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Arrowhead Pharmaceuticals

DB:HDP1
Snowflake Description

Flawless balance sheet with high growth potential.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
HDP1
DB
$3B
Market Cap
  1. Home
  2. DE
  3. Pharmaceuticals & Biotech
Company description

Arrowhead Pharmaceuticals, Inc. develops medicines for the treatment of intractable diseases in the United States. The last earnings update was 60 days ago. More info.


Add to Portfolio Compare Print
  • Arrowhead Pharmaceuticals has significant price volatility in the past 3 months.
HDP1 Share Price and Events
7 Day Returns
-9.4%
DB:HDP1
-0.7%
DE Biotechs
-0.6%
DE Market
1 Year Returns
42.1%
DB:HDP1
-13.2%
DE Biotechs
-20.9%
DE Market
HDP1 Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Arrowhead Pharmaceuticals (HDP1) -9.4% -19.1% -55% 42.1% 1463.4% 229.2%
DE Biotechs -0.7% -8.2% -21% -13.2% 13.2% -11.8%
DE Market -0.6% -18.6% -26.2% -20.9% -25.8% -31.8%
1 Year Return vs Industry and Market
  • HDP1 outperformed the Biotechs industry which returned -13.2% over the past year.
  • HDP1 outperformed the Market in Germany which returned -20.9% over the past year.
Price Volatility
HDP1
Industry
5yr Volatility vs Market
Related Companies

Value

 Is Arrowhead Pharmaceuticals undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Arrowhead Pharmaceuticals to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Arrowhead Pharmaceuticals.

DB:HDP1 Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 10 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 5.8%
Perpetual Growth Rate 10-Year DE Government Bond Rate -0.4%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for DB:HDP1
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year DE Govt Bond Rate -0.4%
Equity Risk Premium S&P Global 5.4%
Biotechs Unlevered Beta Simply Wall St/ S&P Global 1.19
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.188 (1 + (1- 21%) (0.56%))
1.129
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.13
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= -0.39% + (1.129 * 5.44%)
5.75%

Discounted Cash Flow Calculation for DB:HDP1 using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Arrowhead Pharmaceuticals is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

DB:HDP1 DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 5.75%)
2020 -14.47 Analyst x3 -13.68
2021 -11.90 Analyst x5 -10.64
2022 -9.14 Analyst x5 -7.73
2023 127.56 Analyst x5 101.98
2024 163.56 Analyst x5 123.65
2025 189.36 Est @ 15.78% 135.37
2026 210.05 Est @ 10.93% 141.99
2027 225.88 Est @ 7.53% 144.38
2028 237.52 Est @ 5.16% 143.56
2029 245.81 Est @ 3.49% 140.49
Present value of next 10 years cash flows $899.00
DB:HDP1 DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= $245.81 × (1 + -0.39%) ÷ (5.75% – -0.39%)
$3,985.28
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $3,985.28 ÷ (1 + 5.75%)10
$2,277.68
DB:HDP1 Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $899.00 + $2,277.68
$3,176.68
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $3,176.68 / 101.65
$31.25
DB:HDP1 Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in DB:HDP1 represents 0.93013x of NasdaqGS:ARWR
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
0.93013x
Value per Share
(Listing Adjusted, EUR)
= Value per Share (USD) x Listing Adjustment Factor
= $ 31.25 x 0.93013
€29.07
Value per share (EUR) From above. €29.07
Current discount Discount to share price of €24.30
= -1 x (€24.30 - €29.07) / €29.07
16.4%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Arrowhead Pharmaceuticals is available for.
Intrinsic value
16%
Share price is €24.3 vs Future cash flow value of €29.07
Current Discount Checks
For Arrowhead Pharmaceuticals to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Arrowhead Pharmaceuticals's share price is below the future cash flow value, but not at a moderate discount (< 20%).
  • Arrowhead Pharmaceuticals's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Arrowhead Pharmaceuticals's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Arrowhead Pharmaceuticals's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
DB:HDP1 PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-12-31) in USD $0.56
NasdaqGS:ARWR Share Price ** NasdaqGS (2020-04-03) in USD $26.12
Europe Biotechs Industry PE Ratio Median Figure of 24 Publicly-Listed Biotechs Companies 40.67x
Germany Market PE Ratio Median Figure of 401 Publicly-Listed Companies 16.57x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Arrowhead Pharmaceuticals.

