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SORRENTO THERAPEUTICS INC (SRNE) Stock Fundamental Analysis

NASDAQ:SRNE - Nasdaq - US83587F2020 - Common Stock - Currency: USD

0.3073  -0.08 (-20.26%)

After market: 0.2801 -0.03 (-8.85%)

Fundamental Rating

2

SRNE gets a fundamental rating of 2 out of 10. The analysis compared the fundamentals against 559 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

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1

1. Profitability

1.1 Basic Checks

In the past year SRNE has reported negative net income.
In the past year SRNE has reported a negative cash flow from operations.
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

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.
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 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.
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 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

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.
SRNE has a Altman-Z score of -5.64. This is in the lower half of the industry: SRNE underperforms 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 worse Debt to Equity ratio (0.14) than 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.
SRNE's Current ratio of 0.88 is on the low side compared to the rest of the industry. SRNE is outperformed by 91.69% of its industry peers.
A Quick Ratio of 0.79 indicates that SRNE may have some problems paying its short term obligations.
With a Quick ratio value of 0.79, SRNE is not doing good in the industry: 92.01% of the companies in the same industry are doing better.
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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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.
The Revenue has been growing by 45.19% on average over the past years. This is a very strong growth!
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

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 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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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 Change-26.85%
Ins Owners2.72%
Ins Owner Change0%
Market Cap145.01M
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
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
ROICexcg growth 3YN/A
ROICexcg 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