EMERGENT BIOSOLUTIONS INC (EBS) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:EBS - US29089Q1058 - Common Stock
11.72 USD
+0.16 (+1.38%)
11.8 USD
+0.08 (+0.68%)
EBS gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 531 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 valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
EBS had positive earnings in the past year.
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
The Return On Assets of EBS (5.20%) is better than 91.53% of its industry peers.
EBS has a better Return On Equity (13.03%) than 93.79% of its industry peers.
EBS has a better Return On Invested Capital (6.57%) than 92.47% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.2% | ||
| ROE | 13.03% | ||
| ROIC | 6.57% |
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 Profit Margin (9.62%) than 90.96% of its industry peers.
EBS has a Operating Margin of 13.96%. This is amongst the best in the industry. EBS outperforms 93.03% of its industry peers.
EBS has a better Gross Margin (54.58%) than 76.46% of its industry peers.
EBS's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.96% | ||
| PM (TTM) | 9.62% | ||
| GM | 54.58% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), EBS is destroying value.
The number of shares outstanding for EBS has been increased compared to 1 year ago.
The number of shares outstanding for EBS has been increased compared to 5 years ago.
The debt/assets ratio for EBS is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.64, we must say that EBS is in the distress zone and has some risk of bankruptcy.
EBS's Altman-Z score of 1.64 is fine compared to the rest of the industry. EBS outperforms 63.47% of its industry peers.
EBS has a debt to FCF ratio of 473.64. This is a negative value and a sign of low solvency as EBS would need 473.64 years to pay back of all of its debts.
The Debt to FCF ratio of EBS (473.64) is better than 89.08% of its industry peers.
A Debt/Equity ratio of 1.14 is on the high side and indicates that EBS has dependencies on debt financing.
EBS's Debt to Equity ratio of 1.14 is on the low side compared to the rest of the industry. EBS is outperformed by 77.78% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.14 | ||
| Debt/FCF | 473.64 | ||
| Altman-Z | 1.64 |
ROIC/WACC0.7
WACC9.41%
2.3 Liquidity
A Current Ratio of 5.76 indicates that EBS has no problem at all paying its short term obligations.
EBS has a Current ratio (5.76) which is in line with its industry peers.
EBS has a Quick Ratio of 3.15. This indicates that EBS is financially healthy and has no problem in meeting its short term obligations.
The Quick ratio of EBS (3.15) is worse than 60.83% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 5.76 | ||
| Quick Ratio | 3.15 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 275.22% over the past year.
EBS shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -29.91%.
The Revenue has been decreasing by -1.15% on average over the past years.
EPS 1Y (TTM)275.22%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-22.63%
Revenue 1Y (TTM)-29.91%
Revenue growth 3Y-16.2%
Revenue growth 5Y-1.15%
Sales Q2Q%-21.34%
3.2 Future
The Earnings Per Share is expected to grow by 16.93% on average over the next years. This is quite good.
The Revenue is expected to grow by 7.53% on average over the next years.
EPS Next Y767.9%
EPS Next 2Y-21.08%
EPS Next 3Y-46.24%
EPS Next 5Y16.93%
Revenue Next Year-26.68%
Revenue Next 2Y-8.09%
Revenue Next 3Y-15.25%
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
With a Price/Earnings ratio of 5.92, 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 99.06% 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 26.76.
EBS is expected to report negative earnings next year, which makes the Forward Price/Earnings Ratio negative.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.92 | ||
| Fwd PE | N/A |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, EBS is valued cheaper than 98.68% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, EBS is valued cheaply inside the industry as 89.64% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 439.67 | ||
| EV/EBITDA | 4.96 |
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.
EBS has a very decent profitability rating, which may justify a higher PE ratio.
EBS's earnings are expected to decrease with -46.24% in the coming years. This may justify a cheaper valuation.
