NasdaqGM:WVE

Stock Analysis Report

Executive Summary

Wave Life Sciences Ltd., a clinical stage genetic medicine company, designs, optimizes, and produces of novel stereopure oligonucleotides through PRISM, a discovery and drug developing platform.

Snowflake

Fundamentals

Flawless balance sheet with limited growth.


Similar Companies

Share Price & News

How has Wave Life Sciences's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

2.8%

WVE

-1.2%

US Pharmaceuticals

0.07%

US Market


1 Year Return

-48.8%

WVE

-6.3%

US Pharmaceuticals

8.9%

US Market

Return vs Industry: WVE underperformed the US Pharmaceuticals industry which returned -6.3% over the past year.

Return vs Market: WVE underperformed the US Market which returned 8.9% over the past year.


Shareholder returns

WVEIndustryMarket
7 Day2.8%-1.2%0.07%
30 Day-11.8%-1.9%-0.3%
90 Day6.8%-2.0%-1.6%
1 Year-48.8%-48.8%-4.0%-6.3%11.3%8.9%
3 Year-30.6%-30.6%18.7%10.3%46.3%36.8%
5 Yearn/a21.6%8.8%62.1%44.3%

Price Volatility Vs. Market

How volatile is Wave Life Sciences's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Wave Life Sciences undervalued compared to its fair value and its price relative to the market?

4.64x

Price to Book (PB) ratio


Share Price vs. Fair Value

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

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


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: WVE is overvalued based on its PB Ratio (4.6x) compared to the US Pharmaceuticals industry average (2.8x).


Next Steps

Future Growth

How is Wave Life Sciences forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

-0.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

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

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

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

Revenue vs Market: WVE's revenue (26.2% per year) is forecast to grow faster than the US market (7.2% per year).

High Growth Revenue: WVE's revenue (26.2% 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 WVE's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Wave Life Sciences performed over the past 5 years?

-52.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: WVE is unprofitable, and losses have increased over the past 5 years at a rate of -52.8% per year.

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

Earnings vs Industry: WVE is unprofitable, making it difficult to compare its past year earnings growth to the Pharmaceuticals industry (24.3%).


Return on Equity

High ROE: WVE has a negative Return on Equity (-96.17%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: WVE is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: WVE is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is Wave Life Sciences's financial position?


Financial Position Analysis

Short Term Liabilities: WVE's short term assets ($289.6M) exceeds its short term liabilities ($124.1M)

Long Term Liabilities: WVE's short term assets (289.6M) exceeds its long term liabilities (93.4M)


Debt to Equity History and Analysis

Debt Level: WVE is debt free.

Reducing Debt: WVE currently has no debt however we can't compare to 5 years ago as we have no data for that period.


Balance Sheet

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

Debt Coverage by Assets: Insufficient data to determine if WVE'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: WVE has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: WVE has sufficient cash runway for 1.611099 years if free cash flow continues to reduce at historical rates of -25.8% each year.


Next Steps

Dividend

What is Wave Life Sciences's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage2.8%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

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

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

Stable Dividend: Insufficient data to determine if WVE's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if WVE'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 WVE'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 Wave Life Sciences's salary, the management and board of directors tenure and is there insider trading?

3.2yrs

Average management tenure


CEO

Paul Bolno (45yo)

5.8yrs

Tenure

US$5,839,966

Compensation

Dr. Paul B. Bolno, M.D., MBA has been the Chief Executive Officer and President of WAVE Life Sciences Ltd. since December 2013. Prior to joining WAVE, Dr. Bolno served at GlaxoSmithKline from 2009 to 2013  ...


CEO Compensation Analysis

Compensation vs. Market: Paul's total compensation ($USD5.84M) is about average for companies of similar size in the US market ($USD2.67M).

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


Management Age and Tenure

3.2yrs

Average Tenure

50.5yo

Average Age

Experienced Management: WVE's management team is considered experienced (3.2 years average tenure).


