ARRY  Array Biopharma Inc.

Exchange

NASDAQ

Sector

Consumer Durables

Industry

Major Pharmaceuticals

Market Cap.

1.90B

Vuru Grade

22.82/100

Current Price

$11.08
-0.26 (-2.29%)

Company Metrics

  • P/E 3010
  • P/S 44.53
  • P/B 166.76
  • EPS -0.72
  • Cash ROIC -43.98%
  • Cash Ratio 3.37
  • Dividend 0 / 0%
  • Avg. Vol. 4.12M
  • Shares 171.48M
  • Market Cap. 1.90B

Company Description

Array BioPharma Inc., a biopharmaceutical company, focuses on the discovery, development, and commercialization of small molecule drugs to treat patients with cancer, inflammatory, and metabolic diseases in North America, Europe, and Asia Pacific. Its programs under development pipeline include ARRY-403, a glucokinase activator for Type 2 diabetes, that is in a Phase 1 multiple ascending dose tria... more


Download 10 Years of Financial Statements:
Income Statement   Balance Sheet   Cash Flow

News

Buy or Sell? What Analysts Recommends: MGIC Investment Corporation (MTG ...
StockNewsJournal - 23 hours ago
Array BioPharma Inc. (NASDAQ:ARRY), maintained return on investment for the last twelve months at -, higher than what Reuters data shows regarding industry's average.
Array BioPharma Inc. (ARRY): Examining the Technicals
Economic News - 19 hours ago
Investors have been carefully witnessing the recent activity of Array BioPharma Inc. (NASDAQ:ARRY) stock. Analysts often use price and volume data to predict future stock performance.
How Insiders and Institutions are Trading Array BioPharma Inc. (ARRY) - StockNewsGazette
Array BioPharma Inc. (ARRY) has an Average True Range value of 0.46 - StandardOracle
Analyst Stance On Two Stocks: Arcos Dorados Holdings Inc. (ARCO), Array ...
Post Analyst - 18 hours ago
The recently concluded session had traders exchanging Arcos Dorados Holdings Inc. (NYSE:ARCO) high level. Roughly 0.69 million shares changed hands compared to the three-month volume average 0.46 million shares.
Analyst Opinion Summary: Arcos Dorados Holdings Inc. (ARCO), Array BioPharma ... - Analyst Journal
Array Biopharma Inc (ARRY) Ichimoku Reveals Positive Momentum
Concord Register - 4 hours ago
Array Biopharma Inc (ARRY) shares opened the last session at $11.43, touching a high of $11.43 and a low of $11.10 , yielding a change of -0.22.
Why to Keeping Eye on Array BioPharma Inc. (ARRY), BioPharmX Corporation (BPMX)?
StockNewsJournal - Oct 12, 2017
Investors who are keeping close eye on the stock of Array BioPharma Inc. (NASDAQ:ARRY) established that the company was able to keep return on investment at - in the trailing twelve month while Reuters data showed that industry's average stands at 6.17 ...
Reading the Tea Leaves for Array BioPharma Inc. (ARRY) - Economic News
Analysts Swing to Diverse Views for Array BioPharma Inc. (ARRY), Banco Bilbao ... - Post Analyst
What's In Store For Array BioPharma Inc. (ARRY), Biogen Inc. (BIIB)?
Post Analyst - Oct 17, 2017
Array BioPharma Inc. (NASDAQ:ARRY) recent decline occurred on low volume with 3.22 million contracts changing hands on 16-Oct-17.
Array BioPharma Inc. (ARRY) Reports Insider LEFKOFF KYLE's sold Of 38865 Shares - Economic News
Array BioPharma Inc. (ARRY) technical analysis: Which way the stock is headed? - StockNewsGazette
Taking a Look at the Data Behind Array BioPharma Inc. (ARRY)
StockNewsJournal - Sep 29, 2017
Array BioPharma Inc. (ARRY) is an interesting player in the Healthcare space, with a focus on Biotechnology. The stock has been active on the tape, currently trading at $12.25, up from yesterday's close by 0.74%.
Are Hedge Funds Betting Against Array BioPharma Inc. (ARRY)? - Post Analyst
Another motive To buy these stock: The AES Corporation (AES), Array BioPharma ...
StockNewsJournal - Oct 16, 2017
The AES Corporation (NYSE:AES) market capitalization at present is $7.41B at the rate of $11.25 a share. The firm's price-to-sales ratio was noted 0.00 in contrast with an overall industry average of 90.23.
Array Biopharma Inc (ARRY) Shares Needle Moving -0.53%
Sheridan Daily - 17 hours ago
Shares of Array Biopharma Inc (ARRY) have seen the needle move -0.53% or -0.06 in the most recent session. The NASDAQ listed company saw a recent bid of $11.28 on 780993 volume.
Should You Buy Lexicon Pharmaceuticals, Inc. (LXRX) or Array BioPharma Inc ...
Economic News - Oct 13, 2017
Lexicon Pharmaceuticals, Inc. (NASDAQ:LXRX) and Array BioPharma Inc. (NASDAQ:ARRY) are both Healthcare companies that recently hit new low.
Growth Rate Assumed by Market

