EMERGENT BIOSOLUTIONS INC (EBS) Stock Fundamental Analysis
USA - NYSE:EBS - US29089Q1058 - Common Stock
8.18 USD
0 (0%)
8.4998 USD
+0.32 (+3.91%)
EBS gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 538 industry peers in the Biotechnology industry. Both the profitability and the financial health of EBS get a neutral evaluation. Nothing too spectacular is happening here. EBS has a bad growth rate and is valued cheaply.
1. Profitability
1.1 Basic Checks
In the past year EBS was profitable.
In the past year EBS had a positive cash flow from operations.
In multiple years EBS reported negative net income over the last 5 years.
The reported operating cash flow has been mixed in the past 5 years: EBS reported negative operating cash flow in multiple years.
1.2 Ratios
EBS has a Return On Assets of 9.84%. This is amongst the best in the industry. EBS outperforms 93.68% of its industry peers.
Looking at the Return On Equity, with a value of 26.02%, EBS belongs to the top of the industry, outperforming 96.65% of the companies in the same industry.
EBS has a better Return On Invested Capital (6.67%) than 93.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.84% | ||
| ROE | 26.02% | ||
| ROIC | 6.67% |
ROA(3y)-20.7%
ROA(5y)-8.82%
ROE(3y)-57.28%
ROE(5y)-27.44%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
With an excellent Profit Margin value of 16.38%, EBS belongs to the best of the industry, outperforming 93.87% of the companies in the same industry.
EBS's Operating Margin of 12.79% is amongst the best of the industry. EBS outperforms 93.12% of its industry peers.
The Gross Margin of EBS (53.64%) is better than 76.02% of its industry peers.
EBS's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.79% | ||
| PM (TTM) | 16.38% | ||
| GM | 53.64% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-15.64%
GM growth 5Y-10.6%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so EBS is destroying value.
Compared to 1 year ago, EBS has more shares outstanding
EBS has more shares outstanding than it did 5 years ago.
The debt/assets ratio for EBS is higher compared to a year ago.
2.2 Solvency
EBS has an Altman-Z score of 1.50. This is a bad value and indicates that EBS is not financially healthy and even has some risk of bankruptcy.
EBS's Altman-Z score of 1.50 is fine compared to the rest of the industry. EBS outperforms 64.68% of its industry peers.
The Debt to FCF ratio of EBS is 4.31, which is a neutral value as it means it would take EBS, 4.31 years of fcf income to pay off all of its debts.
EBS has a Debt to FCF ratio of 4.31. This is amongst the best in the industry. EBS outperforms 92.75% of its industry peers.
EBS has a Debt/Equity ratio of 1.25. This is a high value indicating a heavy dependency on external financing.
EBS's Debt to Equity ratio of 1.25 is on the low side compared to the rest of the industry. EBS is outperformed by 78.44% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.25 | ||
| Debt/FCF | 4.31 | ||
| Altman-Z | 1.5 |
ROIC/WACC0.67
WACC9.96%
2.3 Liquidity
A Current Ratio of 5.66 indicates that EBS has no problem at all paying its short term obligations.
EBS's Current ratio of 5.66 is fine compared to the rest of the industry. EBS outperforms 61.15% of its industry peers.
EBS has a Quick Ratio of 3.00. This indicates that EBS is financially healthy and has no problem in meeting its short term obligations.
EBS's Quick ratio of 3.00 is on the low side compared to the rest of the industry. EBS is outperformed by 61.52% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 5.66 | ||
| Quick Ratio | 3 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 176.85% over the past year.
The Revenue for EBS has decreased by -22.74% in the past year. This is quite bad
EBS shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -1.15% yearly.
EPS 1Y (TTM)176.85%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%106.9%
Revenue 1Y (TTM)-22.74%
Revenue growth 3Y-16.2%
Revenue growth 5Y-1.15%
Sales Q2Q%-44.68%
3.2 Future
The Earnings Per Share is expected to grow by 16.93% on average over the next years. This is quite good.
Based on estimates for the next years, EBS will show a small growth in Revenue. The Revenue will grow by 7.53% on average per year.
EPS Next Y487.71%
EPS Next 2Y163.67%
EPS Next 3Y23.19%
EPS Next 5Y16.93%
Revenue Next Year-28.7%
Revenue Next 2Y-7.8%
Revenue Next 3Y-16.62%
Revenue Next 5Y7.53%
3.3 Evolution
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 3.57, the valuation of EBS can be described as very cheap.
Compared to the rest of the industry, the Price/Earnings ratio of EBS indicates a rather cheap valuation: EBS is cheaper than 98.70% of the companies listed in the same industry.
EBS's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.41.
With a Price/Forward Earnings ratio of 5.33, the valuation of EBS can be described as very cheap.
