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

Adequate balance sheet and overvalued.

Rewards

Revenue is forecast to grow by 23.51% next year

Revenue grew by 10.7% over the past year

Risk Analysis

High level of non-cash earnings

Currently unprofitable and not forecast to become profitable over the next 3 years

Highly volatile share price over past 3 months

Current net profit margin (-36.8%) is lower than last year (-21%)

+ 2 more risks


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

Stable Share Price: CEMI's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-23.6%

CEMI

1.4%

US Medical Equipment

0.4%

US Market


1 Year Return

-30.1%

CEMI

20.2%

US Medical Equipment

13.1%

US Market

Return vs Industry: CEMI underperformed the US Medical Equipment industry which returned 20.2% over the past year.

Return vs Market: CEMI underperformed the US Market which returned 13.1% over the past year.


Shareholder returns

CEMIIndustryMarket
7 Day-23.6%1.4%0.4%
30 Day-27.5%3.1%4.0%
90 Day-25.7%2.3%7.4%
1 Year-30.1%-30.1%21.3%20.2%15.6%13.1%
3 Year-41.9%-41.9%82.8%77.2%48.2%38.6%
5 Year-4.3%-4.3%116.3%92.8%62.6%44.6%

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 compared to its fair value and its price relative to the market?

2.75x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate CEMI's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate CEMI's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: CEMI is unprofitable, so we can't compare its PE Ratio to the Medical Equipment industry average.

PE vs Market: CEMI is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate CEMI's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: CEMI is good value based on its PB Ratio (2.8x) compared to the US Medical Equipment industry average (3.9x).


Next Steps

Future Growth

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

43.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CEMI is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: CEMI is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: CEMI is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: CEMI's revenue (19.2% per year) is forecast to grow faster than the US market (7.3% per year).

High Growth Revenue: CEMI's revenue (19.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if CEMI's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Chembio Diagnostics performed over the past 5 years?

-26.8%

Historical annual earnings growth


Earnings and Revenue History

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

Growing Profit Margin: CEMI's current net profit margins (-36.8%) are lower than last year (-21%).


Past Earnings Growth Analysis

Earnings Trend: CEMI is unprofitable, and losses have increased over the past 5 years at a rate of -26.8% per year.

Accelerating Growth: Unable to compare CEMI's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: CEMI is unprofitable, making it difficult to compare its past year earnings growth to the Medical Equipment industry (25%).


Return on Equity

High ROE: CEMI has a negative Return on Equity (-50.23%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Chembio Diagnostics's financial position?


Financial Position Analysis

Short Term Liabilities: CEMI's short term assets ($36.3M) exceeds its short term liabilities ($6.2M)

Long Term Liabilities: CEMI's short term assets (36.3M) exceeds its long term liabilities (24.9M)


Debt to Equity History and Analysis

Debt Level: CEMI's debt to equity ratio (68.8%) is considered high

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


Balance Sheet

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

Debt Coverage by Assets: CEMI's debt is covered by short term assets (assets are 2x 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.

Stable Cash Runway: CEMI has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: CEMI has sufficient cash runway for 1.504735 years if free cash flow continues to reduce at historical rates of -40.2% each year.


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage1.2%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

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

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


Next Steps

Management

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

3.0yrs

Average management tenure


CEO

John Sperzel (55yo)

5.7yrs

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

Compensation vs Market: John's total compensation ($USD1.46M) is above average for companies of similar size in the US market ($USD509.90K).

Compensation vs Earnings: John's compensation has increased whilst the company is unprofitable.


Management Age and Tenure

3.0yrs

Average Tenure

55yo

Average Age

Experienced Management: CEMI's management team is considered experienced (3 years average tenure).


Board Age and Tenure

2.3yrs

Average Tenure

63yo

Average Age

Experienced Board: CEMI's board of directors are not considered experienced ( 2.3 years average tenure), which suggests a new board.


Insider Trading

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


Recent Insider Transactions

BuyUS$44,40013 Nov 19
John Potthoff
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares10,000
Max PriceUS$4.44
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

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 24%.


Management Team

  • David Gyorke (59yo)

    Senior VP & COO

    • Tenure: 2.8yrs
  • John Sperzel (55yo)

    President

    • Tenure: 5.7yrs
    • Compensation: US$1.46m
  • Javan Esfandiari (52yo)

    Chief Science & Technology Officer and Executive VP

    • Tenure: 15.8yrs
    • 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: 3.1yrs
    • Compensation: US$271.10k
  • Neil Goldman (51yo)

    Executive VP & CFO

    • Tenure: 1.9yrs
    • Compensation: US$647.40k
  • Christine Rousseau

    Vice President of Corporate Development

    • Tenure: 1.3yrs

Board Members

  • Mary Polan (75yo)

    Independent Director

    • Tenure: 1.3yrs
    • Compensation: US$207.58k
  • Gail Page (64yo)

    Independent Director

    • Tenure: 2.3yrs
    • Compensation: US$25.00k
  • John Sperzel (55yo)

    President

    • Tenure: 5.7yrs
    • Compensation: US$1.46m
  • John Potthoff (51yo)

    Independent Director

    • Tenure: 1.5yrs
    • Compensation: US$167.55k
  • Kathy Davis (63yo)

    Chair of the Board

    • Tenure: 5.7yrs
    • 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$70.965m
  • 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 Analysis2019/11/13 23:58
End of Day Share Price2019/11/13 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.