HERON THERAPEUTICS INC (HRTX) Stock Fundamental Analysis
USA - NASDAQ:HRTX - US4277461020 - Common Stock
1.16 USD
+0.02 (+1.75%)
1.1597 USD
0 (-0.03%)
Overall HRTX gets a fundamental rating of 3 out of 10. We evaluated HRTX against 534 industry peers in the Biotechnology industry. There are concerns on the financial health of HRTX while its profitability can be described as average. HRTX has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
HRTX had negative earnings in the past year.
In the past year HRTX has reported a negative cash flow from operations.
HRTX had negative earnings in each of the past 5 years.
HRTX had a negative operating cash flow in each of the past 5 years.
1.2 Ratios
HRTX's Return On Assets of -0.40% is amongst the best of the industry. HRTX outperforms 89.33% of its industry peers.
With an excellent Return On Invested Capital value of 0.65%, HRTX belongs to the best of the industry, outperforming 90.26% of the companies in the same industry.
| 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
Looking at the Operating Margin, with a value of 0.82%, HRTX belongs to the top of the industry, outperforming 90.07% of the companies in the same industry.
HRTX has a better Gross Margin (74.61%) than 83.33% of its industry peers.
In the last couple of years the Gross Margin of HRTX has grown nicely.
| 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
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
The number of shares outstanding for HRTX has been increased compared to 5 years ago.
The debt/assets ratio for HRTX has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of -10.68, we must say that HRTX is in the distress zone and has some risk of bankruptcy.
HRTX has a Altman-Z score of -10.68. This is in the lower half of the industry: HRTX underperforms 73.97% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | N/A | ||
| Altman-Z | -10.68 |
ROIC/WACC0.09
WACC7.39%
2.3 Liquidity
A Current Ratio of 0.82 indicates that HRTX may have some problems paying 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.
HRTX has a Quick 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.
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.
HRTX shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 9.78%.
The Revenue has been decreasing by -0.24% on average over the past years.
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
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 15.28% on average over the next years. This is quite good.
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
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
HRTX reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
The Price/Forward Earnings ratio is 18.54, which indicates a rather expensive current valuation of HRTX.
93.63% of the companies in the same industry are more expensive than HRTX, based on the Price/Forward Earnings ratio.
HRTX is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.52, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 18.54 |
4.2 Price Multiples
HRTX's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. HRTX is cheaper than 91.20% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 40.56 |
4.3 Compensation for Growth
HRTX's 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 |
1.16
+0.02 (+1.75%)
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 Cap212.64M
Revenue(TTM)149.69M
Net Income(TTM)-931000
Analysts84
Price Target4.85 (318.1%)
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 | 18.54 | ||
| P/S | 1.42 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 40.56 |
EPS(TTM)-0.02
EYN/A
EPS(NY)0.06
Fwd EY5.39%
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 | -10.68 |
F-Score4
WACC7.39%
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.