AbCellera Biologics (NasdaqGS:ABCL) - Share price, News & Analysis

ABCL fundamental analysis
Snowflake Score
Valuation	2/6
Future Growth	0/6
Past Performance	2/6
Financial Health	6/6
Dividends	0/6

ABCL Stock Overview

AbCellera Biologics Inc. develops antibody discovery platform.

Rewards

Price-To-Earnings ratio (14x) is below the US market (14.7x)

Earnings have grown 88.3% per year over the past 5 years

Risk Analysis

Earnings are forecast to decline by an average of 52.3% per year for the next 3 years

Shareholders have been diluted in the past year

AbCellera Biologics Competitors

Stevanato Group

NYSE:STVN

US$4.2b

Medpace Holdings

NasdaqGS:MEDP

US$4.8b

Sotera Health

NasdaqGS:SHC

US$5.7b

Maravai LifeSciences Holdings

NasdaqGS:MRVI

US$7.1b

Price History & Performance

Summary of all time highs, changes and price drops for AbCellera Biologics
Historical stock prices
Current Share Price	US$10.11
52 Week High	US$22.63
52 Week Low	US$5.42
Beta	0
1 Month Change	27.98%
3 Month Change	3.69%
1 Year Change	-54.05%
3 Year Change	n/a
5 Year Change	n/a
Change since IPO	-82.84%

Recent News & Updates

Jun 06

AbCellera Biologics: Fully Funded, With New Opportunities And Massive Insider Buying

AbCellera stock has continued to struggle of late given the absolutely terrible sentiment in the biotech market, however the company's actual business is thriving under the surface. In the Q1 earnings call, the company highlighted both the internally developed T-Cell engager platform, along with the Empirico deal which provides the option to co-invest in programs. The company is currently sitting on a mountain of cash, $786 million worth and this balance looks to grow further with $334 million in accrued receivables from bebtelovimab. Insiders clearly appreciate the opportunity ahead as the CEO, CFO & COO each purchased significant amounts of stock directly after the Q1 release and insiders now own over 27% of the business.

May 13

Need To Know: Analysts Are Much More Bullish On AbCellera Biologics Inc. (NASDAQ:ABCL)

AbCellera Biologics Inc. ( NASDAQ:ABCL ) shareholders will have a reason to smile today, with the analysts making...

Shareholder Returns

	ABCL	US Life Sciences	US Market
7D	-1.7%	3.7%	1.6%
1Y	-54.0%	-18.0%	-20.8%

Return vs Industry: ABCL underperformed the US Life Sciences industry which returned -19% over the past year.

Return vs Market: ABCL underperformed the US Market which returned -20.4% over the past year.

Price Volatility

Is ABCL's price volatile compared to industry and market?
ABCL volatility
ABCL Average Weekly Movement	11.3%
Life Sciences Industry Average Movement	11.4%
Market Average Movement	8.1%
10% most volatile stocks in US Market	16.8%
10% least volatile stocks in US Market	3.2%

Stable Share Price: ABCL is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 11% a week.

Volatility Over Time: ABCL's weekly volatility (11%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
2012	400	Carl Hansen	https://www.abcellera.com

AbCellera Biologics Inc. develops antibody discovery platform. Its full-stack, artificial intelligence-powered antibody discovery platform searches and analyzes the database of natural immune systems to find antibodies that could be developed as drugs. As of December 31, 2021, the company had 156 discovery programs that are either completed, in progress, or under contract with 36 partners.

AbCellera Biologics Fundamentals Summary

How do AbCellera Biologics's earnings and revenue compare to its market cap?
ABCL fundamental statistics
Market Cap	US$2.88b
Earnings (TTM)	US$204.82m
Revenue (TTM)	US$489.04m

14.0x

P/E Ratio

5.9x

P/S Ratio

Is ABCL overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
ABCL income statement (TTM)
Revenue	US$489.04m
Cost of Revenue	US$146.22m
Gross Profit	US$342.82m
Other Expenses	US$138.01m
Earnings	US$204.82m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	0.72
Gross Margin	70.10%
Net Profit Margin	41.88%
Debt/Equity Ratio	0%

How did ABCL perform over the long term?

See historical performance and comparison

We’ve recently updated our valuation analysis.

Valuation

Is ABCL undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for ABCL?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for ABCL. This is calculated by dividing ABCL's market cap by their current preferred multiple.
What is ABCL's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	US$2.88b

ABCL key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	4.4x
Enterprise Value/EBITDA	7.4x
PEG Ratio	-0.3x

Price to Earnings Ratio vs Peers

How does ABCL's PE Ratio compare to its peers?

