Emergent BioSolutions Incorporated Stock Upgraded (EBS)

NEW YORK ( TheStreet) -- Emergent BioSolutions Incorporated (NYSE: EBS) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, attractive valuation levels, good cash flow from operations and increase in net income. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.

Highlights from the ratings report include:
  • EBS's revenue growth has slightly outpaced the industry average of 2.9%. Since the same quarter one year prior, revenues slightly increased by 4.5%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • EBS's debt-to-equity ratio is very low at 0.14 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with this, the company maintains a quick ratio of 3.23, which clearly demonstrates the ability to cover short-term cash needs.
  • Net operating cash flow has significantly increased by 59.50% to $38.56 million when compared to the same quarter last year. In addition, EMERGENT BIOSOLUTIONS INC has also vastly surpassed the industry average cash flow growth rate of -6.92%.
  • The net income growth from the same quarter one year ago has exceeded that of the Biotechnology industry average, but is less than that of the S&P 500. The net income increased by 9.2% when compared to the same quarter one year prior, going from $26.25 million to $28.66 million.
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Emergent BioSolutions Inc., a biopharmaceutical company, focuses on the development, manufacture, and commercialization of vaccines and antibody therapeutics primarily in the United States, the United Kingdom, and Vietnam. The company operates in two segments, BioDefense and BioSciences. The company has a P/E ratio of 24.7, below the average drugs industry P/E ratio of 28.1 and above the S&P 500 P/E ratio of 17.7. Emergent BioSolutions has a market cap of $616.2 million and is part of the health care sector and drugs industry. Shares are down 4.7% year to date as of the close of trading on Wednesday.

You can view the full Emergent BioSolutions Ratings Report or get investment ideas from our investment research center.
-- Written by a member of TheStreet RatingsStaff
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