Arrowhead Pharmaceuticals, Inc.

ARWR

Pharmaceutical Preparations

Mkt Cap

$2.802B

PE

-5.87

Debt

Cash

$127.7M

EV

FCF

-$470.2M

Market Cap

$2.802B

P/E Ratio

-5.87

Debt

Cash

$127.7M

EV

FCF

-$470.2M

Charts data: {"Earnings":[{"time":"2014-09-29","value":-58725412},{"time":"2015-09-29","value":-91940882},{"time":"2016-09-29","value":-81723002},{"time":"2017-09-29","value":-34380295},{"time":"2018-09-29","value":-54450478},{"time":"2019-09-29","value":67974849},{"time":"2020-09-29","value":-84553226},{"time":"2021-09-29","value":-140848000},{"time":"2022-09-29","value":-176494000},{"time":"2023-09-29","value":-209275000}],"Sales":[{"time":"2014-09-29","value":175000},{"time":"2015-09-29","value":382000},{"time":"2016-09-29","value":158333},{"time":"2017-09-29","value":31407709},{"time":"2018-09-29","value":16142321},{"time":"2019-09-29","value":168795577},{"time":"2020-09-29","value":87992066},{"time":"2021-09-29","value":138287000},{"time":"2022-09-29","value":243231000},{"time":"2023-09-29","value":240735000}],"Net Margins":[{"time":"2014-09-29","value":-335.5737828571429},{"time":"2015-09-29","value":-240.68293717277487},{"time":"2016-09-29","value":-516.1463624133945},{"time":"2017-09-29","value":-1.0946451076708588},{"time":"2018-09-29","value":-3.373150490564523},{"time":"2019-09-29","value":0.4027051550053352},{"time":"2020-09-29","value":-0.9609187491972287},{"time":"2021-09-29","value":-1.0185194559141495},{"time":"2022-09-29","value":-0.7256229674671403},{"time":"2023-09-29","value":-0.8693168837103039}],"Assets":[{"time":"2014-09-29","value":182816756},{"time":"2015-09-29","value":132267914},{"time":"2016-09-29","value":128176505},{"time":"2017-09-29","value":104022280},{"time":"2018-09-29","value":111609951},{"time":"2019-09-29","value":349845437},{"time":"2020-09-29","value":522503743},{"time":"2021-09-29","value":710148000},{"time":"2022-09-29","value":691939000},{"time":"2023-09-29","value":765552000}],"Stockholders Equity":[{"time":"2014-09-29","value":166540443},{"time":"2015-09-29","value":110176822},{"time":"2016-09-29","value":95579447},{"time":"2017-09-29","value":81422350},{"time":"2018-09-29","value":95796189},{"time":"2019-09-29","value":244591440},{"time":"2020-09-29","value":461779132},{"time":"2021-09-29","value":408822000},{"time":"2022-09-29","value":418339000},{"time":"2023-09-29","value":287162000}],"ROE":[{"time":"2014-09-29","value":-0.3526195255767393},{"time":"2015-09-29","value":-0.8344847884612246},{"time":"2016-09-29","value":-0.8550269390029009},{"time":"2017-09-29","value":-0.42224641023011494},{"time":"2018-09-29","value":-0.5683992084486785},{"time":"2019-09-29","value":0.27791180672553384},{"time":"2020-09-29","value":-0.18310317669357135},{"time":"2021-09-29","value":-0.3445215766274809},{"time":"2022-09-29","value":-0.4218922930924442},{"time":"2023-09-29","value":-0.728769823305312}],"ROA":[{"time":"2014-09-29","value":-0.29141905351389125},{"time":"2015-09-29","value":-0.6950928552483258},{"time":"2016-09-29","value":-0.6375630385615523},{"time":"2017-09-29","value":-0.33048588244749105},{"time":"2018-09-29","value":-0.4878425042942632},{"time":"2019-09-29","value":0.19479574346999415},{"time":"2020-09-29","value":-0.1618186034697937},{"time":"2021-09-29","value":-0.18971538327221932},{"time":"2022-09-29","value":-0.24170483236239032},{"time":"2023-09-29","value":-0.2405649779505507}]}

