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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 568 industry peers in the Biotechnology industry. SRNE may be in some trouble as it scores bad on both profitability and health. 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

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 2015 2016 2017 2018 2019 2020 2021 0 -100 -200 -300 -400 -500

1.3 Margins

SRNE has a better Gross Margin (62.09%) than 82.45% of its industry peers.
In the last couple of years the Gross Margin of SRNE has declined.
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.
SRNE has a better debt/assets ratio than last year.
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.
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 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 has a Current ratio of 0.88. This is amonst the worse of the industry: SRNE underperforms 91.69% of its industry peers.
SRNE has a Quick 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.
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%.
The Revenue has decreased by -8.08% in the past year.
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

SRNE is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 17.75% yearly.
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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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 80

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

No dividends for SRNE!.
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 Change0%
Ins Owners2.72%
Ins Owner Change0%
Market Cap145.01M
Analysts82.22
Price Target7.82 (2444.74%)
Short Float %0.77%
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