HERON THERAPEUTICS INC (HRTX) Stock Fundamental Analysis
USA - NASDAQ:HRTX - US4277461020 - Common Stock
1.19 USD
+0.01 (+0.85%)
1.19 USD
0 (0%)
We assign a fundamental rating of 3 out of 10 to HRTX. HRTX was compared to 534 industry peers in the Biotechnology industry. HRTX has a medium profitability rating, but doesn't score so well on its financial health evaluation. HRTX has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year HRTX has reported negative net income.
In the past year HRTX has reported a negative cash flow from operations.
In the past 5 years HRTX always reported negative net income.
HRTX had a negative operating cash flow in each of the past 5 years.
1.2 Ratios
HRTX has a Return On Assets of -0.40%. This is amongst the best in the industry. HRTX outperforms 89.33% of its industry peers.
HRTX has a Return On Invested Capital of 0.65%. This is amongst the best in the industry. HRTX outperforms 90.26% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.4% | ||
| ROE | N/A | ||
| ROIC | 0.65% |
ROA(3y)-42.67%
ROA(5y)-52.9%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
HRTX has a better Operating Margin (0.82%) than 90.07% of its industry peers.
The Gross Margin of HRTX (74.61%) is better than 83.33% of its industry peers.
HRTX's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 0.82% | ||
| PM (TTM) | N/A | ||
| GM | 74.61% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y16.17%
GM growth 5Y4.86%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so HRTX is destroying value.
The number of shares outstanding for HRTX has been increased compared to 1 year ago.
Compared to 5 years ago, HRTX has more shares outstanding
Compared to 1 year ago, HRTX has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of -10.66, we must say that HRTX is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of -10.66, HRTX is not doing good in the industry: 73.97% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | N/A | ||
| Altman-Z | -10.66 |
ROIC/WACC0.09
WACC7.35%
2.3 Liquidity
HRTX has a Current Ratio of 0.82. This is a bad value and indicates that HRTX is not financially healthy enough and could expect problems in meeting its short term obligations.
HRTX's Current ratio of 0.82 is on the low side compared to the rest of the industry. HRTX is outperformed by 89.51% of its industry peers.
A Quick Ratio of 0.53 indicates that HRTX may have some problems paying its short term obligations.
With a Quick ratio value of 0.53, HRTX is not doing good in the industry: 92.32% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.82 | ||
| Quick Ratio | 0.53 |
3. Growth
3.1 Past
HRTX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 93.75%, which is quite impressive.
The Revenue has grown by 9.78% in the past year. This is quite good.
HRTX shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -0.24% yearly.
EPS 1Y (TTM)93.75%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%66.67%
Revenue 1Y (TTM)9.78%
Revenue growth 3Y18.69%
Revenue growth 5Y-0.24%
Sales Q2Q%3.26%
3.2 Future
Based on estimates for the next years, HRTX will show a very strong growth in Earnings Per Share. The EPS will grow by 45.81% on average per year.
Based on estimates for the next years, HRTX will show a quite strong growth in Revenue. The Revenue will grow by 15.28% on average per year.
EPS Next Y66%
EPS Next 2Y64.17%
EPS Next 3Y62.14%
EPS Next 5Y45.81%
Revenue Next Year11.08%
Revenue Next 2Y12.03%
Revenue Next 3Y14.31%
Revenue Next 5Y15.28%
3.3 Evolution
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings Ratio is negative for HRTX. In the last year negative earnings were reported.
HRTX is valuated rather expensively with a Price/Forward Earnings ratio of 19.02.