DB:HDP1 PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGS:ARWR Share Price ÷ EPS (both in USD)

= 26.12 ÷ 0.56

46.76x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Arrowhead Pharmaceuticals is overvalued based on earnings compared to the Europe Biotechs industry average.
  • Arrowhead Pharmaceuticals is overvalued based on earnings compared to the Germany market.
Price based on expected Growth
Does Arrowhead Pharmaceuticals's expected growth come at a high price?
Raw Data
DB:HDP1 PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 46.76x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 10 Analysts
61.8%per year
Europe Biotechs Industry PEG Ratio Median Figure of 19 Publicly-Listed Biotechs Companies 1.62x
Germany Market PEG Ratio Median Figure of 256 Publicly-Listed Companies 1.17x

*Line of best fit is calculated by linear regression .

DB:HDP1 PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 46.76x ÷ 61.8%

0.76x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Arrowhead Pharmaceuticals is good value based on expected growth next year.
Price based on value of assets
What value do investors place on Arrowhead Pharmaceuticals's assets?
Raw Data
DB:HDP1 PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-12-31) in USD $4.95
NasdaqGS:ARWR Share Price * NasdaqGS (2020-04-03) in USD $26.12
Germany Biotechs Industry PB Ratio Median Figure of 14 Publicly-Listed Biotechs Companies 3.33x
Germany Market PB Ratio Median Figure of 572 Publicly-Listed Companies 1.44x
DB:HDP1 PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGS:ARWR Share Price ÷ Book Value per Share (both in USD)

= 26.12 ÷ 4.95

5.28x

* Primary Listing of Arrowhead Pharmaceuticals.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Arrowhead Pharmaceuticals is overvalued based on assets compared to the DE Biotechs industry average.
X
Value checks
We assess Arrowhead Pharmaceuticals's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Biotechs industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Biotechs industry average (and greater than 0)? (1 check)
  5. Arrowhead Pharmaceuticals has a total score of 1/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Arrowhead Pharmaceuticals expected to perform in the next 1 to 3 years based on estimates from 10 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
61.8%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Arrowhead Pharmaceuticals expected to grow at an attractive rate?
  • Arrowhead Pharmaceuticals's earnings growth is expected to exceed the low risk savings rate of -0.4%.
Growth vs Market Checks
  • Arrowhead Pharmaceuticals's earnings growth is expected to exceed the Germany market average.
  • Arrowhead Pharmaceuticals's revenue growth is expected to exceed the Germany market average.
Annual Growth Rates Comparison
Raw Data
DB:HDP1 Future Growth Rates Data Sources
Data Point Source Value (per year)
DB:HDP1 Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 10 Analysts 61.8%
DB:HDP1 Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 10 Analysts 35.8%
Germany Biotechs Industry Earnings Growth Rate Market Cap Weighted Average 55.2%
Germany Biotechs Industry Revenue Growth Rate Market Cap Weighted Average 24%
Germany Market Earnings Growth Rate Market Cap Weighted Average 14.1%
Germany Market Revenue Growth Rate Market Cap Weighted Average 3.9%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
DB:HDP1 Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 10 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
DB:HDP1 Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2024-09-30 418 209 136 4
2023-09-30 306 115 64 4
2022-09-30 162 62 -18 6
2021-09-30 105 34 -81 10
2020-09-30 91 -31 -41 9
2020-04-05
DB:HDP1 Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-12-31 164 -19 53
2019-09-30 169 173 68
2019-06-30 137 157 46
2019-03-31 95 132 10
2018-12-31 47 136 -29
2018-09-30 16 -47 -54
2018-06-30 14 -54 -54
2018-03-31 22 -50 -44
2017-12-31 31 -49 -35
2017-09-30 31 -24 -34
2017-06-30 23 -25 -46
2017-03-31 13 -33 -60

