XTRA:B8F

Stock Analysis Report

Executive Summary

Biofrontera AG, a biopharmaceutical company, engages in the development and commercialization of pharmaceutical products for the treatment of dermatological conditions and diseases caused primarily by exposure to sunlight that results in sun damage to the skin.

Rewards

Trading at 79.7% below its fair value

Revenue is forecast to grow 33.77% per year

Became profitable this year

Risk Analysis

Earnings are forecast to decline by an average of -162.7% per year for the next 3 years

Debt is not well covered by operating cash flow

Large one-off items impacting financial results



Snowflake Analysis

Slightly overvalued with limited growth.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: B8F has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

5.7%

B8F

-8.1%

DE Biotechs

0.07%

DE Market


1 Year Return

-17.1%

B8F

5.9%

DE Biotechs

14.8%

DE Market

Return vs Industry: B8F underperformed the German Biotechs industry which returned 5.3% over the past year.

Return vs Market: B8F underperformed the German Market which returned 17.1% over the past year.


Shareholder returns

B8FIndustryMarket
7 Day5.7%-8.1%0.07%
30 Day6.1%-3.4%1.4%
90 Day-4.2%12.2%6.1%
1 Year-17.1%-17.1%6.1%5.9%18.4%14.8%
3 Year51.7%44.3%56.9%55.1%17.4%7.0%
5 Year172.5%149.5%16.4%13.9%27.9%10.4%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: B8F (€5.18) is trading below our estimate of fair value (€25.52)

Significantly Below Fair Value: B8F is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: B8F is poor value based on its PE Ratio (267x) compared to the Biotechs industry average (35.3x).

PE vs Market: B8F is poor value based on its PE Ratio (267x) compared to the German market (20.6x).


Price to Earnings Growth Ratio

PEG Ratio: B8F's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: B8F is overvalued based on its PB Ratio (16.3x) compared to the DE Biotechs industry average (3.4x).


Next Steps

Future Growth

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

-162.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: B8F's earnings are forecast to decline over the next 3 years (-162.7% per year).

Earnings vs Market: B8F's earnings are forecast to decline over the next 3 years (-162.7% per year).

High Growth Earnings: B8F's earnings are forecast to decline over the next 3 years.

Revenue vs Market: B8F's revenue (33.8% per year) is forecast to grow faster than the German market (4.8% per year).

High Growth Revenue: B8F's revenue (33.8% 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 B8F's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Biofrontera performed over the past 5 years?

9.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: B8F has a large one-off gain of €14.8M impacting its September 30 2019 financial results.

Growing Profit Margin: B8F became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: B8F has become profitable over the past 5 years, growing earnings by 9.8% per year.

Accelerating Growth: B8F has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: B8F has become profitable in the last year, making it difficult to compare its past year earnings growth to the Biotechs industry (5.4%).


Return on Equity

High ROE: B8F's Return on Equity (5.8%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Biofrontera's financial position?


Financial Position Analysis

Short Term Liabilities: B8F's short term assets (€32.4M) exceed its short term liabilities (€16.3M).

Long Term Liabilities: B8F's short term assets (€32.4M) do not cover its long term liabilities (€41.9M).


Debt to Equity History and Analysis

Debt Level: B8F's debt to equity ratio (135.6%) is considered high.

Reducing Debt: B8F's debt to equity ratio has reduced from 432.1% to 135.6% over the past 5 years.

Debt Coverage: B8F's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: Insufficient data to determine if B8F's interest payments on its debt are well covered by EBIT.


Balance Sheet

Inventory Level: B8F has a low level of unsold assets or inventory.

Debt Coverage by Assets: B8F's debt is covered by short term assets (assets are 1.7x debt).


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.5%industryaverage1.0%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate B8F's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate B8F'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 B8F's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if B8F'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 B8F's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

What is the CEO of Biofrontera's salary, the management and board of directors tenure and is there insider trading?

5.3yrs

Average management tenure


CEO

Hermann Lübbert (63yo)

23yrs

Tenure

€727,596

Compensation

Prof. Hermann Lübbert, Ph.D. is a Co-Founder of Biofrontera AG and serves as its Chief Executive Officer since 1997and Chairman of Management Board since 2000. Prof. Lübbert serves as the Chief Scientific  ...


CEO Compensation Analysis

Compensation vs Market: Hermann's total compensation ($USD810.78K) is about average for companies of similar size in the German market ($USD638.09K).

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


Management Age and Tenure

5.3yrs

Average Tenure

56yo

Average Age

Experienced Management: B8F's management team is seasoned and experienced (5.3 years average tenure).


