AIM:ABC

Stock Analysis Report

Executive Summary

Abcam plc, a life sciences company, researches, develops, and distributes biological reagents and tools for research, drug discovery, and diagnostics in the United States, China, Japan, Germany, the United Kingdom, and internationally.


Snowflake Analysis

Excellent balance sheet with reasonable growth potential.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

3.1%

ABC

6.5%

GB Biotechs

3.9%

GB Market


1 Year Return

0.4%

ABC

7.0%

GB Biotechs

-22.4%

GB Market

Return vs Industry: ABC underperformed the UK Biotechs industry which returned 7.6% over the past year.

Return vs Market: ABC exceeded the UK Market which returned -23% over the past year.


Shareholder returns

ABCIndustryMarket
7 Day3.1%6.5%3.9%
30 Day-1.1%0.5%-16.1%
90 Day-15.5%-4.3%-26.1%
1 Year1.4%0.4%7.8%7.0%-18.2%-22.4%
3 Year37.8%33.7%5.1%3.4%-11.7%-23.1%
5 Year140.7%127.7%13.6%11.1%1.9%-21.5%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

54.04x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: ABC (£11.43) is trading above our estimate of fair value (£6.51)

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


Price To Earnings Ratio

PE vs Industry: ABC is poor value based on its PE Ratio (54x) compared to the Biotechs industry average (39.4x).

PE vs Market: ABC is poor value based on its PE Ratio (54x) compared to the UK market (12.4x).


Price to Earnings Growth Ratio

PEG Ratio: ABC is poor value based on its PEG Ratio (2.6x)


Price to Book Ratio

PB vs Industry: ABC is overvalued based on its PB Ratio (6x) compared to the GB Biotechs industry average (1.8x).


Next Steps

Future Growth

How is Abcam forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

20.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ABC's forecast earnings growth (20.8% per year) is above the savings rate (0.5%).

Earnings vs Market: ABC's earnings (20.8% per year) are forecast to grow faster than the UK market (15.5% per year).

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

Revenue vs Market: ABC's revenue (12.8% per year) is forecast to grow faster than the UK market (2.3% per year).

High Growth Revenue: ABC's revenue (12.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ABC's Return on Equity is forecast to be low in 3 years time (16%).


Next Steps

Past Performance

How has Abcam performed over the past 5 years?

8.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ABC has a large one-off loss of £16.5M impacting its December 31 2019 financial results.

Growing Profit Margin: ABC's current net profit margins (15.9%) are lower than last year (23.5%).


Past Earnings Growth Analysis

Earnings Trend: ABC's earnings have grown by 8.6% per year over the past 5 years.

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

Earnings vs Industry: ABC had negative earnings growth (-24.7%) over the past year, making it difficult to compare to the Biotechs industry average (8.7%).


Return on Equity

High ROE: ABC's Return on Equity (11.1%) is considered low.


Next Steps

Financial Health

How is Abcam's financial position?


Financial Position Analysis

Short Term Liabilities: ABC's short term assets (£277.4M) exceed its short term liabilities (£148.7M).

Long Term Liabilities: ABC's short term assets (£277.4M) exceed its long term liabilities (£83.9M).


Debt to Equity History and Analysis

Debt Level: ABC's debt to equity ratio (26%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if ABC's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: ABC's debt is well covered by operating cash flow (72.4%).

Interest Coverage: ABC earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: ABC has a high level of physical assets or inventory.

Debt Coverage by Assets: ABC's debt is covered by short term assets (assets are 2.7x debt).


Next Steps

Dividend

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

1.06%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: ABC's dividend (1.06%) isn’t notable compared to the bottom 25% of dividend payers in the UK market (2.69%).

High Dividend: ABC's dividend (1.06%) is low compared to the top 25% of dividend payers in the UK market (7.48%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: ABC is not paying a notable dividend for the UK market.