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Arrowhead Pharmaceuticals's earnings are expected to grow significantly at over 20% yearly.
  • Arrowhead Pharmaceuticals's revenue is expected to grow significantly at over 20% yearly.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
DB:HDP1 Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 10 Analyst Estimates (S&P Global) See Below

All data from Arrowhead Pharmaceuticals Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:HDP1 Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2024-09-30 1.28 2.45 0.17 4.00
2023-09-30 0.60 2.12 -0.72 4.00
2022-09-30 -0.07 1.41 -1.30 5.00
2021-09-30 -0.79 -0.30 -1.20 7.00
2020-09-30 -0.41 -0.18 -0.67 8.00
2020-04-05
DB:HDP1 Past Financials Data
Date (Data in USD Millions) EPS *
2019-12-31 0.56
2019-09-30 0.72
2019-06-30 0.49
2019-03-31 0.11
2018-12-31 -0.33
2018-09-30 -0.65
2018-06-30 -0.68
2018-03-31 -0.58
2017-12-31 -0.47
2017-09-30 -0.47
2017-06-30 -0.64
2017-03-31 -0.88

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Arrowhead Pharmaceuticals will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess Arrowhead Pharmaceuticals's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Germany market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Germany market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Arrowhead Pharmaceuticals has a total score of 5/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Arrowhead Pharmaceuticals performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Arrowhead Pharmaceuticals's growth in the last year to its industry (Biotechs).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Arrowhead Pharmaceuticals has delivered over 20% year on year earnings growth in the past 5 years.
  • Arrowhead Pharmaceuticals has become profitable in the last year making the earnings growth rate difficult to compare to the 5-year average.
  • Arrowhead Pharmaceuticals has become profitable in the last year making it difficult to compare the Europe Biotechs industry average.
Earnings and Revenue History
Arrowhead Pharmaceuticals's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Arrowhead Pharmaceuticals Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:HDP1 Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-12-31 163.59 53.26 31.35 86.85
2019-09-30 168.80 67.97 26.56 81.05
2019-06-30 136.76 45.51 22.72 73.66
2019-03-31 94.79 9.57 22.50 66.42
2018-12-31 47.29 -29.21 20.25 58.21
2018-09-30 16.14 -54.45 19.11 52.97
2018-06-30 13.60 -54.42 18.10 50.52
2018-03-31 22.22 -44.33 16.31 50.71
2017-12-31 30.55 -35.49 13.35 54.30
2017-09-30 31.41 -34.38 19.80 48.60
2017-06-30 22.73 -45.87 24.88 49.36
2017-03-31 13.42 -59.77 31.53 46.21
2016-12-31 4.48 -74.54 42.22 39.73
2016-09-30 0.16 -81.72 24.91 60.80
2016-06-30 0.17 -84.24 41.06 39.13
2016-03-31 0.26 -80.76 39.60 37.40
2015-12-31 0.26 -88.63 36.34 39.24
2015-09-30 0.38 -91.94 35.24 46.74
2015-06-30 0.38 -89.63 32.15 44.89
2015-03-31 0.30 -85.32 30.35 43.78
2014-12-31 0.30 -70.58 28.42 37.49
2014-09-30 0.18 -58.63 24.78 22.78
2014-06-30 0.18 -49.89 18.86 17.46
2014-03-31 0.18 -44.34 15.58 12.94
2013-12-31 0.18 -37.16 12.63 9.90
2013-09-30 0.29 -31.14 12.06 8.34
2013-06-30 0.29 -22.76 11.65 7.38

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Arrowhead Pharmaceuticals has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Arrowhead Pharmaceuticals used its assets more efficiently than the Europe Biotechs industry average last year based on Return on Assets.
  • Arrowhead Pharmaceuticals has become profitable over the past 3 years. This is considered to be a significant improvement in its use of capital (Return on Capital Employed).
X
Past performance checks
We assess Arrowhead Pharmaceuticals's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Biotechs industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Arrowhead Pharmaceuticals has a total score of 3/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Arrowhead Pharmaceuticals's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Arrowhead Pharmaceuticals's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Arrowhead Pharmaceuticals is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Arrowhead Pharmaceuticals's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Arrowhead Pharmaceuticals's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Arrowhead Pharmaceuticals has no debt, it does not need to be covered by short term assets.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Arrowhead Pharmaceuticals Company Filings, last reported 3 months ago.

