Nektar Therapeutics
Nektar Therapeutics Fundamental Analysis
Nektar Therapeutics (NKTR) shows moderate financial fundamentals with a PE ratio of -12.39, profit margin of -2.97%, and ROE of -3.99%. The company generates $0.1B in annual revenue with moderate year-over-year growth of 9.22%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of -614.7/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze NKTR's fundamental strength across five key dimensions:
Efficiency Score
WeakNKTR struggles to generate sufficient returns from assets.
Valuation Score
ExcellentNKTR trades at attractive valuation levels.
Growth Score
ExcellentNKTR delivers strong and consistent growth momentum.
Financial Health Score
ModerateNKTR shows balanced financial health with some risks.
Profitability Score
WeakNKTR struggles to sustain strong margins.
Key Financial Metrics
Is NKTR Expensive or Cheap?
P/E Ratio
NKTR trades at -12.39 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, NKTR's PEG of 0.43 indicates potential undervaluation.
Price to Book
The market values Nektar Therapeutics at 22.63 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at -15.44 times EBITDA. This is generally considered low.
How Well Does NKTR Make Money?
Net Profit Margin
For every $100 in sales, Nektar Therapeutics keeps $-2.97 as profit after all expenses.
Operating Margin
Core operations generate -2.38 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-3.99 in profit for every $100 of shareholder equity.
ROA
Nektar Therapeutics generates $-58.51 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Nektar Therapeutics generates limited operating cash flow of $-208.51M, signaling weaker underlying cash strength.
Free Cash Flow
Nektar Therapeutics generates weak or negative free cash flow of $-208.68M, restricting financial flexibility.
FCF Per Share
Each share generates $-10.28 in free cash annually.
FCF Yield
NKTR converts -10.28% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
-12.39
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.43
vs 25 benchmark
P/B Ratio
Price to book value ratio
22.63
vs 25 benchmark
P/S Ratio
Price to sales ratio
36.80
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.66
vs 25 benchmark
Current Ratio
Current assets to current liabilities
4.97
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-3.99
vs 25 benchmark
ROA
Return on assets percentage
-0.59
vs 25 benchmark
ROCE
Return on capital employed
-0.58
vs 25 benchmark
How NKTR Stacks Against Its Sector Peers
| Metric | NKTR Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | -12.39 | 29.43 | Better (Cheaper) |
| ROE | -399.10% | 692.00% | Weak |
| Net Margin | -297.07% | -44295.00% (disorted) | Weak |
| Debt/Equity | 1.66 | 0.35 | Weak (High Leverage) |
| Current Ratio | 4.97 | 4.48 | Strong Liquidity |
| ROA | -58.51% | -18045.00% (disorted) | Weak |
NKTR outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Nektar Therapeutics's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-26.93%
Industry Style: Defensive, Growth, Innovation
DecliningEPS CAGR
77.03%
Industry Style: Defensive, Growth, Innovation
High GrowthFCF CAGR
54.51%
Industry Style: Defensive, Growth, Innovation
High Growth