Future Payout to Shareholders

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


Next Steps

Management

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

5.4yrs

Average management tenure


CEO

Alan Hirzel (51yo)

5.42s

Tenure

UK£1,914,000

Compensation

Mr. Alan Thomas Hirzel, BS, MS, MBA has been the Chief Executive Officer of Abcam Plc since September 8, 2014. Mr. Hirzel served as the Chief Marketing Officer of Abcam Plc from August 5, 2013 to September ...


CEO Compensation Analysis

Compensation vs Market: Alan's total compensation ($USD2.38M) is about average for companies of similar size in the UK market ($USD2.45M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Alan Hirzel
CEO & Executive Director5.42yrsUK£1.91m0.087% £2.1m
Jonathan Milner
Co-Founder & Non-Executive Deputy Chairman5.42yrsUK£70.00k8.76% £205.8m
Michael Baldock
CFO & Directorno datano datano data
Mark Dermody
Interim CIOno datano datano data
James Staveley
Vice President of Investor Relationsno datano datano data
Marc Perkins
Associate General Counsel & Company Secretaryno datano datano data
Cheri Walker
Senior Vice President of Corporate Development1.42yrsno datano data
Nick Skinner
Senior Vice President of Human Resources4.17yrsno datano data
Mark Bushfield
Senior Vice President of Research & Innovationno datano datano data
Kirstie Speck
Head of Consumer Insights6.17yrsno datano data

5.4yrs

Average Tenure

54yo

Average Age

Experienced Management: ABC's management team is seasoned and experienced (5.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Alan Hirzel
CEO & Executive Director5.42yrsUK£1.91m0.087% £2.1m
Jonathan Milner
Co-Founder & Non-Executive Deputy Chairman5.42yrsUK£70.00k8.76% £205.8m
Michael Baldock
CFO & Directorno datano datano data
Giles F. Kerr
Independent Non-Executive Director1.25yrsUK£39.00k0.00022% £5.2k
Louise A. V. Patten
Senior Independent Director5.25yrsUK£83.00k0.026% £614.1k
Peter Allen
Non-Executive Chairman1.67yrsUK£225.00k0.0073% £171.1k
Mara Aspinall
Independent Non-Executive Director2.25yrsUK£71.00k0.0063% £147.8k

3.8yrs

Average Tenure

57yo

Average Age

Experienced Board: ABC's board of directors are considered experienced (3.8 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: ABC insiders have only sold shares 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

Abcam plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Abcam plc
  • Ticker: ABC
  • Exchange: AIM
  • Founded: 1998
  • Industry: Biotechnology
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: UK£2.350b
  • Shares outstanding: 205.60m
  • Website: https://www.abcam.com

Number of Employees


Location

  • Abcam plc
  • Discovery Drive
  • Cambridge Biomedical Campus
  • Cambridge
  • Cambridgeshire
  • CB2 0AX
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ABCAIM (London Stock Exchange AIM Market)YesOrdinary SharesGBGBPNov 2005
ABCZ.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDNov 2005
A8C1DB (Deutsche Boerse AG)YesOrdinary SharesDEEURNov 2005
ABCZ.YOTCPK (Pink Sheets LLC)ADRUSUSDDec 2010

Biography

Abcam plc, a life sciences company, researches, develops, and distributes biological reagents and tools for research, drug discovery, and diagnostics in the United States, China, Japan, Germany, the United Kingdom, and internationally. The company offers various research products, including primary and secondary antibodies; ELISA and matched antibody pairs; cell and tissue imaging tools; cellular and biochemical assays; proteins and peptides; proteomics tools; agonists, antagonists, activators, and inhibitors; lysates; and multiplex assays. Its research products are used in the areas of cancer, cardiovascular, cell biology, developmental biology, epigenetics, nuclear signaling, immunology, metabolism, microbiology, neuroscience, signal transduction, and stem cells. The company also offers diagnostic and therapeutic solutions. The company also sells its products online. Abcam plc was founded in 1998 and is headquartered in Cambridge, the United Kingdom. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/31 21:03
End of Day Share Price2020/03/31 00:00
Earnings2019/12/31
Annual Earnings2019/06/30


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.