OM:SOBI

Stock Analysis Report

Executive Summary

Swedish Orphan Biovitrum AB (publ), an integrated biotechnology company, researches, develops, manufactures, and sells pharmaceuticals in the therapeutic areas of haemophilia, immunology, and genetic and metabolic diseases.

Rewards

Trading at 44.5% below its fair value

Earnings are forecast to grow 19.27% per year

Earnings have grown 57.9% per year over the past 5 years

Risk Analysis

High level of non-cash earnings

Has a high level of debt

Shareholders have been diluted in the past year



Snowflake Analysis

Good value with moderate growth potential.


Similar Companies

Pfizer

NYSE:PFE

Share Price & News

How has Swedish Orphan Biovitrum's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

-5.3%

SOBI

-2.8%

SE Biotechs

-0.6%

SE Market


1 Year Return

-17.6%

SOBI

-9.7%

SE Biotechs

23.8%

SE Market

Return vs Industry: SOBI underperformed the Swedish Biotechs industry which returned -17.4% over the past year.

Return vs Market: SOBI underperformed the Swedish Market which returned 26.1% over the past year.


Shareholder returns

SOBIIndustryMarket
7 Day-5.3%-2.8%-0.6%
30 Day12.6%6.3%1.4%
90 Day7.3%7.8%6.4%
1 Year-17.6%-17.6%-8.7%-9.7%28.9%23.8%
3 Year56.4%56.4%25.2%16.3%38.9%17.6%
5 Year104.3%104.3%45.7%42.9%53.2%20.2%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Swedish Orphan Biovitrum undervalued compared to its fair value and its price relative to the market?

33.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SOBI (SEK152.05) is trading below our estimate of fair value (SEK273.81)

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


Price To Earnings Ratio

PE vs Industry: SOBI is good value based on its PE Ratio (17.2x) compared to the Biotechs industry average (29.7x).

PE vs Market: SOBI is poor value based on its PE Ratio (21.1x) compared to the Swedish market (19.6x).


Price to Earnings Growth Ratio

PEG Ratio: SOBI is poor value based on its PEG Ratio (1x)


Price to Book Ratio

PB vs Industry: SOBI is good value based on its PB Ratio (2.9x) compared to the SE Biotechs industry average (4.1x).


Next Steps

Future Growth

How is Swedish Orphan Biovitrum forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

15.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SOBI's forecast earnings growth (19.3% per year) is above the savings rate (-0.4%).

Earnings vs Market: SOBI's earnings (19.3% per year) are forecast to grow faster than the Swedish market (9.6% per year).

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

Revenue vs Market: SOBI's revenue (7.9% per year) is forecast to grow faster than the Swedish market (4.4% per year).

High Growth Revenue: SOBI's revenue (7.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SOBI's Return on Equity is forecast to be low in 3 years time (13%).


Next Steps

Past Performance

How has Swedish Orphan Biovitrum performed over the past 5 years?

57.9%

Historical annual earnings growth


Earnings and Revenue History

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

Growing Profit Margin: SOBI's current net profit margins (21.3%) are lower than last year (25.8%).


Past Earnings Growth Analysis

Earnings Trend: SOBI has become profitable over the past 5 years, growing earnings by 57.9% per year.

Accelerating Growth: SOBI's earnings growth over the past year (16.4%) is below its 5-year average (57.9% per year).

Earnings vs Industry: SOBI earnings growth over the past year (16.4%) underperformed the Biotechs industry 26%.


Return on Equity

High ROE: SOBI's Return on Equity (16.2%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Swedish Orphan Biovitrum's financial position?


Financial Position Analysis

Short Term Liabilities: SOBI's short term assets (SEK5.5B) exceed its short term liabilities (SEK4.2B).

Long Term Liabilities: SOBI's short term assets (SEK5.5B) do not cover its long term liabilities (SEK12.9B).


Debt to Equity History and Analysis

Debt Level: SOBI's debt to equity ratio (55.4%) is considered high.

Reducing Debt: SOBI's debt to equity ratio has increased from 17.6% to 55.4% over the past 5 years.

Debt Coverage: SOBI's debt is well covered by operating cash flow (36.8%).

Interest Coverage: SOBI's interest payments on its debt are well covered by EBIT (21.4x coverage).


Balance Sheet

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

Debt Coverage by Assets: SOBI's debt is not covered by short term assets (assets are 0.6x debt).


Next Steps

Dividend

What is Swedish Orphan Biovitrum's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.6%markettop25%4.4%industryaverage1.0%forecastin3Years0%

Current dividend yield vs market & industry

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

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

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


Next Steps

Management

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

2.1yrs

Average management tenure


CEO

Swedish Orphan Biovitrum has no CEO, or we have no data on them.


Management Age and Tenure

2.1yrs

Average Tenure

51yo

Average Age

Experienced Management: SOBI's management team is considered experienced (2.1 years average tenure).


Board Age and Tenure

8.8yrs

Average Tenure

62yo

Average Age

Experienced Board: SOBI's board of directors are considered experienced (8.8 years average tenure).


