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Sunday, September 03, 2023 6:28:19 AM
By GuruFocus Research-August 28, 2023
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Titan Pharmaceuticals Inc (NASDAQ:TTNP) experienced a loss of -8.52% in its daily trading and a 3-month loss of -30.01%. With a Loss Per Share of $0.57, the question arises: is the stock significantly overvalued? This article seeks to explore this valuation question by providing an in-depth analysis. Let's dive in.
Company Introduction
* Warning! GuruFocus has detected 7 Warning Signs with TTNP. Click here to check it out.
* TTNP 30-Year Financial Data
* The intrinsic value of TTNP
Titan Pharmaceuticals Inc is a pharmaceutical company that develops therapeutics utilizing its proprietary long-term drug delivery platform, ProNeura. This platform is used for the treatment of select chronic diseases where steady state delivery of a drug provides efficacy and/or safety benefits.
The company's first product based on ProNeura technology, the Probuphine (buprenorphine) implant, has been approved in the United States, Canada, and the European Union for the maintenance treatment of opioid use disorder in clinically stable patients taking 8 mg or less a day of oral buprenorphine.
At a price of $0.5 per share, Titan Pharmaceuticals (NASDAQ:TTNP) has a market cap of $7.60 million. However, the GF Value, an estimation of its fair value, stands at $0.01, indicating that the stock may be
significantly overvalued.
Understanding GF Value
The GF Value represents the current intrinsic value of a stock, derived from our proprietary method. This value is calculated based on historical multiples, GuruFocus adjustment factor based on the company's past returns and growth, and future estimates of business performance. In the case of Titan Pharmaceuticals (NASDAQ:TTNP), the stock appears to be significantly overvalued based on the GF Value calculation.
Because Titan Pharmaceuticals (NASDAQ:TTNP) is significantly overvalued, the long-term return of its stock is likely to be much lower than its future business growth.
Financial Strength
Investing in companies with poor financial strength carries a higher risk of permanent loss of capital. It's essential to review a company's financial strength before deciding whether to buy its stock. Titan Pharmaceuticals has a cash-to-debt ratio of 0.82, which is worse than 81.53% of companies in the Biotechnology industry. This indicates that the financial strength of Titan Pharmaceuticals is poor.
Profitability and Growth
Companies that have been consistently profitable over the long term offer less risk for investors. Titan Pharmaceuticals has been profitable 2 over the past 10 years. However, its operating margin is -15248.21%, which ranks worse than 92.93% of companies in the Biotechnology industry, indicating poor profitability.
Growth is a crucial factor in the valuation of a company. Titan Pharmaceuticals's 3-year average revenue growth rate is worse than 98.95% of companies in the Biotechnology industry. However, its 3-year average EBITDA growth rate is 55%, which ranks better than 92.63% of companies in the industry.
ROIC vs WACC
Comparing a company's return on invested capital (ROIC) and the weighted cost of capital (WACC) is another way to assess its profitability. For the past 12 months, Titan Pharmaceuticals's ROIC is -669.31, and its WACC is 12.15.
Conclusion
In conclusion, the stock of Titan Pharmaceuticals (NASDAQ:TTNP) appears to be significantly overvalued. The company's financial condition is poor, and its profitability is weak. However, its growth ranks better than 92.63% of companies in the Biotechnology industry.
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TRUISM
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Recent TTNP News
- Form SC 13D/A - General Statement of Acquisition of Beneficial Ownership: [Amend] • Edgar (US Regulatory) • 08/21/2024 12:32:38 PM
- Form 425 - Prospectuses and communications, business combinations • Edgar (US Regulatory) • 08/19/2024 08:23:26 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 08/19/2024 08:22:56 PM
- Titan Pharmaceuticals Enters Into Merger Agreement With KE Sdn. Bhd. • GlobeNewswire Inc. • 08/19/2024 08:11:12 PM
- Form 10-Q - Quarterly report [Sections 13 or 15(d)] • Edgar (US Regulatory) • 08/15/2024 01:29:55 PM
- Form NT 10-Q - Notification of inability to timely file Form 10-Q or 10-QSB • Edgar (US Regulatory) • 08/15/2024 01:29:10 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 01/25/2024 09:33:11 PM
- Titan Pharmaceuticals Fully Compliant With NASDAQ Listing Criteria • GlobeNewswire Inc. • 01/25/2024 09:29:23 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 01/18/2024 09:59:05 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 01/08/2024 10:13:45 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 12/28/2023 09:30:20 PM
- Titan Pharmaceuticals Announces Reverse Stock Split and Ratio • GlobeNewswire Inc. • 12/28/2023 09:15:00 PM
- Form DEF 14A - Other definitive proxy statements • Edgar (US Regulatory) • 11/28/2023 09:47:46 PM
- Form PRE 14A - Other preliminary proxy statements • Edgar (US Regulatory) • 11/17/2023 09:03:19 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 11/15/2023 09:05:15 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 10/26/2023 08:33:07 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 10/26/2023 08:31:25 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 10/26/2023 08:29:31 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 10/26/2023 08:25:57 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 10/26/2023 08:23:37 PM
- Form S-8 - Securities to be offered to employees in employee benefit plans • Edgar (US Regulatory) • 10/24/2023 09:26:34 PM
- Form 3 - Initial statement of beneficial ownership of securities • Edgar (US Regulatory) • 10/23/2023 07:07:26 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 10/16/2023 09:08:35 PM
- Titan Pharmaceuticals Announces Appointment of Dato' Seow Gim Shen and Brynner Chaim to the Company's Board of Directors • GlobeNewswire Inc. • 10/16/2023 08:37:23 PM
- Form SC 13D - General statement of acquisition of beneficial ownership • Edgar (US Regulatory) • 10/04/2023 09:30:18 PM
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