Microbix Biosystems (TSX:MBX) - Share price, News & Analysis

Q: What is the Fair Price of MBX when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

MBX (CA$0.5) is trading above our estimate of [[fair value]] (CA$0)

MBX fundamental analysis
Snowflake Score
Valuation	2/6
Future Growth	5/6
Past Performance	2/6
Financial Health	6/6
Dividends	0/6

MBX Stock Overview

Rewards

Earnings are forecast to grow 29.9% per year

Became profitable this year

Risk Analysis

High level of non-cash earnings

Shareholders have been diluted in the past year

Does not have a meaningful market cap (CA$69M)

Microbix Biosystems Competitors

IBEX Technologies

TSXV:IBT

CA$10.9m

Medicure

TSXV:MPH

CA$10.8m

Willow Biosciences

TSX:WLLW

CA$19.2m

Advanced Proteome Therapeutics

TSXV:APC

CA$4.0m

Price History & Performance

Summary of all time highs, changes and price drops for Microbix Biosystems
Historical stock prices
Current Share Price	CA$0.50
52 Week High	CA$0.87
52 Week Low	CA$0.41
Beta	0.16
1 Month Change	-9.09%
3 Month Change	-21.88%
1 Year Change	-5.66%
3 Year Change	85.19%
5 Year Change	69.49%
Change since IPO	-16.67%

Recent News & Updates

May 20

Microbix Biosystems' (TSE:MBX) Solid Profits Have Weak Fundamentals

Unsurprisingly, Microbix Biosystems Inc.'s ( TSE:MBX ) stock price was strong on the back of its healthy earnings...

Shareholder Returns

	MBX	CA Biotechs	CA Market
7D	11.1%	1.8%	-0.8%
1Y	-5.7%	-21.2%	-5.0%

Return vs Industry: MBX exceeded the Canadian Biotechs industry which returned -21.2% over the past year.

Return vs Market: MBX matched the Canadian Market which returned -5% over the past year.

Price Volatility

Is MBX's price volatile compared to industry and market?
MBX volatility
MBX Average Weekly Movement	7.0%
Biotechs Industry Average Movement	11.7%
Market Average Movement	10.1%
10% most volatile stocks in CA Market	17.4%
10% least volatile stocks in CA Market	4.4%

Stable Share Price: MBX is not significantly more volatile than the rest of Canadian stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: MBX's weekly volatility (7%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1988	n/a	Cameron Groome	https://microbix.com

Microbix Biosystems Inc., a life science company, develops and commercializes proprietary biological and technological solutions for human health and wellbeing in North America, Europe, and internationally. It manufactures a range of critical biological materials for the diagnostics industry, notably antigens for immunoassays and its laboratory quality assessment and proficiency (QAPs) that support clinical lab proficiency testing, assay development and validation, or clinical lab workflows. The company also applies its biological expertise and infrastructure to develop other proprietary products, primarily viral transport medium (DxTM) to stabilize patient samples for lab-based testing and Kinlytic Urokinase, a biologic thrombolytic drug used to treat blood clots.

Microbix Biosystems Fundamentals Summary

How do Microbix Biosystems's earnings and revenue compare to its market cap?
MBX fundamental statistics
Market Cap	CA$68.65m
Earnings (TTM)	CA$3.91m
Revenue (TTM)	CA$20.82m

17.6x

P/E Ratio

3.3x

P/S Ratio

Is MBX overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
MBX income statement (TTM)
Revenue	CA$20.82m
Cost of Revenue	CA$7.79m
Gross Profit	CA$13.03m
Other Expenses	CA$9.12m
Earnings	CA$3.91m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	0.028
Gross Margin	62.59%
Net Profit Margin	18.78%
Debt/Equity Ratio	22.0%

How did MBX perform over the long term?

See historical performance and comparison

We’ve recently updated our valuation analysis.

Valuation

Is MBX undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for MBX?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for MBX. This is calculated by dividing MBX's market cap by their current preferred multiple.
What is MBX's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	CA$68.65m

MBX key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	3x
Enterprise Value/EBITDA	10.5x
PEG Ratio	0.6x

Price to Earnings Ratio vs Peers

How does MBX's PE Ratio compare to its peers?

MBX PE Ratio vs Peers

The above table shows the PE ratio for MBX vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	8x
IBT IBEX Technologies	6.5x	n/a	CA$10.9m
MPH Medicure	13.4x	n/a	CA$10.8m
WLLW Willow Biosciences	8.7x	n/a	CA$19.2m
APC Advanced Proteome Therapeutics	3.1x	n/a	CA$4.0m
MBX Microbix Biosystems	17.6x	29.9%	CA$68.6m

Forward PE

Price-To-Earnings vs Peers: MBX is expensive based on its Price-To-Earnings Ratio (17.6x) compared to the peer average (8x).

