ARRY  Array Biopharma Inc.

Exchange

NASDAQ

Sector

Consumer Durables

Industry

Major Pharmaceuticals

Market Cap.

1.84B

Vuru Grade

15.85/100

Current Price

$10.88
-0.49 (-4.31%)

Company Metrics

  • P/E 3010
  • P/S 47.54
  • P/B 36.92
  • EPS -0.66
  • Cash ROIC -66.39%
  • Cash Ratio 2.10
  • Dividend 0 / 0%
  • Avg. Vol. 4.09M
  • Shares 142.96M
  • Market Cap. 1.84B

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

How High Can Array BioPharma Inc. Stock Go?
Motley Fool - Feb 21, 2017
That's exactly what Array BioPharma (NASDAQ:ARRY) has done. And most of those impressive gains came over the last six months.
The Array BioPharma Inc. (ARRY) Short Interest Update - DailyQuint
Analyst's Watch: Array Biopharma Inc (NASDAQ:ARRY) - Post Registrar
Here's Why Array Biopharma Inc Stock Is Climbing Again Today
Motley Fool - Feb 9, 2017
Shares of Array Biopharma Inc (NASDAQ:ARRY), a clinical-stage biotech with a focus on cancer, gained 17.38% as of 4 p.m. EST on Thursday.
Array BioPharma 2Q Loss Beats Street (ARRY) - Investopedia
Array Biopharma Higher After Q4 Beat - Benzinga
Why Array BioPharma Soared 23.7% in January
Motley Fool - Feb 2, 2017
After Array BioPharma (NASDAQ:ARRY) updated investors on its progress toward its first commercial-stage medicine at the JP Morgan Healthcare Conference in early January, its stock rose 23.7% higher last month, according to S&P Global Market ...
Stifel Just Issued “Buy” Rating on Array Biopharma Inc (ARRY) - Highland Mirror
Array BioPharma Inc. (ARRY) Short Interest Update - The Cerbat Gem
Cowen Boosts Price Target on Array Biopharma Inc (ARRY) Amid Stellar Momentum
Smarter Analyst - Feb 10, 2017
Array Biopharma Inc (NASDAQ:ARRY) shares were soaring 17% yesterday on back of a second fiscal quarter update that has given investors signs of encouraging momentum.
Array BioPharma Inc. (ARRY) Moves Lower on Volume Spike for February 10 - Equities.com
Array BioPharma Inc. (ARRY) Broke Out To A New High After Q2 Loss Narrowed - RTT News
Shorts Seize On Leerink's Array Biopharma Downgrade
Benzinga - Jan 30, 2017
Array Biopharma Inc (NASDAQ: ARRY) shares are trading lower by $0.82 (7 percent) at $10.37 in Monday's session. The catalyst for the decline is a downgrade from Leerink Swann, which before the open downgraded the issue from Outperform to Market ...
Array BioPharma Inc. (ARRY) Plunges 5.18% on January 30 - Equities.com
The Technical Facts on Array BioPharma Inc. (ARRY) - The USA Commerce
Array Biopharma Inc (NASDAQ:ARRY) 2Q2017 Revenue Surpass Consensus
FinancialsTrend - Feb 17, 2017
Array Biopharma Inc (NASDAQ:ARRY) fiscal second quarter revenues of $44.5 million handily surpass consensus view of $31 million.
Checking Out the Technicals for Array BioPharma Inc. (ARRY) - The USA Commerce
RidgeWorth Capital Management LLC Holds Position in Array BioPharma Inc. (ARRY) - BNB Daily (blog)
Array BioPharma Inc. (ARRY) Plunges 6.44% on February 16
Equities.com - Feb 16, 2017
Array BioPharma Inc. (ARRY) had a rough trading day for Thursday February 16 as shares tumbled 6.44%, or a loss of $-0.77 per share, to close at $11.18.
Revenue Approximations Analysis: Array BioPharma Inc. (ARRY), Mattel, Inc. (MAT) - StockNewsJournal
Analyst Activity – Cowen and Company Reiterates Outperform on Array BioPharma ... - Market Exclusive
Array BioPharma Reports Financial Results For The Second Quarter Of Fiscal 2017
Yahoo Finance - Feb 9, 2017
9, 2017 /PRNewswire/ -- Array BioPharma Inc. (ARRY), a biopharmaceutical company focused on the discovery, development and commercialization of targeted small molecule cancer therapies, today reported results for its second quarter of fiscal 2017 and ...
Array BioPharma reports 2Q loss
Yahoo Finance - Feb 9, 2017
BOULDER, Colo. (AP) _ Array BioPharma Inc. (ARRY) on Thursday reported a loss of $23.3 million in its fiscal second quarter.
Today Analysts Focus on Sunoco Logistics Partners LP (SXL), Array BioPharma ...
StockNewsJournal - Feb 14, 2017
Array BioPharma Inc. (NASDAQ:ARRY), at its latest closing price of $11.77, it has a price-to-book ratio of 38.91, compared to an industry average at 9.14.
Stocks to Watch For: Sunoco Logistics Partners LP (NYSE:SXL), Array BioPharma ... - The Newburgh Press
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.

$10.88 Current Price

$-3.56 Growth Price (DCF)

Why is this negative?


