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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

We assign a fundamental rating of 2 out of 10 to SRNE. SRNE was compared to 571 industry peers in the Biotechnology industry. SRNE has a bad profitability rating. Also its financial health evaluation is rather negative. While showing a medium growth rate, SRNE is valued expensive at the moment.


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

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

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 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.
SRNE has more shares outstanding than it did 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

SRNE has an Altman-Z score of -5.64. This is a bad value and indicates that SRNE is not financially healthy and even 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.
SRNE's Debt to Equity ratio of 0.14 is on the low side compared to the rest of the industry. SRNE is outperformed by 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

A Current Ratio of 0.88 indicates that SRNE may have some problems paying its short term obligations.
The Current ratio of SRNE (0.88) is worse than 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 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.
SRNE shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 45.19% yearly.
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.
Based on estimates for the next years, SRNE will show a very strong growth in Revenue. The Revenue will grow by 54.67% on average per year.
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

The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
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

The Price/Earnings Ratio is negative for SRNE. In the last year negative earnings were reported.
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

A more expensive valuation may be justified as SRNE's earnings are expected to grow with 17.75% in the coming years.
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 Change-92.27%
Ins Owners2.72%
Ins Owner Change0%
Market Cap145.01M
Analysts82.22
Price Target7.82 (2444.74%)
Short Float %0.79%
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