A strong performer from today's afternoon trading session is Summit Therapeutics, whose shares rose 6.1% to $22.93 per share. For those of you thinking about investing in the stock, here is a brief value analysis of the stock using the company's basic fundamental ratios.
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 -99.7 and a P/B ratio of 38.59.
Summit Therapeutics has moved 402.3% over the last year compared to 20.8% for the S&P 500 — a difference of 381.5%. 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 |