Show Free Cash Flow numbers

$1.43 Book Price

Overvalued by 86.84%


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 $66.39 of cash for every $100 invested.
Figures in USD. Fiscal year ends in June
20122013201420152016
Free Cash Flow -34.98M -89.41M -74.30M -8.30M -73.25M
divided by
Invested Capital -57.04M -22.83M -24.68M -22.54M 6.52M
Cash ROIC 61.33% 391.62% 301.06% 36.82% -1,122.76%

Poor Return on Equity over the past 5 years

ARRY has shown an inability to deliver strong 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 only generated $4.39 of Earnings for every $100 of Shareholders' Equity.
Figures in USD. Fiscal year ends in June
20122013201420152016
Net Income -23.58M -61.94M -85.26M 9.37M -92.84M
divided by
Stockholders' Equity -85.81M -21.91M -25.72M 42.65M -37.93M
Return on Equity - - - 21.97% -

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
2007200820092010201120122013201420152016
Free Cash Flow -51.67M -53.92M -95.88M 16.31M -67.84M -34.98M -89.41M -74.30M -8.30M -73.25M

Very Weak Balance Sheet

ARRY is in a poor financial position. This could be due to a slowdown in sales, indulging in debt-fuelled growth, or the nature of ARRY's business. If it is highly capital intensive (see Economic Moat), they likely have to outlay significant capital just to stay competitive. This habit often destroys more value than it creates.
Figures in USD. Fiscal year ends in June
2007200820092010201120122013201420152016
Cash 141.33M 56.45M 40.50M 111.51M 64.09M 89.18M 108.24M 111.00M 178.33M 109.94M
Current Assets 145.40M 100.75M 44.92M 117.30M 70.56M 93.11M 121.31M 121.68M 191.05M 155.30M
Total Assets 174.97M 163.08M 95.06M 159.18M 89.37M 108.07M 135.99M 139.05M 198.21M 168.90M
Current Liabilities 24.57M 34.41M 50.30M 77.93M 69.81M 75.94M 50.58M 52.73M 42.42M 52.43M
Total Liabilities 67.27M 125.05M 168.76M 275.86M 220.23M 193.88M 157.90M 164.77M 155.55M 206.83M
Stockholder' Equity 107.70M 38.03M -73.70M -116.68M -130.86M -85.81M -21.91M -25.72M 42.65M -37.93M
Current Ratio 5.92 2.93 0.89 1.51 1.01 1.23 2.40 2.31 4.50 2.96
TL-to-TA 0.38 0.77 1.78 1.73 2.46 1.79 1.16 1.18 0.78 1.22

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
2007200820092010201120122013201420152016
Retained Earnings -189.10M -285.39M -413.20M -490.83M -547.16M -570.74M -632.68M -717.94M -708.57M -801.41M
Retained Earnings Growth - -50.92% -44.79% -18.79% -11.48% -4.31% -10.85% -13.48% 1.30% -13.10%

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
2007200820092010201120122013201420152016
Net Income -55.44M -96.29M -127.82M -77.63M -56.32M -23.58M -61.94M -85.26M 9.37M -92.84M
divided by
Revenue 36.97M 28.81M 24.98M 53.88M 71.90M 85.14M 69.58M 42.08M 51.91M 137.88M
Net Profit Margin -149.96% -334.24% -511.63% -144.08% -78.34% -27.70% -89.02% -202.62% 18.05% -67.33%

Inconsistent Gross Profit Margins over the past 10 years

ARRY has good gross profit margins, however inconsistency of these margins is a cause for concern. Look at reasons for this inconsistency to determine the likelihood of future sustainability.

$36.47 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
2007200820092010201120122013201420152016
Gross Profit 12.03M 7.44M 5.13M 25.56M 42.99M 28.42M 39.50M -3.89M 7.52M 114.71M
divided by
Revenue 36.97M 28.81M 24.98M 53.88M 71.90M 85.14M 69.58M 42.08M 51.91M 137.88M
Gross Margin 32.55% 25.84% 20.52% 47.44% 59.78% 33.38% 56.77% -9.24% 14.48% 83.20%

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
2007200820092010201120122013201420152016
Capital Expenditure 7.15M 8.19M 2.94M 1.25M 1.90M 1.44M 2.34M 2.61M 2.51M 3.16M
divided by
Net Income -55.44M -96.29M -127.82M -77.63M -56.32M -23.58M -61.94M -85.26M 9.37M -92.84M
Capital Expenditure Ratio -12.89% -8.50% -2.30% -1.61% -3.38% -6.09% -3.78% -3.07% 26.76% -3.40%

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
2007200820092010201120122013201420152016
Dividend Paid - - - - - - - - - -
divided by
Shares Outstanding 40.72M 47.31M 47.84M 50.22M 55.45M 70.62M 107.79M 123.40M 141.69M 142.96M
Dividend Paid Per Share - - - - - - - - - -
Price at Year End 8.50 3.80 2.76 2.98 2.16 3.60 4.88 4.76 4.15 8.79
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
2007200820092010201120122013201420152016
Shares Outstanding 40.72M 47.31M 47.84M 50.22M 55.45M 70.62M 107.79M 123.40M 141.69M 142.96M
Stock Bought Back - -13.93% -1.11% -4.73% -9.43% -21.48% -34.49% -12.65% -12.91% -0.89%
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