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Peptidream Inc. (JP:4587)
:4587
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Peptidream
(4587)
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Rating:51Neutral
Price Target:
¥1,682.00
▲(0.78% Upside)
Peptidream's overall stock score is primarily impacted by its weak financial performance, characterized by declining revenues and profitability. Technical analysis provides some support with moderate bullish momentum, but valuation concerns due to negative earnings and lack of dividends weigh heavily on the score.
Positive Factors
Proprietary Technology
Peptidream's PDPS technology provides a competitive edge by enabling rapid peptide identification, crucial for developing innovative therapeutics.
Strategic Partnerships
Strategic partnerships with major pharmaceutical companies enhance Peptidream's revenue potential and provide access to broader markets and resources.
Market Focus
Targeting high-impact disease areas positions Peptidream for long-term growth as demand for innovative treatments in these sectors remains strong.
Negative Factors
Revenue Decline
A significant decline in revenue growth suggests potential difficulties in sustaining operations and achieving financial targets, impacting long-term viability.
Negative Profitability
Negative profitability margins indicate operational inefficiencies and financial strain, which could hinder future investment and growth opportunities.
Cash Flow Challenges
Severe cash flow challenges limit Peptidream's ability to fund new projects and meet financial obligations, posing a risk to long-term sustainability.
Peptidream (4587) vs. iShares MSCI Japan ETF (EWJ)
Market Cap
¥198.76B
Dividend YieldN/A
Average Volume (3M)1.01M
Price to Earnings (P/E)―
Beta (1Y)1.12
Revenue Growth-62.47%
EPS Growth-134.06%
CountryJP
Employees621
SectorHealthcare
Sector Strength45
IndustryBiotechnology
Share Statistics
EPS (TTM)-8.48
Shares Outstanding130,010,400
10 Day Avg. Volume808,920
30 Day Avg. Volume1,013,253
Financial Highlights & Ratios
PEG Ratio0.06
Price to Book (P/B)6.04
Price to Sales (P/S)7.34
P/FCF Ratio15.75
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
¥3,260.00Price Target Upside95.33% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering5
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Peptidream Business Overview & Revenue Model
Company DescriptionPeptidream Inc. (4587) is a biopharmaceutical company based in Japan that specializes in the discovery and development of peptide-based therapeutics. The company operates in the biotechnology sector, focusing on innovative drug design and development using its proprietary Peptide Discovery Platform System (PDPS), which allows for the rapid identification of peptides with high specificity and affinity for various targets. Peptidream is engaged in the creation of therapeutic candidates for a range of diseases, including cancer, metabolic disorders, and infectious diseases, often through collaborations with larger pharmaceutical companies.
How the Company Makes MoneyPeptidream generates revenue primarily through partnerships and licensing agreements with major pharmaceutical companies. The company collaborates with these partners to develop peptide-based drugs, receiving milestone payments as development progresses and royalties on sales of any products that result from these collaborations. Key revenue streams include upfront payments from licensing deals, research funding from partner companies, and milestone payments tied to clinical development achievements. Additionally, Peptidream may benefit from co-development agreements, where they share in the commercialization of successful therapies, thus enhancing their overall earnings potential.
Peptidream Earnings Call Summary
Earnings Call Date:Aug 08, 2024
(Q2-2024)
| % Change Since: |
Next Earnings Date:Feb 16, 2026
Earnings Call Sentiment Positive
The earnings call presented a largely positive outlook for the company with strong financial performance and promising pipeline developments, despite some challenges in specific segments and uncertainties in deal closures.Q2-2024 Updates
Positive Updates
Strong First Half Financial Performance
Revenue of JPY 36 billion, which exceeded the initial forecast. Core operating profit reached JPY 24 billion and net income was JPY 18 billion.
Successful Novartis Collaboration and Expansion
The Novartis collaboration expanded and contributed significantly to revenues. Multiple programs are progressing towards clinical entry, with a new component of peptide drug conjugate programs added.
Positive Currency Exchange and Cash Position
Achieved a favorable currency exchange rate with USD 157-158 per JPY and holding over JPY 50 billion in cash as of the end of July.
Promising Pipeline Developments
Progress in the radiopharmaceutical pipeline with several programs moving towards clinical stages. Notable progress in non-radiopharmaceuticals including macrocyclic peptides and oral peptide therapeutics.
Strategic Partnerships and New Management
Strategic partnerships like the acquisition of Amolyt Pharma by AstraZeneca enhance program development. New management in PDRadiopharma to drive growth.
Negative Updates
Challenges in SPECT Business
Continued slow recovery and weakness in the SPECT business segment, impacting revenue growth potential.
Currency Risk and Deal Finalization Delays
Exposure to currency risks due to deal finalization delays and USD to JPY conversion.
Uncertainty in Deal Closures
Some collaboration and out-licensing deals may be delayed to 2025, causing uncertainty in revenue projections.
