BIOMARIN PHARMACEUTICAL INC (BMRN) Stock Fundamental Analysis
NASDAQ:BMRN - Nasdaq - US09061G1013 - Common Stock - Currency: USD
BMRN gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 553 industry peers in the Biotechnology industry. BMRN gets an excellent profitability rating and is at the same time showing great financial health properties. BMRN scores decently on growth, while it is valued quite cheap. This could make an interesting combination. With these ratings, BMRN could be worth investigating further for value and quality investing!.
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.
Of the past 5 years BMRN 4 years were profitable.
Each year in the past 5 years BMRN had a positive operating cash flow.
1.2 Ratios
BMRN has a Return On Assets of 7.33%. This is amongst the best in the industry. BMRN outperforms 93.31% of its industry peers.
Looking at the Return On Equity, with a value of 9.04%, BMRN belongs to the top of the industry, outperforming 93.85% of the companies in the same industry.
BMRN has a better Return On Invested Capital (9.16%) than 94.58% of its industry peers.
The Average Return On Invested Capital over the past 3 years for BMRN is significantly below the industry average of 14.97%.
The last Return On Invested Capital (9.16%) for BMRN is above the 3 year average (3.73%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.33% | ||
| ROE | 9.04% | ||
| ROIC | 9.16% |
ROA(3y)3.59%
ROA(5y)4.88%
ROE(3y)4.67%
ROE(5y)6.69%
ROIC(3y)3.73%
ROIC(5y)N/A
1.3 Margins
The Profit Margin of BMRN (17.76%) is better than 95.30% of its industry peers.
With an excellent Operating Margin value of 24.13%, BMRN belongs to the best of the industry, outperforming 96.38% of the companies in the same industry.
BMRN has a better Gross Margin (79.44%) than 85.35% of its industry peers.
BMRN's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 24.13% | ||
| PM (TTM) | 17.76% | ||
| GM | 79.44% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y2.25%
GM growth 5Y0.19%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), BMRN is destroying value.
BMRN has more shares outstanding than it did 1 year ago.
BMRN has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, BMRN has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 6.16 indicates that BMRN is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 6.16, BMRN is in the better half of the industry, outperforming 79.20% of the companies in the same industry.
BMRN has a debt to FCF ratio of 0.96. This is a very positive value and a sign of high solvency as it would only need 0.96 years to pay back of all of its debts.
BMRN has a better Debt to FCF ratio (0.96) than 94.94% of its industry peers.
A Debt/Equity ratio of 0.10 indicates that BMRN is not too dependend on debt financing.
BMRN's Debt to Equity ratio of 0.10 is on the low side compared to the rest of the industry. BMRN is outperformed by 65.64% of its industry peers.
Although BMRN does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.1 | ||
| Debt/FCF | 0.96 | ||
| Altman-Z | 6.16 |
ROIC/WACC0.96
WACC9.52%
2.3 Liquidity
BMRN has a Current Ratio of 5.52. This indicates that BMRN is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of BMRN (5.52) is comparable to the rest of the industry.
A Quick Ratio of 3.49 indicates that BMRN has no problem at all paying its short term obligations.
BMRN has a Quick ratio (3.49) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 5.52 | ||
| Quick Ratio | 3.49 |
3. Growth
3.1 Past
BMRN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 136.84%, which is quite impressive.
Looking at the last year, BMRN shows a quite strong growth in Revenue. The Revenue has grown by 19.36% in the last year.
The Revenue has been growing by 10.86% on average over the past years. This is quite good.
EPS 1Y (TTM)136.84%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%106.52%
Revenue 1Y (TTM)19.36%
Revenue growth 3Y15.62%
Revenue growth 5Y10.86%
Sales Q2Q%14.84%
3.2 Future
BMRN is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 28.03% yearly.
Based on estimates for the next years, BMRN will show a small growth in Revenue. The Revenue will grow by 7.68% on average per year.
EPS Next Y59.3%
EPS Next 2Y41.07%
EPS Next 3Y33.34%
EPS Next 5Y28.03%
Revenue Next Year11.4%
Revenue Next 2Y10.69%
Revenue Next 3Y10%
Revenue Next 5Y7.68%
3.3 Evolution
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 21.53, BMRN is valued on the expensive side.
BMRN's Price/Earnings ratio is rather cheap when compared to the industry. BMRN is cheaper than 94.94% of the companies in the same industry.
BMRN's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.93.
Based on the Price/Forward Earnings ratio of 13.22, the valuation of BMRN can be described as correct.
Compared to the rest of the industry, the Price/Forward Earnings ratio of BMRN indicates a rather cheap valuation: BMRN is cheaper than 94.94% of the companies listed in the same industry.
BMRN's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 37.78.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.53 | ||
| Fwd PE | 13.22 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, BMRN is valued cheaply inside the industry as 96.20% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, BMRN is valued cheaper than 94.76% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.98 | ||
| EV/EBITDA | 12.76 |
4.3 Compensation for Growth
BMRN's 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.
