NasdaqGM:TCON

Stock Analysis Report

Executive Summary

TRACON Pharmaceuticals, Inc., a biopharmaceutical company, focuses on the development and commercialization of therapeutics for cancer and wet age-related macular degeneration (AMD).

Rewards

Revenue is forecast to grow 29.64% per year

Risk Analysis

Earnings are forecast to decline by an average of -5.7% per year for the next 3 years

Has less than 1 year of cash runway

Makes less than USD$1m in revenue ($0)

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

+ 3 more risks


Snowflake Analysis

Imperfect balance sheet and overvalued.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

41.4%

TCON

1.2%

US Biotechs

1.2%

US Market


1 Year Return

-61.9%

TCON

12.4%

US Biotechs

24.2%

US Market

Return vs Industry: TCON underperformed the US Biotechs industry which returned 10.9% over the past year.

Return vs Market: TCON underperformed the US Market which returned 24.7% over the past year.


Shareholder returns

TCONIndustryMarket
7 Day41.4%1.2%1.2%
30 Day62.3%0.2%3.5%
90 Day34.9%17.5%11.7%
1 Year-61.9%-61.9%13.4%12.4%26.9%24.2%
3 Year-91.9%-91.9%30.1%25.8%53.0%43.2%
5 Yearn/a2.6%-2.3%75.3%56.0%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is TRACON Pharmaceuticals undervalued compared to its fair value and its price relative to the market?

2.94x

Price to Book (PB) ratio


Share Price vs. Fair Value

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

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


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: TCON is good value based on its PB Ratio (2.1x) compared to the US Biotechs industry average (3.2x).


Next Steps

Future Growth

How is TRACON Pharmaceuticals forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

-5.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

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

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

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

Revenue vs Market: TCON's revenue (29.6% per year) is forecast to grow faster than the US market (7.5% per year).

High Growth Revenue: TCON's revenue (19.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

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


Next Steps

Past Performance

How has TRACON Pharmaceuticals performed over the past 5 years?

-17.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TCON is currently unprofitable.

Growing Profit Margin: TCON is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: TCON is unprofitable, and losses have increased over the past 5 years at a rate of -17.3% per year.

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

Earnings vs Industry: TCON is unprofitable, making it difficult to compare its past year earnings growth to the Biotechs industry (103.3%).


Return on Equity

High ROE: TCON has a negative Return on Equity (-656.6%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is TRACON Pharmaceuticals's financial position?


Financial Position Analysis

Short Term Liabilities: TCON's short term assets ($20.3M) exceed its short term liabilities ($12.8M).

Long Term Liabilities: TCON's short term assets ($20.3M) exceed its long term liabilities ($4.3M).


Debt to Equity History and Analysis

Debt Level: TCON's debt to equity ratio (148%) is considered high.

Reducing Debt: TCON's debt to equity ratio has increased from 46.5% to 148% over the past 5 years.


Balance Sheet

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

Debt Coverage by Assets: TCON's debt is covered by short term assets (assets are 3.4x debt).


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: TCON has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: TCON has less than a year of cash runway if free cash flow continues to reduce at historical rates of -4.6% each year


Next Steps

Dividend

What is TRACON 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 TCON's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

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

Growing Dividend: Insufficient data to determine if TCON'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 TCON's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

1.7yrs

Average management tenure


CEO

Charles Theuer (55yo)

13.6yrs

Tenure

US$1,111,616

Compensation

Dr. Charles P. Theuer, M.D., Ph.D., has been the President and Chief Executive Officer of Tracon Pharmaceuticals, Inc. since June 2006 and has been its Director of Tracon Pharmaceuticals, Inc. since June 2 ...


CEO Compensation Analysis

Compensation vs Market: Charles's total compensation ($USD1.11M) is above average for companies of similar size in the US market ($USD519.76K).

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


Management Age and Tenure

1.7yrs

Average Tenure

48.5yo

Average Age

Experienced Management: TCON's management team is not considered experienced ( 1.7 years average tenure), which suggests a new team.


Board Age and Tenure

5.3yrs

Average Tenure

61yo

Average Age

Experienced Board: TCON's board of directors are considered experienced (5.3 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

SellUS$610,56211 Dec 19
Puissance Capital Management LP
EntityCompany
Shares207,138
Max PriceUS$3.05
BuyUS$22,50012 Aug 19
Charles Theuer
EntityIndividual
Role
Chief Executive Officer
CEO, President & Director
Shares5,000
Max PriceUS$4.50

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 25.3%.


