BIOMARIN PHARMACEUTICAL INC (BMRN) Stock Fundamental Analysis
NASDAQ:BMRN - Nasdaq - US09061G1013 - Common Stock - Currency: USD
We assign a fundamental rating of 6 out of 10 to BMRN. BMRN was compared to 571 industry peers in the Biotechnology industry. BMRN gets an excellent profitability rating and is at the same time showing great financial health properties. BMRN has a correct valuation and a medium growth rate. These ratings could make BMRN a good candidate for quality investing.
1. Profitability
1.1 Basic Checks
In the past year BMRN was profitable.
In the past year BMRN had a positive cash flow from operations.
BMRN had positive earnings in 4 of the past 5 years.
BMRN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
BMRN's Return On Assets of 4.70% is amongst the best of the industry. BMRN outperforms 95.01% of its industry peers.
BMRN has a better Return On Equity (5.95%) than 94.47% of its industry peers.
BMRN's Return On Invested Capital of 5.60% is amongst the best of the industry. BMRN outperforms 94.83% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for BMRN is significantly below the industry average of 14.26%.
The last Return On Invested Capital (5.60%) for BMRN is above the 3 year average (3.17%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.7% | ||
| ROE | 5.95% | ||
| ROIC | 5.6% |
ROA(3y)3.59%
ROA(5y)4.88%
ROE(3y)4.67%
ROE(5y)6.69%
ROIC(3y)3.17%
ROIC(5y)N/A
1.3 Margins
BMRN's Profit Margin of 11.71% is amongst the best of the industry. BMRN outperforms 95.72% of its industry peers.
BMRN has a Operating Margin of 14.88%. This is amongst the best in the industry. BMRN outperforms 95.90% of its industry peers.
BMRN has a better Gross Margin (78.95%) than 86.63% of its industry peers.
In the last couple of years the Gross Margin of BMRN has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.88% | ||
| PM (TTM) | 11.71% | ||
| GM | 78.95% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y2.25%
GM growth 5Y0.19%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so BMRN is destroying value.
The number of shares outstanding for BMRN has been increased compared to 1 year ago.
The number of shares outstanding for BMRN has been increased compared to 5 years ago.
BMRN has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 6.42 indicates that BMRN is not in any danger for bankruptcy at the moment.
BMRN has a better Altman-Z score (6.42) than 83.24% of its industry peers.
The Debt to FCF ratio of BMRN is 1.98, which is an excellent value as it means it would take BMRN, only 1.98 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of BMRN (1.98) is better than 95.19% of its industry peers.
BMRN has a Debt/Equity ratio of 0.11. This is a healthy value indicating a solid balance between debt and equity.
With a Debt to Equity ratio value of 0.11, BMRN is not doing good in the industry: 67.38% of the companies in the same industry are doing better.
Although BMRN does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.11 | ||
| Debt/FCF | 1.98 | ||
| Altman-Z | 6.42 |
ROIC/WACC0.61
WACC9.22%
2.3 Liquidity
BMRN has a Current Ratio of 4.27. This indicates that BMRN is financially healthy and has no problem in meeting its short term obligations.
BMRN's Current ratio of 4.27 is in line compared to the rest of the industry. BMRN outperforms 47.95% of its industry peers.
A Quick Ratio of 2.62 indicates that BMRN has no problem at all paying its short term obligations.
The Quick ratio of BMRN (2.62) is worse than 69.16% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.27 | ||
| Quick Ratio | 2.62 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 162.11% over the past year.
BMRN shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 17.97%.
Measured over the past years, BMRN shows a quite strong growth in Revenue. The Revenue has been growing by 10.86% on average per year.
EPS 1Y (TTM)162.11%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%411.11%
Revenue 1Y (TTM)17.97%
Revenue growth 3Y15.62%
Revenue growth 5Y10.86%
Sales Q2Q%15.65%
3.2 Future
BMRN is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 24.45% yearly.
Based on estimates for the next years, BMRN will show a small growth in Revenue. The Revenue will grow by 7.08% on average per year.
EPS Next Y24.34%
EPS Next 2Y27.81%
EPS Next 3Y31.75%
EPS Next 5Y24.45%
Revenue Next Year10.12%
Revenue Next 2Y10.16%
Revenue Next 3Y8.27%
Revenue Next 5Y7.08%
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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
BMRN is valuated quite expensively with a Price/Earnings ratio of 27.63.
Compared to the rest of the industry, the Price/Earnings ratio of BMRN indicates a rather cheap valuation: BMRN is cheaper than 95.01% of the companies listed in the same industry.
BMRN is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 29.36, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 22.22, which indicates a rather expensive current valuation of BMRN.
BMRN's Price/Forward Earnings ratio is rather cheap when compared to the industry. BMRN is cheaper than 93.76% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.65. BMRN is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.63 | ||
| Fwd PE | 22.22 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of BMRN indicates a rather cheap valuation: BMRN is cheaper than 95.37% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of BMRN indicates a rather cheap valuation: BMRN is cheaper than 93.76% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 43.59 | ||
| EV/EBITDA | 23.84 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
BMRN has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as BMRN's earnings are expected to grow with 31.75% in the coming years.
