NasdaqGM:VNDA

Stock Analysis Report

Executive Summary

Vanda Pharmaceuticals Inc., a biopharmaceutical company, focuses on the development and commercialization of therapies to address high unmet medical needs and improve the lives of patients.

Rewards

Trading at 77.3% below its fair value

Earnings are forecast to grow 13.3% per year

Earnings grew by 835.4% over the past year

Risk Analysis

High level of non-cash earnings

Highly volatile share price over past 3 months

Shareholders have been diluted in the past year



Snowflake Analysis

Very undervalued with flawless balance sheet.


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Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-8.7%

VNDA

-4.1%

US Biotechs

-1.2%

US Market


1 Year Return

-52.3%

VNDA

9.1%

US Biotechs

22.3%

US Market

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

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


Shareholder returns

VNDAIndustryMarket
7 Day-8.7%-4.1%-1.2%
30 Day-17.6%-3.3%1.6%
90 Day-1.9%11.2%8.8%
1 Year-52.3%-52.3%10.1%9.1%25.0%22.3%
3 Year3.7%3.7%23.9%19.8%49.9%40.3%
5 Year26.2%26.2%1.3%-3.5%77.6%58.0%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Vanda Pharmaceuticals 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: VNDA ($15.15) is trading below our estimate of fair value ($66.74)

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


Price To Earnings Ratio

PE vs Industry: VNDA is good value based on its PE Ratio (6.6x) compared to the Biotechs industry average (20.1x).

PE vs Market: VNDA is good value based on its PE Ratio (6.6x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: VNDA is good value based on its PEG Ratio (0.5x)


Price to Book Ratio

PB vs Industry: VNDA is good value based on its PB Ratio (2x) compared to the US Biotechs industry average (3.2x).


Next Steps

Future Growth

How is Vanda Pharmaceuticals forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

13.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: VNDA's forecast earnings growth (13.3% per year) is above the savings rate (1.7%).

Earnings vs Market: VNDA's earnings (13.3% per year) are forecast to grow slower than the US market (14.3% per year).

High Growth Earnings: VNDA's earnings are forecast to grow, but not significantly.

Revenue vs Market: VNDA's revenue (14.4% per year) is forecast to grow faster than the US market (7.5% per year).

High Growth Revenue: VNDA's revenue (14.4% 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 VNDA's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Vanda Pharmaceuticals performed over the past 5 years?

30.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: VNDA has a high level of non-cash earnings.

Growing Profit Margin: VNDA's current net profit margins (55.5%) are higher than last year (7.1%).


Past Earnings Growth Analysis

Earnings Trend: VNDA has become profitable over the past 5 years, growing earnings by 30.6% per year.

Accelerating Growth: VNDA's earnings growth over the past year (835.4%) exceeds its 5-year average (30.6% per year).

Earnings vs Industry: VNDA earnings growth over the past year (835.4%) exceeded the Biotechs industry 103.3%.


Return on Equity

High ROE: VNDA's Return on Equity (30.4%) is considered high.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Vanda Pharmaceuticals's financial position?


Financial Position Analysis

Short Term Liabilities: VNDA's short term assets ($280.0M) exceed its short term liabilities ($60.0M).

Long Term Liabilities: VNDA's short term assets ($280.0M) exceed its long term liabilities ($13.5M).


Debt to Equity History and Analysis

Debt Level: VNDA is debt free.

Reducing Debt: VNDA has not had any debt for past 5 years.

Debt Coverage: VNDA has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: VNDA has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

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

Debt Coverage by Assets: Insufficient data to determine if VNDA's debt is covered by short term assets.


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage2.1%forecastin3Years0%

Current dividend yield vs market & industry

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

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

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

2.1yrs

Average management tenure


CEO

Mihael Polymeropoulos (59yo)

16.7yrs

Tenure

US$4,284,676

Compensation

Dr. Mihael H. Polymeropoulos, M.D. founded Vanda Pharmaceuticals, Inc. in 2003 and has been its Chief Executive Officer, President and Director since May, 2003. Dr. Polymeropoulos has also been the Chief F ...


CEO Compensation Analysis

Compensation vs Market: Mihael's total compensation ($USD4.28M) is above average for companies of similar size in the US market ($USD2.53M).

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


Management Age and Tenure

2.1yrs

Average Tenure

52.5yo

Average Age

Experienced Management: VNDA's management team is considered experienced (2.1 years average tenure).


Board Age and Tenure

6.7yrs

Average Tenure

59yo

Average Age

Experienced Board: VNDA's board of directors are considered experienced (6.7 years average tenure).