Arrowhead Pharmaceuticals, Inc. develops medicines for the treatment of intractable diseases in the United States. The company's products in pipeline includes ARO-AAT, a RNA interference (RNAi) therapeutic candidate that is in phase II clinical trial for the treatment of liver diseases associated with alpha-1 antitrypsin deficiency; ARO-APOC3, which is in phase 2b and one phase 3 clinical trial to treat hypertriglyceridemia; ARO-ANG3 that is in phase 2b clinical trial for the treatment of dyslipidemia; ARO-HSD, which is completed phase 1/2 clinical trial to treat liver diseases; ARO-ENaC2, which is in pre-clinical stage for the treatment of dyslipidemia cystic fibrosis; ARO-C3 that is in phase 1/2a clinical trial to reduce production of complement component 3; ARO-DUX4, which is in pre-clinical stage for the treatment of facioscapulohumeral muscular dystrophy; ARO-XDH that is in phase 1 clinical trial to treat uncontrolled gout; ARO-COV, which is in pre-clinical stage for the treatment of COVID-19; ARO-RAGE, which is in phase 1/2a clinical trial to treat muco-obstructive or inflammatory pulmonary conditions; and ARO-MMP7 that is in phase 1/2a clinical trial for treatment of idiopathic pulmonary fibrosis. It is also involved in the development of JNJ-3989, a subcutaneously administered RNAi therapeutic candidate to treat chronic hepatitis B virus infection; Olpasiran to reduce the production of apolipoprotein A; and ARO-AMG1 for treating genetically validated cardiovascular targets. Arrowhead Pharmaceuticals, Inc. has a license and research collaboration agreement with Janssen Pharmaceuticals, Inc. to develop JNJ-75220795, ARO-JNJ2, and ARO-JNJ3 RNAi therapeutics for liver-expressed targets; and license and research collaboration agreement with Takeda Pharmaceuticals U.S.A., Inc. to develop RNAi therapeutic candidate as a treatment for liver disease. Arrowhead Pharmaceuticals, Inc. was incorporated in 1989 and is headquartered in Pasadena, California.

Sector

10-K
9/30/23
10-Q
6/30/23
10-Q
3/31/23
10-Q
12/31/22
10-K
9/30/22
10-Q
6/30/22
10-Q
3/31/22
10-Q
12/31/21
10-K
9/30/21
10-Q
6/30/21
10-Q
3/31/21
10-Q
12/31/20
10-K
9/30/20
10-Q
6/30/20
10-Q
3/31/20
10-Q
12/31/19
10-K
9/30/19
10-Q
6/30/19
10-Q
3/31/19
10-Q
12/31/18
10-K
9/30/18
10-Q
6/30/18
10-Q
3/31/18
10-Q
12/31/17

Chart P/E ratio

In the chart Earnings are multiplied by this value.

Earnings Growth 6.2%

Earnings Stability -120%

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

The Net Margin is too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Over time the ROA has been decreasing indicating a lower marginal ROA with respect to the calculated one, this could impede growth.

Years	09-2015	09-2016	09-2017	09-2018	09-2019	09-2020	09-2021	09-2022	09-2023	TTM
Net Margin	-24K%	-52K%	-110%	-340%	40%	-96%	-100%	-73%	-87%	-1.3K%
ROA	-70%	-64%	-33%	-49%	19%	-16%	-19%	-24%	-24%	-47%
ROE	-83%	-86%	-42%	-57%	28%	-18%	-34%	-42%	-73%	-96%

What is the average Net Margin?

The average Net Margin over the past 5 years is -109.08%.

What is the trend of Net Margin?

The trend of Net Margin over the past 5 years is +25.93%.

What is the average Return on Assets (ROA)?

The average ROA over the past 5 years is -18.78%.

What is the trend of Return on Assets (ROA)?

The trend of ROA over the past 5 years is -0.29%.

What is the average Return on Equity (ROE)?

The average ROE over the past 5 years is -32.81%.

What is the trend of Return on Equity (ROE)?

The trend of ROE over the past 5 years is -8.75%.

Safety & Stabiliy

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Data are missing

Years	09-2015	09-2016	09-2017	09-2018	09-2019	09-2020	09-2021	09-2022	09-2023	TTM
Debt FCF	-	-0.00	-0.01	-0.00	-	-	-	-	-	-
Debt Equity	-	0.00	0.00	0.00	-	-	-	-	-	-
MIN
Graham Stability	-	-	-	-	-	-	-	-	-	-

What is the Debt/FCF?

The Debt/FCF trailing twelve month is -.

What is the trend of Debt/FCF?

The trend of Debt/FCF over the past 5 years is -.

What is the Graham’s Stability?

Graham’s Stability measure stands at -.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Data are missing

Years	09-2016	09-2018	09-2020	09-2022	Trend
Revenue	180%	72%	40%	-1%	-660%
Net Income	-	-	-	-	-
Stockholders Equity	17%	25%	-15%	-31%	2.2%
FCF	-	-	-	-	-

What is the 5 year Revenue CAGR?

The Revenue CAGR over the past 5 years is +71.68%.

What is the trend of Revenue growth?

The trend of Revenue growth rate over the past 5 years is -657.2%.

What is the 5 year Earnings CAGR?

The Earnings CAGR over the past 5 years is +30.9%.

What is the trend of Earnings growth?

The trend of Earnings growth rate over the past 5 years is -.

What is the 5 year Equity CAGR?

The Equity CAGR over the past 5 years is +24.55%.

What is the trend of Equity growth?

The trend of Equity growth rate over the past 5 years is +2.24%.

What is the 5 year FCF CAGR?

The FCF CAGR over the past 5 years is +46.71%.

What is the trend of FCF growth?

The trend of FCF growth rate over the past 5 years is -.