NasdaqGS:TTPH

Stock Analysis Report

Executive Summary

Tetraphase Pharmaceuticals, Inc., a biopharmaceutical company, develops various antibiotics for the treatment of serious and life-threatening multidrug-resistant infections.

Rewards

Earnings are forecast to grow 60.9% per year

Risk Analysis

Has less than 1 year of cash runway

Does not have a meaningful market cap ($8M)

Highly volatile share price over past 3 months

Shareholders have been diluted in the past year



Snowflake Analysis

High growth potential with adequate balance sheet.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

12.7%

TTPH

2.4%

US Pharmaceuticals

1.7%

US Market


1 Year Return

-88.7%

TTPH

12.9%

US Pharmaceuticals

23.6%

US Market

Return vs Industry: TTPH underperformed the US Pharmaceuticals industry which returned 12.6% over the past year.

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


Shareholder returns

TTPHIndustryMarket
7 Day12.7%2.4%1.7%
30 Day30.9%2.8%3.5%
90 Day-40.0%16.0%11.7%
1 Year-88.7%-88.7%15.7%12.9%26.2%23.6%
3 Year-96.3%-96.3%41.1%31.0%53.2%43.3%
5 Year-99.6%-99.6%29.2%15.6%75.5%56.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

0.3x

Price to Book (PB) ratio


Share Price vs. Fair Value

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

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


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: TTPH is good value based on its PB Ratio (0.3x) compared to the US Pharmaceuticals industry average (3.3x).


Next Steps

Future Growth

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

60.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: TTPH is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.7%).

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

High Growth Earnings: TTPH's is expected to become profitable in the next 3 years.

Revenue vs Market: TTPH's revenue (42% per year) is forecast to grow faster than the US market (7.5% per year).

High Growth Revenue: TTPH's revenue (42% 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 TTPH's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Tetraphase Pharmaceuticals performed over the past 5 years?

-3.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TTPH is currently unprofitable.

Growing Profit Margin: TTPH is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: TTPH is unprofitable, and losses have increased over the past 5 years at a rate of -3.6% per year.

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

Earnings vs Industry: TTPH is unprofitable, making it difficult to compare its past year earnings growth to the Pharmaceuticals industry (36.8%).


Return on Equity

High ROE: TTPH has a negative Return on Equity (-301.33%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Tetraphase Pharmaceuticals's financial position?


Financial Position Analysis

Short Term Liabilities: TTPH's short term assets ($31.9M) exceed its short term liabilities ($11.8M).

Long Term Liabilities: TTPH's short term assets ($31.9M) exceed its long term liabilities ($3.9M).


Debt to Equity History and Analysis

Debt Level: TTPH is debt free.

Reducing Debt: TTPH has no debt compared to 5 years ago when its debt to equity ratio was 12.8%.


Balance Sheet

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

Debt Coverage by Assets: Insufficient data to determine if TTPH'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: TTPH has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: TTPH has less than a year of cash runway if free cash flow continues to grow at historical rates of 0.4% each year.


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage2.6%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

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

Growing Dividend: Insufficient data to determine if TTPH'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 TTPH'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 Tetraphase Pharmaceuticals's salary, the management and board of directors tenure and is there insider trading?

0.5yrs

Average management tenure


CEO

Larry Edwards (47yo)

0.4yrs

Tenure

US$1,372,654

Compensation

Mr. Larry G. Edwards has been as President, Chief Executive Officer and Director of Tetraphase Pharmaceuticals, Inc. since August 1, 2019 and served as its Chief Operating Officer since March 1, 2018 until ...


CEO Compensation Analysis

Compensation vs Market: Larry's total compensation ($USD1.37M) is above average for companies of similar size in the US market ($USD519.76K).

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


Management Age and Tenure

0.5yrs

Average Tenure

53.5yo

Average Age

Experienced Management: TTPH's management team is not considered experienced ( 0.5 years average tenure), which suggests a new team.


Board Age and Tenure

7.0yrs

Average Tenure

66.5yo

Average Age

Experienced Board: TTPH's board of directors are considered experienced (7 years average tenure).


Insider Trading

Insider Buying: TTPH insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$31,77012 Dec 19
Skyline Ventures
EntityCompany
Shares14,507
Max PriceUS$2.19
SellUS$1,14812 Dec 19
John Freund
EntityIndividual
Shares524
Max PriceUS$2.19
SellUS$17,28009 Dec 19
Guy MacDonald
EntityIndividual
Role
Consultant
Consultant
Shares7,605
Max PriceUS$2.34

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 3.9%.


