NasdaqCM:CEMI

Stock Analysis Report

Executive Summary

Chembio Diagnostics, Inc., together with its subsidiaries, develops, manufactures, and commercializes point-of-care (POC) diagnostic tests that are used to detect or diagnose diseases.

Snowflake

Fundamentals

Reasonable growth potential with mediocre balance sheet.

Risks

  • Chembio Diagnostics has significant price volatility in the past 3 months.

Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

11.2%

NasdaqCM:CEMI

0.8%

US Medical Equipment

1.1%

US Market


1 Year Return

-31.7%

NasdaqCM:CEMI

9.6%

US Medical Equipment

2.1%

US Market

CEMI underperformed the Medical Equipment industry which returned 9.1% over the past year.

CEMI underperformed the Market in United States of America which returned 2% over the past year.


Share holder returns

CEMIIndustryMarket
7 Day11.2%0.8%1.1%
30 Day22.1%0.2%3.7%
90 Day16.0%2.7%2.3%
1 Year-31.7%-31.7%10.5%9.6%4.4%2.1%
3 Year-8.6%-8.6%69.5%64.3%47.0%37.4%
5 Year86.9%86.9%132.5%105.9%61.6%43.8%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Chembio Diagnostics undervalued based on future cash flows and its price relative to the stock market?

4.23x

Price to Book (PB) ratio


Intrinsic Value Based on Future Cash Flows

Unable to calculate intrinsic value for Chembio Diagnostics to establish if it is available at moderate discount.

Unable to calculate intrinsic value for Chembio Diagnostics to establish if it is available at substantial discount.


Price Based on Earnings

Chembio Diagnostics is loss making, we can't compare its value to the US Medical Equipment industry average.

Chembio Diagnostics is loss making, we can't compare the value of its earnings to the United States of America market.


Price Based on Expected Growth

Unable to calculate PEG ratio for Chembio Diagnostics, we can't assess if its growth is good value.


Price Based on Value of Assets

Chembio Diagnostics is overvalued based on assets compared to the US Medical Equipment industry average.


Next Steps

Future Growth

How is Chembio Diagnostics expected to perform in the next 1 to 3 years based on estimates from 4 analysts?

77.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Chembio Diagnostics's revenue is expected to grow by 17.2% yearly, however this is not considered high growth (20% yearly).

Chembio Diagnostics's earnings are expected to grow significantly at over 20% yearly.

Chembio Diagnostics's revenue growth is expected to exceed the United States of America market average.

Chembio Diagnostics's earnings growth is expected to exceed the United States of America market average.

Chembio Diagnostics's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Chembio Diagnostics will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

How has Chembio Diagnostics performed over the past 5 years?

-29.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Chembio Diagnostics does not make a profit and their year on year earnings growth rate was negative over the past 5 years.

Unable to compare Chembio Diagnostics's 1-year earnings growth to the 5-year average as it is not currently profitable.

Unable to compare Chembio Diagnostics's 1-year growth to the US Medical Equipment industry average as it is not currently profitable.


Return on Equity

It is difficult to establish if Chembio Diagnostics has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.


Return on Assets

It is difficult to establish if Chembio Diagnostics has efficiently used its assets last year compared to the US Medical Equipment industry average (Return on Assets) as it is loss-making.


Return on Capital Employed

It is difficult to establish if Chembio Diagnostics improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.


Next Steps

Financial Health

How is Chembio Diagnostics's financial position?


Financial Position Analysis

Chembio Diagnostics is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Chembio Diagnostics's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Chembio Diagnostics's level of debt (1%) compared to net worth is satisfactory (less than 40%).

Unable to establish if Chembio Diagnostics's debt level has increased without past 5-year debt data.


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 76.1x debt.


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Chembio Diagnostics has less than a year of cash runway based on current free cash flow.

Chembio Diagnostics has less than a year of cash runway if free cash flow continues to grow at historical rates of 49.7% each year.


Next Steps

Dividend

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


Dividend Yield and Payments Analysis

Unable to evaluate Chembio Diagnostics's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate Chembio Diagnostics's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as Chembio Diagnostics has not reported any payouts.

