Emergent BioSolutions Inc

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EBS : NYSE : Health Care
$33.39 up 0.54 | 1.60%
Today's Range: 32.03 - 33.39
Avg. Daily Volume: 760,800
07/29/16 - 1:05 PM ET

Financial Analysis


EMERGENT BIOSOLUTIONS INC's gross profit margin for the first quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. The company grew its sales and net income significantly quarter versus same quarter a year prior, and was able to outpace the average competitor in the industry when comparing revenue growth, but not when comparing net income growth. EMERGENT BIOSOLUTIONS INC is extremely liquid. Currently, the Quick Ratio is 4.58 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 increased by 24.00% 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.

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Income Statement Q1 FY16 Q1 FY15
Net Sales ($mil)111.063.63
EBITDA ($mil)20.55-17.02
EBIT ($mil)11.71-25.55
Net Income ($mil)3.99-21.52


Balance Sheet Q1 FY16 Q1 FY15
Cash & Equiv. ($mil)341.02216.52
Total Assets ($mil)1035.9917.85
Total Debt ($mil)247.19251.0
Equity ($mil)666.98537.88


Profitability Q1 FY16 Q1 FY15
Gross Profit Margin82.2986.55
EBITDA Margin18.51-26.74
Operating Margin10.55-40.15
Sales Turnover0.550.5
Return on Assets8.533.86
Return on Equity13.256.59
Debt Q1 FY16 Q1 FY15
Current Ratio5.845.05
Debt/Capital0.270.32
Interest Expense1.522.34
Interest Coverage7.68-10.91


Share Data Q1 FY16 Q1 FY15
Shares outstanding (mil)39.8338.33
Div / share0.00.0
EPS0.1-0.57
Book value / share16.7414.03
Institutional Own % n/a n/a
Avg Daily Volume746213.0436800.0

Valuation


BUY. The current P/E ratio indicates a significant discount compared to an average of 40.39 for the Biotechnology industry and a discount compared to the S&P 500 average of 25.05. To use another comparison, its price-to-book ratio of 1.93 indicates a discount versus the S&P 500 average of 2.81 and a significant discount versus the industry average of 11.16. 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, 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 16.82 Peers 40.39   EBS 8.51 Peers 21.72

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.

 

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.

EBS 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
EBS 13.18 Peers 122.62   EBS 5.94 Peers 1.15

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 significant 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 1.93 Peers 11.16   EBS 170.42 Peers -19.12

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.

 

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

EBS is expected to have an earnings growth rate that significantly exceeds its peers.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
EBS 2.26 Peers 425.82   EBS 23.97 Peers 40.81

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

 

 

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