Bachem Holding (SWX:BANB) - Share price, News & Analysis

BANB fundamental analysis
Snowflake Score
Valuation	1/6
Future Growth	3/6
Past Performance	3/6
Financial Health	6/6
Dividends	0/6

BANB Stock Overview

Bachem Holding AG provides products for research, clinical development, and commercial application to pharmaceutical and biotechnology companies worldwide.

Rewards

Trading at 12.8% below our estimate of its fair value

Earnings are forecast to grow 16.52% per year

Earnings have grown 22.8% per year over the past 5 years

Risk Analysis

High level of non-cash earnings

Volatile share price over the past 3 months

Shareholders have been diluted in the past year

Bachem Holding Competitors

Tecan Group

SWX:TECN

CHF3.9b

Sartorius

XTRA:SRT

€22.8b

Genmab

CPSE:GMAB

kr.138.3b

Charles River Laboratories International

NYSE:CRL

US$11.4b

Price History & Performance

Summary of all time highs, changes and price drops for Bachem Holding
Historical stock prices
Current Share Price	CHF70.10
52 Week High	CHF171.00
52 Week Low	CHF67.00
Beta	0.65
1 Month Change	-21.17%
3 Month Change	-34.61%
1 Year Change	-27.66%
3 Year Change	179.51%
5 Year Change	192.33%
Change since IPO	400.71%

Recent News & Updates

May 25

I Ran A Stock Scan For Earnings Growth And Bachem Holding (VTX:BANB) Passed With Ease

For beginners, it can seem like a good idea (and an exciting prospect) to buy a company that tells a good story to...

May 07

What You Can Learn From Bachem Holding AG's (VTX:BANB) P/E After Its 29% Share Price Crash

Bachem Holding AG ( VTX:BANB ) shareholders that were waiting for something to happen have been dealt a blow with a 29...

Shareholder Returns

	BANB	CH Life Sciences	CH Market
7D	-2.0%	2.3%	-1.0%
1Y	-27.7%	-10.8%	-2.5%

Return vs Industry: BANB underperformed the Swiss Life Sciences industry which returned -10.8% over the past year.

Return vs Market: BANB underperformed the Swiss Market which returned -2.5% over the past year.

Price Volatility

Is BANB's price volatile compared to industry and market?
BANB volatility
BANB Average Weekly Movement	7.0%
Life Sciences Industry Average Movement	7.1%
Market Average Movement	4.9%
10% most volatile stocks in CH Market	8.6%
10% least volatile stocks in CH Market	2.5%

Stable Share Price: BANB is more volatile than 75% of Swiss stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: BANB's weekly volatility (7%) has been stable over the past year, but is still higher than 75% of Swiss stocks.

About the Company

Founded	Employees	CEO	Website
1971	1,639	Thomas Meier	https://www.bachem.com

Bachem Holding AG provides products for research, clinical development, and commercial application to pharmaceutical and biotechnology companies worldwide. The company engages in the development, production, and regulatory support of peptide active pharmaceutical ingredients, such as peptide and oligonucleotide new chemical entities (NCEs). It also offers commercial NCEs and generics; and project management, quality and regulatory, analytical, good manufacturing practice production, research grade production, and supply and vertical integration services.

Bachem Holding Fundamentals Summary

How do Bachem Holding's earnings and revenue compare to its market cap?
BANB fundamental statistics
Market Cap	CHF5.17b
Earnings (TTM)	CHF114.68m
Revenue (TTM)	CHF503.23m

45.1x

P/E Ratio

10.3x

P/S Ratio

Is BANB overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
BANB income statement (TTM)
Revenue	CHF503.23m
Cost of Revenue	CHF336.51m
Gross Profit	CHF166.73m
Other Expenses	CHF52.05m
Earnings	CHF114.68m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

Aug 25, 2022

Earnings per share (EPS)	1.56
Gross Margin	33.13%
Net Profit Margin	22.79%
Debt/Equity Ratio	1.8%

How did BANB perform over the long term?

See historical performance and comparison

Dividends

1.0%

Current Dividend Yield

43%

Payout Ratio

Valuation

Is Bachem Holding undervalued compared to its fair value and its price relative to the market?

Valuation Score

1/6

Valuation Score 1/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

12.8%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: BANB (CHF70.1) is trading below our estimate of fair value (CHF80.43)

Significantly Below Fair Value: BANB is trading below fair value, but not by a significant amount.

