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Opthea Limited Sponsored ADR (OPT)
NASDAQ:OPT
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Opthea Limited Sponsored ADR
(NASDAQ:OPT)
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Rating:39Underperform
Price Target:―
Opthea Limited's stock is currently rated low due to significant financial challenges, including persistent losses, high leverage, and poor cash flow management. The technical analysis indicates a bearish trend with no immediate recovery signals. Valuation metrics are unfavorable, with a negative P/E ratio and no dividend yield, suggesting limited appeal to investors seeking growth or income. The stock's high beta adds to the risk profile, emphasizing the need for strategic improvements to enhance financial performance.
Positive Factors
Innovative Product Pipeline
OPT-302 targets VEGF-C and VEGF-D, offering a novel approach to treating wet AMD and DME. This innovative pipeline positions Opthea to potentially capture significant market share in the eye disease treatment sector.
Strategic Partnerships Potential
Potential partnerships with larger pharmaceutical companies could provide Opthea with the necessary resources for distribution and marketing, enhancing its commercialization capabilities and revenue streams.
Focus on High-Growth Market
By targeting wet AMD and DME, Opthea is positioned in a high-growth market driven by an aging population and increasing prevalence of eye diseases, which supports long-term demand for its therapies.
Negative Factors
High Leverage
High leverage and negative equity suggest potential solvency issues, limiting financial flexibility and increasing risk, which could hinder long-term operational stability and growth.
Negative Cash Flow
Negative cash flows highlight cash management issues, indicating reliance on external funding and potential difficulties in sustaining operations without strategic financial improvements.
Persistent Losses
Ongoing losses and negative profit margins reflect operational inefficiencies, challenging Opthea's ability to achieve profitability and necessitating strategic changes to improve financial performance.
Opthea Limited Sponsored ADR (OPT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$478.09M
Dividend YieldN/A
Average Volume (3M)0.00
Price to Earnings (P/E)―
Beta (1Y)2.04
Revenue Growth-80.09%
EPS Growth60.14%
CountryUS
Employees33
SectorHealthcare
Sector Strength45
IndustryBiotechnology
Share Statistics
EPS (TTM)-0.20
Shares Outstanding170,997,270
10 Day Avg. Volume0
30 Day Avg. Volume0
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap1.44
Enterprise Value/Revenue3.78K
Enterprise Value/Gross Profit-5.81K
Enterprise Value/Ebitda-2.41
Forecast
1Y Price Target
$1.00Price Target Upside-68.75% Downside
Rating ConsensusHold
Number of Analyst Covering0
Opthea Limited Sponsored ADR Business Overview & Revenue Model
Company DescriptionOpthea Limited, a clinical stage biopharmaceutical company, develops and commercializes therapies primarily for eye disease in Australia. The company's development activities are based on the intellectual property portfolio covering Vascular Endothelial Growth Factors (VEGF) VEGF-C, VEGF-D, and VEGF Receptor-3 for the treatment of diseases associated with blood and lymphatic vessel growth, as well as vascular leakage. Its lead asset is OPT 302, a soluble form of VEGFR 3 in clinical development as a novel therapy for wet neovascular age related macular degeneration and diabetic macular edema DME, as well as a first in class VEGF C/D inhibitors for treatment with VEGF A inhibitors for the treatment of wet neovascular AMD and other retinal diseases. The company was formerly known as Circadian Technologies Limited and changed its name to Opthea Limited in December 2015. Opthea Limited was incorporated in 1984 and is based in South Yarra, Australia.
How the Company Makes MoneyOpthea Limited generates revenue primarily through the development and commercialization of its proprietary therapies. The company's revenue model includes potential income from licensing agreements, partnerships, and future sales of its therapies upon successful regulatory approval and market launch. Opthea may also receive milestone payments and royalties from collaborations with larger pharmaceutical companies that can aid in the distribution and marketing of its products. Currently, the company's revenues are largely dependent on securing funding through partnerships or investors to support its research and development activities, as it progresses its lead candidate, OPT-302, through clinical trials.
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.35
Negative
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.25
Negative
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.40
Negative
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 182.57K | 124.67K | 161.16K | 125.05K | 91.98K | 145.90K |
| Gross Profit | -118.72K | 21.72K | -89.31K | -107.42K | -480.00K | -371.37K |
| EBITDA | -286.03M | -200.02M | -223.30M | -133.16M | -52.85M | -24.92M |
| Net Income | -333.40M | -220.24M | -211.88M | -127.99M | -60.79M | -16.12M |
Balance Sheet | ||||||
| Total Assets | 188.79M | 188.79M | 148.19M | 87.32M | 184.36M | 71.89M |
| Cash, Cash Equivalents and Short-Term Investments | 172.47M | 172.47M | 133.99M | 64.90M | 157.43M | 62.02M |
| Total Debt | 141.65M | 141.65M | 272.98K | 0.00 | 150.47K | 265.08K |
| Total Liabilities | 264.60M | 264.60M | 156.98M | 17.55M | 4.16M | 7.08M |
| Stockholders Equity | -75.81M | -75.81M | -8.79M | 69.77M | 180.20M | 64.81M |
Cash Flow | ||||||
| Free Cash Flow | -137.45M | -161.05M | -179.34M | -98.39M | -61.08M | ― |
| Operating Cash Flow | -243.71M | -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 | 370.03M | 243.73M | 248.70M | 236.62K | 156.76M | 48.06M |
Opthea Limited Sponsored ADR Technical Analysis
Negative
3.20
Price Trends
3.20
Positive
3.20
Positive
3.51
Negative
Market Momentum
>-0.01
Negative
36.70
Neutral
<0.01
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 3.20, above the 50-day MA of 3.20, and below the 200-day MA of 3.51, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 36.70 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 Risk Analysis
Opthea Limited Sponsored ADR disclosed 72 risk factors in its most recent earnings report. Opthea Limited Sponsored ADR reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 3 New Risks
1.
If our information technology systems or data, or those of our third-parties, upon whom we rely, are or were compromised, we could experience adverse consequences resulting from such compromise, including but not limited to regulatory investigations or actions; litigation; fines and penalties; disruptions of our business operations' reputational harm' loss of revenue or profits; loss of customers or sales; and other adverse consequences. Q2, 2023
2.
We are subject to stringent and evolving U.S. and foreign laws, regulations, rules, contractual obligations, policies and other obligations related to data privacy and security. Our actual or perceived failure to comply with such obligations could lead to regulatory investigations or actions; litigation; fines and penalties; a disruption of our business operations; reputational harm; loss of revenue or profits; and other adverse business consequences. Q2, 2023
3.
agencies from performing normal business functions on which the operation of our business may rely, which could negatively impact our business. Q2, 2023
Opthea Limited Sponsored ADR Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
61 Neutral | $534.20M | ― | -65.30% | ― | 1504.83% | 56.81% | |
55 Neutral | $621.32M | ― | -62.49% | ― | 74.95% | 34.25% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
46 Neutral | $543.14M | ― | -66.85% | ― | -95.24% | -493.05% | |
44 Neutral | $479.67M | ― | -68.25% | ― | ― | 15.01% | |
41 Neutral | $570.03M | ― | -68.67% | ― | ― | -50.83% | |
39 Underperform | $478.09M | ― | ― | ― | -80.09% | 60.14% |
* Healthcare Sector Average
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Opthea Limited Sponsored ADR
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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.