Compared to the rest of the industry, the Price/Forward Earnings ratio of EBS indicates a rather cheap valuation: EBS is cheaper than 98.51% of the companies listed in the same industry.
EBS is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.87, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.57 | ||
| Fwd PE | 5.33 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, EBS is valued cheaply inside the industry as 98.33% of the companies are valued more expensively.
EBS's Price/Free Cash Flow ratio is rather cheap when compared to the industry. EBS is cheaper than 100.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.82 | ||
| EV/EBITDA | 3.98 |
4.3 Compensation for Growth
EBS'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 EBS may justify a higher PE ratio.
EBS's earnings are expected to grow with 23.19% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.01
PEG (5Y)N/A
EPS Next 2Y163.67%
EPS Next 3Y23.19%
5. Dividend
5.1 Amount
No dividends for EBS!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
8.18
0 (0%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnology
Earnings (Last)
Earnings (Next)
Inst Owners68.09%
Inst Owner Change11.33%
Ins Owners2.74%
Ins Owner Change7.12%
Market Cap436.40M
Analysts74.29
Price Target13.77 (68.34%)
Short Float %16.84%
Short Ratio7.28
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)96.05%
Min EPS beat(2)59.77%
Max EPS beat(2)132.33%
EPS beat(4)4
Avg EPS beat(4)292.75%
Min EPS beat(4)59.77%
Max EPS beat(4)868.88%
EPS beat(8)5
Avg EPS beat(8)97.72%
EPS beat(12)5
Avg EPS beat(12)-185.29%
EPS beat(16)7
Avg EPS beat(16)-163.68%
Revenue beat(2)1
Avg Revenue beat(2)-2.12%
Min Revenue beat(2)-4.69%
Max Revenue beat(2)0.46%
Revenue beat(4)1
Avg Revenue beat(4)-7.69%
Min Revenue beat(4)-24.3%
Max Revenue beat(4)0.46%
Revenue beat(8)4
Avg Revenue beat(8)5.39%
Revenue beat(12)7
Avg Revenue beat(12)9.24%
Revenue beat(16)9
Avg Revenue beat(16)4.84%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-54.17%
EPS NY rev (1m)0%
EPS NY rev (3m)66.43%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-11.56%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.61%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.57 | ||
| Fwd PE | 5.33 | ||
| P/S | 0.51 | ||
| P/FCF | 2.82 | ||
| P/OCF | 2.58 | ||
| P/B | 0.81 | ||
| P/tB | 6.49 | ||
| EV/EBITDA | 3.98 |
EPS(TTM)2.29
EY28%
EPS(NY)1.54
Fwd EY18.77%
FCF(TTM)2.91
FCFY35.52%
OCF(TTM)3.17
OCFY38.73%
SpS15.96
BVpS10.05
TBVpS1.26
PEG (NY)0.01
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.84% | ||
| ROE | 26.02% | ||
| ROCE | 8.44% | ||
| ROIC | 6.67% | ||
| ROICexc | 8.41% | ||
| ROICexgc | 15.54% | ||
| OM | 12.79% | ||
| PM (TTM) | 16.38% | ||
| GM | 53.64% | ||
| FCFM | 18.2% |
ROA(3y)-20.7%
ROA(5y)-8.82%
ROE(3y)-57.28%
ROE(5y)-27.44%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
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 3Y-15.64%
GM growth 5Y-10.6%
F-Score6
Asset Turnover0.6
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.25 | ||
| Debt/FCF | 4.31 | ||
| Debt/EBITDA | 3.18 | ||
| Cap/Depr | 13.82% | ||
| Cap/Sales | 1.64% | ||
| Interest Coverage | 2.06 | ||
| Cash Conversion | 80.4% | ||
| Profit Quality | 111.11% | ||
| Current Ratio | 5.66 | ||
| Quick Ratio | 3 | ||
| Altman-Z | 1.5 |
F-Score6
WACC9.96%
ROIC/WACC0.67
Cap/Depr(3y)106.07%
Cap/Depr(5y)126.37%
Cap/Sales(3y)13.29%
Cap/Sales(5y)12.46%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)176.85%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%106.9%
EPS Next Y487.71%
EPS Next 2Y163.67%
EPS Next 3Y23.19%
EPS Next 5Y16.93%
Revenue 1Y (TTM)-22.74%
Revenue growth 3Y-16.2%
Revenue growth 5Y-1.15%
Sales Q2Q%-44.68%
Revenue Next Year-28.7%
Revenue Next 2Y-7.8%
Revenue Next 3Y-16.62%
Revenue Next 5Y7.53%
EBIT growth 1Y153.33%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year330.47%
EBIT Next 3Y55.51%
EBIT Next 5Y39.09%
FCF growth 1Y125.73%
FCF growth 3Y-28.05%
FCF growth 5Y-17.04%
OCF growth 1Y160.44%
OCF growth 3Y-43.25%
OCF growth 5Y-20.77%