Summit Therapeutics PLC
SMMT Healthcare Biotechnology
Summit Therapeutics PLC’s revenue for fiscal 2022 (year ended December 2022) was $705,000.00. In the quarter to June 2026, EPS grew 63.2% and free cash flow fell 112.8%, each against the same quarter a year earlier. Insiders bought in the last twelve months.
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Summit Therapeutics PLC (SMMT) Altman Z-score
Summit Therapeutics PLC's Altman Z-score for fiscal 2022 is 0.88, in the distress zone (below 1.81).
Altman Z-score, annual
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Annual newest first
| Period | Altman Z-score | Change (points) |
|---|---|---|
| FY2022 | 0.88 | (0.75) |
| FY2021 | 1.63 | (3.08) |
| FY2020 | 4.72 | 5.32 |
| FY2019 | −0.60 | (1.19) |
| FY2019 | 0.58 | 0.74 |
| FY2018 | −0.16 | (17.62) |
| FY2017 | 17.46 | 20.21 |
| FY2017 | −2.74 | — |
How fiscal 2022’s score is made up
| Component | This year | Year before | Result | Points |
|---|---|---|---|---|
| Working capital / total assets | 0.93 | — | 1.12 | |
| Retained earnings / total assets | (0.57) | — | −0.80 | |
| EBIT / total assets | (0.11) | — | −0.36 | |
| Market value of equity / total liabilities | 1.53 | — | 0.92 | |
| Sales / total assets | 0.00 | — | 0.00 | |
| Altman Z-score | Distress zone | 0.88 | ||
| Z″ Variant for non-manufacturing and asset-light companies (drops the sales/assets term, uses book equity) | Safe zone | 3.76 | ||
Z and Z″ put Summit Therapeutics PLC in different zones: distress zone by Z, safe zone by Z″.
How the Altman Z-score works
Z = 1.2 × working capital ÷ total assets + 1.4 × retained earnings ÷ total assets + 3.3 × EBIT ÷ total assets + 0.6 × market value of equity ÷ total liabilities + 1.0 × revenue ÷ total assets (Altman, 1968). The market value of equity is the close on the last trading day of the fiscal year times weighted basic shares.
Z″ = 6.56 × working capital ÷ total assets + 3.26 × retained earnings ÷ total assets + 6.72 × EBIT ÷ total assets + 1.05 × book equity ÷ total liabilities (Altman, Hartzell and Peck, 1995), the variant for non-manufacturing and asset-light companies.
| Zone | Z | Z″ |
|---|---|---|
| Safe zone | above 2.99 | above 2.60 |
| Grey zone | 1.81–2.99 | 1.10–2.60 |
| Distress zone | below 1.81 | below 1.10 |
Not worked out for banks, insurers and REITs, whose balance sheets the model does not describe, nor when a figure is missing or there is no share price in the week to the fiscal year end.
Altman Z-score against peers
| Company | Altman Z-score |
|---|---|
| TECH Bio-Techne Corp compare | 15.5× |
| CORT Corcept Therapeutics Incorporated compare | 14.1× |
| MDGL Madrigal Pharmaceuticals, Inc. compare | 10.5× |
| BMRN BioMarin Pharmaceutical Inc. compare | 5.7× |
| HALO Halozyme Therapeutics, Inc. compare | 3.5× |
| JAZZ Jazz Pharmaceuticals PLC compare | 1.4× |
| SMMT Summit Therapeutics PLC | 0.9× |
| BBIO BridgeBio Pharma, Inc. compare | −3.5× |
| IBRX ImmunityBio, Inc. compare | −10.2× |
What Altman Z-score is
The Altman Z-Score weighs working capital, retained earnings, operating profit, market value and sales against assets and debts to gauge the risk of distress.
1.2 × working capital ÷ total assets + 1.4 × retained earnings ÷ total assets + 3.3 × EBIT ÷ total assets + 0.6 × market value of equity ÷ total liabilities + 1.0 × revenue ÷ total assets