DB:HDP1 Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-12-31 499.53 0.00 502.00
2019-09-30 244.04 0.00 258.70
2019-06-30 225.67 0.00 236.90
2019-03-31 200.64 0.00 218.20
2018-12-31 171.50 0.00 243.75
2018-09-30 95.24 2.33 76.53
2018-06-30 101.76 2.38 60.48
2018-03-31 113.72 2.43 91.54
2017-12-31 70.20 2.48 50.70
2017-09-30 80.87 2.53 65.61
2017-06-30 89.54 2.58 75.14
2017-03-31 93.34 2.63 86.63
2016-12-31 97.21 2.68 102.11
2016-09-30 95.02 2.73 85.37
2016-06-30 59.43 2.73 44.65
2016-03-31 73.93 0.00 61.46
2015-12-31 92.37 0.00 76.60
2015-09-30 109.62 0.00 98.75
2015-06-30 130.74 0.00 110.53
2015-03-31 144.20 0.00 116.01
2014-12-31 145.71 0.00 127.52
2014-09-30 165.99 0.05 154.16
2014-06-30 185.81 0.05 162.18
2014-03-31 189.54 1.05 160.65
2013-12-31 80.91 1.05 75.63
2013-09-30 25.73 1.02 28.14
2013-06-30 33.31 0.98 33.08
  • Arrowhead Pharmaceuticals has no debt.
  • Arrowhead Pharmaceuticals had no debt 5 years ago.
  • Arrowhead Pharmaceuticals has no debt, it does not need to be covered by operating cash flow.
  • Arrowhead Pharmaceuticals has no debt, therefore coverage of interest payments is not a concern.
X
Financial health checks
We assess Arrowhead Pharmaceuticals's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Arrowhead Pharmaceuticals has a total score of 6/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Arrowhead Pharmaceuticals's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from Arrowhead Pharmaceuticals dividends.
If you bought €2,000 of Arrowhead Pharmaceuticals shares you are expected to receive €0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate Arrowhead Pharmaceuticals's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Arrowhead Pharmaceuticals's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
DB:HDP1 Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 10 Analyst Estimates (S&P Global) See Below
Europe Biotechs Industry Average Dividend Yield Market Cap Weighted Average of 9 Stocks 1.1%
Germany Market Average Dividend Yield Market Cap Weighted Average of 316 Stocks 3.9%
Germany Minimum Threshold Dividend Yield 10th Percentile 0.9%
Germany Bottom 25% Dividend Yield 25th Percentile 1.7%
Germany Top 25% Dividend Yield 75th Percentile 4.9%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

DB:HDP1 Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2024-09-30
2023-09-30
2022-09-30
2021-09-30
2020-09-30
2020-04-05

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as Arrowhead Pharmaceuticals has not reported any payouts.
  • Unable to verify if Arrowhead Pharmaceuticals's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Arrowhead Pharmaceuticals's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Arrowhead Pharmaceuticals has not reported any payouts.
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess Arrowhead Pharmaceuticals's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.9%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Arrowhead Pharmaceuticals afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Arrowhead Pharmaceuticals has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Arrowhead Pharmaceuticals's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Chris Anzalone
COMPENSATION $2,216,264
AGE 50
TENURE AS CEO 12.3 years
CEO Bio

