Emergent BioSolutions Inc. Fundamental Analysis (NYSE: EBS)
Emergent BioSolutions Inc. Fundamental Analysis (NYSE: EBS)
Emergent BioSolutions Inc. (NYSE: EBS) shows weak financial fundamentals with a PE ratio of -1.20, profit margin of -40.16%, and ROE of -61.33%. The company generates $0.7B in annual revenue with weak year-over-year growth of -28.81%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of -101.0/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze EBS's fundamental strength across five key dimensions:
Efficiency Score
WeakEBS struggles to generate sufficient returns from assets.
Valuation Score
ExcellentEBS trades at attractive valuation levels.
Growth Score
WeakEBS faces weak or negative growth trends.
Financial Health Score
ModerateEBS shows balanced financial health with some risks.
Profitability Score
WeakEBS struggles to sustain strong margins.
Key Financial Metrics
Is EBS Expensive or Cheap?
P/E Ratio
EBS trades at -1.20 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, EBS's PEG of -0.07 indicates potential undervaluation.
Price to Book
The market values Emergent BioSolutions Inc. at 0.99 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 0.17 times EBITDA. This is generally considered low.
How Well Does EBS Make Money?
Net Profit Margin
For every $100 in sales, Emergent BioSolutions Inc. keeps $-40.16 as profit after all expenses.
Operating Margin
Core operations generate -25.96 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-61.33 in profit for every $100 of shareholder equity.
ROA
Emergent BioSolutions Inc. generates $-26.20 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Emergent BioSolutions Inc. generates strong operating cash flow of $200.55M, reflecting robust business health.
Free Cash Flow
Emergent BioSolutions Inc. generates strong free cash flow of $188.82M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $3.67 in free cash annually.
FCF Yield
EBS converts 60.67% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
-1.20
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.07
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.99
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.48
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.62
vs 25 benchmark
Current Ratio
Current assets to current liabilities
4.58
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-0.61
vs 25 benchmark
ROA
Return on assets percentage
-0.26
vs 25 benchmark
ROCE
Return on capital employed
-0.19
vs 25 benchmark
How EBS Stacks Against Its Sector Peers
| Metric | EBS Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | -1.20 | 31.66 | Better (Cheaper) |
| ROE | -61.33% | 501.00% | Weak |
| Net Margin | -40.16% | -3647.00% (disorted) | Weak |
| Debt/Equity | 1.62 | -0.30 (disorted) | Distorted |
| Current Ratio | 4.58 | 5.78 | Strong Liquidity |
| ROA | -26.20% | -262.00% (disorted) | Weak |
EBS outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Emergent BioSolutions Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-53.60%
Industry Style: Defensive, Growth, Innovation
DecliningEPS CAGR
-83.06%
Industry Style: Defensive, Growth, Innovation
DecliningFCF CAGR
-68.70%
Industry Style: Defensive, Growth, Innovation
Declining