Price to Earnings Ratio vs Industry

How does MBX's PE Ratio compare vs other companies in the North American Biotechs Industry?

Price-To-Earnings vs Industry: MBX is expensive based on its Price-To-Earnings Ratio (17.6x) compared to the North American Biotechs industry average (15.8x)

Price to Earnings Ratio vs Fair Ratio

What is MBX's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

MBX PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	17.6x
Fair PE Ratio	28.6x

Price-To-Earnings vs Fair Ratio: MBX is good value based on its Price-To-Earnings Ratio (17.6x) compared to the estimated Fair Price-To-Earnings Ratio (28.6x).

Share Price vs Fair Value

What is the Fair Price of MBX when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: MBX (CA$0.5) is trading above our estimate of fair value (CA$0)

Significantly Below Fair Value: MBX is trading above our estimate of fair value.

Price to Earnings Growth Ratio

PEG Ratio: MBX is good value based on its PEG Ratio (0.6x)

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Future Growth

How is Microbix Biosystems forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

Future Growth Score

5/6

Future Growth Score 5/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

29.9%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: MBX's forecast earnings growth (29.9% per year) is above the savings rate (1.6%).

Earnings vs Market: MBX's earnings (29.9% per year) are forecast to grow faster than the Canadian market (7.1% per year).

High Growth Earnings: MBX's earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: MBX's revenue (23.7% per year) is forecast to grow faster than the Canadian market (6.5% per year).

High Growth Revenue: MBX's revenue (23.7% per year) is forecast to grow faster than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: Insufficient data to determine if MBX's Return on Equity is forecast to be high in 3 years time

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Past Performance

How has Microbix Biosystems performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

23.9%

Historical annual earnings growth

Earnings and Revenue History

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

Growing Profit Margin: MBX became profitable in the past.

Past Earnings Growth Analysis

Earnings Trend: MBX has become profitable over the past 5 years, growing earnings by 23.9% per year.

Accelerating Growth: MBX has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: MBX has become profitable in the last year, making it difficult to compare its past year earnings growth to the Biotechs industry (96.9%).

Return on Equity

High ROE: MBX's Return on Equity (16.4%) is considered low.

Discover strong past performing companies

Financial Health

How is Microbix Biosystems's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: MBX's short term assets (CA$23.1M) exceed its short term liabilities (CA$3.6M).

Long Term Liabilities: MBX's short term assets (CA$23.1M) exceed its long term liabilities (CA$5.6M).

Debt to Equity History and Analysis

Debt Level: MBX has more cash than its total debt.

Reducing Debt: MBX's debt to equity ratio has reduced from 44.7% to 22% over the past 5 years.

Debt Coverage: MBX's debt is well covered by operating cash flow (29.5%).

Interest Coverage: MBX's interest payments on its debt are well covered by EBIT (3.6x coverage).

Balance Sheet

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Dividend

What is Microbix Biosystems's current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Cash Flow Coverage

Dividend Yield vs Market

Notable Dividend: Unable to evaluate MBX's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate MBX's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.

Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if MBX's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if MBX's dividend payments have been increasing.

Earnings Payout to Shareholders

Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as MBX has not reported any payouts.

Discover strong dividend paying companies

Management

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

5.7yrs

Average management tenure

CEO

Cameron Groome

5yrs

Tenure

CA$597,633

Compensation

Mr. Cameron L. Groome serves as an Independent Director at iFabric Corp. since March 30, 2020. Mr. Groome has been the Chief Executive Officer and President of Microbix Biosystems Inc. since July 24, 2017....

CEO Compensation Analysis

Compensation vs Market: Cameron's total compensation ($USD463.77K) is above average for companies of similar size in the Canadian market ($USD191.19K).

Compensation vs Earnings: Cameron's compensation has been consistent with company performance over the past year.

Leadership Team

Experienced Management: MBX's management team is seasoned and experienced (5.7 years average tenure).

Board Members

Experienced Board: MBX's board of directors are seasoned and experienced ( 15.4 years average tenure).

Ownership

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

Insider Trading Volume

Insider Buying: MBX insiders have bought more shares than they have sold in the past 3 months.

Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 11%.

Data	Last Updated (UTC time)
Company Analysis	2022/07/04 00:00
End of Day Share Price	2022/07/04 00:00
Earnings	2022/03/31
Annual Earnings	2021/09/30