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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

Overall SRNE gets a fundamental rating of 2 out of 10. We evaluated SRNE against 530 industry peers in the Biotechnology industry. Both the profitability and financial health of SRNE have multiple concerns. SRNE is quite expensive at the moment. It does show a decent growth rate.


Dividend Valuation Growth Profitability Health

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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 2015 2016 2017 2018 2019 2020 2021 0 -100M -200M -300M -400M

1.2 Ratios

SRNE has negative profitability rations, so we won't be analyzing them here.
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 2015 2016 2017 2018 2019 2020 2021 0 -100 -200 -300 -400 -500

1.3 Margins

SRNE has a Gross Margin of 62.09%. This is amongst the best in the industry. SRNE outperforms 82.45% of its industry peers.
In the last couple of years the Gross Margin of SRNE has declined.
SRNE does not have Profit Margin and Operating Margin available, so we won't be analyzing them here.
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 2015 2016 2017 2018 2019 2020 2021 0 -500 -1K -1.5K

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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
The debt/assets ratio for SRNE has been reduced compared to a year ago.
SRNE Yearly Shares OutstandingSRNE Yearly Shares OutstandingYearly Shares Outstanding 2015 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 2015 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.
A Debt/Equity ratio of 0.14 indicates that SRNE is not too dependend on debt financing.
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 2015 2016 2017 2018 2019 2020 2021 0 100M -100M 200M -200M

2.3 Liquidity

SRNE has a Current 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.
The Current ratio of SRNE (0.88) is worse than 91.69% of its industry peers.
A Quick Ratio of 0.79 indicates that SRNE may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.79, SRNE is doing worse than 92.01% of the companies in the same industry.
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 2015 2016 2017 2018 2019 2020 2021 50M 100M 150M

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6

3. Growth

3.1 Past

SRNE shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -20.17%.
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 Q2Q%50%
Revenue 1Y (TTM)-8.08%
Revenue growth 3Y35.64%
Revenue growth 5Y45.19%
Sales Q2Q%44.25%

3.2 Future

Based on estimates for the next years, SRNE will show a quite strong growth in Earnings Per Share. The EPS will grow by 17.75% on average per year.
The Revenue is expected to grow by 54.67% on average over the next years. This is a very strong growth
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 2014 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 2014 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

NASDAQ:SRNE (2/22/2023, 8:27:19 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)11-08 2022-11-08
Earnings (Next)N/A N/A
Inst Owners0.02%
Inst Owner Change8.34%
Ins Owners2.72%
Ins Owner Change0%
Market Cap145.01M
Revenue(TTM)60.32M
Net Income(TTM)-493.57M
Analysts82.22
Price Target7.82 (2444.74%)
Short Float %0.76%
Short Ratio0.09
Dividend
Industry RankSector 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)1
Avg EPS beat(2)-44.33%
Min EPS beat(2)-111.76%
Max EPS beat(2)23.11%
EPS beat(4)1
Avg EPS beat(4)-48.29%
Min EPS beat(4)-111.76%
Max EPS beat(4)23.11%
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)-7.3%
Min Revenue beat(2)-40.08%
Max Revenue beat(2)25.48%
Revenue beat(4)1
Avg Revenue beat(4)-14.45%
Min Revenue beat(4)-40.08%
Max Revenue beat(4)25.48%
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)-36.11%
PT rev (3m)-36.11%
EPS NQ rev (1m)0%
EPS NQ rev (3m)6.12%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)21.31%
Revenue NY rev (1m)0%
Revenue NY rev (3m)6.77%
Valuation
Industry RankSector Rank
PE N/A
Fwd PE N/A
P/S 2.4
P/FCF N/A
P/OCF N/A
P/B 1.1
P/tB N/A
EV/EBITDA N/A
EPS(TTM)-1.43
EYN/A
EPS(NY)-0.9
Fwd EYN/A
FCF(TTM)-0.65
FCFYN/A
OCF(TTM)-0.63
OCFYN/A
SpS0.13
BVpS0.28
TBVpS-0.25
PEG (NY)N/A
PEG (5Y)N/A
Graham NumberN/A
Profitability
Industry RankSector Rank
ROA N/A
ROE N/A
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM N/A
PM (TTM) N/A
GM 62.09%
FCFM 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
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 3Y4.26%
GM growth 5Y-3.28%
F-Score3
Asset Turnover0.1
Health
Industry RankSector Rank
Debt/Equity 0.14
Debt/FCF N/A
Debt/EBITDA N/A
Cap/Depr 88.95%
Cap/Sales N/A
Interest Coverage N/A
Cash Conversion N/A
Profit Quality N/A
Current Ratio 0.88
Quick Ratio 0.79
Altman-Z -5.64
F-Score3
WACC7.96%
ROIC/WACCN/A
Cap/Depr(3y)129.88%
Cap/Depr(5y)133.67%
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-20.17%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%50%
EPS Next Y15.83%
EPS Next 2Y16.99%
EPS Next 3Y17.75%
EPS Next 5YN/A
Revenue 1Y (TTM)-8.08%
Revenue growth 3Y35.64%
Revenue growth 5Y45.19%
Sales Q2Q%44.25%
Revenue Next Year3.85%
Revenue Next 2Y-2.52%
Revenue Next 3Y54.67%
Revenue Next 5YN/A
EBIT growth 1Y18.93%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-92.64%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-92.41%
OCF growth 3YN/A
OCF growth 5YN/A

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.


What is the valuation status for SRNE stock?

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.


What is the expected EPS growth for SORRENTO THERAPEUTICS INC (SRNE) stock?

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