TSXV:SBM

Stock Analysis Report

Executive Summary

Sirona Biochem Corp. operates as a cosmetic ingredient and drug discovery company in Canada and France.

Risk Analysis

Has less than 1 year of cash runway

Makes less than USD$1m in revenue (CA$191K)

Currently unprofitable and not forecast to become profitable over the next 3 years

Shareholders have been diluted in the past year

+ 1 more risk


Snowflake Analysis

Imperfect balance sheet with weak fundamentals.

Share Price & News

How has Sirona Biochem's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: SBM has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-2.4%

SBM

-1.9%

CA Biotechs

0.6%

CA Market


1 Year Return

207.7%

SBM

-37.0%

CA Biotechs

5.8%

CA Market

Return vs Industry: SBM exceeded the Canadian Biotechs industry which returned -37% over the past year.

Return vs Market: SBM exceeded the Canadian Market which returned 5.6% over the past year.


Shareholder returns

SBMIndustryMarket
7 Day-2.4%-1.9%0.6%
30 Day-16.7%3.4%0.6%
90 Day1.3%108.4%3.5%
1 Year207.7%207.7%-37.0%-37.0%9.1%5.8%
3 Year150.0%150.0%58.0%58.0%15.4%5.0%
5 Year185.7%185.7%14.0%14.0%33.5%13.9%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Sirona Biochem undervalued compared to its fair value and its price relative to the market?

35.89x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate SBM's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate SBM's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: SBM is unprofitable, so we can't compare its PE Ratio to the Biotechs industry average.

PE vs Market: SBM is unprofitable, so we can't compare its PE Ratio to the Canadian market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate SBM's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: SBM is overvalued based on its PB Ratio (35.9x) compared to the CA Biotechs industry average (3.7x).


Next Steps

Future Growth

How is Sirona Biochem forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

36.1%

Forecasted Pharmaceuticals & Biotech industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Sirona Biochem has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has Sirona Biochem performed over the past 5 years?

4.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SBM is currently unprofitable.

Growing Profit Margin: SBM is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: SBM is unprofitable, but has reduced losses over the past 5 years at a rate of 4.6% per year.

Accelerating Growth: Unable to compare SBM's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: SBM is unprofitable, making it difficult to compare its past year earnings growth to the Biotechs industry (64%).


Return on Equity

High ROE: SBM has a negative Return on Equity (-159.17%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Sirona Biochem's financial position?


Financial Position Analysis

Short Term Liabilities: SBM's short term assets (CA$4.6M) exceed its short term liabilities (CA$864.3K).

Long Term Liabilities: SBM's short term assets (CA$4.6M) exceed its long term liabilities (CA$1.3M).


Debt to Equity History and Analysis

Debt Level: SBM's debt to equity ratio (61%) is considered high.

Reducing Debt: SBM's debt to equity ratio has increased from 34.7% to 61% over the past 5 years.


Balance Sheet

Inventory Level: SBM has a low level of unsold assets or inventory.

Debt Coverage by Assets: SBM's debt is covered by short term assets (assets are 3.1x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: SBM has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: SBM has less than a year of cash runway if free cash flow continues to grow at historical rates of 7.6% each year.


Next Steps

Dividend

What is Sirona Biochem's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.9%markettop25%5.3%industryaverage2.1%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

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


Stability and Growth of Payments

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

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


Current Payout to Shareholders

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


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of SBM's dividend in 3 years as they are not forecast to pay a notable one for the Canadian market.


Next Steps

Management

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

7.9yrs

Average management tenure


CEO

Howard Verrico (58yo)

5.7yrs

Tenure

CA$183,471

Compensation

Dr. Howard J. Verrico, M.D., Ph.D, is the Founder of Sirona Biochem Corp., has been Chief Executive Officer since June 18, 2014 and serves as its Secretary. Dr. Verrico served as the Chief Executive Office ...


CEO Compensation Analysis

Compensation vs Market: Howard's total compensation ($USD138.45K) is about average for companies of similar size in the Canadian market ($USD157.05K).

Compensation vs Earnings: Howard's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
Howard Verrico
Founder5.7yrsCA$183.47k3.7% CA$3.3m
Christopher Hopton
CFO & Director9.1yrsCA$171.47k0.42% CA$383.4k
Géraldine Deliencourt-Godefroy
Chief Scientific Officer & Director8.9yrsCA$229.18k4.6% CA$4.2m
Michelle Seltenrich
Vice President of Operations0yrsno datano data
Brett Premack
Scientific Consultant7.9yrsno datano data

7.9yrs

Average Tenure

Experienced Management: SBM's management team is seasoned and experienced (7.9 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Howard Verrico
Founder5.7yrsCA$183.47k3.7% CA$3.3m
Christopher Hopton
CFO & Director9.1yrsCA$171.47k0.42% CA$383.4k
Géraldine Deliencourt-Godefroy
Chief Scientific Officer & Director8.9yrsCA$229.18k4.6% CA$4.2m
Michael Walker
Member of the Scientific Advisory Board10.3yrsno datano data
Alex Marazzi
Independent Director13.3yrsCA$8.89k1.18% CA$1.1m
Denis Richard
Member of the Scientific Advisory Board10.3yrsno datano data
Bruce Verchere
Member of the Scientific Advisory Board10.3yrsno datano data
Caigan Du
Member of Scientific Advisory Board3.8yrsno datano data
Jason Tian
Director0.7yrsno datano data

9.7yrs

Average Tenure

56yo

Average Age

Experienced Board: SBM's board of directors are considered experienced (9.7 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 been diluted in the past year, with total shares outstanding growing by 14.2%.


Top Shareholders

Company Information

Sirona Biochem Corp.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Sirona Biochem Corp.
  • Ticker: SBM
  • Exchange: TSXV
  • Founded: 2006
  • Industry: Biotechnology
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: CA$90.376m
  • Shares outstanding: 225.94m
  • Website: https://www.sironabiochem.com

Location

  • Sirona Biochem Corp.
  • 889 West Pender Street
  • Suite 605
  • Vancouver
  • British Columbia
  • V6C 3B2
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SBMTSXV (TSX Venture Exchange)YesCommon SharesCACADMay 2009
ZSBDB (Deutsche Boerse AG)YesCommon SharesDEEURMay 2009
SRBC.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDMay 2009

Biography

Sirona Biochem Corp. operates as a cosmetic ingredient and drug discovery company in Canada and France. The company develops programs in three areas, including diabetes, anti-inflammatories, and anti-infectives for therapeutics; anti-aging and depigmenting agents in cosmeceuticals; and biological ingredients, such as inducers and adjuvants for the biological development and preservation. It develops a sodium glucose co-transporter inhibitor for the treatment of diabetes, as well as cosmetic skin lightening agents and compounds. The company was formerly known as High Rider Capital Inc. and changed its name to Sirona Biochem Corp. in May 2009. Sirona Biochem Corp. was incorporated in 2006 and is headquartered in Vancouver, Canada. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/16 00:17
End of Day Share Price2020/02/14 00:00
Earnings2019/07/31
Annual Earnings2018/10/31


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.