MNTA  Momenta Pharmaceuticals Inc.

Exchange

NASDAQ

Sector

Health Care

Industry

Biotechnology: Biological Products (No Diagnostic Substances)

Market Cap.

1.30B

Vuru Grade

31.00/100

Current Price

$17.55
+0.40 (+2.33%)

Growth Price

$5.22
Overvalued by 70.26%

Company Metrics

  • P/E 13.83
  • P/S 11.19
  • P/B 3.28
  • EPS -0.64
  • Cash ROIC -123.90%
  • Cash Ratio 5.00
  • Dividend 0 / 0%
  • Avg. Vol. 576,358.00
  • Shares 74.07M
  • Market Cap. 1.30B

Company Description

Momenta Pharmaceuticals, Inc., a biotechnology company, specializes in the in the characterization and process engineering of complex molecules. These complex molecules include proteins, polypeptides, and cell surface polysaccharides, such as heparan-sulfate proteoglycans (HSPGs). The company applies its technology for the development of generic versions of complex drug products, as well as for th... more


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

News

What happened with Momenta Pharmaceuticals this quarter?
Motley Fool - Aug 3, 2017
The company plans to submit its marketing application for M923 in the fourth quarter, although a launch isn't expected until 2020, as it waits for patents on Humira to expire or be invalidated.
Momenta Pharmaceuticals' (MNTA) CEO Craig Wheeler on Q2 2017 Results ... - Seeking Alpha
Why Momenta Pharmaceuticals, Inc. Shares Got Crushed Today
Motley Fool - Feb 21, 2017
Momenta Pharmaceuticals (NASDAQ:MNTA) stock is down 15.4% at 11:50 a.m. EST Tuesday after the company announced on Friday after the closing bell that its three-times-weekly version of Glatopa is unlikely to be approved this quarter due to a ...
Momenta Pharmaceuticals Reports Fourth Quarter and Year End 2016 Financial Results - GlobeNewswire (press release)
Momenta Delay Means Race For Copaxone Generic Is On - Seeking Alpha
Amphastar Announces Jury Verdict in Patent Litigation against Momenta ...
GlobeNewswire (press release) - Jul 24, 2017
RANCHO CUCAMONGA, Calif., July 24, 2017 (GLOBE NEWSWIRE) -- Amphastar Pharmaceuticals, Inc. (NASDAQ:AMPH) announced today that a federal jury delivered a unanimous verdict in favor of Amphastar in a lawsuit brought by Momenta ...
Why Momenta Pharmaceuticals, Inc. Stock Skyrocketed Higher Today
Motley Fool - Jan 31, 2017
Shares of Momenta Pharmaceuticals (NASDAQ:MNTA) are up over 20% at 12:28 p.m. EST after the company announced that the U.S.
Momenta Continues To Have A Lot Of Upside - Seeking Alpha
Momenta Pharmaceuticals Announces District Court Decision to Invalidate Teva ... - GlobeNewswire (press release)
Momenta Pharmaceuticals Appoints Santiago Arroyo, MD, Ph.D. as Chief Medical ...
GlobeNewswire (press release) - Jun 1, 2017
CAMBRIDGE, Mass., June 01, 2017 (GLOBE NEWSWIRE) -- Momenta Pharmaceuticals, Inc. (Nasdaq:MNTA), a biotechnology company specializing in the characterization and engineering of complex drugs, today announced the appointment of Santiago ...
Momenta Pharmaceuticals to Webcast Presentation at the 2017 Wells Fargo ...
GlobeNewswire (press release) - Aug 30, 2017
CAMBRIDGE, Mass., Aug. 30, 2017 (GLOBE NEWSWIRE) -- Momenta Pharmaceuticals, Inc. (NASDAQ:MNTA), a biotechnology company specializing in the characterization and engineering of complex drugs, today announced that it plans to provide a ...
A Somewhat Murky Outlook For Momenta Pharmaceuticals
Seeking Alpha - Dec 28, 2016
Although I have made some good gains from Momenta Pharmaceuticals over the past few months, it is one of the murkiest companies I follow in the biotech space.
Momenta Pharmaceuticals, Inc. v. Amphastar Pharmaceuticals, Inc. (D. Mass. 2017)
JD Supra (press release) - Aug 28, 2017
Last month, in Momenta Pharmaceuticals, Inc. v. Amphastar Pharmaceuticals, Inc., District Judge Nathaniel M. Gorton of the U.S.
Momenta Pharmaceuticals Announces Jury Verdict in Enoxaparin Sodium Injection ...
GlobeNewswire (press release) - Jul 21, 2017
CAMBRIDGE, Mass., July 21, 2017 (GLOBE NEWSWIRE) -- Momenta Pharmaceuticals, Inc. (NASDAQ:MNTA) today announced that the jury in the District Court for the District of Massachusetts in Boston has issued its verdict finding that the Company's U.S.
US jury sides with Amphastar over Momenta in drug patent trial - Reuters
Amphastar Escapes $1B Momenta, Sandoz Infringement Suit - Law360 (subscription)
Risk Malaise Alert in Option Market: Momenta Pharmaceuticals Inc Implied Price ...
CML News - Sep 23, 2017
Before we dive into any analysis we simply note that Momenta Pharmaceuticals Inc (NASDAQ:MNTA) risk is actually priced pretty low by the option market as of right now.
Growth Rate Assumed by Market