ABCL PE Ratio vs Peers

The above table shows the PE ratio for ABCL vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	28.6x
STVN Stevanato Group	32x	11.0%	US$4.2b
MEDP Medpace Holdings	24.1x	13.4%	US$4.8b
SHC Sotera Health	42x	25.9%	US$5.7b
MRVI Maravai LifeSciences Holdings	16.2x	2.3%	US$7.1b
ABCL AbCellera Biologics	14x	-52.3%	US$2.9b

Forward PE

Price-To-Earnings vs Peers: ABCL is good value based on its Price-To-Earnings Ratio (14x) compared to the peer average (28.6x).

Price to Earnings Ratio vs Industry

How does ABCL's PE Ratio compare vs other companies in the US Life Sciences Industry?

Price-To-Earnings vs Industry: ABCL is good value based on its Price-To-Earnings Ratio (14x) compared to the US Life Sciences industry average (30.3x)

Price to Earnings Ratio vs Fair Ratio

What is ABCL's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

ABCL PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	14x
Fair PE Ratio	11.8x

Price-To-Earnings vs Fair Ratio: ABCL is expensive based on its Price-To-Earnings Ratio (14x) compared to the estimated Fair Price-To-Earnings Ratio (11.8x).

Share Price vs Fair Value

What is the Fair Price of ABCL when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: Insufficient data to calculate ABCL's fair value for valuation analysis.

Significantly Below Fair Value: Insufficient data to calculate ABCL's fair value for valuation analysis.

Price to Earnings Growth Ratio

PEG Ratio: ABCL's earnings are forecast to decline next year, so we can't calculate its PEG ratio.

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Future Growth

How is AbCellera Biologics forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

-52.3%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: ABCL's earnings are forecast to decline over the next 3 years (-52.3% per year).

Earnings vs Market: ABCL's earnings are forecast to decline over the next 3 years (-52.3% per year).

High Growth Earnings: ABCL's earnings are forecast to decline over the next 3 years.

Revenue vs Market: ABCL's revenue is expected to decline over the next 3 years (-38.9% per year).

High Growth Revenue: ABCL's revenue is forecast to decline over the next 3 years (-38.9% per year).

Earnings per Share Growth Forecasts

Future Return on Equity

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

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Past Performance

How has AbCellera Biologics performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

88.3%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: ABCL has high quality earnings.

Growing Profit Margin: ABCL's current net profit margins (41.9%) are lower than last year (47.1%).

Past Earnings Growth Analysis

Earnings Trend: ABCL's earnings have grown significantly by 88.3% per year over the past 5 years.

Accelerating Growth: ABCL's earnings growth over the past year (0.8%) is below its 5-year average (88.3% per year).

Earnings vs Industry: ABCL earnings growth over the past year (0.8%) underperformed the Life Sciences industry 21%.

Return on Equity

High ROE: ABCL's Return on Equity (17%) is considered low.

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Financial Health

How is AbCellera Biologics's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: ABCL's short term assets ($1.2B) exceed its short term liabilities ($213.4M).

Long Term Liabilities: ABCL's short term assets ($1.2B) exceed its long term liabilities ($171.4M).

Debt to Equity History and Analysis

Debt Level: ABCL is debt free.

Reducing Debt: ABCL had no debt 5 years ago.

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

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

Balance Sheet

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Dividend

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

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

Dividend Yield vs Market

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

High Dividend: Unable to evaluate ABCL's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.

Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if ABCL's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if ABCL's dividend payments have been increasing.

Earnings Payout to Shareholders

Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as ABCL has not reported any payouts.

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Management

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

2.8yrs

Average management tenure

CEO

Carl Hansen (46 yo)

9.58yrs

Tenure

US$9,116,252

Compensation

Dr. Carl L. G. Hansen, Ph.D. is a Co-Founder of AbCellera Biologics Inc. and has been its Chief Executive Officer and Director since November 2012 and serves as its Chairperson. Dr. Hansen serves as a Memb...

CEO Compensation Analysis

Compensation vs Market: Carl's total compensation ($USD9.12M) is above average for companies of similar size in the US market ($USD6.90M).

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

Leadership Team

Experienced Management: ABCL's management team is considered experienced (2.8 years average tenure).

Board Members

Experienced Board: ABCL's board of directors are not considered experienced ( 2.2 years average tenure), which suggests a new board.

Ownership

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

Insider Trading Volume

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

Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 5%.

Data	Last Updated (UTC time)
Company Analysis	2022/06/29 00:00
End of Day Share Price	2022/06/29 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31