BUL:SFA

Stock Analysis Report

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Market Cap

лв440.3m

Last Updated

2021/08/03 20:56 UTC

Data Sources

Company Financials +

Executive Summary

Sopharma AD researches and develops, produces, and trades in medicinal substances, finished drug forms, veterinary vaccines, infusion solutions, and plastic medical disposable products for human and veterinary medicine, and food supplements in Bulgaria, rest of Europe, and internationally. More Details


Snowflake Analysis

Very undervalued average dividend payer.


Similar Companies

Share Price & News

How has Sopharma AD's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: SFA is not significantly more volatile than the rest of BG stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: SFA's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

-0.6%

SFA

1.7%

BG Pharmaceuticals

0.3%

BG Market


1 Year Return

18.2%

SFA

10.3%

BG Pharmaceuticals

25.0%

BG Market

Return vs Industry: SFA exceeded the BG Pharmaceuticals industry which returned 9.7% over the past year.

Return vs Market: SFA underperformed the BG Market which returned 25.7% over the past year.


Shareholder returns

SFAIndustryMarket
7 Day-0.6%1.7%0.3%
30 Day1.7%1.1%0.9%
90 Day6.1%12.1%-0.3%
1 Year19.8%18.2%13.7%10.3%27.4%25.0%
3 Year-8.9%-14.4%36.9%21.6%18.1%16.2%
5 Year42.4%27.3%50.4%24.5%51.9%40.9%

Long-Term Price Volatility Vs. Market

How volatile is Sopharma AD's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Sopharma AD undervalued compared to its fair value and its price relative to the market?

29.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SFA (BGN3.5) is trading below our estimate of fair value (BGN4.98)

Significantly Below Fair Value: SFA is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: SFA is good value based on its PE Ratio (13.6x) compared to the European Pharmaceuticals industry average (25.4x).

PE vs Market: SFA is good value based on its PE Ratio (13.6x) compared to the BG market (23.5x).


Price to Earnings Growth Ratio

PEG Ratio: SFA is good value based on its PEG Ratio (0.9x)


Price to Book Ratio

PB vs Industry: SFA is good value based on its PB Ratio (0.8x) compared to the XE Pharmaceuticals industry average (3.4x).


Future Growth

How is Sopharma AD forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

15.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SFA's forecast earnings growth (15.7% per year) is above the savings rate (1.3%).

Earnings vs Market: SFA's earnings (15.7% per year) are forecast to grow slower than the BG market (27.3% per year).

High Growth Earnings: SFA's earnings are forecast to grow, but not significantly.

Revenue vs Market: SFA's revenue (5.2% per year) is forecast to grow slower than the BG market (9.4% per year).

High Growth Revenue: SFA's revenue (5.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SFA's Return on Equity is forecast to be low in 3 years time (7.6%).


Past Performance

How has Sopharma AD performed over the past 5 years?

11.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SFA has a high level of non-cash earnings.

Growing Profit Margin: SFA's current net profit margins (2.2%) are lower than last year (6.1%).


Past Earnings Growth Analysis

Earnings Trend: SFA's earnings have grown by 11.1% per year over the past 5 years.

Accelerating Growth: SFA's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: SFA had negative earnings growth (-60.8%) over the past year, making it difficult to compare to the Pharmaceuticals industry average (8.2%).


Return on Equity

High ROE: SFA's Return on Equity (5.3%) is considered low.


Financial Health

How is Sopharma AD's financial position?


Financial Position Analysis

Short Term Liabilities: SFA's short term assets (BGN599.6M) exceed its short term liabilities (BGN513.0M).

Long Term Liabilities: SFA's short term assets (BGN599.6M) exceed its long term liabilities (BGN121.6M).


Debt to Equity History and Analysis

Debt Level: SFA's debt to equity ratio (55.3%) is considered high.

Reducing Debt: SFA's debt to equity ratio has increased from 53% to 55.3% over the past 5 years.

Debt Coverage: SFA's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: SFA's interest payments on its debt are well covered by EBIT (6.7x coverage).


Balance Sheet


Dividend

What is Sopharma AD current dividend yield, its reliability and sustainability?

4.00%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: SFA's dividend (4%) is higher than the bottom 25% of dividend payers in the BG market (1.37%).

High Dividend: SFA's dividend (4%) is low compared to the top 25% of dividend payers in the BG market (5.25%).


Stability and Growth of Payments

Stable Dividend: SFA's dividend payments have been volatile in the past 10 years.

Growing Dividend: SFA's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (42.8%), SFA's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SFA's dividends in 3 years are forecast to be well covered by earnings (34.3% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.0yrs

Average board tenure


CEO

Ognian Donev (64 yo)

no data

Tenure

лв655,309

Compensation

Mr. Ognian Ivanov Donev, D.Sc. (Econ.), Ph.D., serves as the Executive Chairman at Sopharma AD and Sopharma Trading AD. Mr. Donev serves as Managing Director and Chief Executive Officer of Sopharma AD. He ...


Board Members

Experienced Board: SFA's board of directors are considered experienced (3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Sopharma AD's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Sopharma AD
  • Ticker: SFA
  • Exchange: BUL
  • Founded: 1933
  • Industry: Pharmaceuticals
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: лв440.253m
  • Shares outstanding: 125.79m
  • Website: https://www.sopharmagroup.com

Number of Employees


Location

  • Sopharma AD
  • 16 Iliensko shosse street
  • Sofia
  • Bulgaria

Listings


Biography

Sopharma AD researches and develops, produces, and trades in medicinal substances, finished drug forms, veterinary vaccines, infusion solutions, and plastic medical disposable products for human and veteri...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/08/03 20:56
End of Day Share Price2021/08/03 00:00
Earnings2021/03/31
Annual Earnings2020/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.