Company Guidance
During the Q2 2024 earnings call for PeptiDream (4587.T), executive Patrick Reed provided detailed guidance for the second half of 2024 and touched upon early 2025 projections. The company reported a first-half revenue of approximately JPY 36 billion, with JPY 28.5 billion from PeptiDream and JPY 7.6 billion from its radiopharmaceutical business, PDRadiopharma. This surpasses their initial annual revenue forecast of JPY 35 billion, revised to JPY 45 billion following a collaboration with Novartis. Core operating profit and net income exceeded 100% of their goals, reaching JPY 24 billion and JPY 18 billion, respectively. Reed highlighted potential for upward revisions in earnings, driven by additional revenue sources and ongoing negotiations with pharmaceutical partners. The company forecasts second-half milestones and R&D funding between JPY 1.2 billion and JPY 2.5 billion, and anticipates total revenue for fiscal 2024 to be between JPY 15.4 billion and JPY 16.2 billion for PDRadiopharma. The call also emphasized strategic expansions, such as the Novartis collaboration and potential new partnerships, aiming to sustain the company's financial momentum into 2025.Peptidream Financial Statement Overview
Summary
Peptidream is experiencing a challenging financial period with declining revenues and negative profitability. The income statement shows a significant decline in margins, and cash flow analysis reveals liquidity concerns. The balance sheet remains stable, but overall financial health is weak.Income Statement
Peptidream's income statement shows significant volatility. The TTM data indicates a decline in revenue and negative margins, with a net profit margin of -26.37% and an EBIT margin of -31.43%. This is a stark contrast to the previous year's strong performance, where the company had a net profit margin of 32.17% and an EBIT margin of 45.23%. The revenue growth rate has also turned negative, indicating a challenging period for the company.45
Neutral
Balance Sheet
The balance sheet reflects moderate leverage with a debt-to-equity ratio of 0.35 in the TTM period, which is stable compared to the previous year. However, the return on equity has turned negative at -8.99%, indicating inefficiencies in generating returns for shareholders. The equity ratio remains healthy, suggesting a solid asset base.60
Neutral
Cash Flow
Cash flow analysis reveals significant challenges, with a negative free cash flow growth rate of -208.11% in the TTM period. The operating cash flow to net income ratio is high at 1.90, indicating reliance on cash flow rather than profitability. The free cash flow to net income ratio is 0.87, showing some ability to cover net income, but overall cash flow health is concerning.40
Negative
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 17.93B | 46.68B | 28.71B | 26.85B | 9.42B | 11.68B |
| Gross Profit | 6.80B | 34.50B | 17.22B | 18.11B | 7.01B | 9.53B |
| EBITDA | -5.11B | 23.36B | 7.38B | 9.02B | 5.01B | 7.56B |
| Net Income | -5.82B | 15.01B | 3.04B | 7.55B | 2.57B | 4.45B |
Balance Sheet | ||||||
| Total Assets | 77.57B | 92.77B | 69.46B | 63.87B | 26.62B | 26.27B |
| Cash, Cash Equivalents and Short-Term Investments | 30.53B | 48.12B | 19.51B | 5.25B | 11.75B | 7.15B |
| Total Debt | 18.35B | 19.63B | 22.80B | 21.68B | 0.00 | 0.00 |
| Total Liabilities | 24.98B | 36.01B | 29.11B | 31.82B | 1.62B | 5.05B |
| Stockholders Equity | 52.60B | 56.76B | 40.35B | 32.04B | 25.35B | 21.22B |
Cash Flow | ||||||
| Free Cash Flow | -14.59B | 21.77B | 11.05B | -4.06B | 5.44B | 1.15B |
| Operating Cash Flow | -12.54B | 23.84B | 12.42B | -82.93M | 6.65B | 1.73B |
| Investing Cash Flow | -2.84B | 8.37B | 1.30B | -27.38B | -2.28B | -1.20B |
| Financing Cash Flow | -3.99B | -2.99B | 264.19M | 20.79B | 66.07M | -237.24M |
Peptidream Technical Analysis
Negative
1669.00
Price Trends
1662.51
Negative
1637.76
Negative
1661.21
Negative
Market Momentum
-36.74
Positive
36.97
Neutral
10.57
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For JP:4587, the sentiment is Negative. The current price of 1669 is above the 20-day moving average (MA) of 1665.25, above the 50-day MA of 1662.51, and above the 200-day MA of 1661.21, indicating a bearish trend. The MACD of -36.74 indicates Positive momentum. The RSI at 36.97 is Neutral, neither overbought nor oversold. The STOCH value of 10.57 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for JP:4587.
Peptidream Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
51 Neutral | ¥198.76B | -34.68 | -10.16% | ― | -62.47% | -134.06% | |
47 Neutral | ¥141.21B | -172.92 | -1.81% | ― | 13.78% | -110.02% | |
47 Neutral | ¥97.30B | -15.26 | ― | 2.18% | -0.16% | -802.20% | |
45 Neutral | ¥43.28B | -9.49 | ― | ― | -82.33% | 47.73% | |
42 Neutral | ¥144.27B | -38.64 | -636.97% | ― | ― | -12.69% | |
40 Neutral | ¥73.12B | -12.16 | -9.05% | ― | -1.96% | -64.18% |
* Healthcare Sector Average
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.