0.03 | 0.23%
CAMBREX CORP's gross profit margin for the first quarter of its fiscal year 2013 is essentially unchanged when compared to the same period a year ago. The company has grown its sales and net income during the past quarter when compared with the same quarter a year ago, and although its growth in net income has outpaced the industry average, its revenue growth has not. CAMBREX CORP has weak liquidity. Currently, the Quick Ratio is 0.95 which shows a lack of ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year, indicating deteriorating cash flow.
At the same time, stockholders' equity ("net worth") has greatly increased by 51.26% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future.
| Income Statement | Q1 FY13 | Q1 FY12 |
|---|---|---|
| Net Sales ($mil) | 74.89 | 70.23 |
| EBITDA ($mil) | 16.78 | 15.6 |
| EBIT ($mil) | 11.45 | 10.11 |
| Net Income ($mil) | 11.17 | 7.04 |
| Balance Sheet | Q1 FY13 | Q1 FY12 |
|---|---|---|
| Cash & Equiv. ($mil) | 31.88 | 20.78 |
| Total Assets ($mil) | 410.52 | 334.33 |
| Total Debt ($mil) | 73.0 | 84.0 |
| Equity ($mil) | 171.73 | 113.53 |
| Profitability | Q1 FY13 | Q1 FY12 |
|---|---|---|
| Gross Profit Margin | 40.17 | 39.75 |
| EBITDA Margin | 22.41 | 22.2 |
| Operating Margin | 15.29 | 14.4 |
| Sales Turnover | 0.68 | 0.79 |
| Return on Assets | 16.18 | 4.57 |
| Return on Equity | 39.37 | 15.78 |
| Debt | Q1 FY13 | Q1 FY12 |
|---|---|---|
| Current Ratio | 2.02 | 2.25 |
| Debt/Capital | 0.3 | 0.43 |
| Interest Expense | 0.5 | 0.65 |
| Interest Coverage | 23.13 | 15.53 |
| Share Data | Q1 FY13 | Q1 FY12 |
|---|---|---|
| Shares outstanding (mil) | 29.91 | 29.62 |
| Div / share | 0.0 | 0.0 |
| EPS | 0.37 | 0.24 |
| Book value / share | 5.74 | 3.83 |
| Institutional Own % | n/a | n/a |
| Avg Daily Volume | 180870.0 | 224344.0 |
BUY. CAMBREX CORP's P/E ratio indicates a significant discount compared to an average of 30.51 for the Life Sciences Tools & Services industry and a significant discount compared to the S&P 500 average of 18.80. To use another comparison, its price-to-book ratio of 2.17 indicates valuation on par with the S&P 500 average of 2.40 and a discount versus the industry average of 3.40. The price-to-sales ratio is below the S&P 500 average and is well below the industry average, indicating a discount. Upon assessment of these and other key valuation criteria, CAMBREX CORP proves to trade at a discount to investment alternatives within the industry.
| Price/Earnings |
|
Price/Cash Flow |
| |||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| CBM 5.63 | Peers 30.51 | CBM NA | Peers 17.08 | |||||||||||||||||||||
|
Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations. CBM is trading at a significant discount to its peers. |
Neutral. The P/CF ratio is the stock’s price divided by the sum of the company's cash flow from operations. It is useful for comparing companies with different capital requirements or financing structures. Ratio not available. |
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| Price/Projected Earnings |
|
Price to Earnings/Growth |
|
|||||||||||||||||||||
| CBM 13.11 | Peers 19.97 | CBM NM | Peers 4.79 | |||||||||||||||||||||
|
Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations. CBM is trading at a significant discount to its peers. |
Neutral. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples. CBM's negative PEG ratio makes this valuation measure meaningless. |
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| Price/Book |
|
Earnings Growth |
|
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| CBM 2.17 | Peers 3.40 | CBM 268.33 | Peers 58.98 | |||||||||||||||||||||
|
Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet. CBM is trading at a significant discount to its peers. |
Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios. CBM is expected to have an earnings growth rate that significantly exceeds its peers. |
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| Price/Sales |
|
Sales Growth |
|
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| CBM 1.32 | Peers 13.88 | CBM 5.97 | Peers 7.97 | |||||||||||||||||||||
|
Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales. CBM is trading at a significant discount to its industry on this measurement. |
Lower. A sales growth rate that trails the industry implies that a company is losing market share. CBM significantly trails its peers on the basis of sales growth |
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