NasdaqGM:VNDA

Stock Analysis Report

Executive Summary

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


Snowflake Analysis

Very undervalued with flawless balance sheet.


Similar Companies

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

20.3%

VNDA

2.5%

US Biotechs

-2.0%

US Market


1 Year Return

-41.5%

VNDA

-0.9%

US Biotechs

-15.1%

US Market

Return vs Industry: VNDA underperformed the US Biotechs industry which returned 1.6% over the past year.

Return vs Market: VNDA underperformed the US Market which returned -10.7% over the past year.


Shareholder returns

VNDAIndustryMarket
7 Day20.3%2.5%-2.0%
30 Day-3.2%-8.3%-19.7%
90 Day-31.4%-4.1%-23.2%
1 Year-41.5%-41.5%-0.2%-0.9%-13.4%-15.1%
3 Year-19.9%-19.9%13.8%10.9%10.9%3.7%
5 Year15.8%15.8%-7.2%-11.6%28.4%14.4%

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 ($10.34) is trading below our estimate of fair value ($27.48)

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 (4.8x) compared to the Biotechs industry average (16.2x).

PE vs Market: VNDA is good value based on its PE Ratio (4.8x) compared to the US market (13.1x).


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 (1.3x) compared to the US Biotechs industry average (2.6x).


Next Steps

Future Growth

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

10.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: VNDA's forecast earnings growth (10.3% per year) is above the savings rate (1.7%).

Earnings vs Market: VNDA's earnings (10.3% per year) are forecast to grow slower than the US market (12.3% per year).

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

Revenue vs Market: VNDA's revenue (10.2% per year) is forecast to grow faster than the US market (7.2% per year).

High Growth Revenue: VNDA's revenue (10.2% 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?

35.0%

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 (50.9%) are higher than last year (13.1%).


Past Earnings Growth Analysis

Earnings Trend: VNDA's earnings have grown significantly by 35% per year over the past 5 years.

Accelerating Growth: VNDA's earnings growth over the past year (358.4%) exceeds its 5-year average (35% per year).

Earnings vs Industry: VNDA earnings growth over the past year (358.4%) exceeded the Biotechs industry 22%.


Return on Equity

High ROE: VNDA's Return on Equity (28.1%) is considered high.


Next Steps

Financial Health

How is Vanda Pharmaceuticals's financial position?


Financial Position Analysis

Short Term Liabilities: VNDA's short term assets ($354.1M) exceed its short term liabilities ($59.5M).

Long Term Liabilities: VNDA's short term assets ($354.1M) exceed its long term liabilities ($13.3M).


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

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

How experienced are the management team and are they aligned to shareholders interests?

0.7yrs

Average management tenure


CEO

Mihael Polymeropoulos (59yo)

16.92s

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 ($USD4.28M) is above average for companies of similar size in the US market ($USD2.13M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Mihael Polymeropoulos
Founder16.92yrsUS$4.28m2.24% $13.3m
Timothy Williams
Senior VP1.67yrsUS$3.43m0.015% $88.6k
Gunther Birznieks
Senior Vice President of Business Development3.08yrsUS$2.00m0.30% $1.8m
Kevin Moran
Acting CFO0.083yrno data0.025% $146.4k
Aranthan Jones
Chief Corporate Affairs & Communications Officer0.67yrno datano data
Joakim Wijkstrom
Chief Marketing Officer0.67yrno datano data
Scott Howell
Chief People Officer0.67yrno datano data
Elizabeth Van Every
Head of Corporate Affairsno datano datano data

0.7yrs

Average Tenure

50yo

Average Age

Experienced Management: VNDA's management team is not considered experienced ( 1.1 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Mihael Polymeropoulos
Founder16.92yrsUS$4.28m2.24% $13.3m
Richard Dugan
Independent Director14.33yrsUS$264.35k0.057% $339.1k
H. Watkins
Independent Chairman of the Board6.08yrsUS$281.85k0.047% $275.5k
Anne Ward
Director0.50yrno datano data
Stephen Mitchell
Independent Director0.17yrno data0.00037% $2.2k
Phaedra Chrousos
Director1yrno datano data

3.5yrs

Average Tenure

62.5yo

Average Age

Experienced Board: VNDA's board of directors are considered experienced (3.5 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: VNDA 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 4.5%.


Top Shareholders

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$591.208m
  • Shares outstanding: 53.65m
  • 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
VM4BRSE (Berne Stock Exchange)YesCommon StockCHCHFApr 2006

Biography

Vanda Pharmaceuticals Inc., a biopharmaceutical company, focuses on the development and commercialization of therapies to address 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 in phase-III clinical trials for the treatment of atopic dermatitis, gastroparesis, and motion sickness; VTR-297, a small molecule histone deacetylase inhibitor, which is in phase II clinical trials for the treatment of hematologic malignancies; and VQW-765, a small molecule nicotinic acetylcholine receptor partial agonist, for the treatment of psychiatric disorders. In addition, the company is developing cystic fibrosis transmembrane conductance regulator activators and inhibitors for the treatment of dry eye and ocular inflammation, as well as secretory diarrhea disorders, including cholera. 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 Analysis2020/04/03 06:22
End of Day Share Price2020/04/02 00:00
Earnings2019/12/31
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.