Stealth BioTherapeutics Corp, a clinical-stage biotechnology company, focuses on the discovery, development, and commercialization of therapies for diseases involving mitochondrial dysfunction.
The last earnings update was 135 days ago.
Discounted Cash Flow Calculation for NasdaqGM:MITO using 2 Stage Free Cash Flow to Equity Model
The calculations below outline how an intrinsic value for
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.
NasdaqGM:MITO DCF 1st Stage: Next 10 year cash flow forecast
Amount off the current price
is available for.
Share price is
vs Future cash flow value of
Current Discount Checks
to be considered undervalued it must be available for at least 20% below the
current price. Less than 40% is even better.
Stealth BioTherapeutics's share price is below the future cash flow value, and at a moderate discount (> 20%).
Stealth BioTherapeutics's share price is below the future cash flow value, and 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
is considered below, and whether this is a fair price.
Price based on past earnings
Stealth BioTherapeutics's earnings available for a low price, and how does
this compare to other companies in the same industry?
Stealth BioTherapeutics's earnings are expected to grow significantly at over 20% yearly.
Unable to determine if Stealth BioTherapeutics is high growth as no revenue estimate data is available.
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.
Stealth BioTherapeutics's performance over the past 5 years by checking for:
Has earnings increased in past 5 years? (1 check)
Has the earnings growth in the last year exceeded that of the
industry? (1 check)
Is the recent earnings growth over the last year higher than the average annual growth over the
past 5 years? (1 check)
Is the Return on Equity (ROE) higher than 20%? (1 check)
Is the Return on Assets (ROA) above industry average? (1 check)
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.
has a total score of
0/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
A company's financial position is much like your own financial position,
it includes everything you own
The boxes below represent the relative size of what makes up
Stealth BioTherapeutics's finances.
The net worth of a company is the difference between its assets and liabilities.
Stealth BioTherapeutics is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
Stealth BioTherapeutics's cash and other short term assets cover its long term commitments.
This treemap shows a more detailed breakdown of
Stealth BioTherapeutics'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
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
Low level of unsold assets.
Debt is covered by short term assets, assets are 2.3x debt.
Nearly all companies have debt. Debt in itself isn’t
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.
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.
TENURE AS CEO
Ms. Irene P. McCarthy, also known as Reenie, J.D., has been President, Chief Executive Officer and Secretory of Stealth BioTherapeutics Incorporated since October 2018 and has been its Director since June 2018. Ms. McCarthy served as Investor Director of CellCentric Ltd. since October 16, 2015. Ms. McCarthy served as a Member of Morningside Technology Advisory, LLC (and affiliates), a private advisory company, from January 2009 to April 2016. Ms. McCarthy remains a Director of Morningside Technology Advisory, LLC. She has served as Chief Executive Officer of Stealth Delaware since February 2016 and as President and Secretary of Stealth Delaware since August 2015 and has been its Director since July 2009. She has served as a Director for numerous private biotechnology companies developing drugs across a broad spectrum of therapeutic focus areas. Ms. McCarthy was a Director of Biovex Group, Inc., a biotechnology company developing an oncolytic vaccine for melanoma and Head and neck cancer, from 2009 to 2011, when it was acquired by Amgen Inc. Prior to joining the Morningside group, Ms. McCarthy spent five years as a corporate lawyer with Richards & O’Neil LLP. Ms. McCarthy serves as a Director at Atreaon, Inc., Clean Membranes, Inc. and Delaware Power Systems Corp. Ms. McCarthy served as Director of DNAtriX, Inc. until November 2, 2017. Ms. McCarthy represents Morningside on several private company boards. She serves at Morningside Ventures. She served as a Director of CellCentric Ltd. since January 2011. Ms. McCarthy received her A.B., cum laude, from Bates College and her J.D. from the University of Pennsylvania Law School.
Insufficient data for Reenie to compare compensation growth.
Insufficient data for Reenie to establish whether their remuneration is reasonable compared to companies of similar size in United States of America.
Management Team Tenure
Average tenure and age of the
management team in years:
The tenure for the Stealth BioTherapeutics management team is about average.
Chief Financial Officer
Chief Legal Counsel
Chief Medical Officer
Chief Business Officer
Chief Medical Officer
Chief Clinical Development Officer
Board of Directors Tenure
Average tenure and age of the
board of directors in years:
The average tenure for the Stealth BioTherapeutics board of directors is less than 3 years, this suggests a new board.
Board of Directors
Chairman of the Board
Who owns this company?
Recent Insider Trading
No 3 month open market individual insider trading information.
Stealth BioTherapeutics Corp, a clinical-stage biotechnology company, focuses on the discovery, development, and commercialization of therapies for diseases involving mitochondrial dysfunction. Its lead product candidate, Elamipretide, has the potential to treat rare genetic and common age-related mitochondrial diseases. The company’s product candidates include SBT-20, a small peptide that targets and binds reversibly to cardiolipin, stabilizing mitochondrial structure, and function under conditions of oxidative stress; and SBT-272, a lead discovery pipeline compound, evaluating for rare neurodegenerative diseases, such as amyotrophic lateral sclerosis. Stealth BioTherapeutics Corp was founded in 2006 and is based in George Town, the Cayman Islands.
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