Affordable Growth. Analyze the stocks which are showing good growth, decent profitability and health and are not overvalued from a fundamental perspective.


BIOMARIN PHARMACEUTICAL INC

Nasdaq / Health Care / Biotechnology

Fundamental Rating

6

We assign a fundamental rating of 6 out of 10 to BMRN. BMRN was compared to 588 industry peers in the Biotechnology industry. BMRN has an excellent profitability rating, but there are some minor concerns on its financial health. BMRN is not priced too expensively while it is growing strongly. Keep and eye on this one! These ratings would make BMRN suitable for growth investing!



7

1. Profitability

1.1 Basic Checks

In the past year BMRN was profitable.
In the past year BMRN had a positive cash flow from operations.
In multiple years BMRN reported negative net income over the last 5 years.
In the past 5 years BMRN always reported a positive cash flow from operatings.

1.2 Ratios

BMRN has a better Return On Assets (2.99%) than 95.39% of its industry peers.
The Return On Equity of BMRN (4.05%) is better than 95.22% of its industry peers.
The Return On Invested Capital of BMRN (2.42%) is better than 95.05% of its industry peers.
Industry RankSector Rank
ROA 2.99%
ROE 4.05%
ROIC 2.42%
ROA(3y)1.2%
ROA(5y)3.56%
ROE(3y)1.65%
ROE(5y)5.02%
ROIC(3y)N/A
ROIC(5y)N/A

1.3 Margins

BMRN's Profit Margin of 8.31% is amongst the best of the industry. BMRN outperforms 95.73% of its industry peers.
BMRN's Profit Margin has declined in the last couple of years.
BMRN has a Operating Margin of 7.17%. This is amongst the best in the industry. BMRN outperforms 95.22% of its industry peers.
BMRN has a Gross Margin of 79.23%. This is amongst the best in the industry. BMRN outperforms 87.71% of its industry peers.
In the last couple of years the Gross Margin of BMRN has remained more or less at the same level.
Industry RankSector Rank
OM 7.17%
PM (TTM) 8.31%
GM 79.23%
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y-46.86%
PM growth 5YN/A
GM growth 3Y3.1%
GM growth 5Y-0.03%

More info and screens

5

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), BMRN is destroying value.
Compared to 1 year ago, BMRN has more shares outstanding
The number of shares outstanding for BMRN has been increased compared to 5 years ago.
BMRN has a better debt/assets ratio than last year.

2.2 Solvency

An Altman-Z score of 5.97 indicates that BMRN is not in any danger for bankruptcy at the moment.
BMRN has a better Altman-Z score (5.97) than 81.40% of its industry peers.
The Debt to FCF ratio of BMRN is 6.67, which is on the high side as it means it would take BMRN, 6.67 years of fcf income to pay off all of its debts.
BMRN has a Debt to FCF ratio of 6.67. This is amongst the best in the industry. BMRN outperforms 94.71% of its industry peers.
A Debt/Equity ratio of 0.12 indicates that BMRN is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.12, BMRN is doing worse than 64.68% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.12
Debt/FCF 6.67
Altman-Z 5.97
ROIC/WACC0.28
WACC8.73%

2.3 Liquidity

A Current Ratio of 2.74 indicates that BMRN has no problem at all paying its short term obligations.
BMRN has a worse Current ratio (2.74) than 69.80% of its industry peers.
BMRN has a Quick Ratio of 1.70. This is a normal value and indicates that BMRN is financially healthy and should not expect problems in meeting its short term obligations.
BMRN has a worse Quick ratio (1.70) than 77.99% of its industry peers.
Industry RankSector Rank
Current Ratio 2.74
Quick Ratio 1.7

More info and screens

7

3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 265.79% over the past year.
Measured over the past years, BMRN shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -40.67% on average per year.
The Revenue has grown by 13.74% in the past year. This is quite good.
Measured over the past years, BMRN shows a quite strong growth in Revenue. The Revenue has been growing by 10.16% on average per year.
EPS 1Y (TTM)265.79%
EPS 3Y-40.67%
EPS 5YN/A
EPS growth Q2Q162.96%
Revenue 1Y (TTM)13.74%
Revenue growth 3Y9.15%
Revenue growth 5Y10.16%
Revenue growth Q2Q8.79%

3.2 Future

Based on estimates for the next years, BMRN will show a very strong growth in Earnings Per Share. The EPS will grow by 49.53% on average per year.
The Revenue is expected to grow by 13.54% on average over the next years. This is quite good.
EPS Next Y78.12%
EPS Next 2Y72.72%
EPS Next 3Y61.93%
EPS Next 5Y49.53%
Revenue Next Year14.56%
Revenue Next 2Y14.63%
Revenue Next 3Y14.46%
Revenue Next 5Y13.54%

3.3 Evolution

The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.

More info and screens

6

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 59.88 indicates a quite expensive valuation of BMRN.
Based on the Price/Earnings ratio, BMRN is valued cheaper than 94.88% of the companies in the same industry.
BMRN is valuated expensively when we compare the Price/Earnings ratio to 28.06, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 29.37, BMRN can be considered very expensive at the moment.
Based on the Price/Forward Earnings ratio, BMRN is valued cheaper than 95.39% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 20.72. BMRN is valued slightly more expensive when compared to this.
Industry RankSector Rank
PE 59.88
Fwd PE 29.37

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, BMRN is valued cheaper than 94.88% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, BMRN is valued cheaply inside the industry as 94.54% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 96.79
EV/EBITDA 55.36

4.3 Compensation for Growth

The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of BMRN may justify a higher PE ratio.
A more expensive valuation may be justified as BMRN's earnings are expected to grow with 61.93% in the coming years.
PEG (NY)0.77
PEG (5Y)N/A
EPS Next 2Y72.72%
EPS Next 3Y61.93%

More info and screens

0

5. Dividend

5.1 Amount

No dividends for BMRN!.
Industry RankSector Rank
Dividend Yield N/A

More info and screens