OTCPK:SOLT.F

Stock Analysis Report

Executive Summary

Sosei Group Corporation discovers, develops, and commercializes biopharmaceutical products worldwide.

Rewards

Earnings are forecast to grow 21.35% per year

Became profitable this year

Risk Analysis

No risks detected for SOLT.F from our risk checks.


Snowflake Analysis

Excellent balance sheet with moderate growth potential.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

0%

SOLT.F

-0.9%

US Pharmaceuticals

0.06%

US Market


1 Year Return

64.1%

SOLT.F

6.1%

US Pharmaceuticals

19.3%

US Market

Return vs Industry: SOLT.F exceeded the US Pharmaceuticals industry which returned 6.1% over the past year.

Return vs Market: SOLT.F exceeded the US Market which returned 19.3% over the past year.


Shareholder returns

SOLT.FIndustryMarket
7 Day0%-0.9%0.06%
30 Day-3.6%-3.4%1.7%
90 Dayn/a5.6%9.0%
1 Year64.1%64.1%8.8%6.1%21.8%19.3%
3 Year-83.5%-83.5%24.9%16.1%49.5%39.9%
5 Yearn/a21.5%9.1%73.1%54.1%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is Sosei Group undervalued compared to its fair value and its price relative to the market?

110.12x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: SOLT.F ($18.05) is trading above our estimate of fair value ($17.27)

Significantly Below Fair Value: SOLT.F is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: SOLT.F is poor value based on its PE Ratio (110.1x) compared to the Pharmaceuticals industry average (21.6x).

PE vs Market: SOLT.F is poor value based on its PE Ratio (110.1x) compared to the US market (18.5x).


Price to Earnings Growth Ratio

PEG Ratio: SOLT.F is poor value based on its PEG Ratio (5.2x)


Price to Book Ratio

PB vs Industry: SOLT.F is overvalued based on its PB Ratio (3.5x) compared to the US Pharmaceuticals industry average (3.1x).


Next Steps

Future Growth

How is Sosei Group forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

21.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SOLT.F's forecast earnings growth (21.4% per year) is above the savings rate (1.7%).

Earnings vs Market: SOLT.F's earnings (21.4% per year) are forecast to grow faster than the US market (14.2% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: SOLT.F's revenue (6.4% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: SOLT.F's revenue (6.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SOLT.F's Return on Equity is forecast to be low in 3 years time (6.2%).


Next Steps

Past Performance

How has Sosei Group performed over the past 5 years?

-36.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SOLT.F has high quality earnings.

Growing Profit Margin: SOLT.F became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: SOLT.F's earnings have declined by -36.3% per year over the past 5 years.

Accelerating Growth: SOLT.F has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: SOLT.F has become profitable in the last year, making it difficult to compare its past year earnings growth to the Pharmaceuticals industry (-0.2%).


Return on Equity

High ROE: SOLT.F's Return on Equity (3.2%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Sosei Group's financial position?


Financial Position Analysis

Short Term Liabilities: SOLT.F's short term assets (¥19.6B) exceed its short term liabilities (¥2.3B).

Long Term Liabilities: SOLT.F's short term assets (¥19.6B) exceed its long term liabilities (¥9.3B).


Debt to Equity History and Analysis

Debt Level: SOLT.F's debt to equity ratio (4.1%) is considered satisfactory.

Reducing Debt: SOLT.F's debt to equity ratio has increased from 1.6% to 4.1% over the past 5 years.

Debt Coverage: SOLT.F's debt is well covered by operating cash flow (186.8%).

Interest Coverage: SOLT.F earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

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

Debt Coverage by Assets: SOLT.F's debt is covered by short term assets (assets are 10.6x debt).


Next Steps

Dividend

What is Sosei Group's current dividend yield, its reliability and sustainability?

0.037%

Forecast Dividend Yield


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage2.7%forecastin3Years0.04%

Current dividend yield vs market & industry

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

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

Growing Dividend: Insufficient data to determine if SOLT.F'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 SOLT.F'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?

1.4yrs

Average management tenure


CEO

Shinichi Tamura (70yo)

1.1yrs

Tenure

JP¥191,000,000

Compensation

Mr. Shinichi Tamura is the founder of Sosei Co. Ltd. and has been its President and Representative Executive Officer since November 2006. Mr. Tamura is the Founder of Sosei Group Corporation and has been i ...


