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REATA PHARMACEUTICALS INC-A (RETA) Stock Fundamental Analysis

NASDAQ:RETA - Nasdaq - US75615P1030 - Common Stock - Currency: USD

172.36  +0.04 (+0.02%)

After market: 172.4 +0.04 (+0.02%)

Fundamental Rating

3

Overall RETA gets a fundamental rating of 3 out of 10. We evaluated RETA against 198 industry peers in the Pharmaceuticals industry. RETA scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. RETA is quite expensive at the moment. It does show a decent growth rate.


Dividend Valuation Growth Profitability Health

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1

1. Profitability

1.1 Basic Checks

In the past year RETA has reported negative net income.
RETA had a negative operating cash flow in the past year.
In the past 5 years RETA always reported negative net income.
RETA had a negative operating cash flow in each of the past 5 years.
RETA Yearly Net Income VS EBIT VS OCF VS FCFRETA Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 -100M -200M -300M

1.2 Ratios

Looking at the Return On Assets, with a value of -17.43%, RETA is in the better half of the industry, outperforming 66.82% of the companies in the same industry.
The Return On Equity of RETA (-100.38%) is worse than 62.56% of its industry peers.
Industry RankSector Rank
ROA -17.43%
ROE -100.38%
ROIC N/A
ROA(3y)-43.32%
ROA(5y)-39.17%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
RETA Yearly ROA, ROE, ROICRETA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 0 200 -200 400 -400

1.3 Margins

RETA does not have Profit Margin and Operating Margin and Gross Margin available, so we won't be analyzing them here.
Industry RankSector Rank
OM N/A
PM (TTM) N/A
GM N/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A
RETA Yearly Profit, Operating, Gross MarginsRETA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 0 -5K -10K

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4

2. Health

2.1 Basic Checks

RETA does not have a ROIC to compare to the WACC, probably because it is not profitable.
The number of shares outstanding for RETA has been increased compared to 1 year ago.
RETA has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
RETA Yearly Shares OutstandingRETA Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 10M 20M 30M
RETA Yearly Total Debt VS Total AssetsRETA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 200M 400M 600M 800M

2.2 Solvency

An Altman-Z score of 2.68 indicates that RETA is not a great score, but indicates only limited risk for bankruptcy at the moment.
RETA's Altman-Z score of 2.68 is fine compared to the rest of the industry. RETA outperforms 73.46% of its industry peers.
A Debt/Equity ratio of 0.84 indicates that RETA is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.84, RETA is doing worse than 69.19% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.84
Debt/FCF N/A
Altman-Z 2.68
ROIC/WACCN/A
WACC9.36%
RETA Yearly LT Debt VS Equity VS FCFRETA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 0 200M -200M 400M

2.3 Liquidity

A Current Ratio of 3.21 indicates that RETA has no problem at all paying its short term obligations.
RETA has a Current ratio (3.21) which is comparable to the rest of the industry.
RETA has a Quick Ratio of 3.19. This indicates that RETA is financially healthy and has no problem in meeting its short term obligations.
With a Quick ratio value of 3.19, RETA perfoms like the industry average, outperforming 51.18% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 3.21
Quick Ratio 3.19
RETA Yearly Current Assets VS Current LiabilitesRETA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 200M 400M 600M 800M

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5

3. Growth

3.1 Past

RETA shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 64.40%, which is quite impressive.
RETA shows a strong growth in Revenue. In the last year, the Revenue has grown by 134.81%.
The Revenue for RETA have been decreasing by -45.95% on average. This is quite bad
EPS 1Y (TTM)64.4%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%330.2%
Revenue 1Y (TTM)134.81%
Revenue growth 3Y-56.28%
Revenue growth 5Y-45.95%
Sales Q2Q%2885.04%

3.2 Future

The Earnings Per Share is expected to grow by 24.33% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 250.01% on average over the next years. This is a very strong growth
EPS Next Y20.24%
EPS Next 2Y21.45%
EPS Next 3Y33.26%
EPS Next 5Y24.33%
Revenue Next Year3350.89%
Revenue Next 2Y1128.24%
Revenue Next 3Y529.02%
Revenue Next 5Y250.01%

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.
RETA Yearly Revenue VS EstimatesRETA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 500M 1B 1.5B 2B
RETA Yearly EPS VS EstimatesRETA Yearly EPS VS EstimatesYearly EPS VS Estimates 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 0 5 -5 10 15

