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Cambrex Corp
CBM : NYSE : Health Care
$21.79 | %
Today's Range: 21.63 - 21.94
Avg. Daily Volume: 279,400
12/26/14 - 4:00 PM ET

Financial Analysis


CAMBREX CORP's gross profit margin for the third quarter of its fiscal year 2014 has increased 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 0.94 which shows a lack of ability to cover short-term cash needs. The company's liquidity has increased from the same period last year, indicating improving cash flow.

During the same period, stockholders' equity ("net worth") has increased by 24.72% 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.

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Income Statement Q3 FY14 Q3 FY13
Net Sales ($mil)81.377.45
EBITDA ($mil)18.117.0
EBIT ($mil)12.0311.25
Net Income ($mil)8.773.57


Balance Sheet Q3 FY14 Q3 FY13
Cash & Equiv. ($mil)26.5125.09
Total Assets ($mil)444.33466.45
Total Debt ($mil)60.0101.05
Equity ($mil)232.41186.33


Profitability Q3 FY14 Q3 FY13
Gross Profit Margin42.439.65
EBITDA Margin22.2521.94
Operating Margin14.814.53
Sales Turnover0.780.61
Return on Assets8.6213.0
Return on Equity16.9134.92
Debt Q3 FY14 Q3 FY13
Current Ratio2.182.29
Debt/Capital0.210.35
Interest Expense0.570.66
Interest Coverage21.1116.94


Share Data Q3 FY14 Q3 FY13
Shares outstanding (mil)31.030.19
Div / share0.00.0
EPS0.280.2
Book value / share7.56.17
Institutional Own % n/a n/a
Avg Daily Volume276296.0216534.0

Valuation


BUY. The current P/E ratio indicates a significant discount compared to an average of 41.99 for the Life Sciences Tools & Services industry and a value on par with the S&P 500 average of 19.99. Conducting a second comparison, its price-to-book ratio of 3.14 indicates a premium versus the S&P 500 average of 2.76 and a significant discount versus the industry average of 6.34. The price-to-sales ratio is above the S&P 500 average, but well below the industry average. 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
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
CBM 18.67 Peers 41.99   CBM 9.05 Peers 32.69

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.

 

Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.

CBM is trading at a significant discount to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
CBM 17.43 Peers 30.87   CBM 1.02 Peers 1.04

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.

 

Average. 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 trades at a valuation on par to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
CBM 3.14 Peers 6.34   CBM -40.29 Peers 46.42

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.

 

Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

However, CBM is expected to significantly trail its peers on the basis of its earnings growth rate.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
CBM 2.09 Peers 72.07   CBM 22.19 Peers 22.90

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.

 

Average. Comparing a company's sales growth to its industry helps to determine if the company is adding or losing market share.

CBM is keeping pace with its peers on the basis of sales growth.

 

 

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