Management Team

  • Guy MacDonald (60yo)

    Consultant

    • Tenure: 0.08yrs
    • Compensation: US$3.06m
  • Maria Stahl (48yo)

    Chief Business Officer

    • Tenure: 4.8yrs
    • Compensation: US$956.88k
  • Paul Fanning (61yo)

    Senior Vice President of Human Resources

    • Jacques Dumas (53yo)

      Consultant

      • Tenure: 0.5yrs
      • Compensation: US$1.08m
    • Christopher Watt (54yo)

      Senior VP of Finance & Treasurer

      • Tenure: 2.5yrs
      • Compensation: US$613.47k
    • Larry Edwards (47yo)

      CEO, President & Director

      • Tenure: 0.4yrs
      • Compensation: US$1.37m
    • Jennifer Viera

      Executive Director of Corporate Communications & Investor Relations


      Board Members

      • Nancy Wysenski (61yo)

        Independent Director

        • Tenure: 5.8yrs
        • Compensation: US$96.00k
      • Garen Bohlin (72yo)

        Independent Director

        • Tenure: 9.5yrs
        • Compensation: US$96.00k
      • David Shlaes

        Member of Clinical Advisory Board

        • Pat Gage (77yo)

          Independent Chairman of the Board

          • Tenure: 8.1yrs
          • Compensation: US$131.00k
        • Lou Rice

          Member of Clinical Advisory Board

          • David Livermore

            Member of Clinical Advisory Board

            • Helen Boucher

              Member of Clinical Advisory Board

              • David Nicolau

                Member of Clinical Advisory Board

                • Tom File

                  Member of Clinical Advisory Board

                  • Larry Edwards (47yo)

                    CEO, President & Director

                    • Tenure: 0.4yrs
                    • Compensation: US$1.37m

                  Company Information

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


                  Key Information

                  • Name: Tetraphase Pharmaceuticals, Inc.
                  • Ticker: TTPH
                  • Exchange: NasdaqGS
                  • Founded: 2006
                  • Industry: Pharmaceuticals
                  • Sector: Pharmaceuticals & Biotech
                  • Market Cap: US$8.806m
                  • Shares outstanding: 3.02m
                  • Website: https://www.tphase.com

                  Number of Employees


                  Location

                  • Tetraphase Pharmaceuticals, Inc.
                  • 480 Arsenal Way
                  • Suite 110
                  • Watertown
                  • Massachusetts
                  • 2472
                  • United States

                  Listings

                  TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
                  TTPHNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDMar 2013
                  0LEULSE (London Stock Exchange)YesCommon StockGBUSDMar 2013

                  Biography

                  Tetraphase Pharmaceuticals, Inc., a biopharmaceutical company, develops various antibiotics for the treatment of serious and life-threatening multidrug-resistant infections. The company’s lead product candidate is Xerava (eravacycline), a synthetic fluorocycline intravenous and IV antibiotic for use as a first-line empiric monotherapy to treat multidrug-resistant infections, including multidrug-resistant Gram-negative infections. It conducted Phase III clinical trials with Xerava through investigating Gram-negative infections treated with Xerava (IGNITE). The company has completed IGNITE1 and IGNITE4, a Phase III clinical trial evaluating the safety and efficacy of Xerava with IV administration for the treatment of complicated intra-abdominal infections; IGNITE2, a Phase III clinical trial evaluating the safety and efficacy of Xerava with IV-to-oral transition therapy for the treatment of complicated urinary tract infections (cUTI); and IGNITE3, a Phase III clinical trial evaluating the safety and efficacy of Xerava with IV administration for the treatment of cUTI. It is also developing TP-271, a synthetic broad-spectrum fluorocycline that is in Phase I clinical trial for respiratory diseases caused by bacterial biothreat pathogens; TP-6076, a synthetic fluorocycline derivative, which is in Phase I clinical trial for multidrug-resistant Gram-negative infections; and TP-2846, a synthetic tetracycline for the treatment of acute myeloid leukemia, which is in pre-clinical stage. Tetraphase Pharmaceuticals, Inc. has a license agreement with Everest Medicines Limited to develop and commercialize Xerava for the treatment of complicated intra-abdominal infections and other indications in mainland China, Taiwan, Hong Kong, Macau, South Korea, and Singapore. The company was founded in 2006 and is headquartered in Watertown, Massachusetts. 


                  Company Analysis and Financial Data Status

                  All financial data provided by Standard & Poor's Capital IQ.
                  DataLast Updated (UTC time)
                  Company Analysis2020/01/20 00:24
                  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.