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RISK CONCERN
Investment Strategy, Risk Analysis, and Insights by Chartered Professionals
Sangamo Therapeutics, Inc. (XNAS:SGMO) In-Depth Stock/Fundamental/Options Analysis Today
Primary Facts
SGMO
Name:
SANGAMO THERAPEUTICS, INC. (XNAS:SGMO)
Sector:
- 61814.00K
Industry:
Biotechnology
CEO:
Dr. Alexander Macrae
Total Employees:
431
Our Technological Advancement Rating
Our Rating:
B
Technological advancement compared to industry is 31.52% higher
ANALYSIS OF ALL CRITICAL FACTORS & RISKS RELATED TO THE STOCK & FUNDAMENTAL/LONG-TERM ANALYSIS OF SANGAMO THERAPEUTICS, INC.(SGMO) AS PER DATA ANALYSIS OF LAST 3 YEARS AND COMPARISON WITH COMPETITORS/PEERS, AND BIOTECHNOLOGY INDUSTRY. DATE: 07/09/2022
Primary Targets/Price Insights
Previous Close ($) :
5.53
One Month Price Target:
$5.57
Six Month Price Target :
$5.77
Likely Price in One Year's Time:
Ticker:
$6.01
Likely Trading Range Today Under (Normal Volatility)
$5.49
Price Upper limit ($) :
$5.58
Price Lower limit ($) :
Crash Risk Prep/Key Price Levels (High Volatility/Risk)
Price, as per data analysis, isn't likely to fall below:
Today:
$5.
This week:
$4.34
This month :
$3.16
Other Primary facts
Market Cap:
834.43M
Market Cap Classification:
Small Cap
Number of Shares
IPO Date:
156.55M
Best/Worst Daily Performance (Last 3+ Years)
Highest Daily Appreciation:
52.98%
-24.29%
Worst Daily Decline:
Our Options Trading Entry Points
Iron Condor entry points for options expiring in 1 week's time
Low risk (<2%) entry points
Buy Call:
Sell Call:
Buy Put:
Sell Put:
$7.99
$6.87
$3.07
$4.19
Medium risk (<10%) entry points
Buy Call
Sell Call
$6.50
Buy Put:
Sell Put:
$6.26
$4.56
$4.80
These entry points can be used for other strategies, such as butterflies, straddles, etc.
Risk-Adjusted returns (Sharpe Ratio) of
SGMO
Sharpe Ratio:
0.66%
Comparison:
SGMO, is amongst the top 60% stocks with highest risk-adjusted returns
Sharpe ratio is -66.31% lower than the industry
& is -71.26% lower than the market/S&P 500 average
Average Returns/Yield of
SGMO
Daily returns:
0.04%
Weekly returns:
0.20%
Monthly returns:
0.79%
Yearly returns:
25.22%
Comparison of returns:
Average annual returns/yield (last 3 years) is -62.38% below industry average
Classification:
SGMO, is amongst the top 60% highest yielding stocks in terms of daily returns
Results of T-Test of Returns:
0.82
Statistical test of Returns:
SGMO has yielded returns statistically similar to the market
Volatility (measured by Standard Deviation)
Daily Volatility:
4.69%
Weekly Volatility:
10.48%
Monthly Volatility:
20.95%
Yearly Volatility:
72.59%
Volitlilty of last five days (Measured by Standard Deviation)
Average Volatility of this Week:
1.59%
Volatility in last five trading days has been -66.17% below long-term volatility
Value at Risk Analysis (VaR)
Daily VaR:
-9.58%
Weekly VaR:
-21.43%
Monthly VaR:
-42.86%
How Much Can the price of
SGMO
Decline in a Recession?
Likely price decline in a recession:
Base case (decline):
-37%
Worst case (decline):
>85%
This translates to price declining to:
$3.46
This translates to price declining to:
$0.83
Severe Crash Probability
Risk of crash in next 6/12 months: Medium (<50%)
What is Value at Risk (VaR)?