PEG (NY)1.14
PEG (5Y)N/A
EPS Next 2Y27.81%
EPS Next 3Y31.75%
5. Dividend
5.1 Amount
BMRN does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
68.81
-2.36 (-3.32%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnology
Earnings (Last)
Earnings (Next)
Inst Owners98.66%
Inst Owner Change-92.78%
Ins Owners0.69%
Ins Owner Change0.61%
Market Cap13.11B
Analysts81.71
Price Target98.6 (43.29%)
Short Float %2.38%
Short Ratio2.99
Dividend
| Industry Rank | Sector 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)2
Avg EPS beat(2)30.72%
Min EPS beat(2)4.22%
Max EPS beat(2)57.23%
EPS beat(4)3
Avg EPS beat(4)16.93%
Min EPS beat(4)-24.46%
Max EPS beat(4)57.23%
EPS beat(8)6
Avg EPS beat(8)28.16%
EPS beat(12)9
Avg EPS beat(12)-8.43%
EPS beat(16)13
Avg EPS beat(16)29.42%
Revenue beat(2)2
Avg Revenue beat(2)4.93%
Min Revenue beat(2)4.42%
Max Revenue beat(2)5.44%
Revenue beat(4)2
Avg Revenue beat(4)1.73%
Min Revenue beat(4)-2.4%
Max Revenue beat(4)5.44%
Revenue beat(8)3
Avg Revenue beat(8)-0.1%
Revenue beat(12)5
Avg Revenue beat(12)-0.4%
Revenue beat(16)8
Avg Revenue beat(16)0.27%
PT rev (1m)-0.34%
PT rev (3m)-0.72%
EPS NQ rev (1m)-1.18%
EPS NQ rev (3m)-1.18%
EPS NY rev (1m)-0.02%
EPS NY rev (3m)-0.27%
Revenue NQ rev (1m)-0.01%
Revenue NQ rev (3m)0.03%
Revenue NY rev (1m)-0.03%
Revenue NY rev (3m)0.14%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.63 | ||
| Fwd PE | 22.22 | ||
| P/S | 4.76 | ||
| P/FCF | 43.59 | ||
| P/OCF | 31.62 | ||
| P/B | 2.42 | ||
| P/tB | 2.65 | ||
| EV/EBITDA | 23.84 |
EPS(TTM)2.49
EY3.62%
EPS(NY)3.1
Fwd EY4.5%
FCF(TTM)1.58
FCFY2.29%
OCF(TTM)2.18
OCFY3.16%
SpS14.44
BVpS28.4
TBVpS26.01
PEG (NY)1.14
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.7% | ||
| ROE | 5.95% | ||
| ROCE | 6.68% | ||
| ROIC | 5.6% | ||
| ROICexc | 6.6% | ||
| ROICexgc | 7.23% | ||
| OM | 14.88% | ||
| PM (TTM) | 11.71% | ||
| GM | 78.95% | ||
| FCFM | 10.93% |
ROA(3y)3.59%
ROA(5y)4.88%
ROE(3y)4.67%
ROE(5y)6.69%
ROIC(3y)3.17%
ROIC(5y)N/A
ROICexc(3y)3.85%
ROICexc(5y)N/A
ROICexgc(3y)4.24%
ROICexgc(5y)N/A
ROCE(3y)3.78%
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 3Y2.25%
GM growth 5Y0.19%
F-Score7
Asset Turnover0.4
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.11 | ||
| Debt/FCF | 1.98 | ||
| Debt/EBITDA | 1.17 | ||
| Cap/Depr | 114.17% | ||
| Cap/Sales | 4.14% | ||
| Interest Coverage | 39.55 | ||
| Cash Conversion | 81.42% | ||
| Profit Quality | 93.35% | ||
| Current Ratio | 4.27 | ||
| Quick Ratio | 2.62 | ||
| Altman-Z | 6.42 |
F-Score7
WACC9.22%
ROIC/WACC0.61
Cap/Depr(3y)111.01%
Cap/Depr(5y)114.82%
Cap/Sales(3y)4.71%
Cap/Sales(5y)5.6%
Profit Quality(3y)57.85%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)162.11%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%411.11%
EPS Next Y24.34%
EPS Next 2Y27.81%
EPS Next 3Y31.75%
EPS Next 5Y24.45%
Revenue 1Y (TTM)17.97%
Revenue growth 3Y15.62%
Revenue growth 5Y10.86%
Sales Q2Q%15.65%
Revenue Next Year10.12%
Revenue Next 2Y10.16%
Revenue Next 3Y8.27%
Revenue Next 5Y7.08%
EBIT growth 1Y243.03%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year90.69%
EBIT Next 3Y37.03%
EBIT Next 5Y26.6%
FCF growth 1Y858.1%
FCF growth 3Y36.9%
FCF growth 5YN/A
OCF growth 1Y199.19%
OCF growth 3Y23.45%
OCF growth 5Y63.99%