Dr. Christopher R. Anzalone, also known as Chris, Ph.D., has been the Chief Executive Officer and President at Arrowhead Pharmaceuticals, Inc. since December 1, 2007. He serves as Chief Executive Officer of Calando Pharmaceuticals, Inc. Dr. Anzalone serves as a Director at Unidym, Inc. Dr. Anzalone was the Founder Benet Group, LLC and served as its Chief Executive Officer since 1999 until 2003. He serves as Chief Executive Officer of Tego, Leonardo and Ablaris Therapeutics. He focuses on creating and building new nano-biotechnology companies from university-generated science. He has a wealth of experience in nanotechnology, biotechnology, company-building, biomedical research, investment banking, financial services and venture capital. He is the founding Chief Executive Officer of Nanotope Inc. Dr. Anzalone is also the founding Chief Executive Officer of Leonardo Biosystems. Prior to Benet, Dr. Anzalone was a Partner at Galway Partners, LLC in Washington DC. He joined the firm in 1998 and was involved in sourcing, developing and structuring new business ventures. While at Galway, he was the founding Chief Executive Officer of NanoInk, Inc. He also served as an acting Chief Executive Officer and Chairman for two years at NanoInk. He serves as Chairman and Director of Calando Pharmaceuticals, Inc. He has been a Director of Arrowhead Pharmaceuticals, Inc. since December 1, 2007. He served as a Director of NanoInk, Inc. Before joining Galway, Dr. Anzalone was a National Institutes of Health Fellow at the Smithsonian Institution's Conservation and Research Center Division of the National Zoological Park specializing in embryology and altered germ cell DNA-protein interactions. His research at the Smithsonian and prior to that at the University of California Los Angeles was funded for six years by the NIH. He was an active scientist with publications in the areas of Molecular Biology, Endocrine Physiology, Reproductive Biology and Conservation Biology. Dr. Anzalone is the author of numerous peer-reviewed research publications and has served as a reviewer for international scientific journals. He is the recipient of a number of professional and academic honors and has been a featured speaker at conferences, symposia and research institutions. Dr. Anzalone holds a Ph.D. and an M.A. in Biology from UCLA and a B.A. Government from Lawrence University.

CEO Compensation
  • Chris's compensation has increased in line with Arrowhead Pharmaceuticals recently becoming profitable.
  • Chris's remuneration is lower than average for companies of similar size in Germany.
Management Team Tenure

Average tenure and age of the Arrowhead Pharmaceuticals management team in years:

8.5
Average Tenure
54
Average Age
  • The average tenure for the Arrowhead Pharmaceuticals management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Chris Anzalone

TITLE
CEO, President & Director
COMPENSATION
$2M
AGE
50
TENURE
12.3 yrs

Ken Myszkowski

TITLE
Chief Financial Officer
COMPENSATION
$2M
AGE
53
TENURE
10.2 yrs

Bruce Given

TITLE
COO and Head of R&D
COMPENSATION
$4M
AGE
65
TENURE
8.5 yrs

Patrick O'Brien

TITLE
General Counsel & Corporate Secretary
COMPENSATION
$2M
AGE
55
TENURE
5.3 yrs

Mark Davis

TITLE
Founder and Founder & Director of Insert Therapeutics Inc & Calando

Curt Bradshaw

TITLE
Chief Scientific Officer
TENURE
0.4 yrs

Jane Davidson

TITLE
Head of Human Resources & Administration

Vince Anzalone

TITLE
Vice President of Investor Relations

Susan Boynton

TITLE
Senior Vice President of Regulatory Affairs
TENURE
0.6 yrs

Howard Lovy

TITLE
Director of Communications
TENURE
14.7 yrs
Board of Directors Tenure

Average tenure and age of the Arrowhead Pharmaceuticals board of directors in years:

9.7
Average Tenure
60
Average Age
  • The tenure for the Arrowhead Pharmaceuticals board of directors is about average.
Board of Directors

