Heron Therapeutics, Inc.
Heron Therapeutics, Inc. Fundamental Analysis
Heron Therapeutics, Inc. (HRTX) shows moderate financial fundamentals with a PE ratio of -5.83, profit margin of -20.53%, and ROE of -11.15%. The company generates $0.1B in annual revenue with moderate year-over-year growth of 7.36%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of -1113.5/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze HRTX's fundamental strength across five key dimensions:
Efficiency Score
WeakHRTX struggles to generate sufficient returns from assets.
Valuation Score
ExcellentHRTX trades at attractive valuation levels.
Growth Score
ModerateHRTX shows steady but slowing expansion.
Financial Health Score
ModerateHRTX shows balanced financial health with some risks.
Profitability Score
WeakHRTX struggles to sustain strong margins.
Key Financial Metrics
Is HRTX Expensive or Cheap?
P/E Ratio
HRTX trades at -5.83 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, HRTX's PEG of 0.02 indicates potential undervaluation.
Price to Book
The market values Heron Therapeutics, Inc. at 19.75 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at -1.69 times EBITDA. This is generally considered low.
How Well Does HRTX Make Money?
Net Profit Margin
For every $100 in sales, Heron Therapeutics, Inc. keeps $-20.53 as profit after all expenses.
Operating Margin
Core operations generate -6.94 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-11.15 in profit for every $100 of shareholder equity.
ROA
Heron Therapeutics, Inc. generates $-12.57 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Heron Therapeutics, Inc. generates limited operating cash flow of $-16.87M, signaling weaker underlying cash strength.
Free Cash Flow
Heron Therapeutics, Inc. generates weak or negative free cash flow of $-17.37M, restricting financial flexibility.
FCF Per Share
Each share generates $-0.11 in free cash annually.
FCF Yield
HRTX converts -13.90% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
-5.83
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.02
vs 25 benchmark
P/B Ratio
Price to book value ratio
19.75
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.00
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
15.50
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.53
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-11.15
vs 25 benchmark
ROA
Return on assets percentage
-0.13
vs 25 benchmark
ROCE
Return on capital employed
-0.07
vs 25 benchmark
How HRTX Stacks Against Its Sector Peers
| Metric | HRTX Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | -5.83 | 29.01 | Better (Cheaper) |
| ROE | -1115.29% | 742.00% | Weak |
| Net Margin | -20.53% | -41408.00% (disorted) | Weak |
| Debt/Equity | 15.50 | 0.44 | Weak (High Leverage) |
| Current Ratio | 2.53 | 4.35 | Strong Liquidity |
| ROA | -12.57% | -17536.00% (disorted) | Weak |
HRTX outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Heron Therapeutics, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-4.84%
Industry Style: Defensive, Growth, Innovation
DecliningEPS CAGR
95.16%
Industry Style: Defensive, Growth, Innovation
High GrowthFCF CAGR
91.87%
Industry Style: Defensive, Growth, Innovation
High Growth