MNTA  Momenta Pharmaceuticals Inc.

Exchange

NASDAQ

Sector

Health Care

Industry

Biotechnology: Biological Products (No Diagnostic Substances)

Market Cap.

1.06B

Vuru Grade

31.00/100

Current Price

$15.40
+0.30 (+1.99%)

Company Metrics

  • P/E 13.83
  • P/S 9.51
  • P/B 2.8
  • EPS -1.34
  • Cash ROIC -52.09%
  • Cash Ratio 9.03
  • Dividend 0 / 0%
  • Avg. Vol. 705,284.00
  • Shares 68.83M
  • Market Cap. 1.06B

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

Momenta Pharmaceuticals, Inc. Earnings Take a Back Seat
Motley Fool - Feb 22, 2017
Momenta Pharmaceuticals (NASDAQ:MNTA) reported fourth-quarter earnings on Tuesday, but analysts weren't discussing the numbers.
Momenta Delay Means Race For Copaxone Generic Is On - Seeking Alpha
Momenta Pharmaceuticals Inc. (MNTA) Plunges 5.92% on February 22 - Equities.com
Why Momenta Pharmaceuticals, Inc. Jumped Higher Today
Motley Fool - Oct 11, 2016
Before then, it seems likely Momenta will try and partner M923 (again). Last month, Momenta announced that it will regain rights to the drug from Shire.
A Compelling Risk/Reward Seen In Momenta Pharmaceuticals - Benzinga
Momenta Pharmaceuticals (MNTA) Stock Surges, Barclays Upgrades - TheStreet.com
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 Pharmaceuticals Announces District Court Decision to Invalidate Teva ... - Yahoo Finance
Momenta Pharmaceuticals Inc. (MNTA) Surged To A New High On Patent Ruling - RTT News
Glancy Prongay & Murray LLP Commences Investigation on Behalf of Momenta ...
Business Wire (press release) - Feb 24, 2017
LOS ANGELES--(BUSINESS WIRE)--Glancy Prongay & Murray LLP (“GPM”) announces an investigation on behalf of Momenta Pharmaceuticals, Inc. (“Momenta” or the “Company”) (NASDAQ: MNTA) investors concerning the Company and its officers' ...
Momenta Pharma shares halted as drug application hits speed bump
MarketWatch - Feb 17, 2017
Momenta Pharmaceuticals Inc. MNTA, +0.00% were halted in the extended session Friday after the biotech company said a supplier's compliance issue could delay approval of a higher dose of one of its multiple sclerosis drugs.
Momenta Pharmaceuticals Announces FDA Warning Letter to Contracted Glatopa ... - GlobeNewswire (press release)
Momenta halted after noting compliance issue in drug application - Seeking Alpha
Momenta Pharmaceuticals, Inc.: Good News from Courts and the FDA Ahead?
Motley Fool - Aug 9, 2016
While the report included sales of Momenta's and partner Novartis AG's (NYSE:NVS) Glatopa, the generic version of Teva Pharmaceutical Industries' (NYSE:TEVA) once-daily Copaxone, investors should focus on the potential approval of the generic ...
Momenta Pharmaceuticals Enters Oversold Territory
Nasdaq - Feb 23, 2017
In trading on Thursday, shares of Momenta Pharmaceuticals Inc (Symbol: MNTA) entered into oversold territory, hitting an RSI reading of 29.8, after changing hands as low as $14.425 per share.
SHAREHOLDER ALERT: Goldberg Law PC Announces an Investigation of Momenta ...
Business Wire (press release) - Feb 24, 2017
On February 17, 2017, Momenta revealed that a contracted Pfizer facility used to manufacture the Company's Glatopa product was sent a warning letter from the U.S.
Analysts Issue Forecasts for Momenta Pharmaceuticals, Inc.'s FY2021 Earnings ...
Sports Perspectives - 17 hours ago
Momenta Pharmaceuticals logo Momenta Pharmaceuticals, Inc. (NASDAQ:MNTA) - Analysts at Leerink Swann issued their FY2021 earnings per share estimates for shares of Momenta Pharmaceuticals in a research note issued to investors on Tuesday.
Momenta Pharmaceuticals Announces Date of Fourth Quarter and Year End 2016 ...
Nasdaq - Feb 7, 2017
07, 2017 (GLOBE NEWSWIRE) -- Momenta Pharmaceuticals, Inc. (NASDAQ:MNTA), a biotechnology company specializing in the characterization and engineering of complex drugs, will release its financial results for the fourth quarter and year ended ...
The Leerink Swann Weighs in on Momenta Pharmaceuticals, Inc.'s FY2017 Earnings ... - DailyQuint
Analysts Set Momenta Pharmaceuticals, Inc. (MNTA) Target Price at $16.89 - The Cerbat Gem
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.

$15.40 Current Price

$-1.69 Growth Price (DCF)

Why is this negative?


