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SORRENTO THERAPEUTICS INC (SRNE) Stock Fundamental Analysis

USA - Nasdaq - NASDAQ:SRNE - US83587F2020 - Common Stock

0.3073 USD
-0.08 (-20.26%)
Last: 2/22/2023, 8:27:19 PM
0.2801 USD
-0.03 (-8.85%)
After Hours: 2/22/2023, 8:27:19 PM
Fundamental Rating

2

We assign a fundamental rating of 2 out of 10 to SRNE. SRNE was compared to 525 industry peers in the Biotechnology industry. SRNE has a bad profitability rating. Also its financial health evaluation is rather negative. SRNE is valied quite expensively at the moment, while it does show a decent growth rate.


Dividend Valuation Growth Profitability Health

1

1. Profitability

1.1 Basic Checks

  • In the past year SRNE has reported negative net income.
  • SRNE had a negative operating cash flow in the past year.
SRNE Yearly Net Income VS EBIT VS OCF VS FCFSRNE Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 0 -100M -200M -300M -400M

1.2 Ratios

  • The profitability ratios for SRNE are negative, so there is not much use analyzing them.
Industry RankSector 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
SRNE Yearly ROA, ROE, ROICSRNE Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 0 -100 -200 -300 -400 -500

1.3 Margins

  • SRNE's Gross Margin of 62.09% is amongst the best of the industry. SRNE outperforms 82.45% of its industry peers.
  • SRNE's Gross Margin has declined in the last couple of years.
  • The Profit Margin and Operating Margin are not available for SRNE so they could not be analyzed.
Industry RankSector 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%
SRNE Yearly Profit, Operating, Gross MarginsSRNE Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 0 -200 -400 -600 -800 -1K

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1

2. Health

2.1 Basic Checks

  • SRNE does not have a ROIC to compare to the WACC, probably because it is not profitable.
  • Compared to 1 year ago, SRNE has more shares outstanding
  • SRNE has a better debt/assets ratio than last year.
SRNE Yearly Shares OutstandingSRNE Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 100M 200M 300M
SRNE Yearly Total Debt VS Total AssetsSRNE Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 200M 400M 600M

2.2 Solvency

  • SRNE has an Altman-Z score of -5.64. This is a bad value and indicates that SRNE is not financially healthy and even has some risk of bankruptcy.
  • SRNE has a worse Altman-Z score (-5.64) than 71.94% of its industry peers.
  • SRNE has a Debt/Equity ratio of 0.14. This is a healthy value indicating a solid balance between debt and equity.
  • SRNE has a Debt to Equity ratio of 0.14. This is in the lower half of the industry: SRNE underperforms 66.93% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.14
Debt/FCF N/A
Altman-Z -5.64
ROIC/WACCN/A
WACC7.96%
SRNE Yearly LT Debt VS Equity VS FCFSRNE Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 0 100M -100M 200M -200M

2.3 Liquidity

  • A Current Ratio of 0.88 indicates that SRNE may have some problems paying its short term obligations.
  • The Current ratio of SRNE (0.88) is worse than 91.69% of its industry peers.
  • 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 has a Quick ratio of 0.79. This is amonst the worse of the industry: SRNE underperforms 92.01% of its industry peers.
Industry RankSector Rank
Current Ratio 0.88
Quick Ratio 0.79
SRNE Yearly Current Assets VS Current LiabilitesSRNE Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 50M 100M 150M

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6

3. Growth

3.1 Past

  • The earnings per share for SRNE have decreased strongly by -20.17% in the last year.
  • SRNE shows a decrease in Revenue. In the last year, the revenue decreased by -8.08%.
  • 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 Q2Q%50%
Revenue 1Y (TTM)-8.08%
Revenue growth 3Y35.64%
Revenue growth 5Y45.19%
Sales Q2Q%44.25%

3.2 Future

  • SRNE is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 17.75% yearly.
  • 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.
SRNE Yearly Revenue VS EstimatesSRNE Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M 800M 1B
SRNE Yearly EPS VS EstimatesSRNE Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 1 -1 -2

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0

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 RankSector Rank
PE N/A
Fwd PE N/A
SRNE Price Earnings VS Forward Price EarningsSRNE Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 20 40 60

4.2 Price Multiples

Industry RankSector Rank
P/FCF N/A
EV/EBITDA N/A
SRNE Per share dataSRNE EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 -0.5 -1

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%

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0

5. Dividend

5.1 Amount

  • SRNE does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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SORRENTO THERAPEUTICS INC / SRNE FAQ

What is the ChartMill fundamental rating of SORRENTO THERAPEUTICS INC (SRNE) stock?

ChartMill assigns a fundamental rating of 2 / 10 to SRNE.


Can you provide the valuation status for SORRENTO THERAPEUTICS INC?

ChartMill assigns a valuation rating of 2 / 10 to SORRENTO THERAPEUTICS INC (SRNE). This can be considered as Overvalued.


What is the profitability of SRNE stock?

SORRENTO THERAPEUTICS INC (SRNE) has a profitability rating of 1 / 10.


Can you provide the financial health for SRNE stock?

The financial health rating of SORRENTO THERAPEUTICS INC (SRNE) is 1 / 10.


What is the earnings growth outlook for SORRENTO THERAPEUTICS INC?

The Earnings per Share (EPS) of SORRENTO THERAPEUTICS INC (SRNE) is expected to grow by 15.83% in the next year.