EMERGENT BIOSOLUTIONS INC (EBS) Stock Fundamental Analysis
NYSE:EBS - New York Stock Exchange, Inc. - US29089Q1058 - Common Stock - Currency: USD
Overall EBS gets a fundamental rating of 3 out of 10. We evaluated EBS against 568 industry peers in the Biotechnology industry. Both the profitability and financial health of EBS have multiple concerns. EBS is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year EBS has reported negative net income.
In the past year EBS had a positive cash flow from operations.
In multiple years EBS reported negative net income over the last 5 years.
In multiple years EBS reported negative operating cash flow during the last 5 years.
1.2 Ratios
With an excellent Return On Assets value of -13.72%, EBS belongs to the best of the industry, outperforming 83.80% of the companies in the same industry.
EBS's Return On Equity of -39.48% is fine compared to the rest of the industry. EBS outperforms 70.95% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -13.72% | ||
| ROE | -39.48% | ||
| ROIC | N/A |
ROA(3y)-20.7%
ROA(5y)-8.82%
ROE(3y)-57.28%
ROE(5y)-27.44%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
EBS has a Gross Margin of 34.72%. This is in the better half of the industry: EBS outperforms 73.94% of its industry peers.
In the last couple of years the Gross Margin of EBS has declined.
The Profit Margin and Operating Margin are not available for EBS so they could not be analyzed.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 34.72% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-15.64%
GM growth 5Y-10.6%
2. Health
2.1 Basic Checks
EBS does not have a ROIC to compare to the WACC, probably because it is not profitable.
Compared to 1 year ago, EBS has more shares outstanding
Compared to 5 years ago, EBS has more shares outstanding
The debt/assets ratio for EBS is higher compared to a year ago.
2.2 Solvency
EBS has an Altman-Z score of 0.89. This is a bad value and indicates that EBS is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of EBS (0.89) is better than 68.84% of its industry peers.
The Debt to FCF ratio of EBS is 18.54, which is on the high side as it means it would take EBS, 18.54 years of fcf income to pay off all of its debts.
EBS has a better Debt to FCF ratio (18.54) than 92.78% of its industry peers.
EBS has a Debt/Equity ratio of 1.37. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 1.37, EBS is doing worse than 80.11% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.37 | ||
| Debt/FCF | 18.54 | ||
| Altman-Z | 0.89 |
ROIC/WACCN/A
WACC8.94%
2.3 Liquidity
EBS has a Current Ratio of 3.69. This indicates that EBS is financially healthy and has no problem in meeting its short term obligations.
EBS's Current ratio of 3.69 is in line compared to the rest of the industry. EBS outperforms 44.01% of its industry peers.
A Quick Ratio of 1.77 indicates that EBS should not have too much problems paying its short term obligations.
EBS's Quick ratio of 1.77 is on the low side compared to the rest of the industry. EBS is outperformed by 77.11% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.69 | ||
| Quick Ratio | 1.77 |
3. Growth
3.1 Past
EBS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 94.34%, which is quite impressive.
Looking at the last year, EBS shows a very negative growth in Revenue. The Revenue has decreased by -14.06% in the last year.
The Revenue has been decreasing by -1.15% on average over the past years.
EPS 1Y (TTM)94.34%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%106.49%
Revenue 1Y (TTM)-14.06%
Revenue growth 3Y-16.2%
Revenue growth 5Y-1.15%
Sales Q2Q%-29.61%
3.2 Future
EBS is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 16.93% yearly.
Based on estimates for the next years, EBS will show a small growth in Revenue. The Revenue will grow by 7.53% on average per year.
EPS Next Y344.35%
EPS Next 2Y163.67%
EPS Next 3Y23.19%
EPS Next 5Y16.93%
Revenue Next Year-25.27%
Revenue Next 2Y-5.35%
Revenue Next 3Y-11.94%
Revenue Next 5Y7.53%
3.3 Evolution
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings Ratio is negative for EBS. In the last year negative earnings were reported.
EBS is valuated cheaply with a Price/Forward Earnings ratio of 5.99.
Based on the Price/Forward Earnings ratio, EBS is valued cheaper than 98.59% of the companies in the same industry.
