1.3 USD
-0.05 (-3.7%)
1.47 USD
+0.17 (+13.08%)
Overall HRTX gets a fundamental rating of 3 out of 10. We evaluated HRTX against 530 industry peers in the Biotechnology industry. While HRTX is still in line with the averages on profitability rating, there are concerns on its financial health. HRTX is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
HRTX had negative earnings in the past year.
HRTX had a negative operating cash flow in the past year.
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
The Return On Assets of HRTX (-5.45%) is better than 85.85% of its industry peers.
HRTX has a Return On Equity (-91.22%) which is in line with its industry peers.
With an excellent Return On Invested Capital value of 0.79%, HRTX belongs to the best of the industry, outperforming 89.06% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -5.45% | ||
| ROE | -91.22% | ||
| ROIC | 0.79% |
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's Operating Margin of 1.03% is amongst the best of the industry. HRTX outperforms 89.06% of its industry peers.
With an excellent Gross Margin value of 73.92%, HRTX belongs to the best of the industry, outperforming 83.21% of the companies in the same industry.
In the last couple of years the Gross Margin of HRTX has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 1.03% | ||
| PM (TTM) | N/A | ||
| GM | 73.92% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), HRTX is destroying value.
Compared to 1 year ago, HRTX has more shares outstanding
HRTX has more shares outstanding than it did 5 years ago.
The debt/assets ratio for HRTX has been reduced compared to a year ago.
2.2 Solvency
HRTX has an Altman-Z score of -8.96. This is a bad value and indicates that HRTX is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of -8.96, HRTX is not doing good in the industry: 69.81% of the companies in the same industry are doing better.
HRTX has a Debt/Equity ratio of 2.16. This is a high value indicating a heavy dependency on external financing.
HRTX has a Debt to Equity ratio of 2.16. This is in the lower half of the industry: HRTX underperforms 78.11% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.16 | ||
| Debt/FCF | N/A | ||
| Altman-Z | -8.96 |
ROIC/WACC0.1
WACC7.65%
2.3 Liquidity
HRTX has a Current Ratio of 2.56. This indicates that HRTX is financially healthy and has no problem in meeting its short term obligations.
HRTX's Current ratio of 2.56 is on the low side compared to the rest of the industry. HRTX is outperformed by 69.62% of its industry peers.
A Quick Ratio of 1.78 indicates that HRTX should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.78, HRTX is not doing good in the industry: 76.42% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.56 | ||
| Quick Ratio | 1.78 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 83.33% over the past year.
The Revenue has grown by 12.60% 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)83.33%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-33.33%
Revenue 1Y (TTM)12.6%
Revenue growth 3Y18.69%
Revenue growth 5Y-0.24%
Sales Q2Q%16.47%
3.2 Future
HRTX is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 45.81% yearly.
The Revenue is expected to grow by 14.66% on average over the next years. This is quite good.
EPS Next Y22.37%
EPS Next 2Y34.44%
EPS Next 3Y52.26%
EPS Next 5Y45.81%
Revenue Next Year9.43%
Revenue Next 2Y10.5%
Revenue Next 3Y12.5%
Revenue Next 5Y14.66%
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.
Also next year HRTX is expected to report negative earnings again, which makes the also the Forward Price/Earnings Ratio negative.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, HRTX is valued cheaply inside the industry as 90.57% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 51.24 |
4.3 Compensation for Growth
HRTX's earnings are expected to grow with 52.26% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y34.44%
EPS Next 3Y52.26%
5. Dividend
5.1 Amount
No dividends for HRTX!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
1.3
-0.05 (-3.7%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnology
Earnings (Last)
Earnings (Next)
Inst Owners84.12%
Inst Owner Change21.18%
Ins Owners0.61%
Ins Owner Change5.57%
Market Cap238.37M
Revenue(TTM)155.10M
Net Income(TTM)-13.58M
Analysts84
Price Target4.59 (253.08%)
Short Float %18.21%
Short Ratio16.41
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
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)0
Avg EPS beat(2)-128.76%
Min EPS beat(2)-161.44%
Max EPS beat(2)-96.08%
EPS beat(4)2
Avg EPS beat(4)40.75%
Min EPS beat(4)-161.44%
Max EPS beat(4)246.99%
EPS beat(8)5
Avg EPS beat(8)33%
EPS beat(12)7
Avg EPS beat(12)22.59%
EPS beat(16)9
Avg EPS beat(16)15.22%
Revenue beat(2)0
Avg Revenue beat(2)-4.12%
Min Revenue beat(2)-4.22%
Max Revenue beat(2)-4.02%
Revenue beat(4)2
Avg Revenue beat(4)0.17%
Min Revenue beat(4)-4.22%
Max Revenue beat(4)7%
Revenue beat(8)4
Avg Revenue beat(8)-0.3%
Revenue beat(12)5
Avg Revenue beat(12)-0.21%
Revenue beat(16)7
Avg Revenue beat(16)-1.01%
PT rev (1m)0%
PT rev (3m)-5.26%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-33.33%
EPS NY rev (1m)-128.33%
EPS NY rev (3m)-128.33%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.69%
Revenue NY rev (1m)-1.48%
Revenue NY rev (3m)-1.48%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A | ||
| P/S | 1.54 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 16.01 | ||
| P/tB | 16.01 | ||
| EV/EBITDA | 51.24 |
EPS(TTM)-0.03
EYN/A
EPS(NY)-0.02
Fwd EYN/A
FCF(TTM)-0.17
FCFYN/A
OCF(TTM)-0.16
OCFYN/A
SpS0.85
BVpS0.08
TBVpS0.08
PEG (NY)N/A
PEG (5Y)N/A
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -5.45% | ||
| ROE | -91.22% | ||
| ROCE | 1% | ||
| ROIC | 0.79% | ||
| ROICexc | 1.22% | ||
| ROICexgc | 1.22% | ||
| OM | 1.03% | ||
| PM (TTM) | N/A | ||
| GM | 73.92% | ||
| 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 Turnover0.62
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 2.16 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 8.14 | ||
| Cap/Depr | 40.5% | ||
| Cap/Sales | 0.62% | ||
| Interest Coverage | 0.28 | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.56 | ||
| Quick Ratio | 1.78 | ||
| Altman-Z | -8.96 |
F-Score4
WACC7.65%
ROIC/WACC0.1
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)83.33%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-33.33%
EPS Next Y22.37%
EPS Next 2Y34.44%
EPS Next 3Y52.26%
EPS Next 5Y45.81%
Revenue 1Y (TTM)12.6%
Revenue growth 3Y18.69%
Revenue growth 5Y-0.24%
Sales Q2Q%16.47%
Revenue Next Year9.43%
Revenue Next 2Y10.5%
Revenue Next 3Y12.5%
Revenue Next 5Y14.66%
EBIT growth 1Y106.16%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y69.01%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y69.44%
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.
What is the valuation status of HERON THERAPEUTICS INC (HRTX) stock?
ChartMill assigns a valuation rating of 2 / 10 to HERON THERAPEUTICS INC (HRTX). This can be considered as Overvalued.
What is the profitability of HRTX stock?
HERON THERAPEUTICS INC (HRTX) has a profitability rating of 4 / 10.
What is the financial health of HERON THERAPEUTICS INC (HRTX) stock?
The financial health rating of HERON THERAPEUTICS INC (HRTX) is 2 / 10.