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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. The financial health of RETA is average, but there are quite some concerns on its profitability. While showing a medium growth rate, RETA is valued expensive at the moment.


Dividend Valuation Growth Profitability Health

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1

1. Profitability

1.1 Basic Checks

RETA had negative earnings in the past year.
In the past year RETA has reported a negative cash flow from operations.
In the past 5 years RETA always reported negative net income.
In the past 5 years RETA always reported negative operating cash flow.
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

With a decent Return On Assets value of -17.43%, RETA is doing good in the industry, outperforming 66.82% of the companies in the same industry.
Looking at the Return On Equity, with a value of -100.38%, RETA is doing worse than 62.56% of the companies in the same industry.
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

The Profit Margin and Operating Margin and Gross Margin are not available for RETA so they could not be analyzed.
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.
Compared to 1 year ago, RETA has more shares outstanding
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

RETA has an Altman-Z score of 2.68. This is not the best score and indicates that RETA is in the grey zone with still only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.68, RETA is in the better half of the industry, outperforming 73.46% of the companies in the same industry.
RETA has a Debt/Equity ratio of 0.84. This is a neutral value indicating RETA is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.84, RETA is not doing good in the industry: 69.19% of the companies in the same industry are doing better.
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.
With a Current ratio value of 3.21, RETA perfoms like the industry average, outperforming 46.45% of the companies in the same 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.
The Quick ratio of RETA (3.19) is comparable to the rest of the 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

The Earnings Per Share has grown by an impressive 64.40% over the past year.
RETA shows a strong growth in Revenue. In the last year, the Revenue has grown by 134.81%.
RETA shows a very negative growth in Revenue. Measured over the last years, the Revenue has been decreasing by -45.95% yearly.
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
Based on estimates for the next years, RETA will show a very strong growth in Revenue. The Revenue will grow by 250.01% on average per year.
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

The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
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

RETA's earnings are expected to grow with 33.26% in the coming years. This may justify a more expensive valuation.
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