company background image
CDMO

Avid BioservicesNasdaqCM:CDMO Stock Report

Market Cap

US$1.6b

7D

-1.4%

1Y

243.9%

Updated

25 Oct, 2021

Data

Company Financials +
CDMO fundamental analysis
Snowflake Score
Valuation0/6
Future Growth6/6
Past Performance3/6
Financial Health3/6
Dividends0/6

CDMO Overview

Avid Bioservices, Inc., a contract development and manufacturing organization, provides process development and current good manufacturing practices (CGMP) clinical and commercial manufacturing services focused on biopharmaceutical drug substances derived from mammalian cell culture.

Avid Bioservices Competitors

WuXi Biologics (Cayman)

SEHK:2269

HK$499.4b

Lonza Group

SWX:LONN

CHF55.7b

Samsung BiologicsLtd

KOSE:A207940

₩58.0t

Evotec

XTRA:EVT

€7.4b

Price History & Performance

Summary of all time highs, changes and price drops for Avid Bioservices
Historical stock prices
Current Share PriceUS$26.00
52 Week HighUS$6.99
52 Week LowUS$28.36
Beta2.24
1 Month Change17.81%
3 Month Change4.21%
1 Year Change243.92%
3 Year Change400.00%
5 Year Change1,002.49%
Change since IPO32.65%

Recent News & Updates

Oct 14
Is Avid Bioservices (NASDAQ:CDMO) A Risky Investment?

Is Avid Bioservices (NASDAQ:CDMO) A Risky Investment?

The external fund manager backed by Berkshire Hathaway's Charlie Munger, Li Lu, makes no bones about it when he says...

Jul 06
Statutory Profit Doesn't Reflect How Good Avid Bioservices' (NASDAQ:CDMO) Earnings Are

Statutory Profit Doesn't Reflect How Good Avid Bioservices' (NASDAQ:CDMO) Earnings Are

When companies post strong earnings, the stock generally performs well, just like Avid Bioservices, Inc.'s...

Shareholder Returns

CDMOUS BiotechsUS Market
7D-1.4%0.5%1.7%
1Y243.9%16.1%30.3%

Return vs Industry: CDMO exceeded the US Biotechs industry which returned 16.1% over the past year.

Return vs Market: CDMO exceeded the US Market which returned 30.3% over the past year.

Price Volatility

Is CDMO's price volatile compared to industry and market?
CDMO volatility
CDMO Beta2.24
Industry Beta0.98
Market Beta1

Stable Share Price: CDMO is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 9% a week.

Volatility Over Time: CDMO's weekly volatility (9%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1981255Nick Greenhttps://www.avidbio.com

Avid Bioservices, Inc., a contract development and manufacturing organization, provides process development and current good manufacturing practices (CGMP) clinical and commercial manufacturing services focused on biopharmaceutical drug substances derived from mammalian cell culture. It produces monoclonal antibodies and recombinant proteins; and offers services, including CGMP clinical and commercial drug substance manufacturing, bulk packaging, release and stability testing, and regulatory submission and support. The company also provides various process development services, such as upstream and downstream development and optimization, analytical methods development, testing, and characterization.

Avid Bioservices Fundamentals Summary

How do Avid Bioservices's earnings and revenue compare to its market cap?
CDMO fundamental statistics
Market CapUS$1.59b
Earnings (TTM)US$6.33m
Revenue (TTM)US$101.23m

251.8x

P/E Ratio

15.8x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
CDMO income statement (TTM)
RevenueUS$101.23m
Cost of RevenueUS$69.08m
Gross ProfitUS$32.15m
ExpensesUS$25.82m
EarningsUS$6.33m

Last Reported Earnings

Jul 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.10
Gross Margin31.76%
Net Profit Margin6.26%
Debt/Equity Ratio311.0%

How did CDMO perform over the long term?

See historical performance and comparison

Valuation

Is Avid Bioservices undervalued compared to its fair value and its price relative to the market?

251.82x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

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

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


Price To Earnings Ratio

PE vs Industry: CDMO is poor value based on its PE Ratio (251.8x) compared to the US Biotechs industry average (24x).

PE vs Market: CDMO is poor value based on its PE Ratio (251.8x) compared to the US market (18.2x).


Price to Earnings Growth Ratio

PEG Ratio: CDMO is poor value based on its PEG Ratio (4x)


Price to Book Ratio

PB vs Industry: CDMO is overvalued based on its PB Ratio (35.7x) compared to the US Biotechs industry average (2.9x).


Future Growth

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

63.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CDMO's forecast earnings growth (63.6% per year) is above the savings rate (2%).

Earnings vs Market: CDMO's earnings (63.6% per year) are forecast to grow faster than the US market (14.7% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: CDMO's revenue (26.2% per year) is forecast to grow faster than the US market (9.9% per year).

High Growth Revenue: CDMO's revenue (26.2% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CDMO's Return on Equity is forecast to be high in 3 years time (32.6%)


Past Performance

How has Avid Bioservices performed over the past 5 years?

37.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CDMO has high quality earnings.

Growing Profit Margin: CDMO became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: CDMO has become profitable over the past 5 years, growing earnings by 37.5% per year.

Accelerating Growth: CDMO has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: CDMO has become profitable in the last year, making it difficult to compare its past year earnings growth to the Biotechs industry (4.9%).


Return on Equity

High ROE: Whilst CDMO's Return on Equity (28.65%) is high, this metric is skewed due to their high level of debt.


Financial Health

How is Avid Bioservices's financial position?


Financial Position Analysis

Short Term Liabilities: CDMO's short term assets ($200.8M) exceed its short term liabilities ($63.2M).

Long Term Liabilities: CDMO's short term assets ($200.8M) exceed its long term liabilities ($162.6M).


Debt to Equity History and Analysis

Debt Level: CDMO's debt to equity ratio (311%) is considered high.

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

Debt Coverage: CDMO's debt is not well covered by operating cash flow (19.1%).

Interest Coverage: CDMO's interest payments on its debt are well covered by EBIT (8.7x coverage).


Balance Sheet


Dividend

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


Dividend Yield vs Market

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

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

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


Next Steps

Management

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

3.3yrs

Average management tenure


CEO

Nick Green (56 yo)

1.25yrs

Tenure

US$2,981,675

Compensation

Mr. Nicholas Stewart Green, also known as Nick, B.Sc., MBA, has been the President, Chief Executive Officer and Director at Avid Bioservices, Inc. since July 30, 2020. He served as the Chief Executive Offi...


CEO Compensation Analysis

Compensation vs Market: Nick's total compensation ($USD2.98M) is about average for companies of similar size in the US market ($USD3.49M).

Compensation vs Earnings: Insufficient data to compare Nick's compensation with company performance.


Leadership Team

Experienced Management: CDMO's management team is considered experienced (3.3 years average tenure).


Board Members

Experienced Board: CDMO's board of directors are not considered experienced ( 2.3 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: Insufficient data to determine if 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 8.4%.


Top Shareholders

Company Information

Avid Bioservices, Inc.'s employee growth, exchange listings and data sources


Key Information

  • Name: Avid Bioservices, Inc.
  • Ticker: CDMO
  • Exchange: NasdaqCM
  • Founded: 1981
  • Industry: Biotechnology
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: US$1.595b
  • Shares outstanding: 61.34m
  • Website: https://www.avidbio.com

Number of Employees


Location

  • Avid Bioservices, Inc.
  • 2642 Michelle Drive
  • Suite 200
  • Tustin
  • California
  • 92780
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/25 23:09
End of Day Share Price2021/10/25 00:00
Earnings2021/07/31
Annual Earnings2021/04/30


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.