EBS's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 21.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 5.99 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, EBS is valued cheaper than 94.19% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, EBS is valued cheaply inside the industry as 98.77% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.89 | ||
| EV/EBITDA | 29.86 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as EBS's earnings are expected to grow with 23.19% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y163.67%
EPS Next 3Y23.19%
5. Dividend
5.1 Amount
EBS does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
4.54
-0.08 (-1.73%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupPharmaceuticals, Biotechnology & Life Sciences
GICS IndustryBiotechnology
Earnings (Last)
Earnings (Next)
Inst Owners64.96%
Inst Owner Change-0.5%
Ins Owners1.08%
Ins Owner Change15.13%
Market Cap246.70M
Analysts74.29
Price Target13.77 (203.3%)
Short Float %15.28%
Short Ratio6.77
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)489.44%
Min EPS beat(2)110%
Max EPS beat(2)868.88%
EPS beat(4)3
Avg EPS beat(4)250.93%
Min EPS beat(4)-143.07%
Max EPS beat(4)868.88%
EPS beat(8)3
Avg EPS beat(8)40.12%
EPS beat(12)4
Avg EPS beat(12)-225.01%
EPS beat(16)6
Avg EPS beat(16)-178.43%
Revenue beat(2)0
Avg Revenue beat(2)-13.26%
Min Revenue beat(2)-24.3%
Max Revenue beat(2)-2.22%
Revenue beat(4)2
Avg Revenue beat(4)10.31%
Min Revenue beat(4)-24.3%
Max Revenue beat(4)35.04%
Revenue beat(8)5
Avg Revenue beat(8)14.52%
Revenue beat(12)7
Avg Revenue beat(12)9.27%
Revenue beat(16)8
Avg Revenue beat(16)4.69%
PT rev (1m)0%
PT rev (3m)12.5%
EPS NQ rev (1m)0%
EPS NQ rev (3m)N/A
EPS NY rev (1m)-63.77%
EPS NY rev (3m)-74.92%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-27.04%
Revenue NY rev (3m)-27.04%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 5.99 | ||
| P/S | 0.24 | ||
| P/FCF | 6.89 | ||
| P/OCF | 4.2 | ||
| P/B | 0.51 | ||
| P/tB | N/A | ||
| EV/EBITDA | 29.86 |
EPS(TTM)-0.31
EYN/A
EPS(NY)0.76
Fwd EY16.69%
FCF(TTM)0.66
FCFY14.51%
OCF(TTM)1.08
OCFY23.79%
SpS19.21
BVpS8.88
TBVpS-0.34
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -13.72% | ||
| ROE | -39.48% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 34.72% | ||
| FCFM | 3.43% |
ROA(3y)-20.7%
ROA(5y)-8.82%
ROE(3y)-57.28%
ROE(5y)-27.44%
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 3Y-15.64%
GM growth 5Y-10.6%
F-Score6
Asset Turnover0.75
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.37 | ||
| Debt/FCF | 18.54 | ||
| Debt/EBITDA | 24.31 | ||
| Cap/Depr | 21.05% | ||
| Cap/Sales | 2.19% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | 215.02% | ||
| Profit Quality | N/A | ||
| Current Ratio | 3.69 | ||
| Quick Ratio | 1.77 | ||
| Altman-Z | 0.89 |
F-Score6
WACC8.94%
ROIC/WACCN/A
Cap/Depr(3y)106.07%
Cap/Depr(5y)126.37%
Cap/Sales(3y)13.29%
Cap/Sales(5y)12.46%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)94.34%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%106.49%
EPS Next Y344.35%
EPS Next 2Y163.67%
EPS Next 3Y23.19%
EPS Next 5Y16.93%
Revenue 1Y (TTM)-14.06%
Revenue growth 3Y-16.2%
Revenue growth 5Y-1.15%
Sales Q2Q%-29.61%
Revenue Next Year-25.27%
Revenue Next 2Y-5.35%
Revenue Next 3Y-11.94%
Revenue Next 5Y7.53%
EBIT growth 1Y76.69%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year326.21%
EBIT Next 3Y55.51%
EBIT Next 5Y39.09%
FCF growth 1Y113.55%
FCF growth 3Y-28.05%
FCF growth 5Y-17.04%
OCF growth 1Y128.45%
OCF growth 3Y-43.25%
OCF growth 5Y-20.77%