Emergent BioSolutions Inc

Find Ratings Reports
EBS : NYSE : Health Care
$35.49 | %
Today's Range: 0.0 - 0.0
Avg. Daily Volume: 308400.0
08/17/17 - 4:02 PM ET

Financial Analysis


EMERGENT BIOSOLUTIONS INC's gross profit margin for the second quarter of its fiscal year 2017 has decreased when compared to the same period a year ago. Sales and net income have grown, and although the growth in revenues has outpaced the average competitor within the industry, the net income growth has not. EMERGENT BIOSOLUTIONS INC is extremely liquid. Currently, the Quick Ratio is 5.82 which clearly shows the ability to cover any short-term cash needs. EBS managed to increase the liquidity from the same period a year ago, despite already having very strong liquidity to begin with. This would indicate improved cash flow.

During the same period, stockholders' equity ("net worth") has decreased by 7.74% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is very unlikely to face financial difficulties in the near future.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. To learn more visit www.TheStreetRatings.com.



Income Statement Q2 FY17 Q2 FY16
Net Sales ($mil)100.7791.24
EBITDA ($mil)0.010.38
EBIT ($mil)9.731.45
Net Income ($mil)4.62-10.95


Balance Sheet Q2 FY17 Q2 FY16
Cash & Equiv. ($mil)315.63333.4
Total Assets ($mil)970.481056.47
Total Debt ($mil)248.69247.39
Equity ($mil)620.6672.67


Profitability Q2 FY17 Q2 FY16
Gross Profit Margin65.6477.59
EBITDA Margin0.011.37
Operating Margin9.651.58
Sales Turnover0.530.48
Return on Assets7.65.99
Return on Equity10.9214.03
Debt Q2 FY17 Q2 FY16
Current Ratio6.995.08
Debt/Capital0.290.27
Interest Expense0.02.3
Interest Coverage0.00.63


Share Data Q2 FY17 Q2 FY16
Shares outstanding (mil)41.1140.43
Div / share0.00.0
EPS0.11-0.05
Book value / share15.116.64
Institutional Own % n/a n/a
Avg Daily Volume306809.0315004.0

Valuation


BUY. The current P/E ratio indicates a significant discount compared to an average of 38.49 for the Biotechnology industry and a value on par with the S&P 500 average of 24.31. To use another comparison, its price-to-book ratio of 2.26 indicates a discount versus the S&P 500 average of 3.03 and a significant discount versus the industry average of 10.70. The price-to-sales ratio is well above the S&P 500 average, but well below the industry average. Upon assessment of these and other key valuation criteria, EMERGENT BIOSOLUTIONS INC 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
EBS 23.71 Peers 38.49   EBS NA Peers 26.75

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

EBS 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.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
EBS 16.65 Peers 24.79   EBS 1.52 Peers 0.44

Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations.

EBS is trading at a discount to its peers.

 

Premium. 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.

EBS trades at a significant premium to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
EBS 2.26 Peers 10.70   EBS -28.72 Peers 10.71

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.

EBS 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, EBS 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
EBS 2.74 Peers 152.23   EBS -0.04 Peers 338.91

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.

EBS 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.

EBS significantly trails its peers on the basis of sales growth

 

 

Latest Stock Upgrades/Downgrades