Unable to verify if Chembio Diagnostics's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as Chembio Diagnostics has not reported any payouts.


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

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

2.8yrs

Average management tenure


CEO

John Sperzel (55yo)

5.5yrs

Tenure

US$1,456,097

Compensation

Mr. John J. Sperzel, III, B.Sc., has been the Chief Executive Officer and President of Chembio Diagnostics, Inc. since March 13, 2014. Mr. Sperzel is on leave of Absence on May 30, 2017. Mr. Sperzel served ...


CEO Compensation Analysis

John's remuneration is higher than average for companies of similar size in United States of America.

John's compensation has increased whilst company is loss making.


Management Age and Tenure

2.8yrs

Average Tenure

55yo

Average Age

The tenure for the Chembio Diagnostics management team is about average.


Board Age and Tenure

2.2yrs

Average Tenure

63yo

Average Age

The average tenure for the Chembio Diagnostics board of directors is less than 3 years, this suggests a new board.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

SellUS$214,43424 May 19
Javan Esfandiari
EntityIndividual
Role
Chief Technology Officer
Chief Science & Technology Officer and Executive VP
Shares30,000
Max PriceUS$7.41
BuyUS$116,15016 Nov 18
John Potthoff
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares20,000
Max PriceUS$5.81
BuyUS$101,25006 Nov 18
Robert Passas
EntityIndividual
Role
Senior Key Executive
Senior VP & Chief Commercial Officer
Shares15,000
Max PriceUS$6.75

Ownership Breakdown


Management Team

  • David Gyorke (59yo)

    Senior VP & COO

    • Tenure: 2.7yrs
  • John Sperzel (55yo)

    President

    • Tenure: 5.5yrs
    • Compensation: US$1.46m
  • Javan Esfandiari (52yo)

    Chief Science & Technology Officer and Executive VP

    • Tenure: 15.7yrs
    • Compensation: US$812.65k
  • Konstantin Lyashchenko

    Research Director of Chembio Diagnostic Systems Inc

    • Tenure: 0yrs
    • Compensation: US$106.37k
  • Robert Passas (65yo)

    Senior VP & Chief Commercial Officer

    • Tenure: 2.9yrs
    • Compensation: US$271.10k
  • Neil Goldman (51yo)

    Executive VP & CFO

    • Tenure: 1.8yrs
    • Compensation: US$647.40k
  • Christine Rousseau

    Vice President of Corporate Development

    • Tenure: 1.2yrs

Board Members

  • Mary Polan (75yo)

    Independent Director

    • Tenure: 1.1yrs
    • Compensation: US$207.58k
  • Gail Page (64yo)

    Independent Director

    • Tenure: 2.2yrs
    • Compensation: US$25.00k
  • John Sperzel (55yo)

    President

    • Tenure: 5.5yrs
    • Compensation: US$1.46m
  • John Potthoff (51yo)

    Independent Director

    • Tenure: 1.3yrs
    • Compensation: US$167.55k
  • Kathy Davis (63yo)

    Chair of the Board

    • Tenure: 5.5yrs
    • Compensation: US$75.00k

Company Information

Chembio Diagnostics, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Chembio Diagnostics, Inc.
  • Ticker: CEMI
  • Exchange: NasdaqCM
  • Founded: 1985
  • Industry: Health Care Supplies
  • Sector: Healthcare
  • Market Cap: US$118.216m
  • Shares outstanding: 17.57m
  • Website: https://chembio.com

Number of Employees


Location

  • Chembio Diagnostics, Inc.
  • 555 Wireless Boulevard
  • Hauppauge
  • New York
  • 11788
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CEMINasdaqCM (Nasdaq Capital Market)YesCommon StockUSUSDOct 2000
D9IABST (Boerse-Stuttgart)YesCommon StockDEEUROct 2000

Biography

Chembio Diagnostics, Inc., together with its subsidiaries, develops, manufactures, and commercializes point-of-care (POC) diagnostic tests that are used to detect or diagnose diseases. The company offers t ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/16 23:47
End of Day Share Price2019/09/16 00:00
Earnings2019/06/30
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.