Emergent BioSolutions Inc

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EBS : NYSE : Health Care
$33.2 -1.21 | -3.52%
Today's Range: 33.11 - 34.42
Avg. Daily Volume: 325500.0
06/27/17 - 4:02 PM ET

Financial Analysis


EMERGENT BIOSOLUTIONS INC's gross profit margin for the first quarter of its fiscal year 2017 has decreased 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 5.98 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 8.48% 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 FY17 Q1 FY16
Net Sales ($mil)116.86102.96
EBITDA ($mil)28.8833.14
EBIT ($mil)18.7124.3
Net Income ($mil)10.493.99


Balance Sheet Q1 FY17 Q1 FY16
Cash & Equiv. ($mil)270.17341.02
Total Assets ($mil)951.641035.9
Total Debt ($mil)248.39247.19
Equity ($mil)610.42666.98


Profitability Q1 FY17 Q1 FY16
Gross Profit Margin70.686.1
EBITDA Margin24.7132.18
Operating Margin16.0123.6
Sales Turnover0.530.51
Return on Assets6.128.53
Return on Equity10.0118.71
Debt Q1 FY17 Q1 FY16
Current Ratio7.225.84
Debt/Capital0.290.27
Interest Expense2.342.32
Interest Coverage8.010.48


Share Data Q1 FY17 Q1 FY16
Shares outstanding (mil)40.9639.83
Div / share0.00.0
EPS0.230.27
Book value / share14.916.74
Institutional Own % n/a n/a
Avg Daily Volume316256.0369376.0

Valuation


BUY. The current P/E ratio indicates a significant discount compared to an average of 41.96 for the Biotechnology industry and a value on par with the S&P 500 average of 25.75. To use another comparison, its price-to-book ratio of 2.28 indicates a discount versus the S&P 500 average of 3.09 and a significant discount versus the industry average of 11.09. 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 26.52 Peers 41.96   EBS 24.47 Peers 43.61

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 17.32 Peers 26.44   EBS 1.63 Peers 0.54

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 2.28 Peers 11.09   EBS -52.42 Peers -9.68

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 2.77 Peers 172.46   EBS -4.92 Peers 462.34

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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