OTCPK:PCSA

Stock Analysis Report

Executive Summary

Processa Pharmaceuticals, Inc., a clinical stage biopharmaceutical company, focuses on the development of drug products for the unmet medical needs in the United States.


Snowflake Analysis

Worrying balance sheet with weak fundamentals.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: PCSA has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0%

PCSA

3.1%

US Pharmaceuticals

-2.6%

US Market


1 Year Return

-49.2%

PCSA

-3.4%

US Pharmaceuticals

-13.3%

US Market

Return vs Industry: PCSA underperformed the US Pharmaceuticals industry which returned -3.4% over the past year.

Return vs Market: PCSA underperformed the US Market which returned -13.3% over the past year.


Shareholder returns

PCSAIndustryMarket
7 Day0%3.1%-2.6%
30 Dayn/a-4.8%-15.2%
90 Dayn/a-8.7%-22.2%
1 Year-49.2%-49.2%-1.0%-3.4%-11.5%-13.3%
3 Yearn/a17.4%8.9%13.2%5.7%
5 Yearn/a17.7%4.8%31.8%17.2%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is Processa Pharmaceuticals undervalued compared to its fair value and its price relative to the market?

5.48x

Price to Book (PB) ratio


Share Price vs. Fair Value

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

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


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: PCSA is overvalued based on its PB Ratio (5.5x) compared to the US Pharmaceuticals industry average (2.3x).


Next Steps

Future Growth

How is Processa Pharmaceuticals forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

27.3%

Forecasted Pharmaceuticals & Biotech industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Processa Pharmaceuticals has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Processa Pharmaceuticals performed over the past 5 years?

-28.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PCSA is currently unprofitable.

Growing Profit Margin: PCSA is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: PCSA is unprofitable, and losses have increased over the past 5 years at a rate of -28.4% per year.

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

Earnings vs Industry: PCSA is unprofitable, making it difficult to compare its past year earnings growth to the Pharmaceuticals industry (-0.2%).


Return on Equity

High ROE: PCSA has a negative Return on Equity (-41.91%), as it is currently unprofitable.


Next Steps

Financial Health

How is Processa Pharmaceuticals's financial position?


Financial Position Analysis

Short Term Liabilities: PCSA's short term assets ($1.0M) do not cover its short term liabilities ($1.2M).

Long Term Liabilities: PCSA's short term assets ($1.0M) do not cover its long term liabilities ($1.7M).


Debt to Equity History and Analysis

Debt Level: PCSA's debt to equity ratio (10%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if PCSA's debt to equity ratio has reduced 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: PCSA has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: PCSA has less than a year of cash runway if free cash flow continues to reduce at historical rates of -21.6% each year


Next Steps

Dividend

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


Dividend Yield vs Market

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

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

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

2.0yrs

Average management tenure


CEO

David Young (66yo)

2.5s

Tenure

US$163,202

Compensation

Dr. David Young, Pharm.D., Ph.D., Co-Founded Processa Pharmaceuticals, Inc. in 2017. He serves as Chairman and Chief Executive Officer at Processa Pharmaceuticals, Inc. He served as Interim Chief Financial ...


Leadership Team

NamePositionTenureCompensationOwnership
David Young
Co- Founder2.5yrsUS$163.20k9.27% $5.1m
Patrick Lin
Co-Founder2.5yrsUS$215.70k6.11% $3.4m
Sian Bigora
Co-Founder & Chief Development Officer1yrUS$215.70k6.72% $3.7m
Wendy Guy
Co-Founder & Chief Administrative Officerno dataUS$250.70k2.74% $1.5m
James Stanker
Chief Financial Officer1.58yrsUS$250.70kno data

2.0yrs

Average Tenure

59yo

Average Age

Experienced Management: PCSA's management team is considered experienced (2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
David Young
Co- Founder2.5yrsUS$163.20k9.27% $5.1m
Patrick Lin
Co-Founder2.5yrsUS$215.70k6.11% $3.4m
Virgil Thompson
Independent Director2.5yrsUS$20.42k1.59% $874.3k
John Devane
Member of Medical & Scientific Advisory Board0.083yrno datano data
Justin Yorke
Independent Director2.5yrsUS$20.42k6.79% $3.7m
James Shipley
Member of Medical & Scientific Advisory Board0.083yrno datano data
Geraldine Pannu
Independent Director0.17yrno datano data

1.3yrs

Average Tenure

54yo

Average Age

Experienced Board: PCSA's board of directors are not considered experienced ( 1.3 years average tenure), which suggests a new board.


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 3.6%.


Top Shareholders

Company Information

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


Key Information

  • Name: Processa Pharmaceuticals, Inc.
  • Ticker: PCSA
  • Exchange: OTCPK
  • Founded: 2011
  • Industry: Pharmaceuticals
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: US$54.865m
  • Shares outstanding: 5.49m
  • Website: https://www.processapharmaceuticals.com

Number of Employees


Location

  • Processa Pharmaceuticals, Inc.
  • 7380 Coca Cola Drive
  • Suite 106
  • Hanover
  • Maryland
  • 21076
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PCSAOTCPK (Pink Sheets LLC)YesCommon StockUSUSDOct 2017

Biography

Processa Pharmaceuticals, Inc., a clinical stage biopharmaceutical company, focuses on the development of drug products for the unmet medical needs in the United States. The company’s lead product candidate is PCS-499, an oral tablet that is in Phase IIa clinical trial for the treatment of necrobiosis lipoidica, a necrotizing skin condition. It also has license agreement of PCS100, an anti-fibrotic and anti-inflammatory drug. The company was formerly known as Heatwurx, Inc. and changed its name to Processa Pharmaceuticals, Inc. in October 2017. Processa Pharmaceuticals, Inc. was founded in 2011 and is headquartered in Hanover, Maryland. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/07 11:27
End of Day Share Price2020/03/31 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.