Emergent BioSolutions Inc.

Find Ratings Reports
EBS : NYSE : Health Technology
$49.96 | %
Today's Range: 0.0 - 0.0
Avg. Daily Volume: 379400.0
02/16/18 - 4:02 PM ET

Financial Analysis


EMERGENT BIOSOLUTIONS INC's gross profit margin for the third quarter of its fiscal year 2017 is essentially unchanged 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. EMERGENT BIOSOLUTIONS INC is extremely liquid. Currently, the Quick Ratio is 6.25 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 21.19% 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 Q3 FY17 Q3 FY16
Net Sales ($mil)149.43142.91
EBITDA ($mil)60.4763.39
EBIT ($mil)50.6753.01
Net Income ($mil)33.5521.34


Balance Sheet Q3 FY17 Q3 FY16
Cash & Equiv. ($mil)342.03298.93
Total Assets ($mil)1024.2932.03
Total Debt ($mil)248.99267.79
Equity ($mil)663.71547.62


Profitability Q3 FY17 Q3 FY16
Gross Profit Margin76.7878.05
EBITDA Margin40.4644.35
Operating Margin33.9137.09
Sales Turnover0.510.53
Return on Assets8.45.12
Return on Equity12.1913.28
Debt Q3 FY17 Q3 FY16
Current Ratio7.374.35
Debt/Capital0.270.33
Interest Expense2.713.9
Interest Coverage18.7213.6


Share Data Q3 FY17 Q3 FY16
Shares outstanding (mil)41.3840.49
Div / share0.00.0
EPS0.680.43
Book value / share16.0413.53
Institutional Own % n/a n/a
Avg Daily Volume391739.0338542.0

Valuation


BUY. This stock's P/E ratio indicates a significant discount compared to an average of 46.82 for the Biotechnology industry and a premium compared to the S&P 500 average of 25.51. To use another comparison, its price-to-book ratio of 3.07 indicates valuation on par with the S&P 500 average of 3.26 and a significant discount versus the industry average of 15.63. 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 29.09 Peers 46.82   EBS 17.00 Peers 41.91

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 22.00 Peers 28.60   EBS 0.75 Peers 0.35

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

EBS is trading at a valuation on par with 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 3.07 Peers 15.63   EBS 9.03 Peers 2.21

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 3.92 Peers 87.22   EBS 4.39 Peers 120.94

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