Reata Pharmaceuticals, Inc. Class A
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REATA PHARMACEUTICALS INC's gross profit margin for the third quarter of its fiscal year 2020 has significantly decreased when compared to the same period a year ago. Sales and net income fell significantly, underperforming compared to the average company in its subsector. REATA PHARMACEUTICALS INC is extremely liquid. Currently, the Quick Ratio is 12.84 which clearly shows the ability to cover any short-term cash needs. RETA managed to increase the liquidity from the same period a year ago, despite already having very strong liquidity to begin with. This would indicate improved cash flow.
At the same time, stockholders' equity ("net worth") has greatly increased by 375.63% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is very unlikely to face financial difficulties in the near future.
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Income Statement | Q3 FY20 | Q3 FY19 |
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Net Sales ($mil) | 1.4 | 8.24 |
EBITDA ($mil) | -54.1 | -38.32 |
EBIT ($mil) | -54.39 | -38.58 |
Net Income ($mil) | -65.46 | -39.69 |
Balance Sheet | Q3 FY20 | Q3 FY19 |
---|---|---|
Cash & Equiv. ($mil) | 578.26 | 240.15 |
Total Assets ($mil) | 613.0 | 259.12 |
Total Debt ($mil) | 305.93 | 89.38 |
Equity ($mil) | 185.84 | -67.42 |
Profitability | Q3 FY20 | Q3 FY19 |
---|---|---|
Gross Profit Margin | -3861.31 | -464.88 |
EBITDA Margin | -3861.31 | -464.87 |
Operating Margin | -3881.94 | -468.01 |
Sales Turnover | 0.01 | 0.12 |
Return on Assets | -60.18 | -49.71 |
Return on Equity | -198.51 | 0.0 |
Debt | Q3 FY20 | Q3 FY19 |
---|---|---|
Current Ratio | 12.98 | 3.31 |
Debt/Capital | 0.62 | 4.07 |
Interest Expense | 12.08 | 2.39 |
Interest Coverage | -4.5 | -16.15 |
Share Data | Q3 FY20 | Q3 FY19 |
---|---|---|
Shares outstanding (mil) | 33.88 | 30.13 |
Div / share | 0.0 | 0.0 |
EPS | -1.94 | -1.32 |
Book value / share | 5.49 | -2.24 |
Institutional Own % | n/a | n/a |
Avg Daily Volume | 342772.0 | 337711.0 |
SELL. This stock’s P/E ratio is negative, making its value useless in the assessment of premium or discount valuation, only displaying that the company has negative earnings per share. For additional comparison, its price-to-book ratio of 21.88 indicates a significant premium versus the S&P 500 average of 4.02 and a significant premium versus the subsector average of 9.37. The price-to-sales ratio is well above both the S&P 500 average and the subsector average, indicating a premium. Upon assessment of these and other key valuation criteria, REATA PHARMACEUTICALS INC seems to be trading at a premium to investment alternatives.
Price/Earnings |
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Price/Cash Flow |
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RETA NM | Peers 28.67 | RETA NM | Peers 21.09 | |||||||||||||||||||||
Neutral. The absence of a valid P/E ratio happens when a stock can not be valued on the basis of a negative stream of earnings. RETA's P/E is negative making this valuation measure meaningless. |
Neutral. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures. RETA's P/CF is negative making the measure meaningless. |
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Price/Projected Earnings |
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Price to Earnings/Growth |
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RETA NM | Peers 17.80 | RETA NA | Peers 0.44 | |||||||||||||||||||||
Neutral. The absence of a valid price-to-projected earnings ratio happens when a stock can not be valued on the basis of a negative expected future earnings. RETA's ratio is negative making this valuation measure meaningless. |
Neutral. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples. Ratio not available. |
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Price/Book |
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Earnings Growth |
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RETA 21.88 | Peers 9.37 | RETA -163.95 | Peers 30.59 | |||||||||||||||||||||
Premium. A higher price-to-book ratio makes a stock less attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet. RETA is trading at a significant premium to its peers. |
Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios. However, RETA is expected to significantly trail its peers on the basis of its earnings growth rate. |
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Price/Sales |
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Sales Growth |
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RETA 478.29 | Peers 33.16 | RETA -73.69 | Peers 28.12 | |||||||||||||||||||||
Premium. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales. RETA is trading at a significant premium to its subsector. |
Lower. A sales growth rate that trails the subsector implies that a company is losing market share. RETA significantly trails its peers on the basis of sales growth. |
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