Risk Fundamentals
SGMO is a 202.50% riskier investment compared to the market/S&P 500 & is 159.15% riskier than Nasdaq (IXIC)
Risk (measured by volatility) is -1.44% below industry average
Overall, it is amongst the top 50% most risky stocks
Beta Examination of
SGMO
Beta in relation to market/S&P 500--1.30
Expected beta in 1 year's time:
0.82
Expected beta in 3 year's time:
1.159
Unlevered (debt free) Beta:
1.156
Beta in relation to Nasdaq (XNAS):
1.193
Beta in relation to all global stocks::
0.771
Beta Comparison & Analysis
Beta of competitors/peers::
0.866
Beta is 50.64% higher than peers
Average Industry Beta:
1.152
Beta is 13.23% above industry average
Sustainable Growth Rate Analysis
Sustainable growth rate for this stock/firm:
-
-
Alpha provided | Alpha Analysis
Alpha provided:
-0.026
Alpha is -118.28% below industry average alpha yield
Alpha is -165% below the market average
Analysis of Cost of Capital of
SGMO
Equity cost of capital:
0.121
Equity cost of capital is 9.45% above industry mean WACC
Unlevered (without debt) cost of capital:
10.71%
Before-tax cost of debt:
3.13%
After-tax cost of debt:
2.48%
Overall debt rating:
High AA grade (second highest grade)
Weighted average cost of capital (WACC):
2.48%
WACC is 26.30% above industry mean WACC
Key Per-Share Metrics & Analysis
Revenue per share:
$0.72
Revenue growth rate per share of (3Y):
2.59
Annual revenue growth rate is -102.11% below industry average
EPS:
-$1.21
Expected Annual growth rate of EPS (3Y):
13.11%
Expected future EPS growth rate is 31.35% higher than the Biotechnology industry
Free cash flow (FCF) per share:
-
-
-
Debt per share
$0.27
EBITDA per share
-$1.00
Valuation Analysis Today of
SGMO
P/E Ratio:
-
P/E Ratio of Competitors/Peers:
300.54
-
-
SGMO is -105.09% undervalued if valued using industry average P/E ratio
-
-
P/S (Price to Sales ratio):
7.69
Price to sales ratio is -81.03% below the industry mean
P/B (Price to book value ratio):
2.59
-
-
Net income growth rate (3Y):
74.95%
Net income growth rate is 6.19% higher than the average industry net income growth rate
Dividend Analysis
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Dividend History:
--$0.00
--$0.00
--$0.00
--$0.00
--$0.00
--$0.00
-
In-depth Debt & Leverage Analysis
Debt to equity ratio:
12.80%
Net debt to equity ratio:
-23.15%
Debt to assets ratio:
6.54%
Net debt to assets ratio:
-11.84%
Debt-to-asset ratio is -84.48% below industry average
Ability to repay debt:
Interest coverage ratio:
-116.4
Interest coverage ratio is -1.64% less than industry average
Looking forward:
Debt growth rate:
14.24%
Annual debt growth is -89% lower than industry average debt growth rate
Debt repayment rate in last quarter: 0.00%
Analysis of Key Statistics
Correlation of price movement with the market:
0.393
Statistical significance of correlation:
SGMO has a statistically significant correlation with the market
Average Correlation of the industry with the market:
0.34
Stock price is 15.70% more correlated with the market, compared to the industry average correlation
R Squared (percentage of price movement explained by movement of the market):
0.34
Correlation of price movement with Nasdaq (^IXIC):
-0.046
Covariance of price movement with the market:
-0.126
Kurtosis
26.938
Returns have severe fat-tails (leptokurtic), i.e., returns considerably higher or lower than the mean returns are considerably more likely, compared to assets with normally distributed returns
Skewness of returns:
2.277
Returns are right (positive) skewed; mean returns are greater than median and mode returns
Fundamental Analysis & Dupont Analysis of
SGMO
Gross Profit Margin Ratio:
-
Operating Profit Margin Ratio:
-161.82%
Operating profit margin is -62.25% lower than the industry
Net Profit Margin Ratio:
-
Effective Tax Rate:
-0.06%
Effective tax rate is -101.00% lower than the industry
Dupont Method
Net Profit Margin
Return on Equity Ratio (ROE):
×
ROA
=
×
-52.71%
Return on equity (ROE) is -8.06% lower than the industry
Financial Leverage
Asset Turnover Ratio (ROA):
-26.95%
Return on assets (ROA) is 32.09% higher than the industry
Financial Leverage:
1.1x
Current Ratio:
2.87
Current ratio is -64.56% below industry average