We did a reverse valuation to calculate the growth rate the market is assuming for MNTA 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 MNTA'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.

$17.55 Current Price

$5.22 Growth Price (DCF)

Overvalued by 70.26%


Growth Rate Assumed by Market: 102.08%


Future Free Cash Flow Growth Rate: 0.0%


Discount Rate: 15.0%


Show Free Cash Flow numbers

$4.35 NCA Price

Overvalued by 75.22%

$17.66 Book Price

Fairly valued


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

MNTA 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.

MNTA has lost $123.90 of cash for every $100 invested.
Figures in USD. Fiscal year ends in December
20122013201420152016
Free Cash Flow -6.49M -96.28M -73.53M -75.58M 2.28M
divided by
Invested Capital 47.87M 49.19M 40.90M 32.21M 53.91M
Cash ROIC -13.56% -195.73% -179.78% -234.63% 4.23%

Very Poor Return on Equity over the past 5 years

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

MNTA has generated a $26.48 loss for every $100 of Shareholders' Equity.
Figures in USD. Fiscal year ends in December
20122013201420152016
Net Income -58.65M -108.41M -98.60M -83.31M -21.00M
divided by
Stockholders' Equity 360.49M 269.84M 206.37M 369.98M 371.91M
Return on Equity -16.27% -40.18% -47.78% -22.52% -5.65%

Poor Business Performance over the past 10 years

MNTA'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.

MNTA has been losing money for the majority of the past 10 years.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Free Cash Flow -67.65M -51.83M -56.95M -2.73M 205.03M -6.49M -96.28M -73.53M -75.58M 2.28M

Very Strong Balance Sheet

MNTA has more Cash than its Total Liabilities, resulting in $3.34 Net Cash per share. In other words, if you buy MNTA today, the price you're paying for shares is actually $14.21 because $3.34 of Cash is included in the current share price. This much Cash is very healthy. It can help MNTA sustain itself in the face of any economic turmoil and makes a stock buyback more of a possibility.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Cash 135.94M 108.53M 95.65M 141.76M 348.44M 340.60M 245.68M 191.53M 350.04M 353.15M
Current Assets 147.71M 112.58M 102.09M 203.31M 399.42M 357.17M 265.59M 205.33M 374.71M 428.00M
Total Assets 168.30M 132.20M 118.45M 227.57M 420.91M 406.63M 316.82M 256.22M 421.04M 477.74M
Current Liabilities 22.41M 19.09M 16.34M 17.65M 16.03M 18.16M 21.94M 23.79M 38.78M 70.68M
Total Liabilities 40.76M 32.70M 24.29M 21.47M 17.83M 46.14M 46.98M 49.85M 51.06M 105.83M
Stockholder' Equity 127.54M 99.51M 94.16M 206.10M 403.08M 360.49M 269.84M 206.37M 369.98M 371.91M
Current Ratio 6.59 5.90 6.25 11.52 24.92 19.67 12.10 8.63 9.66 6.06
TL-to-TA 0.24 0.25 0.21 0.09 0.04 0.11 0.15 0.19 0.12 0.22