BMRN's earnings are expected to grow with 33.34% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.36
PEG (5Y)N/A
EPS Next 2Y41.07%
EPS Next 3Y33.34%
5. Dividend
5.1 Amount
No dividends for BMRN!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
58.14
-0.87 (-1.47%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnology
Earnings (Last)
Earnings (Next)
Inst Owners98.9%
Inst Owner Change0.64%
Ins Owners0.66%
Ins Owner Change8.7%
Market Cap11.15B
Analysts82.86
Price Target97.43 (67.58%)
Short Float %3.21%
Short Ratio2.83
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)24.95%
Min EPS beat(2)18.43%
Max EPS beat(2)31.48%
EPS beat(4)4
Avg EPS beat(4)27.84%
Min EPS beat(4)4.22%
Max EPS beat(4)57.23%
EPS beat(8)6
Avg EPS beat(8)15.96%
EPS beat(12)9
Avg EPS beat(12)-4.68%
EPS beat(16)13
Avg EPS beat(16)7.99%
Revenue beat(2)1
Avg Revenue beat(2)0.66%
Min Revenue beat(2)-1.37%
Max Revenue beat(2)2.69%
Revenue beat(4)3
Avg Revenue beat(4)2.79%
Min Revenue beat(4)-1.37%
Max Revenue beat(4)5.44%
Revenue beat(8)3
Avg Revenue beat(8)-0.01%
Revenue beat(12)5
Avg Revenue beat(12)-0.3%
Revenue beat(16)7
Avg Revenue beat(16)-0.11%
PT rev (1m)-0.44%
PT rev (3m)-1.51%
EPS NQ rev (1m)-1.88%
EPS NQ rev (3m)7.76%
EPS NY rev (1m)-0.12%
EPS NY rev (3m)7.85%
Revenue NQ rev (1m)-0.05%
Revenue NQ rev (3m)-1.08%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.53 | ||
| Fwd PE | 13.22 | ||
| P/S | 3.78 | ||
| P/FCF | 17.98 | ||
| P/OCF | 15.92 | ||
| P/B | 1.92 | ||
| P/tB | 2.08 | ||
| EV/EBITDA | 12.76 |
EPS(TTM)2.7
EY4.64%
EPS(NY)4.4
Fwd EY7.56%
FCF(TTM)3.23
FCFY5.56%
OCF(TTM)3.65
OCFY6.28%
SpS15.38
BVpS30.21
TBVpS27.9
PEG (NY)0.36
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.33% | ||
| ROE | 9.04% | ||
| ROCE | 10.92% | ||
| ROIC | 9.16% | ||
| ROICexc | 11.38% | ||
| ROICexgc | 12.43% | ||
| OM | 24.13% | ||
| PM (TTM) | 17.76% | ||
| GM | 79.44% | ||
| FCFM | 21.02% |
ROA(3y)3.59%
ROA(5y)4.88%
ROE(3y)4.67%
ROE(5y)6.69%
ROIC(3y)3.73%
ROIC(5y)N/A
ROICexc(3y)4.34%
ROICexc(5y)N/A
ROICexgc(3y)4.77%
ROICexgc(5y)N/A
ROCE(3y)4.44%
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y2.25%
GM growth 5Y0.19%
F-Score8
Asset Turnover0.41
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.1 | ||
| Debt/FCF | 0.96 | ||
| Debt/EBITDA | 0.74 | ||
| Cap/Depr | 87.86% | ||
| Cap/Sales | 2.71% | ||
| Interest Coverage | 79.64 | ||
| Cash Conversion | 87.19% | ||
| Profit Quality | 118.38% | ||
| Current Ratio | 5.52 | ||
| Quick Ratio | 3.49 | ||
| Altman-Z | 6.16 |
F-Score8
WACC9.52%
ROIC/WACC0.96
Cap/Depr(3y)111.01%
Cap/Depr(5y)114.82%
Cap/Sales(3y)4.71%
Cap/Sales(5y)5.6%
Profit Quality(3y)57.85%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)136.84%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%106.52%
EPS Next Y59.3%
EPS Next 2Y41.07%
EPS Next 3Y33.34%
EPS Next 5Y28.03%
Revenue 1Y (TTM)19.36%
Revenue growth 3Y15.62%
Revenue growth 5Y10.86%
Sales Q2Q%14.84%
Revenue Next Year11.4%
Revenue Next 2Y10.69%
Revenue Next 3Y10%
Revenue Next 5Y7.68%
EBIT growth 1Y301.64%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year102.12%
EBIT Next 3Y41.83%
EBIT Next 5Y23.16%
FCF growth 1Y2744.87%
FCF growth 3Y36.9%
FCF growth 5YN/A
OCF growth 1Y375.08%
OCF growth 3Y23.45%
OCF growth 5Y63.99%