Board Age and Tenure

3.7yrs

Average Tenure

54yo

Average Age

Experienced Board: WVE's board of directors are considered experienced (3.7 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$7,483,05214 Mar 19
Kagoshima Development
EntityCompany
Shares157,791
Max PriceUS$52.25
BuyUS$10,000,00428 Jan 19
RA Capital Management, LLC
EntityCompany
Shares263,158
Max PriceUS$38.00
SellUS$582,84916 Nov 18
Gregory Verdine
EntityIndividual
Role
Member of the Board of Directors
Director
Shares15,000
Max PriceUS$39.52

Ownership Breakdown


Management Team

  • Greg Verdine (60yo)

    Director

    • Tenure: 6.3yrs
    • Compensation: US$387.05k
  • Chandra Vargeese (58yo)

    Senior Vice President of Drug Discovery

    • Tenure: 5.2yrs
    • Compensation: US$2.17m
  • Kyle Moran (48yo)

    Senior Vice President of Operations & Business Analytics

    • Tenure: 2.7yrs
  • Tushar Misra

    Senior Vice President of Technical Operations

    • Tenure: 0.8yrs
  • Keith Regnante (49yo)

    Chief Financial Officer

    • Tenure: 3.2yrs
    • Compensation: US$1.69m
  • Clare Carmichael (59yo)

    Chief Human Resources Officer

    • Tenure: 0yrs
  • Linda Rockett

    General Counsel

    • Tenure: 3.4yrs
  • Paul Bolno (45yo)

    President

    • Tenure: 5.8yrs
    • Compensation: US$5.84m
  • Chris Francis (41yo)

    Senior VP of Corporate Development & Head of Emerging Areas

    • Tenure: 2.8yrs
    • Compensation: US$1.68m
  • Mike Panzara (52yo)

    Chief Medical Officer

    • Tenure: 0.8yrs
    • Compensation: US$2.22m

Board Members

  • Greg Verdine (60yo)

    Director

    • Tenure: 6.3yrs
    • Compensation: US$387.05k
  • Mark H. Corrigan (61yo)

    Independent Director

    • Tenure: 0.08yrs
  • Christian Henry (51yo)

    Independent Chairperson

    • Tenure: 2yrs
    • Compensation: US$295.05k
  • Koji Miura (69yo)

    Independent Director

    • Tenure: 7yrs
    • Compensation: US$244.55k
  • Ad Rawcliffe (47yo)

    Independent Director

    • Tenure: 2.7yrs
    • Compensation: US$244.55k
  • Peter Kolchinsky (42yo)

    Independent Director

    • Tenure: 4.8yrs
    • Compensation: US$246.05k
  • Ken Takanashi (55yo)

    Independent Director

    • Tenure: 7.3yrs
    • Compensation: US$246.05k
  • Heidi Wagner (54yo)

    Independent Director

    • Tenure: 0.08yrs
  • Paul Bolno (45yo)

    President

    • Tenure: 5.8yrs
    • Compensation: US$5.84m
  • Amy Pott

    Independent Director

    • Tenure: 0.08yrs

Company Information

Wave Life Sciences Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Wave Life Sciences Ltd.
  • Ticker: WVE
  • Exchange: NasdaqGM
  • Founded: 2012
  • Industry: Pharmaceuticals
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: US$743.546m
  • Shares outstanding: 34.28m
  • Website: https://www.wavelifesciences.com

Number of Employees


Location

  • Wave Life Sciences Ltd.
  • Marina One East Tower
  • No. 12-00, 7 Straits View
  • Singapore
  • 18936
  • Singapore

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
WVENasdaqGM (Nasdaq Global Market)YesOrdinary SharesUSUSDNov 2015
1U5DB (Deutsche Boerse AG)YesOrdinary SharesDEEURNov 2015

Biography

Wave Life Sciences Ltd., a clinical stage genetic medicine company, designs, optimizes, and produces of novel stereopure oligonucleotides through PRISM, a discovery and drug developing platform. The compan ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/23 00:29
End of Day Share Price2019/10/22 00:00
Earnings2019/06/30
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.