CEO Compensation Analysis

Compensation vs Market: Shinichi's total compensation ($USD0.00) is below average for companies of similar size in the US market ($USD3.81M).

Compensation vs Earnings: Insufficient data to compare Shinichi's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
Shinichi Tamura
Founder1.1yrsJP¥191.00m1.47% ¥20.9m
Chris Cargill
Executive Officer1.7yrsno datano data
Rob Cooke
Chief Technology Officer0.3yrsno datano data
Miles Congreve
Chief Scientific Officer0.3yrsno datano data
Kazuhiko Yoshizumi
Executive Officer2.1yrsno datano data
Shinichiro Nishishita
Vice President of Corporate Communication Department0yrsno datano data
Malcolm Weir
Executive Officer and Executive VP of Research & Early Development4.7yrsno datano data
Tim Tasker
Executive Officer2.1yrsno datano data
Tadayoshi Yasui
Executive Officer & Executive VP0.9yrsno data0.00078% ¥11.1k
Barry Kenny
Chief Business Officer of Business Development0yrsno datano data

1.4yrs

Average Tenure

60.5yo

Average Age

Experienced Management: SOLT.F's management team is not considered experienced ( 1.4 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Shinichi Tamura
Founder1.1yrsJP¥191.00m1.47% ¥20.9m
Julia Gregory
External Director2.7yrsno datano data
Tomohiro Tohyama
External Director8.7yrsno datano data
Noriaki Nagai
External Director0.9yrsno datano data
Kuniaki Kaga
Independent External Director1.7yrsno datano data
David Roblin
Independent External Director1.7yrsno datano data

2.2yrs

Average Tenure

67.5yo

Average Age

Experienced Board: SOLT.F's board of directors are not considered experienced ( 2.2 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 not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Sosei Group Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Sosei Group Corporation
  • Ticker: SOLT.F
  • Exchange: OTCPK
  • Founded: 1990
  • Industry: Pharmaceuticals
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: JP¥158.671b
  • Listing Market Cap: JP¥1.417b
  • Shares outstanding: 77.10m
  • Website: https://soseiheptares.com

Number of Employees


Location

  • Sosei Group Corporation
  • PMO Hanzomon
  • 11th Floor
  • Tokyo
  • 102-0083
  • Japan

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SOLT.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDJul 2004
4565TSE (The Tokyo Stock Exchange)YesCommon SharesJPJPYJul 2004
JSSDB (Deutsche Boerse AG)YesCommon SharesDEEURJul 2004

Biography

Sosei Group Corporation discovers, develops, and commercializes biopharmaceutical products worldwide. Its marketed products include Ultibro/Breezhaler, Utibron/Neohaler, Seebri/Breezhaler, and Seebri/Neohaler for the treatment of chronic obstructive pulmonary disease; NorLevo0.75mg, an emergency contraceptive; and ORAVI, an Oropharyngeal candidiasis. The company’s product pipeline consists of AZD4635, an adenosine A2a antagonist, which is in Phase II clinical trial for the treatment of solid tumors; AZD4635 which is also in Phase 1b/2 clinical study in combination with MEDI9447 for the treatment of non-small cell lung cancer; HTL0016878, a muscarinic M4 agonist, which is in Phase I clinical trial for the treatment of Alzheimer’s disease; and dual M1/M4 agonist, which is in pre-clinical stage for the treatment of Alzheimer’s disease. It also develops HTL0014242, a mGlu5 small molecule negative-allosteric modulator, which is in Phase I clinical trial for the treatment of certain neurological order; SSTR agonist, a novel somatostatin peptide agonist, which is in Phase I clinical trial for the treatment of endocrine disorders; HTL0022562, a calcitonin gene related peptide antagonist, which is in pre-clinical stage for the treatment of migraine and other severe headaches; GLP-1 antagonist, a potent glucagon-like peptide-1 antagonist, which is in pre-clinical stage for the treatment of severe hypoglycaemia in rare diseases; and GLP-2 agonist, a potent glucagon-like peptide-2 agonist, which is in pre-clinical stage for the treatment of intestinal disorders. In addition, the company is developing biopharmaceuticals for the treatment of Alzheimer's disease, cancer, metabolic diseases, and other indications. Sosei Group Corporation has a strategic collaboration with Kymab and PeptiDream Inc.; and a strategic partnership with Takeda Pharmaceutical Company Limited. The company was founded in 1990 and is headquartered in Tokyo, Japan. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/21 01:11
End of Day Share Price2020/02/13 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.