Cambrex Corp

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CBM : NYSE : Health Care
$52.41 -3.80 | -6.80%
Today's Range: 51.46 - 55.95
Avg. Daily Volume: 365,400
07/26/16 - 10:50 AM ET

Financial Analysis


CAMBREX CORP's gross profit margin for the first quarter of its fiscal year 2016 has increased when compared to the same period a year ago. The company managed to grow both sales and net income at a faster pace than the average competitor in its industry this quarter as compared to the same quarter a year ago. CAMBREX CORP has average liquidity. Currently, the Quick Ratio is 1.36 which shows that technically this company has the ability to cover short-term cash needs. The company's liquidity has increased from the same period last year, indicating improving cash flow.

At the same time, stockholders' equity ("net worth") has greatly increased by 37.21% from the same quarter last year. Together, the key liquidity measurements indicate that it is relatively unlikely that the company will face financial difficulties in the near future.

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Income Statement Q1 FY16 Q1 FY15
Net Sales ($mil)94.7477.53
EBITDA ($mil)27.4417.97
EBIT ($mil)21.8712.67
Net Income ($mil)14.587.99


Balance Sheet Q1 FY16 Q1 FY15
Cash & Equiv. ($mil)85.667.91
Total Assets ($mil)544.2481.08
Total Debt ($mil)0.060.0
Equity ($mil)335.07244.2


Profitability Q1 FY16 Q1 FY15
Gross Profit Margin46.9544.34
EBITDA Margin28.9623.17
Operating Margin23.0816.35
Sales Turnover0.830.8
Return on Assets11.7213.36
Return on Equity18.9926.75
Debt Q1 FY16 Q1 FY15
Current Ratio2.722.2
Debt/Capital0.00.2
Interest Expense0.00.48
Interest Coverage0.026.62


Share Data Q1 FY16 Q1 FY15
Shares outstanding (mil)31.9831.31
Div / share0.00.0
EPS0.450.26
Book value / share10.487.8
Institutional Own % n/a n/a
Avg Daily Volume364468.0503047.0

Valuation


BUY. The current P/E ratio indicates a discount compared to an average of 34.13 for the Life Sciences Tools & Services industry and a premium compared to the S&P 500 average of 25.05. Conducting a second comparison, its price-to-book ratio of 5.62 indicates a significant premium versus the S&P 500 average of 2.81 and a premium versus the industry average of 5.55. The price-to-sales ratio is well above the S&P 500 average, but well below the industry average. The valuation analysis reveals that, CAMBREX CORP seems to be trading 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 30.34 Peers 34.13   CBM 13.66 Peers 22.48

Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.

CBM is trading at a 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 20.43 Peers 25.21   CBM 0.66 Peers 1.53

Average. An average price-to-projected earnings ratio can signify an industry neutral stock price and average future growth expectations.

CBM is trading at a valuation on par with its peers.

 

Discount. 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 significant discount to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
CBM 5.62 Peers 5.55   CBM -5.83 Peers 34.26

Average. 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 valuation on par with 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 4.18 Peers 22.92   CBM 16.71 Peers 6.67

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.

 

Higher. A sales growth rate that exceeds the industry implies that a company is gaining market share.

CBM has a sales growth rate that significantly exceeds its peers.

 

 

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