Opthea Limited Sponsored ADR (OPT) AI Stock Analysis

• Market Cap: $481.90M
• Dividend Yield: N/A
• Average Volume (3M): 0.00
• Price to Earnings (P/E): ―
• Beta (1Y): 1.75
• Revenue Growth: -25.10%
• EPS Growth: -7.06%
• Country: US
• Employees: 33
• Sector: Healthcare
• Sector Strength: 55
• Industry: Biotechnology
• EPS (TTM): -0.87
• Shares Outstanding: 153,910,920
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 0
• PEG Ratio: -0.02
• Price to Book (P/B): -18.69
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -0.92
• 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: $1.33
• Price Target Upside: -58.44% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 4

• Rating: 39 Underperform
• 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

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 Obligations

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, the stock has been downgraded 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 primarily engaged in the development of therapies to treat eye diseases, with a particular focus on wet age-related macular degeneration (wet AMD) and diabetic macular edema (DME). The company's flagship product is OPT-302, a novel biologic therapy designed to inhibit vascular endothelial growth factors VEGF-C and VEGF-D, which play critical roles in the pathological formation of blood vessels in the eye.

How the Company Makes Money

Opthea 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.

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
21.72K	-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: Positive
• 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 3.20, above the 50-day MA of 3.20, and below the 200-day MA of 3.78, indicating a neutral trend. The MACD of >-0.01 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
URGN	54 Neutral	$661.18M	―	-452.20%	―	8.98%	6.32%
Sector *	54 Neutral	$5.34B	3.27	-45.10%	3.30%	16.80%	0.02%
ARVN	52 Neutral	$537.95M	―	-35.41%	―	-39.92%	7.38%
SVA	50 Neutral	$460.27M	―	-1.44%	850.08%	1.98%	63.69%
CRMD	47 Neutral	$987.53M	64.60	19.87%	―	―	64.53%
OPT	39 Underperform	$481.90M	―		―	-25.10%	-7.06%
CGEM	35 Underperform	$515.79M	―	-36.57%	―	―	15.34%