Board Age and Tenure

3.7yrs

Average Tenure

60yo

Average Age

Experienced Board: B8F's board of directors are considered experienced (3.7 years average tenure).


Insider Trading

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


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Ownership Breakdown

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


Management Team

  • Hermann Lübbert (63yo)

    Co-Founder

    • Tenure: 23yrs
    • Compensation: €727.60k
  • Thomas Schaffer (56yo)

    CFO & Member of the Executive Board

    • Tenure: 6.6yrs
    • Compensation: €511.64k
  • Christoph Dünwald (51yo)

    Chief Commercial Officer

    • Tenure: 4yrs
    • Compensation: €432.17k
  • Alexander Richardson

    Head of UK Sales Team

    • Tenure: 1.7yrs
  • Pamela Keck

    Head of Investor Relations


    Board Members

    • John Borer (61yo)

      Member of the Supervisory Board

      • Tenure: 3.7yrs
      • Compensation: €15.00k
    • Humphrey Rang

      Head of the Scientific Advisory Board

      • Jürgen Baumann (64yo)

        Vice-Chairman of the Supervisory Board

        • Tenure: 3.7yrs
        • Compensation: €22.50k
      • Reinhard Eyring (60yo)

        Member of the Supervisory Board

        • Tenure: 1.9yrs
        • Compensation: €13.75k
      • Ulrich Granzer (58yo)

        Chairman of the Supervisory Board

        • Tenure: 3.7yrs
        • Compensation: €30.00k
      • Kevin Weber (60yo)

        Vice-Chairman of the Supervisory Board

        • Tenure: 12.7yrs
        • Compensation: €15.00k
      • Franca Ruhwedel (46yo)

        Member of Supervisory Board

        • Tenure: 0.5yrs

      Company Information

      Biofrontera AG's company bio, employee growth, exchange listings and data sources


      Key Information

      • Name: Biofrontera AG
      • Ticker: B8F
      • Exchange: XTRA
      • Founded: 1997
      • Industry: Biotechnology
      • Sector: Pharmaceuticals & Biotech
      • Market Cap: €223.631m
      • Shares outstanding: 44.82m
      • Website: https://www.biofrontera.com

      Number of Employees


      Location

      • Biofrontera AG
      • Hemmelrather Weg 201
      • Leverkusen
      • North Rhine-Westphalia
      • 51377
      • Germany

      Listings

      TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
      B8FDB (Deutsche Boerse AG)YesCommon StockDEEUROct 2006
      B8FXTRA (XETRA Trading Platform)YesCommon StockDEEUROct 2006
      0DOLLSE (London Stock Exchange)YesCommon StockGBEUROct 2006
      B8FdBATS-CHIXE (BATS 'Chi-X Europe')YesCommon StockGBEUROct 2006
      BFFT.FOTCPK (Pink Sheets LLC)YesCommon StockUSUSDOct 2006
      B8FETLX (Eurotlx)YesCommon StockITEUROct 2006
      B8FEBST (Boerse-Stuttgart)SPON ADS EACH REP TWO ORDDEEURFeb 2018
      BFRANasdaqCM (Nasdaq Capital Market)SPON ADS EACH REP TWO ORDUSUSDFeb 2018

      Biography

      Biofrontera AG, a biopharmaceutical company, engages in the development and commercialization of pharmaceutical products for the treatment of dermatological conditions and diseases caused primarily by exposure to sunlight that results in sun damage to the skin. Its principal product is Ameluz, a prescription drug for the treatment of lesion-directed and field-directed actinic keratosis. The company also offers BF-RhodoLED lamp, a photodynamic therapy for lesion-directed and field-directed treatment of actinic keratosis; and Belixos, an over-the-counter line of skin care cosmetic products. In addition, it is developing Ameluz for the treatment of field cancerization and nodular basal cell carcinoma; BF-derm1 for the treatment of chronic and antihistamine-resistant urticaria; and BF-1 for the prophylactic treatment of migraine. Further, the company’s product portfolio includes Xepi, a prescription antibiotic cream for the treatment of impetigo; and Aktipak, a generic drug for the treatment of mild to moderate acne. The company offers its products primarily in the United States, Europe, and Israel. Biofrontera AG has a collaboration and partnership agreement with Maruho Co., Ltd. Biofrontera AG was founded in 1997 and is headquartered in Leverkusen, Germany. 


      Company Analysis and Financial Data Status

      All financial data provided by Standard & Poor's Capital IQ.
      DataLast Updated (UTC time)
      Company Analysis2020/01/19 20:59
      End of Day Share Price2020/01/17 00:00
      Earnings2019/09/30
      Annual Earnings2018/12/31


      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.