Doug Given

TITLE
Chairman of the Board
COMPENSATION
$526K
AGE
67

Chris Anzalone

TITLE
CEO, President & Director
COMPENSATION
$2M
AGE
50
TENURE
12.3 yrs

Mark Davis

TITLE
Founder and Founder & Director of Insert Therapeutics Inc & Calando

Mike Perry

TITLE
Independent Lead Director
COMPENSATION
$523K
AGE
60

Robert Gish

TITLE
Chairman of Hepatitis B Clinical Advisory Board

Will Waddill

TITLE
Independent Director
COMPENSATION
$437K
AGE
62
TENURE
2.3 yrs

Mauro Ferrari

TITLE
Independent Director
COMPENSATION
$302K
AGE
60
TENURE
9.7 yrs

Stephen Locarnini

TITLE
Member of Hepatitis B Clinical Advisory Board

Ching-Lung Lai

TITLE
Member of Hepatitis B Clinical Advisory Board

Johnson Lau

TITLE
Member of Hepatitis B Clinical Advisory Board
Who owns this company?
Recent Insider Trading
  • No 3 month open market individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (€) Value (€)
28. Sep 19 Sell Christopher Anzalone Individual 25. Sep 19 25. Sep 19 -20,000 €25.79 €-515,845
12. Sep 19 Sell Michael Perry Individual 09. Sep 19 11. Sep 19 -185,000 €27.28 €-4,947,136
28. Jun 19 Sell Mauro Ferrari Individual 26. Jun 19 26. Jun 19 -17,756 €24.26 €-430,777
29. May 19 Sell Patrick O'Brien Individual 28. May 19 28. May 19 -30,000 €22.26 €-667,879
X
Management checks
We assess Arrowhead Pharmaceuticals's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Arrowhead Pharmaceuticals has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Company Info

Description

Arrowhead Pharmaceuticals, Inc. develops medicines for the treatment of intractable diseases in the United States. The company’s pipeline includes ARO-AAT, a RNA interference (RNAi) therapeutic candidate that is in Phase II clinical trial for the treatment of liver diseases associated with alpha-1 antitrypsin deficiency; ARO-APOC3, which is in Phase I clinical trial to treat hypertriglyceridemia; ARO-ANG3 that is in Phase I clinical trial to reduce production of angiopoietin-like protein 3; ARO-HSD for treating liver diseases; ARO-ENaC to reduce production of the epithelial sodium channel alpha subunit in the airways of the lung; and ARO-HIF2 for the treatment of clear cell renal cell carcinoma. It is also involved in the development of JNJ-3989, a third-generation subcutaneously administered RNAi therapeutic candidate to treat chronic hepatitis B virus infection; AMG 890 to reduce production of apolipoprotein A; and ARO-AMG1 for treating undisclosed genetically-validated cardiovascular target. Arrowhead Pharmaceuticals, Inc. has a license and research collaboration agreement with Janssen Pharmaceuticals, Inc. to develop RNAi therapeutics. The company was formerly known as Arrowhead Research Corporation and changed its name to Arrowhead Pharmaceuticals, Inc. in April 2016. Arrowhead Pharmaceuticals, Inc. was incorporated in 1989 and is headquartered in Pasadena, California.

Details
Name: Arrowhead Pharmaceuticals, Inc.
HDP1
Exchange: DB
Founded: 1989
$2,461,118,727
101,654,477
Website: http://arrowheadpharma.com
Address: Arrowhead Pharmaceuticals, Inc.
177 East Colorado Boulevard,
Suite 700,
Pasadena,
California, 91105,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGS ARWR Common Stock Nasdaq Global Select US USD 13. Jan 2004
DB HDP1 Common Stock Deutsche Boerse AG DE EUR 13. Jan 2004
LSE 0HI3 Common Stock London Stock Exchange GB USD 13. Jan 2004
BRSE HDP1 Common Stock Berne Stock Exchange CH CHF 13. Jan 2004
Number of employees
Current staff
Staff numbers
134
Arrowhead Pharmaceuticals employees.
Industry
Biotechnology
Pharmaceuticals & Biotech
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2020/04/05 20:36
End of day share price update: 2020/04/03 00:00
Last estimates confirmation: 2020/03/31
Last earnings filing: 2020/02/05
Last earnings reported: 2019/12/31
Last annual earnings reported: 2019/09/30


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.