We did a reverse valuation to calculate the growth rate the market is assuming for ARRY to be considered fairly valued at its current market price. It's useful to compare this to the growth rate we're assuming for the Growth Price.

Future Free Cash Flow Growth Rate

This is the annual growth rate we've applied to calculate ARRY's Free Cash Flow for the next 10 years. To calculate it, we looked at several time periods of the last 10 years. Feel free to adjust it, but we limit the initial growth rate to 20% and slow it down over the years. Otherwise, long-term sustainability issues come into play.

Discount Rate

The discount rate is the annual rate of return an investor requires to take the risk of investing in a single stock. To account for that risk, this should be above 8-10%, as this is the avg. annual rate of return for the S&P500 over the past 100 years.

$11.08 Current Price

$-1.54 Growth Price (DCF)

Why is this negative?


Show Free Cash Flow numbers

$0.02 NCA Price

Overvalued by 99.85%

$-0.51 Book Price

Overvalued by 104.57%


Very Poor Cash Return on Invested Capital over the past 5 years

ARRY has failed to generate positive returns on its investments in buildings, projects and equipment. This could be due to poor management, lack of an economic moat or the capital intensive nature of the business.

ARRY has lost $43.98 of cash for every $100 invested.
Figures in USD. Fiscal year ends in June
20132014201520162017
Free Cash Flow -89.41M -74.30M -8.30M -73.25M -42.87M
divided by
Invested Capital -22.83M -24.68M -22.54M 6.52M -24.73M
Cash ROIC 391.62% 301.06% 36.82% -1,122.76% 173.38%

Very Poor Return on Equity over the past 5 years

ARRY has shown an inability to deliver results for shareholders. This could be due to poor management, ARRY operating in a highly competitive industry, or having a weak business in general.

ARRY has generated a $194.84 loss for every $100 of Shareholders' Equity.
Figures in USD. Fiscal year ends in June
20132014201520162017
Net Income -61.94M -85.26M 9.37M -92.84M -116.82M
divided by
Stockholders' Equity -21.91M -25.72M 42.65M -37.93M 11.73M
Return on Equity - - 21.97% - -996.15%

Poor Business Performance over the past 10 years

ARRY's inability to produce positive free cash flow for the majority of the past 10 years is concerning. It should be a red flag, since this company does not have a track record of delivering results for shareholders. This could be due to poor management or the nature of its business.

ARRY has been losing money for the majority of the past 10 years.
Figures in USD. Fiscal year ends in June
2008200920102011201220132014201520162017
Free Cash Flow -53.92M -95.88M 16.31M -67.84M -34.98M -89.41M -74.30M -8.30M -73.25M -42.87M

Weak Balance Sheet

ARRY's financial position is not ideal. The key is to check whether ARRY is using debt to fuel its growth and the sustainability of that tendency. Highly capital intensive businesses (see Economic Moat) follow this route, which can deeply impact the future prospects of the business.
Figures in USD. Fiscal year ends in June
2008200920102011201220132014201520162017
Cash 56.45M 40.50M 111.51M 64.09M 89.18M 108.24M 111.00M 178.33M 109.94M 234.32M
Current Assets 100.75M 44.92M 117.30M 70.56M 93.11M 121.31M 121.68M 191.05M 155.30M 270.18M
Total Assets 163.08M 95.06M 159.18M 89.37M 108.07M 135.99M 139.05M 198.21M 168.90M 279.15M
Current Liabilities 34.41M 50.30M 77.93M 69.81M 75.94M 50.58M 52.73M 42.42M 52.43M 69.55M
Total Liabilities 125.05M 168.76M 275.86M 220.23M 193.88M 157.90M 164.77M 155.55M 206.83M 267.42M
Stockholder' Equity 38.03M -73.70M -116.68M -130.86M -85.81M -21.91M -25.72M 42.65M -37.93M 11.73M
Current Ratio 2.93 0.89 1.51 1.01 1.23 2.40 2.31 4.50 2.96 3.88
TL-to-TA 0.77 1.78 1.73 2.46 1.79 1.16 1.18 0.78 1.22 0.96

