Opthea Limited Sponsored ADR (OPT) AI Stock Analysis

• Market Cap: $463.58M
• Dividend Yield: N/A
• Average Volume (3M): 26.55K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.59
• Revenue Growth: -25.10%
• EPS Growth: -7.06%
• Country: US
• Employees: 33
• Sector: Healthcare
• Sector Strength: 78
• Industry: Biotechnology
• EPS (TTM): -2.32
• Shares Outstanding: 153,910,920
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 26,549
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 4209.28
• Price to Cash Flow (P/CF): N/A
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $4.25
• Price Target Upside: 32.81% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 5

Opthea Limited is currently facing significant financial difficulties with persistent losses, high leverage, and negative cash flow, leading to a low financial performance score. Technical analysis reveals bearish momentum and downward price pressure, while valuation metrics highlight the company's unprofitability. These factors combined result in a lower overall stock score, reflecting substantial risks and challenges ahead for the company.

Positive Factors

Negative Factors

Clinical Trials

The Phase 3 COAST trial of sozinibercept in combination with Eylea in wet age-related macular degeneration failed to meet its primary endpoint.

Financial Solvency

The company could be required to pay four multiples of the amounts paid to the company upon termination of the DFA agreement, which would have a material impact on the solvency of the company.

Stock Downgrade

Given the negative readout, analyst downgrades the stock to MP and the price target moves from $12 to $1.

Opthea Limited Sponsored ADR Business Overview & Revenue Model

Company Description

Opthea Limited Sponsored ADR (OPT) is a biotechnology company focused on developing treatments for eye diseases. The company is primarily engaged in the research and development of therapies aimed at treating ocular disorders, with a particular emphasis on wet age-related macular degeneration (AMD) and diabetic macular edema (DME). Opthea's lead product candidate, OPT-302, is designed to inhibit vascular endothelial growth factors (VEGF) that contribute to abnormal blood vessel growth and leakage in the eye.

How the Company Makes Money

Opthea Limited makes money primarily through the development and commercialization of its proprietary therapies. Revenue generation is largely dependent on successfully advancing its drug candidates through clinical trials and obtaining regulatory approvals, which would allow for licensing agreements, partnerships, or direct market sales. The company may also receive milestone payments, royalties, and research and development funding from strategic collaborations with pharmaceutical firms interested in its innovative treatments for eye diseases. As of now, Opthea's financial performance is closely tied to its clinical progress and partnerships in the biotechnology sector.

Opthea Limited Sponsored ADR Financial Statement Overview

Summary

Opthea Limited faces substantial financial challenges, characterized by persistent losses, high leverage, and poor cash flow management. The company needs to address its operational inefficiencies and stabilize its financial position to achieve sustainable growth in the highly competitive biotechnology industry.

Income Statement

Opthea Limited shows significant revenue volatility with a declining trend over the years. The net profit margin is negative, indicating persistent losses. The company also exhibits negative EBIT and EBITDA margins, reflecting operational challenges and inefficiencies. These factors contribute to a low score, emphasizing the need for strategic improvements to enhance profitability.

Balance Sheet

The balance sheet reveals high leverage with a negative stockholders' equity, indicating potential solvency issues. A negative return on equity further suggests inefficiencies in generating profit from shareholders' investments. Despite substantial cash reserves, the debt-to-equity ratio is unfavorable due to negative equity, posing significant financial risk.

Cash Flow

Operating and free cash flows are negative, highlighting cash management challenges. However, the cash flow from financing activities remains strong, suggesting reliance on external funding. The free cash flow to net income ratio is unfavorable, indicating difficulties in translating earnings into cash flow.

Breakdown
Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement		Total Revenue
124.67K	161.16K	125.05K	91.98K	145.90K
	Gross Profit
124.67K	-89.31K	-107.42K	-480.00K	-371.37K
	EBIT
-191.84M	-223.45M	-133.27M	-53.18M	-24.70M
	EBITDA
-200.02M	-223.30M	-133.16M	-52.85M	-24.92M
	Net Income Common Stockholders
-220.24M	-211.88M	-127.99M	-60.79M	-16.12M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
172.47M	133.99M	64.90M	157.43M	62.02M
	Total Assets
188.79M	148.19M	87.32M	184.36M	71.89M
	Total Debt
141.65M	272.98K	0.00	150.47K	265.08K
	Net Debt
-30.82M	-133.71M	-64.90M	-157.28M	-61.76M
	Total Liabilities
264.60M	156.98M	17.55M	4.16M	7.08M
	Stockholders Equity
-75.81M	-8.79M	69.77M	180.20M	64.81M
Cash Flow		Free Cash Flow
-161.05M	-179.34M	-98.39M	-61.08M	―
	Operating Cash Flow
-161.02M	-179.30M	-98.37M	-61.06M	-8.24M
	Investing Cash Flow
-33.49K	-32.64K	-23.32K	880.07K	482.83K
	Financing Cash Flow
243.73M	248.70M	236.62K	156.76M	48.06M

Opthea Limited Sponsored ADR Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3.20
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For OPT, the sentiment is Negative. The current price of 3.2 is below the 20-day moving average (MA) of 3.22, below the 50-day MA of 4.27, and below the 200-day MA of 3.53, indicating a bearish trend. The MACD of -0.30 indicates Negative momentum. The RSI at 36.71 is Neutral, neither overbought nor oversold. The STOCH value of <0.01 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for OPT.

Opthea Limited Sponsored ADR Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
OCUL	54 Neutral	$1.04B	―	-95.21%	―	9.03%	-25.00%
Sector *	48 Neutral	$6.86B	1.11	-50.22%	2.47%	16.71%	1.53%
EYPT	48 Neutral	$347.08M	―	-43.42%	―	-5.97%	-25.87%
ARVN	47 Neutral	$483.47M	―	-35.41%	―	-39.92%	7.38%
OPT	40 Underperform	$463.58M	―		―	-25.10%	-7.06%
OMER	37 Underperform	$459.29M	―	87.26%	―	―	-43.76%
ALDX	35 Underperform	$326.90M	―	-58.54%	―	―	-47.28%