Insider Trading

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


Recent Insider Transactions

SellUS$151,49306 Jan 20
Mihael Polymeropoulos
EntityIndividual
Role
Chief Executive Officer
Founder
Shares9,467
Max PriceUS$16.00
SellUS$18,55106 Jan 20
Gian Reverberi
EntityIndividual
Role
Senior Key Executive
Senior VP & Chief Commercial Officer
Shares1,155
Max PriceUS$16.06
SellUS$64,08606 Jan 20
James Kelly
EntityIndividual
Role
Chief Financial Officer
Executive VP
Shares4,020
Max PriceUS$15.94
SellUS$64,02106 Jan 20
Gunther Birznieks
EntityIndividual
Role
Senior Key Executive
Senior Vice President of Business Development
Shares4,020
Max PriceUS$15.93
SellUS$37,82915 Aug 19
Timothy Williams
EntityIndividual
Role
Chief Legal Officer
Senior VP
Shares2,575
Max PriceUS$14.69
SellUS$17,65504 Mar 19
Gian Reverberi
EntityIndividual
Role
Senior Key Executive
Senior VP & Chief Commercial Officer
Shares881
Max PriceUS$20.17
SellUS$872,22604 Mar 19
Mihael Polymeropoulos
EntityIndividual
Role
Chief Executive Officer
Founder
Shares44,666
Max PriceUS$20.22
SellUS$274,23304 Mar 19
James Kelly
EntityIndividual
Role
Chief Financial Officer
Executive VP
Shares13,727
Max PriceUS$20.15
SellUS$250,09204 Mar 19
Gunther Birznieks
EntityIndividual
Role
Senior Key Executive
Senior Vice President of Business Development
Shares12,529
Max PriceUS$20.14

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 8%.


Management Team

  • Mihael Polymeropoulos (59yo)

    Founder

    • Tenure: 16.7yrs
    • Compensation: US$4.28m
  • Gunther Birznieks (50yo)

    Senior Vice President of Business Development

    • Tenure: 2.8yrs
    • Compensation: US$2.00m
  • Jim Kelly (53yo)

    Executive VP

    • Tenure: 9.1yrs
    • Compensation: US$2.24m
  • Gian Reverberi (52yo)

    Senior VP & Chief Commercial Officer

    • Tenure: 4.3yrs
    • Compensation: US$2.28m
  • Tim Williams

    Senior VP

    • Tenure: 1.4yrs
    • Compensation: US$3.43m
  • AJ Jones

    Chief Corporate Affairs & Communications Officer

    • Tenure: 0.4yrs
  • Kim Wijkstrom

    Chief Marketing Officer

    • Tenure: 0.4yrs
  • Elizabeth Van Every

    Head of Corporate Affairs

    • Scott Howell

      Chief People Officer

      • Tenure: 0.4yrs

    Board Members

    • Mike Cola (59yo)

      Independent Director

      • Tenure: 7.6yrs
      • Compensation: US$249.35k
    • Richard Dugan (77yo)

      Independent Director

      • Tenure: 14.1yrs
      • Compensation: US$264.35k
    • Tom Watkins (66yo)

      Independent Chairman of the Board

      • Tenure: 5.8yrs
      • Compensation: US$281.85k
    • Mihael Polymeropoulos (59yo)

      Founder

      • Tenure: 16.7yrs
      • Compensation: US$4.28m
    • Anne Ward (47yo)

      Director

      • Tenure: 0.3yrs
    • Phaedra Chrousos (39yo)

      Director

      • Tenure: 0.8yrs

    Company Information

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


    Key Information

    • Name: Vanda Pharmaceuticals Inc.
    • Ticker: VNDA
    • Exchange: NasdaqGM
    • Founded: 2002
    • Industry: Biotechnology
    • Sector: Pharmaceuticals & Biotech
    • Market Cap: US$735.785m
    • Shares outstanding: 53.34m
    • Website: https://www.vandapharma.com

    Number of Employees


    Location

    • Vanda Pharmaceuticals Inc.
    • 2200 Pennsylvania Avenue NW
    • Suite 300E
    • Washington
    • District Of Columbia
    • 20037
    • United States

    Listings

    TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
    VNDANasdaqGM (Nasdaq Global Market)YesCommon StockUSUSDApr 2006
    VM4DB (Deutsche Boerse AG)YesCommon StockDEEURApr 2006
    0LKBLSE (London Stock Exchange)YesCommon StockGBUSDApr 2006

    Biography

    Vanda Pharmaceuticals Inc., a biopharmaceutical company, focuses on the development and commercialization of therapies to address high unmet medical needs and improve the lives of patients. The company’s marketed products include HETLIOZ (tasimelteon), a product for the treatment of non-24-hour sleep-wake disorders; and Fanapt (iloperidone), a product for the treatment of schizophrenia. Its products also include Tradipitant (VLY-686), a small molecule neurokinin-1 receptor antagonist that is under the clinical development for the treatment of chronic pruritus in atopic dermatitis and gastroparesis; VTR-297, a small molecule histone deacetylase inhibitor, which is in clinical development stage for the treatment of hematologic malignancies; and VQW-765, a Phase II alpha-7 nicotinic acetylcholine receptor partial agonist. In addition, the company is developing cystic fibrosis transmembrane conductance regulator activators and inhibitors. It markets its products in the United States, Europe, and Israel. Vanda Pharmaceuticals Inc. was incorporated in 2002 and is headquartered in Washington, the District of Columbia. 


    Company Analysis and Financial Data Status

    All financial data provided by Standard & Poor's Capital IQ.
    DataLast Updated (UTC time)
    Company Analysis2020/01/27 23:59
    End of Day Share Price2020/01/27 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.