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

Fundamentals

Flawless balance sheet average dividend payer.


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


Market Performance


7 Day Return

-0.2%

ABC

0.1%

GB Biotechs

2.0%

GB Market


1 Year Return

-10.5%

ABC

26.3%

GB Biotechs

3.3%

GB Market

Return vs Industry: ABC underperformed the UK Biotechs industry which returned 26.3% over the past year.

Return vs Market: ABC underperformed the UK Market which returned 3.3% over the past year.


Share holder returns

ABCIndustryMarket
7 Day-0.2%0.1%2.0%
30 Day-4.1%2.8%-1.0%
90 Day-17.3%2.4%-1.7%
1 Year-9.6%-10.5%27.3%26.3%8.3%3.3%
3 Year30.1%26.1%12.0%10.0%19.0%4.5%
5 Year217.1%197.5%55.7%52.0%38.4%8.4%

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 based on future cash flows and its price relative to the stock market?

50.86x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Undervalued: ABC (£11.17) is trading above our estimate of fair value (£5.97)

Significantly Undervalued: ABC is trading above our estimate of fair value.


Price Based on Earnings

PE vs Industry: ABC is poor value based on its PE Ratio (50.9x) compared to the Biotechs industry average (32.7x).

PE vs Market: ABC is poor value based on its PE Ratio (50.9x) compared to the UK market (16.4x).


Price Based on Expected Growth

Low PEG Ratio: ABC is poor value based on its PEG Ratio (3.1x)


Price Based on Value of Assets

PB vs Industry: ABC is overvalued based on its PB Ratio (6x) compared to the GB Biotechs industry average (2x).


Next Steps

Future Growth

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

16.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Earnings vs Savings Rate: ABC's forecast earnings growth (16.4% per year) is above the savings rate (1.2%).

Earnings vs Market: ABC's earnings (16.4% per year) are forecast to grow faster than the UK market (12.3% per year).

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

Revenue vs Market: ABC's revenue (10.6% per year) is forecast to grow faster than the UK market (4% per year).

High Growth Revenue: ABC's revenue (10.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Estimates


Future Return on Equity

High Future ROE: ABC's Return on Equity is forecast to be low in 3 years time (16.3%).


Next Steps

Past Performance

How has Abcam performed over the past 5 years?

11.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: ABC's earnings have grown by 11.5% 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 (-27.7%) over the past year, making it difficult to compare to the Biotechs industry average (-2.3%).


Return on Equity

High ROE: ABC's Return on Equity (11.7%) is considered low.


Return on Assets

ROA vs Industry: ABC's Return on Assets is below or equal to the Biotechs industry average last year.


Return on Capital Employed

ROCE Improving: ABC has improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Abcam's financial position?


Financial Position Analysis

Short Term Liabilities: ABC's short term assets (£171.8M) exceeds its short term liabilities (£45.3M)

Long Term Liabilities: ABC's short term assets (£171.8M) exceeds its long term liabilities (£16.6M)


Debt to Equity History and Analysis

Debt Level: ABC is debt free.

Reducing Debt: ABC has not had any debt for past 5 years.

Debt Coverage: ABC has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: ABC has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

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

Debt Coverage by Assets: Insufficient data to determine if ABC's debt is covered by short term assets.


Next Steps

Dividend

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

1.25%

Expected Dividend Yield


Upcoming Dividend Payment

Purchase Abcam before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company1.1%marketbottom25%2.0%markettop25%5.4%industryaverage1.2%forecastin3Years1.3%

Current dividend yield vs market & industry


Dividend Yield and Payments Analysis

Notable Dividend: ABC's dividend (1.09%) isn’t notable compared to the bottom 25% of dividend payers in the UK market (2%).

High Dividend: ABC's dividend (1.09%) is low compared to the top 25% of dividend payers in the UK market (5.42%).

Stable Dividend: ABC's dividends per share have been stable in the past 10 years.

Growing Dividend: ABC's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (55.2%), ABC's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: ABC's dividends in 3 years are forecast to be well covered by earnings (37.7% payout ratio).


Next Steps

Management

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

5.1yrs

Average management tenure


CEO

Alan Hirzel (51yo)

5.1yrs

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 ($USD2.43M) is about average for companies of similar size in the UK market ($USD2.29M).