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1

4. Valuation

4.1 Price/Earnings Ratio

RETA reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
Also next year RETA is expected to report negative earnings again, which makes the also the Forward Price/Earnings Ratio negative.
Industry RankSector Rank
PE N/A
Fwd PE N/A
RETA Price Earnings VS Forward Price EarningsRETA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 20 -20 -40

4.2 Price Multiples

Industry RankSector Rank
P/FCF N/A
EV/EBITDA N/A
RETA Per share dataRETA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 2 -2 -4 -6

4.3 Compensation for Growth

A more expensive valuation may be justified as RETA's earnings are expected to grow with 33.26% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y21.45%
EPS Next 3Y33.26%

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0

5. Dividend

5.1 Amount

No dividends for RETA!.
Industry RankSector Rank
Dividend Yield N/A

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REATA PHARMACEUTICALS INC-A

NASDAQ:RETA (9/25/2023, 8:12:09 PM)

After market: 172.4 +0.04 (+0.02%)

172.36

+0.04 (+0.02%)

Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)08-08 2023-08-08/bmo
Earnings (Next)11-06 2023-11-06/bmo
Inst Owners0.81%
Inst Owner Change0%
Ins Owners5.84%
Ins Owner Change0%
Market Cap5.79B
Analysts53.33
Price Target175.9 (2.05%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector 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)115.67%
Min EPS beat(2)-27.16%
Max EPS beat(2)258.5%
EPS beat(4)2
Avg EPS beat(4)57.72%
Min EPS beat(4)-27.16%
Max EPS beat(4)258.5%
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)2
Avg Revenue beat(2)9369.69%
Min Revenue beat(2)20.81%
Max Revenue beat(2)18718.6%
Revenue beat(4)2
Avg Revenue beat(4)4655.35%
Min Revenue beat(4)-100%
Max Revenue beat(4)18718.6%
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0%
PT rev (3m)53.21%
EPS NQ rev (1m)0%
EPS NQ rev (3m)13.57%
EPS NY rev (1m)35.98%
EPS NY rev (3m)25.36%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)51.67%
Revenue NY rev (1m)67.27%
Revenue NY rev (3m)122.64%
Valuation
Industry RankSector Rank
PE N/A
Fwd PE N/A
P/S 246.55
P/FCF N/A
P/OCF N/A
P/B 66.32
P/tB 66.32
EV/EBITDA N/A
EPS(TTM)-2.98
EYN/A
EPS(NY)-4.48
Fwd EYN/A
FCF(TTM)-7.43
FCFYN/A
OCF(TTM)-7.39
OCFYN/A
SpS0.7
BVpS2.6
TBVpS2.6
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -17.43%
ROE -100.38%
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM N/A
PM (TTM) N/A
GM N/A
FCFM N/A
ROA(3y)-43.32%
ROA(5y)-39.17%
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
ROICexcg growth 3YN/A
ROICexcg 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 3YN/A
GM growth 5YN/A
F-Score3
Asset Turnover0.05
Health
Industry RankSector Rank
Debt/Equity 0.84
Debt/FCF N/A
Debt/EBITDA N/A
Cap/Depr 99.38%
Cap/Sales 4.78%
Interest Coverage N/A
Cash Conversion N/A
Profit Quality N/A
Current Ratio 3.21
Quick Ratio 3.19
Altman-Z 2.68
F-Score3
WACC9.36%
ROIC/WACCN/A
Cap/Depr(3y)160.48%
Cap/Depr(5y)185.33%
Cap/Sales(3y)56.48%
Cap/Sales(5y)36.16%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)64.4%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%330.2%
EPS Next Y20.24%
EPS Next 2Y21.45%
EPS Next 3Y33.26%
EPS Next 5Y24.33%
Revenue 1Y (TTM)134.81%
Revenue growth 3Y-56.28%
Revenue growth 5Y-45.95%
Sales Q2Q%2885.04%
Revenue Next Year3350.89%
Revenue Next 2Y1128.24%
Revenue Next 3Y529.02%
Revenue Next 5Y250.01%
EBIT growth 1Y-32.59%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year-13.04%
EBIT Next 3Y33.8%
EBIT Next 5Y27.95%
FCF growth 1Y-59.04%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-59.35%
OCF growth 3YN/A
OCF growth 5YN/A