NasdaqGM:ZGNX

Stock Analysis Report

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Executive Summary

Zogenix, Inc., a pharmaceutical company, develops and commercializes transformative therapies to enhance the lives of patients and their families living with rare diseases in the United States. More Details


Snowflake Analysis

Excellent balance sheet with high growth potential.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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

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


Market Performance


7 Day Return

8.5%

ZGNX

0.1%

US Pharmaceuticals

2.8%

US Market


1 Year Return

-54.9%

ZGNX

5.7%

US Pharmaceuticals

20.7%

US Market

Return vs Industry: ZGNX underperformed the US Pharmaceuticals industry which returned 4.5% over the past year.

Return vs Market: ZGNX underperformed the US Market which returned 19.8% over the past year.


Shareholder returns

ZGNXIndustryMarket
7 Day8.5%0.1%2.8%
30 Day5.6%6.4%12.3%
90 Day-4.9%-1.9%6.4%
1 Year-54.9%-54.9%8.5%5.7%23.4%20.7%
3 Year-44.6%-44.6%23.9%14.8%47.2%37.4%
5 Year41.7%41.7%36.3%20.6%94.1%72.7%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Zogenix 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: ZGNX ($21.56) is trading below our estimate of fair value ($140.42)

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


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: ZGNX is good value based on its PB Ratio (2.8x) compared to the US Pharmaceuticals industry average (3.5x).


Next Steps

Future Growth

How is Zogenix forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?

70.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ZGNX is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2.2%).

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

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

Revenue vs Market: ZGNX's revenue (59.2% per year) is forecast to grow faster than the US market (10.2% per year).

High Growth Revenue: ZGNX's revenue (59.2% 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 ZGNX's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Zogenix performed over the past 5 years?

-43.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ZGNX is currently unprofitable.

Growing Profit Margin: ZGNX is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: ZGNX is unprofitable, and losses have increased over the past 5 years at a rate of 43.2% per year.

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

Earnings vs Industry: ZGNX is unprofitable, making it difficult to compare its past year earnings growth to the Pharmaceuticals industry (16.8%).


Return on Equity

High ROE: ZGNX has a negative Return on Equity (-46.26%), as it is currently unprofitable.


Next Steps

Financial Health

How is Zogenix's financial position?


Financial Position Analysis

Short Term Liabilities: ZGNX's short term assets ($565.4M) exceed its short term liabilities ($92.3M).

Long Term Liabilities: ZGNX's short term assets ($565.4M) exceed its long term liabilities ($177.7M).


Debt to Equity History and Analysis

Debt Level: ZGNX's debt to equity ratio (30.3%) is considered satisfactory.

Reducing Debt: ZGNX's debt to equity ratio has increased from 11.7% to 30.3% 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: Whilst unprofitable ZGNX has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: ZGNX is unprofitable but has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by 12.6% per year.


Next Steps

Dividend

What is Zogenix current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

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

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

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

6.3yrs

Average management tenure


CEO

Steve Farr (61 yo)

5.58yrs

Tenure

US$10,346,750

Compensation

Dr. Stephen J. Farr, also known as Steve, Ph.D., co-founded Zogenix, Inc. in 2006 and has been its President since May 2006 and its Chief Executive Officer since April 2015. Dr. Farr served as the Chief Op...


CEO Compensation Analysis

Compensation vs Market: Steve's total compensation ($USD10.35M) is above average for companies of similar size in the US market ($USD2.56M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Stephen Farr
Co-Founder5.58yrsUS$10.35m0.14%
$ 1.7m
Michael Smith
Executive VP3.83yrsUS$4.36m0.023%
$ 264.2k
Bradley Galer
Executive VP & Chief Medical Officer6.92yrsUS$4.37m0.031%
$ 362.6k
Gail Farfel
Executive VP & Chief Development Officer5.33yrsUS$4.35m0.020%
$ 235.7k
Ashish Sagrolikar
Executive VP & Chief Commercial Officer2.33yrsUS$4.33m0.016%
$ 192.2k
Jeff Durflinger
Vice President of Technical Operations & Product Supply9.67yrsno datano data
Shawnte Mitchell
Executive VP0.58yrno datano data
Melinda Baker
Senior Director of Corporate Communicationsno datano datano data
Bret Megargel
Vice President of Corporate Development14.25yrsno datano data
Stephen Jenner
Vice President of Marketing9.83yrsno datano data
Joanne M. Quan
Chief Medical Officer of Modis Therapeuticsno datano datano data
John Turanin
VP & GM of Zogenix Technologies14.5yrsUS$326.24kno data

6.3yrs

Average Tenure

56yo

Average Age

Experienced Management: ZGNX's management team is seasoned and experienced (6.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Stephen Farr
Co-Founder5.58yrsUS$10.35m0.14%
$ 1.7m
Louis C. Bock
Independent Director14.25yrsUS$386.02k0%
$ 0
Cam Garner
Co-founder & Independent Chairman14.25yrsUS$426.02k0.10%
$ 1.2m
Erle Mast
Independent Director12.5yrsUS$396.02k0.0054%
$ 63.8k
James Breitmeyer
Independent Director6.67yrsUS$373.52k0.0022%
$ 26.4k
Mark Wiggins
Independent Director9.5yrsUS$385.39k0.0045%
$ 52.7k
Herbert Neuman
Member of External Safe Use Boardno datano datano data
David Brushwood
Member of External Safe Use Board6.33yrsno datano data
Jeffrey Gudin
Chairperson of External Safe Use Boardno datano datano data
John Burke
Member of External Safe Use Boardno datano datano data
Debra Gordon
Member of External Safe Use Boardno datano datano data
Scott Novak
Member of External Safe Use Boardno datano datano data

12.5yrs

Average Tenure

61yo

Average Age

Experienced Board: ZGNX's board of directors are seasoned and experienced ( 12.5 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: ZGNX insiders have sold more shares than they have bought 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 25.8%.


Top Shareholders

Company Information

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


Key Information

  • Name: Zogenix, Inc.
  • Ticker: ZGNX
  • Exchange: NasdaqGM
  • Founded: 2006
  • Industry: Pharmaceuticals
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: US$1.174b
  • Shares outstanding: 55.67m
  • Website: https://www.zogenix.com

Number of Employees


Location

  • Zogenix, Inc.
  • 5959 Horton Street
  • Suite 500
  • EmeryVille
  • California
  • 94608
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ZGNXNasdaqGM (Nasdaq Global Market)YesCommon StockUSUSDNov 2010
Z081DB (Deutsche Boerse AG)YesCommon StockDEEURNov 2010
0M3OLSE (London Stock Exchange)YesCommon StockGBUSDNov 2010

Biography

Zogenix, Inc., a pharmaceutical company, develops and commercializes transformative therapies to enhance the lives of patients and their families living with rare diseases in the United States. The company...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/11/27 23:53
End of Day Share Price2020/11/27 00:00
Earnings2020/09/30
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.