Cash Conversion Cycle (days):
0
-
The remaining useful life of property plant & equipment is: 0.0 years
Stock based compensation to net income ratio:
-4.36%
In-depth Efficiency Analysis
Revenue generated per employee:
261.4K
Each employee generates -84% less revenue than industry average revenue per employee
EBITDA generated per employee:
- 362.4K
Each employee generates -194% less EBITDA than industry average revenue per employee
Profit generated per employee:
- 409.1K
Each employee generates -420% less net income/profit than industry average revenue per employee
Free cash flow (FCF) generated per employee:
- 143.4K
Each employee generates -197% less free cash flow than industry average revenue per employee
Assets/Capital per employee
729.1K
Each employee generates -197% less free cash flow than industry average revenue per employee
Research & Development (R&D) Analysis
Research & development (R&D) investment growth rate-- 27.77%
Growth rate in R&D investment/expenditure is -874.14% lower than the industry
Competitors/Peer firms of
SGMO
CASTLE BIOSCIENCES, INC. (XNAS:CSTL)
DAY ONE BIOPHARMACEUTICALS, INC. (XNAS:DAWN)
Sema4 Holdings Corp. (XNAS:SMFR)
INOVIO PHARMACEUTICALS, INC. (XNAS:INO)
Burning Rock Biotech Ltd (XNAS:BNR)
COGNYTE SOFTWARE LTD (XNAS:CGNT)
MEIRAGTX HOLDINGS PLC (XNAS:MGTX)
Theravance Biopharma, Inc. (XNAS:TBPH)
PROCEPT BIOROBOTICS CORPORATION (XNAS:PRCT)
Current Analyst Ratings
Strong buy�8%
Buy�13%
Hold�4%
Sell�0%
Strong sell�0%
Overall analyst sentiment is: Buy
Income Statement
Period:
TTM
Date:
3/31/22
Revenue:
112.65M
Cost of Revenue:
Gross Profit:
R&D Expense
General & Admin Expenses:
Selling, General & Admin Expenses
Sales and Marketing Expenses
Other Expenses :
Operating Expenses :
Cost & Expenses :
Interest Income:
Interest Expenses:
Depreciation & Amortization:
EBITDA:
Operating Income:
Other Income Expenses:
Income Before Tax:
Income Tax Expense:
Net Income:
Balance Sheet
Date:
Calendar Year:
Period:
Cash & Cash Equivalents:
Short Term Investments:
Cash & Short Term Investments:
Net Receivables:
Inventory:
Other Current Assets:
Total Current Assets:
PP&E:
Goodwill:
Intangible Assets:
Long Term Investments:
Tax Assets:
Other Non-Current Assets:
Total Non-Current Assets:
Other Assets:
Total Assets:
Accounts Payable:
Short Term Debt:
Tax Payables:
Deferred Revenue:
Other Current Liabilities:
Total Current Liabilities:
Long Term Debt:
Other Non-Current Liabilities:
Total Non Current Liabilities:
Other Liabilities:
Total Liabilities:
Common Stock:
Retained Earnings:
Accumulated Other Comprehensive Loss:
Other Total Stockholders' Equity:
Total Stockholders' Equity:
Total Liabilities and Stockholders' Equity:
Total Investments:
Total Debt:
Net Debt:
-
-
232.97M
61.98M
61.98M
-
-
294.95M
2.34M
1.34M
18.68M
- 156209.00K
- 182296.00K
- 176330.00K
- 176234.00K
101.00K
- 176330.00K
Statement of Cash Flow
Date:
Period:
4.94M
Differed Income Tax :
-
Stock Based Compensation :
7.69M
Change in Working Capital :
- 27791.00K
Accounts Receivables:
- 925.00K
Other Working Capital:
- 29274.00K
Other Non-Cash Items:
164.00K
Net Cash Provided by Operating Activities:
- 58975.00K
Investments in PP&E:
- 2839.00K
Net Acquisitions:
-
Purchases of Investments:
- 65756.00K
Sales/Maturities of Investments:
Other Investing Activities:
Net Cash Used for Investing Activities:
Debt Repayment:
Common Stock Issued:
Common Stock Repurchased:
Dividend Paid:
Other Financing Activities:
Net Cash Used Provided by Financing Activities:
Effect of FOREX on Changes in Cash:
Net Changes in Cash:
Cash at End of Period:
Cash at Beginning of Period:
Operating Cash Flow:
Capital Expenditure:
Free Cash Flow (FCF):
3/31/22
2022
Q1
120.26M
197.54M
317.80M
7.29M
-
14.98M
340.07M
122.50M
38.94M
52.68M
82.52M
-
17.62M
314.25M
-
654.31M
11.15M
-
-
80.78M
26.60M
118.53M
42.82M
1.24M
201.26M
-
319.79M
1.47M
- 1000244.00K
- 6955.0K
1.34B
March 31, 2022 at 6:00:00 AM
294.95M
334.52M
654.31M
280.05M
42.82M
- 77442.0K
70.30M
-
1.71M
-
-
-
-
- 1567.00K
- 1567.00K
222.00K
- 58615.00K
121.76M
180.37M
- 58975.00K
- 2839.00K
- 61814.00K
Our Proprietary Portfolio Rating
Our Rating:
A
Price Forecast/Expected Price in Next 5 Years of
SGMO
2023
2024
2025
2026
2027
$6.03
$6.56
$7.13
$7.76
$8.44