OTCPK:PCSA

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Imperfect balance sheet with weak fundamentals.

Risks

  • Processa Pharmaceuticals is not covered by any analysts.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

-0.4%

OTCPK:PCSA

-1.4%

US Pharmaceuticals

-1.6%

US Market


1 Year Return

-19.0%

OTCPK:PCSA

-8.4%

US Pharmaceuticals

-3.0%

US Market

PCSA underperformed the Pharmaceuticals industry which returned -8.4% over the past year.

PCSA underperformed the Market in United States of America which returned -3% over the past year.


Share holder returns

PCSAIndustryMarket
7 Day-0.4%-1.4%-1.6%
30 Day-0.8%-4.4%-5.7%
90 Day-2.8%-5.7%0.2%
1 Year-19.0%-19.0%-6.2%-8.4%-0.8%-3.0%
3 Yearn/a8.3%0.9%38.1%29.1%
5 Yearn/a20.1%7.5%50.8%34.1%

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 based on future cash flows and its price relative to the stock market?

11.05x

Price to Book (PB) ratio


Intrinsic Value Based on Future Cash Flows

Unable to calculate intrinsic value for Processa Pharmaceuticals to establish if it is available at moderate discount.

Unable to calculate intrinsic value for Processa Pharmaceuticals to establish if it is available at substantial discount.


Price Based on Earnings

Processa Pharmaceuticals is loss making, we can't compare its value to the US Pharmaceuticals industry average.

Processa Pharmaceuticals is loss making, we can't compare the value of its earnings to the United States of America market.


Price Based on Expected Growth

Unable to calculate PEG ratio for Processa Pharmaceuticals, we can't assess if its growth is good value.


Price Based on Value of Assets

Processa Pharmaceuticals is overvalued based on assets compared to the US Pharmaceuticals industry average.


Next Steps

Future Growth

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

16.1%

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

  • Take a look at our analysis of PCSA’s management and see if the CEO’s compensation is within a reasonable range, who is on the board and if insiders have been trading lately.
  • While we do not consider unaudited financials to be a reliable enough to include in our analysis, you can access them on the OTC Markets Website. If you are looking for more of a qualitative research into the company, you can access Processa Pharmaceuticals's filings and announcements here.
  • Explore growth companies in the Pharmaceuticals & Biotech industry.

Past Performance

How has Processa Pharmaceuticals performed over the past 5 years?

-34.7%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Processa Pharmaceuticals does not make a profit and their year on year earnings growth rate was negative over the past 5 years.

Unable to compare Processa Pharmaceuticals's 1-year earnings growth to the 5-year average as it is not currently profitable.

Unable to compare Processa Pharmaceuticals's 1-year growth to the US Pharmaceuticals industry average as it is not currently profitable.


Return on Equity

It is difficult to establish if Processa Pharmaceuticals has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.


Return on Assets

It is difficult to establish if Processa Pharmaceuticals has efficiently used its assets last year compared to the US Pharmaceuticals industry average (Return on Assets) as it is loss-making.


Return on Capital Employed

It is difficult to establish if Processa Pharmaceuticals improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.


Next Steps

Financial Health

How is Processa Pharmaceuticals's financial position?


Financial Position Analysis

Processa Pharmaceuticals is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Processa Pharmaceuticals's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Processa Pharmaceuticals's level of debt (2.7%) compared to net worth is satisfactory (less than 40%).

Unable to establish if Processa Pharmaceuticals's debt level has increased without past 5-year debt data.


Balance Sheet

Low level of unsold assets.

Debt is covered by short term assets, assets are 4.3x debt.


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.

Processa Pharmaceuticals has less than a year of cash runway based on current free cash flow.

Processa Pharmaceuticals has less than a year of cash runway if free cash flow continues to grow at historical rates of 17.2% each year.


Next Steps

Dividend

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


Dividend Yield and Payments Analysis

Unable to evaluate Processa Pharmaceuticals's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate Processa Pharmaceuticals's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as Processa Pharmaceuticals has not reported any payouts.

Unable to verify if Processa Pharmaceuticals's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as Processa Pharmaceuticals has not reported any payouts.


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

What is the CEO of Processa Pharmaceuticals's salary, the management and board of directors tenure and is there insider trading?

1.4yrs

Average management tenure


CEO

David Young (66yo)

1.8yrs

Tenure

0

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 ...


CEO Compensation Analysis

David's remuneration is lower than average for companies of similar size in United States of America.

Insufficient data for David to compare compensation growth.


Management Age and Tenure

1.4yrs

Average Tenure

59yo

Average Age

The average tenure for the Processa Pharmaceuticals management team is less than 2 years, this suggests a new team.


Board Age and Tenure

1.8yrs

Average Tenure

60yo

Average Age

The average tenure for the Processa Pharmaceuticals board of directors is less than 3 years, this suggests a new board.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • Sian Bigora (59yo)

    Co-Founder & Chief Development Officer

    • Tenure: 0.3yrs
    • Compensation: US$50.75k
  • David Young (66yo)

    Co- Founder

    • Tenure: 1.8yrs
  • Patrick Lin (54yo)

    Co-Founder

    • Tenure: 1.8yrs
    • Compensation: US$44.48k
  • Jim Stanker (61yo)

    Chief Financial Officer

    • Tenure: 0.9yrs
    • Compensation: US$817.07k
  • Wendy Guy (55yo)

    Co-Founder & Chief Administrative Officer

    • Tenure: 0.0yrs
    • Compensation: US$87.50k

Board Members

  • Virgil Thompson (79yo)

    Director

    • Tenure: 1.8yrs
  • Justin Yorke (52yo)

    Director

    • Tenure: 1.8yrs
  • David Young (66yo)

    Co- Founder

    • Tenure: 1.8yrs
  • Patrick Lin (54yo)

    Co-Founder

    • Tenure: 1.8yrs
    • Compensation: US$44.48k

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$94.286m
  • Shares outstanding: 38.80m
  • Website: https://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, engages in the development of drug products for the unmet medical needs. Its lead product candidate is PCS-499, an oral tablet th ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/25 00:52
End of Day Share Price2019/08/22 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.