It's been a great morning session for Summit Therapeutics investors, who saw their shares rise 6.3% to a price of $21.38 per share. At these higher prices, is the company still fairly valued? If you are thinking about investing, make sure to check the company's fundamentals before making a decision.
The Market May Be Overvaluing Summit Therapeutics's Earnings and Assets:
Summit Therapeutics Inc., a biopharmaceutical company, focuses on discovery, development, and commercialization of patient, physician, caregiver, and societal friendly medicinal therapies in the United States, and the United Kingdom. The company belongs to the Health Care sector, which has an average price to earnings (P/E) ratio of 26.07 and an average price to book (P/B) ratio of 3.53. In contrast, Summit Therapeutics has a trailing 12 month P/E ratio of -93.0 and a P/B ratio of 35.99.
Summit Therapeutics has moved 330.6% over the last year compared to 20.0% for the S&P 500 — a difference of 310.6%. Summit Therapeutics has a 52 week high of $33.89 and a 52 week low of $2.1.
No Revenues With Decreasing Reinvestment in the Business:
| 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | |
|---|---|---|---|---|---|---|
| Revenue (k) | $37,958 | $583 | $860 | $1,809 | $705 | n/a |
| Net Income (k) | -$8,128 | -$22,032 | -$52,697 | -$88,602 | -$78,782 | -$614,928 |
| Net Interest Expense (k) | $1,544 | $620 | $255 | $242 | -$6,693 | -$5,278 |
| Depreciation & Amort. (k) | $198 | $409 | $302 | $330 | $349 | $198 |
| Diluted Shares (k) | 13,087 | 32,829 | 69,524 | 13,171 | 19,334 | 619,646 |
| Earnings Per Share | -$0.1 | -$0.13 | -$0.76 | -$0.67 | -$0.41 | -$0.99 |
| Avg. Price | $7.27 | $1.57 | $3.23 | $6.24 | $1.92 | n/a |
| P/E Ratio | -72.7 | -12.08 | -4.25 | -9.31 | -4.68 | nan |
| Free Cash Flow (k) | -$22,169 | -$35,263 | -$48,532 | -$72,893 | -$42,206 | -$76,888 |
| CAPEX (k) | $668 | $157 | $421 | $306 | $624 | $128 |
| Current Ratio | 1.56 | 5.78 | 4.41 | 3.8 | 16.93 | 9.3 |
