NasdaqGM:TVTX

Stock Analysis Report

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Market Cap

US$957.6m

Last Updated

2021/06/19 03:16 UTC

Data Sources

Company Financials +

Executive Summary

Travere Therapeutics, Inc., a biopharmaceutical company, focuses on the identification, development, and commercialization of therapies for the treatment of rare diseases. More Details


Snowflake Analysis

Fair value with mediocre balance sheet.


Similar Companies

Share Price & News

How has Travere Therapeutics's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: TVTX is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: TVTX's weekly volatility (8%) has been stable over the past year.


Market Performance


7 Day Return

5.0%

TVTX

-2.5%

US Biotechs

-0.2%

US Market


1 Year Return

0.3%

TVTX

23.1%

US Biotechs

39.4%

US Market

Return vs Industry: TVTX underperformed the US Biotechs industry which returned 23.1% over the past year.

Return vs Market: TVTX underperformed the US Market which returned 39.4% over the past year.


Shareholder returns

TVTXIndustryMarket
7 Day5.0%-2.5%-0.2%
30 Day-13.3%5.1%3.1%
90 Day-40.7%3.3%5.6%
1 Year0.3%0.3%24.9%23.1%41.7%39.4%
3 Year-41.7%-41.7%6.2%1.8%59.7%49.9%
5 Year-11.0%-11.0%54.6%42.5%122.6%97.6%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Travere Therapeutics undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: TVTX ($15.36) is trading below our estimate of fair value ($126.32)

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


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: TVTX is good value based on its PB Ratio (2.6x) compared to the US Biotechs industry average (3.4x).


Future Growth

How is Travere Therapeutics forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

14.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

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

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

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

Revenue vs Market: TVTX's revenue (31.8% per year) is forecast to grow faster than the US market (9.4% per year).

High Growth Revenue: TVTX's revenue (31.8% 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 TVTX's Return on Equity is forecast to be high in 3 years time


Past Performance

How has Travere Therapeutics performed over the past 5 years?

-38.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TVTX is currently unprofitable.

Growing Profit Margin: TVTX is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: TVTX is unprofitable, and losses have increased over the past 5 years at a rate of 38.7% per year.

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

Earnings vs Industry: TVTX is unprofitable, making it difficult to compare its past year earnings growth to the Biotechs industry (-7.7%).


Return on Equity

High ROE: TVTX has a negative Return on Equity (-61.79%), as it is currently unprofitable.


Financial Health

How is Travere Therapeutics's financial position?


Financial Position Analysis

Short Term Liabilities: TVTX's short term assets ($565.0M) exceed its short term liabilities ($85.0M).

Long Term Liabilities: TVTX's short term assets ($565.0M) exceed its long term liabilities ($316.3M).


Debt to Equity History and Analysis

Debt Level: TVTX's debt to equity ratio (60.1%) is considered high.

Reducing Debt: TVTX's debt to equity ratio has increased from 13.8% to 60.1% 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: TVTX has sufficient cash runway for more than 3 years based on its current free cash flow.

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


Dividend

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


Dividend Yield vs Market

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

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

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

3.1yrs

Average management tenure


CEO

Eric Dube (47 yo)

2.42yrs

Tenure

US$5,447,879

Compensation

Dr. Eric M. Dube, Ph.D., serves as an Independent Director at Reneo Pharmaceuticals, Inc. since March 2021. Dr. Dube serves as President and Chief Executive Officer at Travere Therapeutics, Inc. (formerly ...


CEO Compensation Analysis

Compensation vs Market: Eric's total compensation ($USD5.45M) is above average for companies of similar size in the US market ($USD2.38M).

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


Leadership Team

Experienced Management: TVTX's management team is considered experienced (3.1 years average tenure).


Board Members

Experienced Board: TVTX's board of directors are considered experienced (4.6 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: TVTX insiders have only sold shares 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 21.8%.


Top Shareholders

Company Information

Travere Therapeutics, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Travere Therapeutics, Inc.
  • Ticker: TVTX
  • Exchange: NasdaqGM
  • Founded: 2008
  • Industry: Biotechnology
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: US$957.649m
  • Shares outstanding: 60.46m
  • Website: https://www.travere.com

Number of Employees


Location

  • Travere Therapeutics, Inc.
  • 3611 Valley Centre Drive
  • Suite 300
  • San Diego
  • California
  • 92130
  • United States

Listings


Biography

Travere Therapeutics, Inc., a biopharmaceutical company, focuses on the identification, development, and commercialization of therapies for the treatment of rare diseases. Its marketed products include Che...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/06/19 03:16
End of Day Share Price2021/06/18 00:00
Earnings2021/03/31
Annual Earnings2020/12/31


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.