4.0%

US Market


1 Year Return

135.1%

SURF

24.3%

US Biotechs

4.9%

US Market

Return vs Industry: SURF exceeded the US Biotechs industry which returned 24.2% over the past year.

Return vs Market: SURF exceeded the US Market which returned 5% over the past year.


Shareholder returns

SURFIndustryMarket
7 Day7.5%3.1%4.0%
30 Day36.4%7.3%1.3%
90 Day277.2%31.2%29.5%
1 Year135.1%135.1%25.5%24.3%7.2%4.9%
3 Yearn/a32.8%28.4%36.1%27.2%
5 Yearn/a0.04%-5.7%65.3%46.9%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Surface Oncology undervalued compared to its fair value and its price relative to the market?

2.17x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate SURF's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate SURF's fair value to establish if it is undervalued.


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: SURF is good value based on its PB Ratio (2.2x) compared to the US Biotechs industry average (3.6x).


Next Steps

Future Growth

How is Surface Oncology forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

-17.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

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

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

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

Revenue vs Market: SURF's revenue is expected to decline over the next 3 years (-26.5% per year).

High Growth Revenue: SURF's revenue is forecast to decline over the next 3 years (-26.5% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if SURF's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Surface Oncology performed over the past 5 years?

-19.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SURF is currently unprofitable.

Growing Profit Margin: SURF is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: SURF is unprofitable, and losses have increased over the past 5 years at a rate of -19.8% per year.

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

Earnings vs Industry: SURF is unprofitable, making it difficult to compare its past year earnings growth to the Biotechs industry (-4.5%).


Return on Equity

High ROE: SURF has a negative Return on Equity (-34.35%), as it is currently unprofitable.


Next Steps

Financial Health

How is Surface Oncology's financial position?


Financial Position Analysis

Short Term Liabilities: SURF's short term assets ($93.3M) exceed its short term liabilities ($13.4M).

Long Term Liabilities: SURF's short term assets ($93.3M) exceed its long term liabilities ($36.3M).


Debt to Equity History and Analysis

Debt Level: SURF's debt to equity ratio (6.5%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if SURF's debt to equity ratio has reduced 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: SURF has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: SURF has less than a year of cash runway if free cash flow continues to reduce at historical rates of 87.2% each year


Next Steps

Dividend

What is Surface Oncology current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

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

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

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

2.0yrs

Average management tenure


CEO

Jeff Goater (45yo)

2.42yrs

Tenure

US$1,642,263

Compensation

Mr. J. Jeffrey Goater, also known as Jeff, M.S., M.B.A, CFA has been the Chief Executive Officer and Director of Surface Oncology, Inc. since February 12, 2018 and is its President. Mr. Goater served as th ...


CEO Compensation Analysis

Compensation vs Market: Jeff's total compensation ($USD1.64M) is about average for companies of similar size in the US market ($USD1.34M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Daniel Lynch
Executive Chairman3.58yrsUS$94.96kno data
J. Goater
CEO, President & Director2.42yrsUS$1.64mno data
Vito Palombella
Chief Scientific Officer4.5yrsUS$810.51kno data
Robert Ross
Chief Medical Officer3.75yrsUS$809.79k0.088% $157.5k
Jessica Fees
Senior VP of Finance & Treasurer1.58yrsno data0.18% $320.7k
Liisa Nogelo
Secretaryno datano datano data
Lisa McGrath
Senior Vice President of Human Resourcesno datano datano data
Wendy Dwyer
Chief Business Officer1.25yrsno data0.30% $535.5k
Bob Steininger
Senior Vice President of Chemistryno datano datano data
Alison O'Neill
Senior Vice President of Clinical Development0.42yrno datano data

2.0yrs

Average Tenure

47yo

Average Age

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


Board Members

NamePositionTenureCompensationOwnership
Daniel Lynch
Executive Chairman3.58yrsUS$94.96kno data
J. Goater
CEO, President & Director2.42yrsUS$1.64mno data
David Grayzel
Independent Director6.25yrsUS$69.46kno data
Armen Shanafelt
Independent Director5.67yrsUS$74.96kno data
Cameron McDonough
Independent Director2.42yrsUS$79.46kno data
Laurie Stelzer
Independent Director2.42yrsUS$82.46kno data
F. Hodi
Member of Scientific Advisory Boardno datano datano data
Elliott Sigal
Independent Member of Scientific Advisory Board & Director2.42yrsUS$66.46k0.16% $286.4k
Christopher Hunter
Member of Scientific Advisory Board1.5yrsno datano data
Carla Rothlin
Member of Scientific Advisory Board1.5yrsno datano data

2.4yrs

Average Tenure

52yo

Average Age

Experienced Board: SURF's board of directors are not considered experienced ( 2.4 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 not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Surface Oncology, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Surface Oncology, Inc.
  • Ticker: SURF
  • Exchange: NasdaqGM
  • Founded: 2014
  • Industry: Biotechnology
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: US$178.429m
  • Shares outstanding: 28.32m
  • Website: https://www.surfaceoncology.com

Number of Employees


Location

  • Surface Oncology, Inc.
  • 50 Hampshire Street
  • 8th Floor
  • Cambridge
  • Massachusetts
  • 2139
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SURFNasdaqGM (Nasdaq Global Market)YesCommon StockUSUSDApr 2018
QSOADB (Deutsche Boerse AG)YesCommon StockDEEURApr 2018

Biography

Surface Oncology, Inc., a clinical-stage immuno-oncology company, engages in the development of cancer therapies. The company develops human immunoglobulin isotype G4 monoclonal antibodies, including SRF231 inhibiting CD47; NZV930 inhibiting CD73; SRF617 inhibiting CD39; SRF388 targeting interleukin 27; and SRF813 targeting CD112R. It also develops various earlier stage programs that targets other critical components of the tumor microenvironment, including regulatory T cells and natural killer cells. The company has a strategic collaboration agreement with Novartis Institutes for Biomedical Research, Inc. for the development of cancer therapies; and the Merck Sharp & Dohme Corp. to evaluate the safety and efficacy of combining Surface’s SRF617, an investigational antibody therapy targeting CD39, with Merck’s KEYTRUDAÂ (pembrolizumab), the first anti-PD-1 therapy approved in the United States. Surface Oncology, Inc. was founded in 2014 and is headquartered in Cambridge, Massachusetts. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/04 23:57
End of Day Share Price2020/07/02 00:00
Earnings2020/03/31
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.