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DURECT CORPORATION (DRRX) Stock Fundamental Analysis

NASDAQ:DRRX - Nasdaq - US2666055007 - Common Stock - Currency: USD

0.799  -0.01 (-1.36%)

Fundamental Rating

2

We assign a fundamental rating of 2 out of 10 to DRRX. DRRX was compared to 194 industry peers in the Pharmaceuticals industry. Both the profitability and financial health of DRRX have multiple concerns. DRRX 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 DRRX has reported negative net income.
DRRX had a negative operating cash flow in the past year.
In the past 5 years DRRX always reported negative net income.
DRRX had negative operating cash flow in 4 of the past 5 years.
DRRX Yearly Net Income VS EBIT VS OCF VS FCFDRRX 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 2023 0 10M -10M -20M -30M

1.2 Ratios

With a Return On Assets value of -70.93%, DRRX is not doing good in the industry: 71.35% of the companies in the same industry are doing better.
Looking at the Return On Equity, with a value of -1402.55%, DRRX is doing worse than 85.95% of the companies in the same industry.
Industry RankSector Rank
ROA -70.93%
ROE -1402.55%
ROIC N/A
ROA(3y)-53.11%
ROA(5y)-36.81%
ROE(3y)-130.31%
ROE(5y)-96.45%
ROIC(3y)N/A
ROIC(5y)N/A
DRRX Yearly ROA, ROE, ROICDRRX Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 -100 -200 -300 -400

1.3 Margins

DRRX has a Gross Margin of 78.87%. This is amongst the best in the industry. DRRX outperforms 83.78% of its industry peers.
DRRX's Gross Margin has declined in the last couple of years.
The Profit Margin and Operating Margin are not available for DRRX so they could not be analyzed.
Industry RankSector Rank
OM N/A
PM (TTM) N/A
GM 78.87%
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-5.72%
GM growth 5Y-2.19%
DRRX Yearly Profit, Operating, Gross MarginsDRRX Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 -100 -200 -300 -400

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3

2. Health

2.1 Basic Checks

DRRX does not have a ROIC to compare to the WACC, probably because it is not profitable.
The number of shares outstanding for DRRX has been increased compared to 1 year ago.
The number of shares outstanding for DRRX has been increased compared to 5 years ago.
Compared to 1 year ago, DRRX has a worse debt to assets ratio.
DRRX Yearly Shares OutstandingDRRX Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 10M 20M 30M
DRRX Yearly Total Debt VS Total AssetsDRRX Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 20M 40M 60M 80M

2.2 Solvency

DRRX has an Altman-Z score of -37.11. This is a bad value and indicates that DRRX is not financially healthy and even has some risk of bankruptcy.
DRRX's Altman-Z score of -37.11 is on the low side compared to the rest of the industry. DRRX is outperformed by 91.89% of its industry peers.
DRRX has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
Industry RankSector Rank
Debt/Equity 0
Debt/FCF N/A
Altman-Z -37.11
ROIC/WACCN/A
WACC11.58%
DRRX Yearly LT Debt VS Equity VS FCFDRRX Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 20M -20M 40M

2.3 Liquidity

DRRX has a Current Ratio of 0.71. This is a bad value and indicates that DRRX is not financially healthy enough and could expect problems in meeting its short term obligations.
The Current ratio of DRRX (0.71) is worse than 95.14% of its industry peers.
A Quick Ratio of 0.60 indicates that DRRX may have some problems paying its short term obligations.
DRRX has a worse Quick ratio (0.60) than 91.89% of its industry peers.
Industry RankSector Rank
Current Ratio 0.71
Quick Ratio 0.6
DRRX Yearly Current Assets VS Current LiabilitesDRRX Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 20M 40M 60M 80M

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4

3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 59.06% over the past year.
DRRX shows a decrease in Revenue. In the last year, the revenue decreased by -6.49%.
The Revenue for DRRX have been decreasing by -10.97% on average. This is quite bad
EPS 1Y (TTM)59.06%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%0%
Revenue 1Y (TTM)-6.49%
Revenue growth 3Y-34.28%
Revenue growth 5Y-10.97%
Sales Q2Q%10.49%

3.2 Future

The Earnings Per Share is expected to grow by 36.69% on average over the next years. This is a very strong growth
DRRX is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 76.85% yearly.
EPS Next Y55.17%
EPS Next 2Y23.72%
EPS Next 3Y19.82%
EPS Next 5Y36.69%
Revenue Next Year54.68%
Revenue Next 2Y-35.06%
Revenue Next 3Y35.41%
Revenue Next 5Y76.85%