Low or No Reinvestment of Profits over the past 10 years

ARRY has either been retaining a small amount of their earnings or has done so inconsistently. A lack of consistency could be due to ARRY operating at a loss or them having such a strong economic moat they feel comfortable spending profits on growth. Be wary of future prospects and if applicable, inspect the moat's sustainability.
Figures in USD. Fiscal year ends in June
2008200920102011201220132014201520162017
Retained Earnings -285.39M -413.20M -490.83M -547.16M -570.74M -632.68M -717.94M -708.57M -801.41M -918.66M
Retained Earnings Growth - -44.79% -18.79% -11.48% -4.31% -10.85% -13.48% 1.30% -13.10% -14.63%

Erratic Net Profit Margins over the past 10 years

ARRY has had highly erratic net profit margins which are a great cause for concern. This company may operate in a highly volatile industry, or it may just have poor performance. Look at reasons for this inconsistency to understand if there is any reason to look past it.
Figures in USD. Fiscal year ends in June
2008200920102011201220132014201520162017
Net Income -96.29M -127.82M -77.63M -56.32M -23.58M -61.94M -85.26M 9.37M -92.84M -116.82M
divided by
Revenue 28.81M 24.98M 53.88M 71.90M 85.14M 69.58M 42.08M 51.91M 137.88M 150.85M
Net Profit Margin -334.24% -511.63% -144.08% -78.34% -27.70% -89.02% -202.62% 18.05% -67.33% -77.44%

Varying Pricing Power over the past 10 years

ARRY has maintained substantial gross margins, suggesting that they have been able to set prices without consideration of the cost of goods sold. However, there is a substantial variation in their Gross Profit Margins from year-to-year, which indicates inconsistent performance. Look at reasons for this inconsistency to determine the likelihood of future sustainability.

$40.87 of every $100 worth of sales have been Gross Profit, on average over the past 10 years.
Figures in USD. Fiscal year ends in June
2008200920102011201220132014201520162017
Gross Profit 7.44M 5.13M 25.56M 42.99M 28.42M 39.50M -3.89M 7.52M 114.71M 115.46M
divided by
Revenue 28.81M 24.98M 53.88M 71.90M 85.14M 69.58M 42.08M 51.91M 137.88M 150.85M
Gross Margin 25.84% 20.52% 47.44% 59.78% 33.38% 56.77% -9.24% 14.48% 83.20% 76.54%

Medium Capital Intensity over the past 10 years

ARRY has used a reasonable amount of their financial resources to invest in facilities and equipment required to produce its goods and services. This isn't perfect, but it shouldn't be an area of concern unless this number is strongly trending upwards.

26.76% of Profits are being spent on Capital Expenditures, like Property, Plant, & Equipment, required to run the business.
Figures in USD. Fiscal year ends in June
2008200920102011201220132014201520162017
Capital Expenditure 8.19M 2.94M 1.25M 1.90M 1.44M 2.34M 2.61M 2.51M 3.16M 3.52M
divided by
Net Income -96.29M -127.82M -77.63M -56.32M -23.58M -61.94M -85.26M 9.37M -92.84M -116.82M
Capital Expenditure Ratio -8.50% -2.30% -1.61% -3.38% -6.09% -3.78% -3.07% 26.76% -3.40% -3.01%

No Dividend History over the past 10 years

ARRY has never distributed dividends or has recently suspended their dividend distribution.
Figures in USD. Fiscal year ends in June
2008200920102011201220132014201520162017
Dividend Paid - - - - - - - - - -
divided by
Shares Outstanding 47.31M 47.84M 50.22M 55.45M 70.62M 107.79M 123.40M 141.69M 142.96M 163.21M
Dividend Paid Per Share - - - - - - - - - -
Price at Year End 3.80 2.76 2.98 2.16 3.60 4.88 4.76 4.15 8.79 8.32
Dividend Yield - - - - - - - - - -

No History of Stock Buybacks over the past 10 years

We're neutral on this. It's not necessarily good or bad that ARRY hasn't initiated a stock buyback.
Figures in USD. Fiscal year ends in June
2008200920102011201220132014201520162017
Shares Outstanding 47.31M 47.84M 50.22M 55.45M 70.62M 107.79M 123.40M 141.69M 142.96M 163.21M
Stock Bought Back - -1.11% -4.73% -9.43% -21.48% -34.49% -12.65% -12.91% -0.89% -12.40%
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