EMERGENT BIOSOLUTIONS INC (EBS) Stock Fundamental Analysis
NYSE:EBS - New York Stock Exchange, Inc. - US29089Q1058 - Common Stock - Currency: USD
EBS gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 558 industry peers in the Biotechnology industry. While EBS seems to be doing ok healthwise, there are quite some concerns on its profitability. EBS has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year EBS has reported negative net income.
In the past year EBS had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: EBS reported negative net income in multiple 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
Looking at the Return On Assets, with a value of -9.23%, EBS belongs to the top of the industry, outperforming 84.59% of the companies in the same industry.
EBS has a better Return On Equity (-23.81%) than 82.44% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -9.23% | ||
| ROE | -23.81% | ||
| ROIC | N/A |
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
EBS has a better Gross Margin (35.33%) than 74.55% of its industry peers.
EBS's Gross Margin has declined in the last couple of years.
The Profit Margin and Operating Margin are not available for EBS so they could not be analyzed.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 35.33% |
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
EBS does not have a ROIC to compare to the WACC, probably because it is not profitable.
EBS has more shares outstanding than it did 1 year ago.
EBS has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, EBS has a worse debt to assets ratio.
2.2 Solvency
EBS has an Altman-Z score of 1.13. This is a bad value and indicates that EBS is not financially healthy and even has some risk of bankruptcy.
EBS has a better Altman-Z score (1.13) than 66.67% of its industry peers.
The Debt to FCF ratio of EBS is 7.05, which is on the high side as it means it would take EBS, 7.05 years of fcf income to pay off all of its debts.
EBS has a Debt to FCF ratio of 7.05. This is amongst the best in the industry. EBS outperforms 92.65% of its industry peers.
A Debt/Equity ratio of 1.20 is on the high side and indicates that EBS has dependencies on debt financing.
Looking at the Debt to Equity ratio, with a value of 1.20, EBS is doing worse than 78.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.2 | ||
| Debt/FCF | 7.05 | ||
| Altman-Z | 1.13 |
ROIC/WACCN/A
WACC9.85%
2.3 Liquidity
EBS has a Current Ratio of 6.32. This indicates that EBS is financially healthy and has no problem in meeting its short term obligations.
EBS has a Current ratio of 6.32. This is in the better half of the industry: EBS outperforms 63.08% of its industry peers.
EBS has a Quick Ratio of 3.51. This indicates that EBS is financially healthy and has no problem in meeting its short term obligations.
EBS's Quick ratio of 3.51 is in line compared to the rest of the industry. EBS outperforms 43.01% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 6.32 | ||
| Quick Ratio | 3.51 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 88.95% over the past year.
Looking at the last year, EBS shows a very negative growth in Revenue. The Revenue has decreased by -28.47% in the last year.
Measured over the past years, EBS shows a decrease in Revenue. The Revenue has been decreasing by -1.15% on average per year.
EPS 1Y (TTM)88.95%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%20.34%
Revenue 1Y (TTM)-28.47%
Revenue growth 3Y-16.2%
Revenue growth 5Y-1.15%
Sales Q2Q%-26.03%
3.2 Future
Based on estimates for the next years, EBS will show a quite strong growth in Earnings Per Share. The EPS will grow by 16.93% on average per year.
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 Y332.95%
EPS Next 2Y163.67%
EPS Next 3Y23.19%
EPS Next 5Y16.93%
Revenue Next Year-25.83%
Revenue Next 2Y-7.19%
Revenue Next 3Y-15.84%
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
The Price/Earnings Ratio is negative for EBS. In the last year negative earnings were reported.
The Price/Forward Earnings ratio is 4.74, which indicates a rather cheap valuation of EBS.
Compared to the rest of the industry, the Price/Forward Earnings ratio of EBS indicates a rather cheap valuation: EBS is cheaper than 98.92% of the companies listed in the same industry.