Price To Earnings Ratio

PE vs Industry: BANB's Price-To-Earnings Ratio (45.1x) is in line with the Swiss Life Sciences industry average.

PE vs Market: BANB is poor value based on its Price-To-Earnings Ratio (45.1x) compared to the Swiss market (17.9x).

Price to Earnings Growth Ratio

PEG Ratio: BANB is poor value based on its PEG Ratio (2.7x)

Price to Book Ratio

PB vs Industry: BANB is overvalued based on its Price-To-Book Ratio (4.6x) compared to the CH Life Sciences industry average (4.2x).

Future Growth

How is Bachem Holding forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

Future Growth Score

3/6

Future Growth Score 3/6

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

16.5%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: BANB's forecast earnings growth (16.5% per year) is above the savings rate (-0.3%).

Earnings vs Market: BANB's earnings (16.5% per year) are forecast to grow faster than the Swiss market (5.9% per year).

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

Revenue vs Market: BANB's revenue (15.1% per year) is forecast to grow faster than the Swiss market (4.3% per year).

High Growth Revenue: BANB's revenue (15.1% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: BANB's Return on Equity is forecast to be low in 3 years time (14.3%).

Past Performance

How has Bachem Holding performed over the past 5 years?

Past Performance Score

3/6

Past Performance Score 3/6

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

22.8%

Historical annual earnings growth

Earnings and Revenue History

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

Growing Profit Margin: BANB's current net profit margins (22.8%) are higher than last year (19.4%).

Past Earnings Growth Analysis

Earnings Trend: BANB's earnings have grown significantly by 22.8% per year over the past 5 years.

Accelerating Growth: BANB's earnings growth over the past year (46.9%) exceeds its 5-year average (22.8% per year).

Earnings vs Industry: BANB earnings growth over the past year (46.9%) underperformed the Life Sciences industry 50.8%.

Return on Equity

High ROE: BANB's Return on Equity (10.2%) is considered low.

Financial Health

How is Bachem Holding'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: BANB's short term assets (CHF833.7M) exceed its short term liabilities (CHF134.6M).

Long Term Liabilities: BANB's short term assets (CHF833.7M) exceed its long term liabilities (CHF42.9M).

Debt to Equity History and Analysis

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

Reducing Debt: BANB's debt to equity ratio has reduced from 15.2% to 1.8% over the past 5 years.

Debt Coverage: BANB's debt is well covered by operating cash flow (487.8%).

Interest Coverage: BANB's interest payments on its debt are well covered by EBIT (359.1x coverage).

Balance Sheet

Dividend

What is Bachem Holding 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
Future Dividend Coverage

1.00%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: BANB's dividend (1%) isn’t notable compared to the bottom 25% of dividend payers in the Swiss market (1.92%).

High Dividend: BANB's dividend (1%) is low compared to the top 25% of dividend payers in the Swiss market (3.91%).

Stability and Growth of Payments

Stable Dividend: BANB is not paying a notable dividend for the Swiss market, therefore no need to check if payments are stable.

Growing Dividend: BANB is not paying a notable dividend for the Swiss market, therefore no need to check if payments are increasing.

Earnings Payout to Shareholders

Earnings Coverage: BANB is not paying a notable dividend for the Swiss market.

Cash Payout to Shareholders

Cash Flow Coverage: BANB is paying a dividend but the company has no free cash flows.

Discover strong dividend paying companies

Management

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

0.3yrs

Average management tenure

CEO

Thomas Meier (53 yo)

2.33yrs

Tenure

CHF627,000

Compensation

Mr. Thomas Meier has been Chief Executive Officer of Bachem Holding AG since 2020. Mr. Meier served as Chief Operations Officer at Bachem Group since January 1, 2019 until 2020. He joined Bachem AG in 1993...

CEO Compensation Analysis

Compensation vs Market: Thomas's total compensation ($USD652.47K) is below average for companies of similar size in the Swiss market ($USD2.26M).

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

Leadership Team

Experienced Management: BANB's management team is not considered experienced ( 0.3 years average tenure), which suggests a new team.

Board Members

Experienced Board: BANB's board of directors are considered experienced (9.2 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.

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 5.4%.

Data	Last Updated (UTC time)
Company Analysis	2022/05/26 00:00
End of Day Share Price	2022/05/25 00:00
Earnings	2021/12/31
Annual Earnings	2021/12/31