Management Team

  • Mark Wiggins (63yo)

    Chief Business Officer

    • Tenure: 1.7yrs
    • Compensation: US$979.41k
  • Charles Theuer (55yo)

    CEO, President & Director

    • Tenure: 13.6yrs
    • Compensation: US$1.11m
  • Bonne Adams (42yo)

    Executive Vice President of Clinical Operations

    • Tenure: 5.5yrs
  • Suzy Benedict

    Senior Vice President of Regulatory Affairs

    • Tenure: 1yrs
  • Scott Brown (39yo)

    Chief Accounting Officer & Head of Finance

    • Tenure: 1yrs

Board Members

  • Paul Walker (44yo)

    Independent Director

    • Tenure: 5.3yrs
    • Compensation: US$77.38k
  • Steve Worland (61yo)

    Independent Director

    • Tenure: 4.9yrs
    • Compensation: US$73.63k
  • Bill LaRue (68yo)

    Independent Director

    • Tenure: 5.5yrs
    • Compensation: US$82.38k
  • Martin Mattingly (62yo)

    Independent Director

    • Tenure: 5.1yrs
    • Compensation: US$76.13k
  • Charles Theuer (55yo)

    CEO, President & Director

    • Tenure: 13.6yrs
    • Compensation: US$1.11m
  • Bill Kaelin (61yo)

    Member of the Scientific Advisory Board

    • James Twiford (66yo)

      Independent Director

      • Tenure: 11.3yrs
      • Compensation: US$67.38k
    • Stan Gerson

      Member of the Scientific Advisory Board

      • Jeff Hager (55yo)

        Member of the Scientific Advisory Board

        • Tenure: 3.1yrs

      Company Information

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


      Key Information

      • Name: TRACON Pharmaceuticals, Inc.
      • Ticker: TCON
      • Exchange: NasdaqGM
      • Founded: 2004
      • Industry: Biotechnology
      • Sector: Pharmaceuticals & Biotech
      • Market Cap: US$16.236m
      • Shares outstanding: 4.10m
      • Website: https://www.traconpharma.com

      Number of Employees


      Location

      • TRACON Pharmaceuticals, Inc.
      • 4350 La Jolla Village Drive
      • Suite 800
      • San Diego
      • California
      • 92122
      • United States

      Listings

      TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
      TCONNasdaqGM (Nasdaq Global Market)YesCommon StockUSUSDJan 2015
      T051DB (Deutsche Boerse AG)YesCommon StockDEEURJan 2015

      Biography

      TRACON Pharmaceuticals, Inc., a biopharmaceutical company, focuses on the development and commercialization of therapeutics for cancer and wet age-related macular degeneration (AMD). Its lead product candidate is TRC105, an endoglin antibody, which is in randomized Phase III clinical trial for angiosarcoma; Phase I/II clinical trial for hepatocellular carcinoma; Phase I clinical trial for lung cancer; Phase I/II clinical trial for breast cancer; Phase II clinical trials for prostate cancer; and randomized Phase II clinical trial for wet AMD. The company also develops TRC102, a small molecule that is in Phase II clinical trial for mesothelioma, Phase I clinical trial for solid tumors and lung cancer, and Phase I/II clinical trial for solid tumors and lymphomas; and TRC253, a small molecule high affinity competitive inhibitor of wild type androgen receptor (AR) and multiple AR mutant receptors that is in Phase I/II clinical trial for the treatment prostate cancer. In addition, it is developing TJ004309, a novel humanized antibody against CD73 that is in Phase I clinical trial to treat patients with solid tumors through a strategic collaboration and clinical trial agreement with I-Mab Biopharma. The company has license agreements with Ambrx, Inc.; Santen Pharmaceutical Co. Ltd.; Roswell Park Cancer Institute and Health Research Inc.; Case Western Cancer Center; and Lonza Sales AG, as well as a cooperative research and development agreement with National Cancer Institute. The company was formerly known as Lexington Pharmaceuticals, Inc. and changed its name to TRACON Pharmaceuticals, Inc. in March 2005. TRACON Pharmaceuticals, Inc. was founded in 2004 and is headquartered in San Diego, California. 


      Company Analysis and Financial Data Status

      All financial data provided by Standard & Poor's Capital IQ.
      DataLast Updated (UTC time)
      Company Analysis2020/01/21 01:02
      End of Day Share Price2020/01/17 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.