EBS is valuated cheaply when we compare the Price/Forward Earnings ratio to 36.52, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 4.74 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of EBS indicates a rather cheap valuation: EBS is cheaper than 94.27% of the companies listed in the same industry.
99.10% of the companies in the same industry are more expensive than EBS, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.19 | ||
| EV/EBITDA | 24.75 |
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.
A more expensive valuation may be justified as EBS's earnings are expected to grow with 23.19% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y163.67%
EPS Next 3Y23.19%
5. Dividend
5.1 Amount
EBS does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
7.28
+0.29 (+4.15%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnology
Earnings (Last)
Earnings (Next)
Inst Owners67.25%
Inst Owner Change0%
Ins Owners2.75%
Ins Owner Change22.12%
Market Cap395.16M
Analysts74.29
Price Target13.77 (89.15%)
Short Float %19.02%
Short Ratio7.46
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)84.88%
Min EPS beat(2)59.77%
Max EPS beat(2)110%
EPS beat(4)3
Avg EPS beat(4)223.89%
Min EPS beat(4)-143.07%
Max EPS beat(4)868.88%
EPS beat(8)4
Avg EPS beat(8)66.73%
EPS beat(12)4
Avg EPS beat(12)-223.57%
EPS beat(16)6
Avg EPS beat(16)-176.87%
Revenue beat(2)1
Avg Revenue beat(2)-11.92%
Min Revenue beat(2)-24.3%
Max Revenue beat(2)0.46%
Revenue beat(4)2
Avg Revenue beat(4)1.66%
Min Revenue beat(4)-24.3%
Max Revenue beat(4)32.73%
Revenue beat(8)5
Avg Revenue beat(8)12.82%
Revenue beat(12)7
Avg Revenue beat(12)8.69%
Revenue beat(16)9
Avg Revenue beat(16)5.05%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-500%
EPS NY rev (1m)0%
EPS NY rev (3m)-4.67%
Revenue NQ rev (1m)41.48%
Revenue NQ rev (3m)-23.43%
Revenue NY rev (1m)2.34%
Revenue NY rev (3m)-0.76%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 4.74 | ||
| P/S | 0.41 | ||
| P/FCF | 4.19 | ||
| P/OCF | 3.59 | ||
| P/B | 0.71 | ||
| P/tB | 5.85 | ||
| EV/EBITDA | 24.75 |
EPS(TTM)-0.19
EYN/A
EPS(NY)1.54
Fwd EY21.09%
FCF(TTM)1.74
FCFY23.89%
OCF(TTM)2.03
OCFY27.86%
SpS17.79
BVpS10.18
TBVpS1.24
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -9.23% | ||
| ROE | -23.81% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 35.33% | ||
| FCFM | 9.78% |
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-Score4
Asset Turnover0.68
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.2 | ||
| Debt/FCF | 7.05 | ||
| Debt/EBITDA | 18.39 | ||
| Cap/Depr | 14.77% | ||
| Cap/Sales | 1.63% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | 304.14% | ||
| Profit Quality | N/A | ||
| Current Ratio | 6.32 | ||
| Quick Ratio | 3.51 | ||
| Altman-Z | 1.13 |
F-Score4
WACC9.85%
ROIC/WACCN/A
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)88.95%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%20.34%
EPS Next Y332.95%
EPS Next 2Y163.67%
EPS Next 3Y23.19%
EPS Next 5Y16.93%
Revenue 1Y (TTM)-28.47%
Revenue growth 3Y-16.2%
Revenue growth 5Y-1.15%
Sales Q2Q%-26.03%
Revenue Next Year-25.83%
Revenue Next 2Y-7.19%
Revenue Next 3Y-15.84%
Revenue Next 5Y7.53%
EBIT growth 1Y56.65%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year330.47%
EBIT Next 3Y55.51%
EBIT Next 5Y39.09%
FCF growth 1Y117.95%
FCF growth 3Y-28.05%
FCF growth 5Y-17.04%
OCF growth 1Y160.03%
OCF growth 3Y-43.25%
OCF growth 5Y-20.77%