PEG (NY)0.01
PEG (5Y)N/A
EPS Next 2Y-21.08%
EPS Next 3Y-46.24%
5. Dividend
5.1 Amount
EBS does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
11.72
+0.16 (+1.38%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnology
Earnings (Last)
Earnings (Next)
Inst Owners75.9%
Inst Owner Change4.09%
Ins Owners2.45%
Ins Owner Change-1.11%
Market Cap615.53M
Revenue(TTM)788.90M
Net Income(TTM)75.90M
Analysts80
Price Target13.77 (17.49%)
Short Float %18.18%
Short Ratio8.28
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)553.46%
Min EPS beat(2)132.33%
Max EPS beat(2)974.59%
EPS beat(4)4
Avg EPS beat(4)319.17%
Min EPS beat(4)59.77%
Max EPS beat(4)974.59%
EPS beat(8)6
Avg EPS beat(8)233.65%
EPS beat(12)6
Avg EPS beat(12)57.5%
EPS beat(16)8
Avg EPS beat(16)-95.56%
Revenue beat(2)1
Avg Revenue beat(2)6.63%
Min Revenue beat(2)-4.69%
Max Revenue beat(2)17.94%
Revenue beat(4)2
Avg Revenue beat(4)-2.65%
Min Revenue beat(4)-24.3%
Max Revenue beat(4)17.94%
Revenue beat(8)4
Avg Revenue beat(8)6.03%
Revenue beat(12)8
Avg Revenue beat(12)11.69%
Revenue beat(16)10
Avg Revenue beat(16)8.03%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-47.62%
EPS NY rev (1m)0%
EPS NY rev (3m)72.27%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.33%
Revenue NY rev (1m)0.19%
Revenue NY rev (3m)2.83%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.92 | ||
| Fwd PE | N/A | ||
| P/S | 0.78 | ||
| P/FCF | 439.67 | ||
| P/OCF | 47.35 | ||
| P/B | 1.06 | ||
| P/tB | 4.74 | ||
| EV/EBITDA | 4.96 |
EPS(TTM)1.98
EY16.89%
EPS(NY)-0.45
Fwd EYN/A
FCF(TTM)0.03
FCFY0.23%
OCF(TTM)0.25
OCFY2.11%
SpS15.02
BVpS11.09
TBVpS2.47
PEG (NY)0.01
PEG (5Y)N/A
Graham Number22.23
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.2% | ||
| ROE | 13.03% | ||
| ROCE | 8.31% | ||
| ROIC | 6.57% | ||
| ROICexc | 8.06% | ||
| ROICexgc | 13.89% | ||
| OM | 13.96% | ||
| PM (TTM) | 9.62% | ||
| GM | 54.58% | ||
| FCFM | 0.18% |
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
ROICexgc growth 3YN/A
ROICexgc 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 Turnover0.54
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.14 | ||
| Debt/FCF | 473.64 | ||
| Debt/EBITDA | 3.18 | ||
| Cap/Depr | 11.8% | ||
| Cap/Sales | 1.47% | ||
| Interest Coverage | 2.21 | ||
| Cash Conversion | 6.24% | ||
| Profit Quality | 1.84% | ||
| Current Ratio | 5.76 | ||
| Quick Ratio | 3.15 | ||
| Altman-Z | 1.64 |
F-Score6
WACC9.41%
ROIC/WACC0.7
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)275.22%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-22.63%
EPS Next Y767.9%
EPS Next 2Y-21.08%
EPS Next 3Y-46.24%
EPS Next 5Y16.93%
Revenue 1Y (TTM)-29.91%
Revenue growth 3Y-16.2%
Revenue growth 5Y-1.15%
Sales Q2Q%-21.34%
Revenue Next Year-26.68%
Revenue Next 2Y-8.09%
Revenue Next 3Y-15.25%
Revenue Next 5Y7.53%
EBIT growth 1Y195.08%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year367.47%
EBIT Next 3Y55.51%
EBIT Next 5Y39.09%
FCF growth 1Y100.65%
FCF growth 3Y-28.05%
FCF growth 5Y-17.04%
OCF growth 1Y108.93%
OCF growth 3Y-43.25%
OCF growth 5Y-20.77%
EMERGENT BIOSOLUTIONS INC / EBS FAQ
Can you provide the ChartMill fundamental rating for EMERGENT BIOSOLUTIONS INC?
ChartMill assigns a fundamental rating of 4 / 10 to EBS.
What is the valuation status for EBS stock?
ChartMill assigns a valuation rating of 6 / 10 to EMERGENT BIOSOLUTIONS INC (EBS). This can be considered as Fairly Valued.
What is the profitability of EBS stock?
EMERGENT BIOSOLUTIONS INC (EBS) has a profitability rating of 6 / 10.
What is the expected EPS growth for EMERGENT BIOSOLUTIONS INC (EBS) stock?
The Earnings per Share (EPS) of EMERGENT BIOSOLUTIONS INC (EBS) is expected to grow by 767.9% in the next year.