Compared to the rest of the industry, the Price/Forward Earnings ratio of HRTX indicates a rather cheap valuation: HRTX is cheaper than 93.45% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of HRTX to the average of the S&P500 Index (22.88), we can say HRTX is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 19.02 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of HRTX indicates a rather cheap valuation: HRTX is cheaper than 91.20% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 42.62 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as HRTX's earnings are expected to grow with 62.14% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y64.17%
EPS Next 3Y62.14%
5. Dividend
5.1 Amount
HRTX does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
1.19
+0.01 (+0.85%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnology
Earnings (Last)
Earnings (Next)
Inst Owners86.51%
Inst Owner Change0.48%
Ins Owners0.69%
Ins Owner Change5.01%
Market Cap218.14M
Revenue(TTM)149.69M
Net Income(TTM)-931000
Analysts84
Price Target4.85 (307.56%)
Short Float %18.28%
Short Ratio20.98
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)75.45%
Min EPS beat(2)-96.08%
Max EPS beat(2)246.99%
EPS beat(4)3
Avg EPS beat(4)84.05%
Min EPS beat(4)-96.08%
Max EPS beat(4)246.99%
EPS beat(8)6
Avg EPS beat(8)58.55%
EPS beat(12)8
Avg EPS beat(12)36.12%
EPS beat(16)10
Avg EPS beat(16)26.42%
Revenue beat(2)1
Avg Revenue beat(2)-1.14%
Min Revenue beat(2)-4.22%
Max Revenue beat(2)1.93%
Revenue beat(4)2
Avg Revenue beat(4)-2.05%
Min Revenue beat(4)-12.91%
Max Revenue beat(4)7%
Revenue beat(8)4
Avg Revenue beat(8)-0.5%
Revenue beat(12)5
Avg Revenue beat(12)-0.16%
Revenue beat(16)7
Avg Revenue beat(16)-1.43%
PT rev (1m)0%
PT rev (3m)-24%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-50%
EPS NY rev (1m)0%
EPS NY rev (3m)-28.59%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.15%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.3%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 19.02 | ||
| P/S | 1.46 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 42.62 |
EPS(TTM)-0.02
EYN/A
EPS(NY)0.06
Fwd EY5.26%
FCF(TTM)-0.16
FCFYN/A
OCF(TTM)-0.15
OCFYN/A
SpS0.82
BVpS-0.15
TBVpS-0.15
PEG (NY)N/A
PEG (5Y)N/A
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.4% | ||
| ROE | N/A | ||
| ROCE | -4.65% | ||
| ROIC | 0.65% | ||
| ROICexc | 0.9% | ||
| ROICexgc | 0.9% | ||
| OM | 0.82% | ||
| PM (TTM) | N/A | ||
| GM | 74.61% | ||
| FCFM | N/A |
ROA(3y)-42.67%
ROA(5y)-52.9%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexgc growth 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y16.17%
GM growth 5Y4.86%
F-Score4
Asset Turnover0.64
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 49.27 | ||
| Cap/Depr | 59.64% | ||
| Cap/Sales | 0.93% | ||
| Interest Coverage | 0.25 | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 0.82 | ||
| Quick Ratio | 0.53 | ||
| Altman-Z | -10.66 |
F-Score4
WACC7.35%
ROIC/WACC0.09
Cap/Depr(3y)61.69%
Cap/Depr(5y)104.8%
Cap/Sales(3y)1.37%
Cap/Sales(5y)3.06%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)93.75%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%66.67%
EPS Next Y66%
EPS Next 2Y64.17%
EPS Next 3Y62.14%
EPS Next 5Y45.81%
Revenue 1Y (TTM)9.78%
Revenue growth 3Y18.69%
Revenue growth 5Y-0.24%
Sales Q2Q%3.26%
Revenue Next Year11.08%
Revenue Next 2Y12.03%
Revenue Next 3Y14.31%
Revenue Next 5Y15.28%
EBIT growth 1Y102.66%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y76.86%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y77.78%
OCF growth 3YN/A
OCF growth 5YN/A
HERON THERAPEUTICS INC / HRTX FAQ
What is the ChartMill fundamental rating of HERON THERAPEUTICS INC (HRTX) stock?
ChartMill assigns a fundamental rating of 3 / 10 to HRTX.
Can you provide the valuation status for HERON THERAPEUTICS INC?
ChartMill assigns a valuation rating of 4 / 10 to HERON THERAPEUTICS INC (HRTX). This can be considered as Fairly Valued.
What is the profitability of HRTX stock?
HERON THERAPEUTICS INC (HRTX) has a profitability rating of 4 / 10.
How financially healthy is HERON THERAPEUTICS INC?
The financial health rating of HERON THERAPEUTICS INC (HRTX) is 0 / 10.