Low or No Reinvestment of Profits over the past 10 years

MNTA has either been retaining a small amount of their earnings or has done so inconsistently. A lack of consistency could be due to MNTA 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 December
2007200820092010201120122013201420152016
Retained Earnings -194.40M -257.04M -321.05M -283.76M -103.40M -162.05M -270.46M -369.06M -452.37M -473.38M
Retained Earnings Growth - -32.22% -24.90% 11.62% 63.56% -56.72% -66.90% -36.46% -22.57% -4.64%

Erratic Net Profit Margins over the past 10 years

MNTA 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 December
2007200820092010201120122013201420152016
Net Income -68.88M -62.64M -64.01M 37.29M 180.36M -58.65M -108.41M -98.60M -83.31M -21.00M
divided by
Revenue 21.56M 14.57M 20.25M 116.77M 283.07M 63.92M 35.47M 52.25M 89.65M 109.62M
Net Profit Margin -319.47% -429.90% -316.12% 31.93% 63.71% -91.75% -305.68% -188.71% -92.93% -19.16%

Strong Pricing Power over the past 10 years

MNTA has maintained substantial gross margins, suggesting that they have been able to set prices without consideration of the cost of goods sold. This potentially leaves flexibility in inflationary environments to raise prices on consumers and maintain profitability.

$97.72 of every $100 worth of sales have been Gross Profit, on average over the past 10 years.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Gross Profit 21.56M 14.57M 20.25M 116.77M 218.41M 63.92M 35.47M 52.25M 89.65M 109.62M
divided by
Revenue 21.56M 14.57M 20.25M 116.77M 283.07M 63.92M 35.47M 52.25M 89.65M 109.62M
Gross Margin 100.00% 100.00% 100.00% 100.00% 77.16% 100.00% 100.00% 100.00% 100.00% 100.00%

Low Capital Intensity over the past 10 years

MNTA has consistently used a small portion of their Net Income buying new equipment or investing in new facilities. This indicates that MNTA may require minimal investment to stay competitive. This leaves them with extra money to spend on growing their business and potentially buying back stock.

4.65% of Profits are being spent on Capital Expenditures, like Property, Plant, & Equipment, required to run the business.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Capital Expenditure 11.32M 3.41M 1.65M 1.67M 8.70M 15.49M 9.45M 8.36M 4.07M 5.61M
divided by
Net Income -68.88M -62.64M -64.01M 37.29M 180.36M -58.65M -108.41M -98.60M -83.31M -21.00M
Capital Expenditure Ratio -16.43% -5.45% -2.58% 4.48% 4.82% -26.41% -8.72% -8.48% -4.88% -26.71%

No Dividend History over the past 10 years

MNTA has never distributed dividends or has recently suspended their dividend distribution.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Dividend Paid - - - - - - - - - -
divided by
Shares Outstanding 35.64M 35.96M 40.06M 45.94M 50.82M 50.41M 50.91M 51.66M 63.13M 68.66M
Dividend Paid Per Share - - - - - - - - - -
Price at Year End 7.34 11.28 13.03 15.02 17.39 11.38 17.99 11.92 14.74 15.05
Dividend Yield - - - - - - - - - -

History of Stock Buybacks over the past 10 years

MNTA has some history of delivering increased value for shareholders in the form of stock buybacks. These have helped improve financial metrics and increase each shareholders' relative ownership stake in the company, due to fewer shares outstanding and holding the same number of shares.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Shares Outstanding 35.64M 35.96M 40.06M 45.94M 50.82M 50.41M 50.91M 51.66M 63.13M 68.66M
Stock Bought Back - -0.89% -10.23% -12.81% -9.60% 0.82% -0.97% -1.47% -18.16% -8.05%
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