SORRENTO THERAPEUTICS INC (SRNE)
US83587F2020 - Common Stock
Overall SRNE gets a fundamental rating of 2 out of 10. We evaluated SRNE against 588 industry peers in the Biotechnology industry. SRNE may be in some trouble as it scores bad on both profitability and health. SRNE is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
SRNE had negative earnings in the past year.
In the past year SRNE has reported a negative cash flow from operations.
SRNE had negative earnings in 4 of the past 5 years.
SRNE had a negative operating cash flow in each of the past 5 years.
1.2 Ratios
The profitability ratios for SRNE are negative, so there is not much use analyzing them.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | N/A | ||
| ROE | N/A | ||
| ROIC | N/A |
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
Looking at the Gross Margin, with a value of 62.09%, SRNE belongs to the top of the industry, outperforming 82.45% of the companies in the same industry.
SRNE's Gross Margin has declined in the last couple of years.
SRNE does not have Profit Margin and Operating Margin available, so we won't be analyzing them here.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 62.09% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y4.26%
GM growth 5Y-3.28%
2. Health
2.1 Basic Checks
SRNE does not have a ROIC to compare to the WACC, probably because it is not profitable.
The number of shares outstanding for SRNE has been increased compared to 1 year ago.
SRNE has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of -5.64, we must say that SRNE is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of -5.64, SRNE is doing worse than 71.94% of the companies in the same industry.
SRNE has a Debt/Equity ratio of 0.14. This is a healthy value indicating a solid balance between debt and equity.
With a Debt to Equity ratio value of 0.14, SRNE is not doing good in the industry: 66.93% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | N/A | ||
| Altman-Z | -5.64 |
ROIC/WACCN/A
WACC7.96%
2.3 Liquidity
A Current Ratio of 0.88 indicates that SRNE may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.88, SRNE is doing worse than 91.69% of the companies in the same industry.
SRNE has a Quick Ratio of 0.88. This is a bad value and indicates that SRNE is not financially healthy enough and could expect problems in meeting its short term obligations.
SRNE's Quick ratio of 0.79 is on the low side compared to the rest of the industry. SRNE is outperformed by 92.01% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.88 | ||
| Quick Ratio | 0.79 |
3. Growth
3.1 Past
The earnings per share for SRNE have decreased strongly by -20.17% in the last year.
Looking at the last year, SRNE shows a decrease in Revenue. The Revenue has decreased by -8.08% in the last year.
SRNE shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 45.19% yearly.
EPS 1Y (TTM)-20.17%
EPS 3YN/A
EPS 5YN/A
EPS growth Q2Q50%
Revenue 1Y (TTM)-8.08%
Revenue growth 3Y35.64%
Revenue growth 5Y45.19%
Revenue growth Q2Q44.25%
3.2 Future
The Earnings Per Share is expected to grow by 17.75% on average over the next years. This is quite good.
SRNE is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 54.67% yearly.
EPS Next Y15.83%
EPS Next 2Y16.99%
EPS Next 3Y17.75%
EPS Next 5YN/A
Revenue Next Year3.85%
Revenue Next 2Y-2.52%
Revenue Next 3Y54.67%
Revenue Next 5YN/A
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
SRNE reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
Besides the negative Price/Earnings Ratio, also the Forward Price/Earnings Ratio is negative for SRNE. No positive earnings are expected for the next year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A |
4.2 Price Multiples
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
SRNE's earnings are expected to grow with 17.75% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y16.99%
EPS Next 3Y17.75%
5. Dividend
5.1 Amount
No dividends for SRNE!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
SORRENTO THERAPEUTICS INC
NASDAQ:SRNE (2/22/2023, 7:27:19 PM)
After market: 0.2801 -0.03 (-8.85%)0.3073
-0.08 (-20.26%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnology
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap145.01M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | N/A | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | N/A | ||
| ROE | N/A | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 62.09% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.1
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.88 | ||
| Quick Ratio | 0.79 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-20.17%
EPS 3YN/A
EPS 5Y
EPS growth Q2Q
EPS Next Y15.83%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-8.08%
Revenue growth 3Y35.64%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y