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


Management Age and Tenure

5.1yrs

Average Tenure

51yo

Average Age

Experienced Management: ABC's management team is seasoned and experienced (5.1 years average tenure).


Board Age and Tenure

4.0yrs

Average Tenure

57.5yo

Average Age

Experienced Board: ABC's board of directors are considered experienced (4 years average tenure).


Insider Trading

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


Recent Insider Transactions

SellUK£7,299,21102 Oct 19
Jonathan Milner
EntityIndividual
Role
Vice Chairman
Co-Founder & Non-Executive Deputy Chairman
Shares636,363
Max PriceUK£11.47
BuyUK£28,92516 Sep 19
Gavin Hilary Wood
EntityIndividual
Role
Member of the Board of Directors
CFO & Executive Director
Shares2,500
Max PriceUK£11.57
BuyUK£12,62211 Sep 19
Louise A. V. Patten
EntityIndividual
Role
Lead Director
Senior Independent Director
Shares1,126
Max PriceUK£11.21
BuyUK£9,34911 Sep 19
Jonathan Milner
EntityIndividual
Role
Vice Chairman
Co-Founder & Non-Executive Deputy Chairman
Shares834
Max PriceUK£11.21
BuyUK£12,16311 Sep 19
Susan Harris
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares1,085
Max PriceUK£11.21
BuyUK£19,48311 Sep 19
Mara Aspinall
EntityIndividual
Role
Lead Director
Independent Non-Executive Director
Shares1,738
Max PriceUK£11.21
BuyUK£49,54511 Sep 19
Alan Hirzel
EntityIndividual
Role
Chief Executive Officer
CEO & Executive Director
Shares4,350
Max PriceUK£11.39
BuyUK£1,990,57406 Dec 18
Jonathan Milner
EntityIndividual
Role
Vice Chairman
Co-Founder & Non-Executive Deputy Chairman
Shares187,790
Max PriceUK£10.60

Ownership Breakdown


Management Team

  • Mark Bushfield

    Senior Vice President of Research & Innovation

    • Tenure: 0yrs
  • Jonathan Milner (54yo)

    Co-Founder & Non-Executive Deputy Chairman

    • Tenure: 5.1yrs
    • Compensation: UK£70.00k
  • Alan Hirzel (51yo)

    CEO & Executive Director

    • Tenure: 5.1yrs
    • Compensation: UK£1.91m
  • Yvonne Chien

    Senior Vice President of Customer Experience

    • Tenure: 0yrs
  • Gavin Hilary Wood (49yo)

    CFO & Executive Director

    • Tenure: 3.1yrs
    • Compensation: UK£1.37m
  • Kirstie Speck

    Head of Consumer Insights

    • Tenure: 5.8yrs
  • Nick Skinner

    Senior Vice President of Human Resources

    • Tenure: 3.8yrs
  • James Staveley

    Vice President of Investor Relations

    • Tenure: 0yrs
  • Marc Perkins

    Associate General Counsel & Company Secretary

    • Tenure: 0yrs

Board Members

  • Giles F. Kerr (60yo)

    Non-Executive Director

    • Tenure: 0.8yrs
    • Compensation: UK£39.00k
  • Lady Patten (65yo)

    Senior Independent Director

    • Tenure: 4.9yrs
    • Compensation: UK£83.00k
  • Peter Allen (63yo)

    Non-Executive Chairman

    • Tenure: 1.3yrs
    • Compensation: UK£225.00k
  • Mara Aspinall (57yo)

    Independent Non-Executive Director

    • Tenure: 1.9yrs
    • Compensation: UK£71.00k
  • Jonathan Milner (54yo)

    Co-Founder & Non-Executive Deputy Chairman

    • Tenure: 5.1yrs
    • Compensation: UK£70.00k
  • Alan Hirzel (51yo)

    CEO & Executive Director

    • Tenure: 5.1yrs
    • Compensation: UK£1.91m
  • Sue Harris (58yo)

    Independent Non-Executive Director

    • Tenure: 4.8yrs
    • Compensation: UK£83.00k
  • Gavin Hilary Wood (49yo)

    CFO & Executive Director

    • Tenure: 3.1yrs
    • Compensation: UK£1.37m

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£2.293b
  • Shares outstanding: 205.31m
  • 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 ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/12 21:02
End of Day Share Price2019/10/11 00:00
Earnings2019/06/30
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.

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