SORRENTO THERAPEUTICS INC (SRNE) Fundamental Analysis & Valuation

NASDAQ:SRNE • US83587F2020

Current stock price

0.3073 USD
-0.08 (-20.26%)
At close:
0.2801 USD
-0.03 (-8.85%)
After Hours:

This SRNE fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

1

1. SRNE Profitability Analysis

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.
  • 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 2016 2017 2018 2019 2020 2021 0 -200 -400 -600 -800 -1K

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1

2. SRNE Health Analysis

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.
  • The debt/assets ratio for SRNE has been reduced compared to a year ago.
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

  • 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.
  • With a Altman-Z score value of -5.64, SRNE is not doing good in the industry: 71.94% of the companies in the same industry are doing better.
  • A Debt/Equity ratio of 0.14 indicates that SRNE is not too dependend on debt financing.
  • Looking at the Debt to Equity ratio, with a value of 0.14, SRNE is doing worse than 66.93% of the companies in the same industry.
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

  • 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.
  • SRNE has a Current ratio of 0.88. This is amonst the worse of the industry: SRNE underperforms 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 2016 2017 2018 2019 2020 2021 50M 100M 150M

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

6

3. SRNE Growth Analysis

3.1 Past

  • SRNE shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -20.17%.
  • SRNE shows a decrease in Revenue. In the last year, the revenue decreased by -8.08%.
  • Measured over the past years, SRNE shows a very strong growth in Revenue. The Revenue has been growing by 45.19% on average per year.
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.
  • 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

  • When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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. SRNE Valuation Analysis

4.1 Price/Earnings Ratio

  • The Price/Earnings Ratio is negative for SRNE. In the last year negative earnings were reported.
  • Also next year SRNE is expected to report negative earnings again, which makes the also the Forward Price/Earnings Ratio negative.
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 10 20 30 40 50

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%

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

0

5. SRNE Dividend Analysis

5.1 Amount

  • No dividends for SRNE!.
Industry RankSector Rank
Dividend Yield N/A

More info and screens

Find the best dividend stocksShow peers with best dividend

SRNE Fundamentals: All Metrics, Ratios and Statistics

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
Earnings (Next)N/A
Inst Owners0.02%
Inst Owner Change468.85%
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 Fundamental Analysis 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.


How profitable is SORRENTO THERAPEUTICS INC (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.