Insider Trading

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


Recent Insider Transactions

Buykr195,12013 Nov 19
Lennart Johansson
EntityIndividual
Role
Member of the Board of Directors
Director
Shares1,200
Max Pricekr162.60
Buykr155,10006 Nov 19
Elisabeth Svanberg
EntityIndividual
Shares1,000
Max Pricekr155.10
Buykr15,48114 Aug 19
Bo-Gunnar Rosenbrand
EntityIndividual
Shares86
Max Pricekr180.01
Buykr2,697,75014 Jun 19
Henrik Stenqvist
EntityIndividual
Shares15,000
Max Pricekr179.85
Buykr238,16113 Jun 19
David Allsop
EntityIndividual
Shares1,314
Max Pricekr181.25
Buykr894,75013 Jun 19
Torbjörn Hallberg
EntityIndividual
Role
Chief Legal Officer
General Counsel and Head of Legal Affairs & Human Resources
Shares5,000
Max Pricekr178.95
Buykr364,60013 Jun 19
Norbert Oppitz
EntityIndividual
Shares2,000
Max Pricekr182.30

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 6.4%.


Management Team

  • Paula Treutiger (52yo)

    Head of Communications & Investor Relations

    • Tenure: 1yrs
  • Annika Muskantor (53yo)

    Head of Global Supply Chain

    • Jorgen Winroth

      Senior IR Advisor

      • Philip Wood (51yo)

        Head of Haematology

        • Tenure: 6.2yrs
      • Bruce Faulkner-Dunkley

        Global Head of L&OD

        • Konstantina Karampela

          Senior Director of European Commercial Operations (Specialty Care and Partner Products)

          • Milan Zdravkovic (49yo)

            Head of Research & Development and Chief Medical Officer

            • Tenure: 3.2yrs
          • Armin Reininger (62yo)

            Head of Medical & Scientific Affairs

            • Tenure: 3yrs
          • Torbjörn Hallberg (50yo)

            General Counsel and Head of Legal Affairs & Human Resources

            • Tenure: 1yrs
          • Anne de Jonge Schuermans (47yo)

            Head of Technical Operations

            • Tenure: 1.3yrs

          Board Members

          • Lennart Johansson (64yo)

            Director

            • Tenure: 9.8yrs
            • Compensation: kr610.00k
          • Hans Wigzell (81yo)

            Chairman of Scientific Advisory Board

            • Tenure: 19yrs
            • Compensation: kr158.00k
          • Sven Björklund (63yo)

            Independent Chairman

            • Tenure: 3.7yrs
            • Compensation: kr1.39m
          • Helena Saxon (49yo)

            Director

            • Tenure: 8.8yrs
            • Compensation: kr367.00k
          • Stephen O'Rahilly

            Member of Scientific Advisory Board

            • Ralf Pettersson

              Member of Scientific Advisory Board

              • Stefan Del Prato

                Member of Scientific Advisory Board

                • Jonathan Sanders Arch

                  Member of Scientific Advisory Board

                  • Hans G. C. Schikan (61yo)

                    Independent Member of the Supervisory Board

                    • Tenure: 8.8yrs
                    • Compensation: kr592.00k
                  • Pia Axelson (57yo)

                    Employee Representative Director

                    • Tenure: 0.3yrs

                  Company Information

                  Swedish Orphan Biovitrum AB (publ)'s company bio, employee growth, exchange listings and data sources


                  Key Information

                  • Name: Swedish Orphan Biovitrum AB (publ)
                  • Ticker: SOBI
                  • Exchange: OM
                  • Founded:
                  • Industry: Biotechnology
                  • Sector: Pharmaceuticals & Biotech
                  • Market Cap: kr52.172b
                  • Shares outstanding: 294.09m
                  • Website: https://www.sobi.com

                  Number of Employees


                  Location

                  • Swedish Orphan Biovitrum AB (publ)
                  • Tomtebodavägen 23A
                  • Solna
                  • Stockholm County
                  • 112 76
                  • Sweden

                  Listings

                  TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
                  SOBIOM (OMX Nordic Exchange Stockholm)YesClass A SharesSESEKSep 2006
                  B6EDB (Deutsche Boerse AG)YesClass A SharesDEEURSep 2006
                  0MTDLSE (London Stock Exchange)YesClass A SharesGBSEKSep 2006
                  BIOV.FOTCPK (Pink Sheets LLC)YesClass A SharesUSUSDSep 2006
                  SOBISBATS-CHIXE (BATS 'Chi-X Europe')YesClass A SharesGBSEKSep 2006

                  Biography

                  Swedish Orphan Biovitrum AB (publ), an integrated biotechnology company, researches, develops, manufactures, and sells pharmaceuticals in the therapeutic areas of haemophilia, immunology, and genetic and metabolic diseases. The company offers Elocta to treat haemophilia A; and Alprolix to treat haemophilia B. It also provides Orfadin for the treatment of hereditary tyrosinaemia type 1; Gamifan for treating hemophagocytic lymphohistiocytosis; and Kineret for the treatment of rheumatoid arthritis. In addition, the company manufactures drug substance for ReFacto AF; and develops BIVV001 and BIVV002 for the treatment of hemophilia. It operates in Sweden, the Middle East, North Africa, Russia, North America, other European countries, and internationally. The company has an agreement with Sanofi for the development and commercialization of Elocta and Alprolix, as well as XTEN-programs. Swedish Orphan Biovitrum AB (publ) is headquartered in Solna, Sweden. 


                  Company Analysis and Financial Data Status

                  All financial data provided by Standard & Poor's Capital IQ.
                  DataLast Updated (UTC time)
                  Company Analysis2020/01/26 21:03
                  End of Day Share Price2020/01/24 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.