Show Free Cash Flow numbers

$4.70 NCA Price

Overvalued by 69.47%

$18.48 Book Price

Undervalued by 20.01%


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 $52.09 of cash for every $100 invested.
Figures in USD. Fiscal year ends in December
20112012201320142015
Free Cash Flow 205.03M -6.49M -96.28M -73.53M -75.58M
divided by
Invested Capital 56.44M 47.87M 49.19M 40.90M 32.21M
Cash ROIC 363.24% -13.56% -195.73% -179.78% -234.63%

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 $16.40 loss for every $100 of Shareholders' Equity.
Figures in USD. Fiscal year ends in December
20112012201320142015
Net Income 180.36M -58.65M -108.41M -98.60M -83.31M
divided by
Stockholders' Equity 403.08M 360.49M 269.84M 206.37M 369.98M
Return on Equity 44.74% -16.27% -40.18% -47.78% -22.52%

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
2006200720082009201020112012201320142015
Free Cash Flow -34.99M -67.65M -51.83M -56.95M -2.73M 205.03M -6.49M -96.28M -73.53M -75.58M

Very Strong Balance Sheet

MNTA has more Cash than its Total Liabilities, resulting in $4.34 Net Cash per share. In other words, if you buy MNTA today, the price you're paying for shares is actually $11.06 because $4.34 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
2006200720082009201020112012201320142015
Cash 191.27M 135.94M 108.53M 95.65M 141.76M 348.44M 340.60M 245.68M 191.53M 350.04M
Current Assets 198.06M 147.71M 112.58M 102.09M 203.31M 399.42M 357.17M 265.59M 205.33M 374.71M
Total Assets 216.39M 168.30M 132.20M 118.45M 227.57M 420.91M 406.63M 316.82M 256.22M 421.04M
Current Liabilities 12.76M 22.41M 19.09M 16.34M 17.65M 16.03M 18.16M 21.94M 23.79M 38.78M
Total Liabilities 33.79M 40.76M 32.70M 24.29M 21.47M 17.83M 46.14M 46.98M 49.85M 51.06M
Stockholder' Equity 182.59M 127.54M 99.51M 94.16M 206.10M 403.08M 360.49M 269.84M 206.37M 369.98M
Current Ratio 15.52 6.59 5.90 6.25 11.52 24.92 19.67 12.10 8.63 9.66
TL-to-TA 0.16 0.24 0.25 0.21 0.09 0.04 0.11 0.15 0.19 0.12

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
2006200720082009201020112012201320142015
Retained Earnings -125.52M -194.40M -257.04M -321.05M -283.76M -103.40M -162.05M -270.46M -369.06M -452.37M
Retained Earnings Growth - -54.88% -32.22% -24.90% 11.62% 63.56% -56.72% -66.90% -36.46% -22.57%

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
2006200720082009201020112012201320142015
Net Income -51.91M -68.88M -62.64M -64.01M 37.29M 180.36M -58.65M -108.41M -98.60M -83.31M
divided by
Revenue 16.00M 21.56M 14.57M 20.25M 116.77M 283.07M 63.92M 35.47M 52.25M 89.65M
Net Profit Margin -324.48% -319.47% -429.90% -316.12% 31.93% 63.71% -91.75% -305.68% -188.71% -92.93%

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
2006200720082009201020112012201320142015
Gross Profit 16.00M 21.56M 14.57M 20.25M 116.77M 218.41M 63.92M 35.47M 52.25M 89.65M
divided by
Revenue 16.00M 21.56M 14.57M 20.25M 116.77M 283.07M 63.92M 35.47M 52.25M 89.65M
Gross Margin 100.00% 100.00% 100.00% 100.00% 100.00% 77.16% 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
2006200720082009201020112012201320142015
Capital Expenditure 9.78M 11.32M 3.41M 1.65M 1.67M 8.70M 15.49M 9.45M 8.36M 4.07M
divided by
Net Income -51.91M -68.88M -62.64M -64.01M 37.29M 180.36M -58.65M -108.41M -98.60M -83.31M
Capital Expenditure Ratio -18.84% -16.43% -5.45% -2.58% 4.48% 4.82% -26.41% -8.72% -8.48% -4.88%

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
2006200720082009201020112012201320142015
Dividend Paid - - - - - - - - - -
divided by
Shares Outstanding 32.10M 35.64M 35.96M 40.06M 45.94M 50.82M 50.41M 50.91M 51.66M 63.13M
Dividend Paid Per Share - - - - - - - - - -
Price at Year End 15.73 7.34 11.28 13.03 15.02 17.39 11.38 17.99 11.92 14.74
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
2006200720082009201020112012201320142015
Shares Outstanding 32.10M 35.64M 35.96M 40.06M 45.94M 50.82M 50.41M 50.91M 51.66M 63.13M
Stock Bought Back - -9.92% -0.89% -10.23% -12.81% -9.60% 0.82% -0.97% -1.47% -18.16%
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