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.
DRRX Yearly Revenue VS EstimatesDRRX Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 200M 400M 600M
DRRX Yearly EPS VS EstimatesDRRX Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 0 2 -2 4 6 8

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0

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings Ratio is negative for DRRX. In the last year negative earnings were reported.
Also next year DRRX 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
DRRX Price Earnings VS Forward Price EarningsDRRX Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 10 20 30

4.2 Price Multiples

Industry RankSector Rank
P/FCF N/A
EV/EBITDA N/A
DRRX Per share dataDRRX EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 0.2 -0.2 -0.4 -0.6

4.3 Compensation for Growth

A more expensive valuation may be justified as DRRX's earnings are expected to grow with 19.82% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y23.72%
EPS Next 3Y19.82%

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0

5. Dividend

5.1 Amount

DRRX does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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DURECT CORPORATION

NASDAQ:DRRX (2/21/2025, 8:14:26 PM)

0.799

-0.01 (-1.36%)

Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryPharmaceuticals
Earnings (Last)11-13 2024-11-13/amc
Earnings (Next)03-11 2025-03-11/amc
Inst Owners22.18%
Inst Owner Change-61.83%
Ins Owners10.78%
Ins Owner Change0%
Market Cap24.80M
Analysts82.22
Price Target6.89 (762.33%)
Short Float %2.92%
Short Ratio7.73
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)2
Avg EPS beat(2)25.8%
Min EPS beat(2)20.81%
Max EPS beat(2)30.8%
EPS beat(4)3
Avg EPS beat(4)27.68%
Min EPS beat(4)-11.41%
Max EPS beat(4)70.51%
EPS beat(8)7
Avg EPS beat(8)28.48%
EPS beat(12)10
Avg EPS beat(12)22.49%
EPS beat(16)12
Avg EPS beat(16)16.14%
Revenue beat(2)0
Avg Revenue beat(2)-9.48%
Min Revenue beat(2)-14.59%
Max Revenue beat(2)-4.37%
Revenue beat(4)1
Avg Revenue beat(4)-11.9%
Min Revenue beat(4)-34.28%
Max Revenue beat(4)5.66%
Revenue beat(8)1
Avg Revenue beat(8)-18.21%
Revenue beat(12)2
Avg Revenue beat(12)1.75%
Revenue beat(16)3
Avg Revenue beat(16)-6.31%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)88.63%
EPS NQ rev (3m)93.83%
EPS NY rev (1m)0%
EPS NY rev (3m)36.32%
Revenue NQ rev (1m)296.9%
Revenue NQ rev (3m)120.64%
Revenue NY rev (1m)0%
Revenue NY rev (3m)60.89%
Valuation
Industry RankSector Rank
PE N/A
Fwd PE N/A
P/S 2.89
P/FCF N/A
P/OCF N/A
P/B 20.38
P/tB N/A
EV/EBITDA N/A
EPS(TTM)-0.61
EYN/A
EPS(NY)-0.53
Fwd EYN/A
FCF(TTM)-0.71
FCFYN/A
OCF(TTM)-0.71
OCFYN/A
SpS0.28
BVpS0.04
TBVpS-0.16
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -70.93%
ROE -1402.55%
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM N/A
PM (TTM) N/A
GM 78.87%
FCFM N/A
ROA(3y)-53.11%
ROA(5y)-36.81%
ROE(3y)-130.31%
ROE(5y)-96.45%
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 3Y-5.72%
GM growth 5Y-2.19%
F-Score2
Asset Turnover0.36
Health
Industry RankSector Rank
Debt/Equity 0
Debt/FCF N/A
Debt/EBITDA N/A
Cap/Depr -4.26%
Cap/Sales 0.02%
Interest Coverage N/A
Cash Conversion N/A
Profit Quality N/A
Current Ratio 0.71
Quick Ratio 0.6
Altman-Z -37.11
F-Score2
WACC11.58%
ROIC/WACCN/A
Cap/Depr(3y)108.31%
Cap/Depr(5y)90.02%
Cap/Sales(3y)0.85%
Cap/Sales(5y)0.77%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)59.06%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%0%
EPS Next Y55.17%
EPS Next 2Y23.72%
EPS Next 3Y19.82%
EPS Next 5Y36.69%
Revenue 1Y (TTM)-6.49%
Revenue growth 3Y-34.28%
Revenue growth 5Y-10.97%
Sales Q2Q%10.49%
Revenue Next Year54.68%
Revenue Next 2Y-35.06%
Revenue Next 3Y35.41%
Revenue Next 5Y76.85%
EBIT growth 1Y54.09%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year11.48%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y24.7%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y24.45%
OCF growth 3YN/A
OCF growth 5YN/A