NasdaqCM:CDMO

Stock Analysis Report

Executive Summary

Avid Bioservices, Inc., a contract development and manufacturing organization, provides process development and Current Good Manufacturing Practices (CGMP) commercial manufacturing services focused on biopharmaceutical products derived from mammalian cell culture for biotechnology and pharmaceutical companies.

Rewards

Trading at 8.2% below its fair value

Earnings are forecast to grow 92.14% per year

Earnings have grown 33.6% per year over the past 5 years

Risk Analysis

Shareholders have been diluted in the past year



Snowflake Analysis

Flawless balance sheet with exceptional growth potential.

Share Price & News

How has Avid Bioservices's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

2.3%

CDMO

-2.1%

US Biotechs

-1.5%

US Market


1 Year Return

77.3%

CDMO

10.1%

US Biotechs

21.7%

US Market

Return vs Industry: CDMO exceeded the US Biotechs industry which returned 10.9% over the past year.

Return vs Market: CDMO exceeded the US Market which returned 24.7% over the past year.


Shareholder returns

CDMOIndustryMarket
7 Day2.3%-2.1%-1.5%
30 Day-17.5%-2.2%1.4%
90 Day21.3%11.5%7.9%
1 Year77.3%77.3%11.1%10.1%24.3%21.7%
3 Year217.0%217.0%22.7%18.7%49.5%39.9%
5 Year-24.6%-24.6%2.8%-2.2%72.6%53.5%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

8.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CDMO ($6.66) is trading below our estimate of fair value ($7.25)

Significantly Below Fair Value: CDMO is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

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

PE vs Market: CDMO 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 CDMO's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: CDMO is overvalued based on its PB Ratio (7.6x) compared to the US Biotechs industry average (3.2x).


Next Steps

Future Growth

How is Avid Bioservices forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

92.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CDMO is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.7%).

Earnings vs Market: CDMO is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: CDMO's is expected to become profitable in the next 3 years.

Revenue vs Market: CDMO's revenue (24.6% per year) is forecast to grow faster than the US market (7.5% per year).

High Growth Revenue: CDMO's revenue (24.6% 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 (33.4%)


Next Steps

Past Performance

How has Avid Bioservices performed over the past 5 years?

33.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CDMO is currently unprofitable.

Growing Profit Margin: CDMO is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: CDMO is unprofitable, but has reduced losses over the past 5 years at a rate of 33.6% per year.

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

Earnings vs Industry: CDMO is unprofitable, making it difficult to compare its past year earnings growth to the Biotechs industry (103.3%).


Return on Equity

High ROE: CDMO has a negative Return on Equity (-9.15%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Avid Bioservices's financial position?


Financial Position Analysis

Short Term Liabilities: CDMO's short term assets ($56.2M) exceed its short term liabilities ($33.7M).

Long Term Liabilities: CDMO's short term assets ($56.2M) exceed its long term liabilities ($22.4M).


Debt to Equity History and Analysis

Debt Level: CDMO is debt free.

Reducing Debt: CDMO has not had any debt for past 5 years.


Balance Sheet

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

Debt Coverage by Assets: CDMO's debt is covered by short term assets (assets are 1.582649351551E+16x 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: Whilst unprofitable CDMO has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: CDMO is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 49.3% per year.


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage2.1%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

High Dividend: Unable to evaluate CDMO'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 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

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

1.5yrs

Average management tenure


CEO

Rick Hancock (60yo)

0.7yrs

Tenure

US$146,801

Compensation

Mr. Richard B. Hancock, also known as Rick, serves as the Chairman of the Board and Executive Director of Argonaut Manufacturing Services, Inc. Mr. Hancock serves as Interim President and Chief Executive O ...


Management Age and Tenure

1.5yrs

Average Tenure

54yo

Average Age

Experienced Management: CDMO's management team is not considered experienced ( 1.5 years average tenure), which suggests a new team.


Board Age and Tenure

2.2yrs

Average Tenure

59yo

Average Age

Experienced Board: CDMO's board of directors are not considered experienced ( 2.2 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$50,91012 Sep 19
Richard Hancock
EntityIndividual
Role
Chief Executive Officer
Interim President
Shares10,000
Max PriceUS$5.10
BuyUS$50,50012 Sep 19
Joseph Carleone
EntityIndividual
Role
Chairman of the Board
Independent Chairman
Shares10,000
Max PriceUS$5.10

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 6.9%.


Management Team

  • Rich Richieri (54yo)

    Chief Operations Officer

    • Tenure: 0.3yrs
    • Compensation: US$101.17k
  • Harold Dvorak

    Medical & Scientific Advisor

    • dan Hart (46yo)

      Chief Financial Officer

      • Tenure: 1.5yrs
      • Compensation: US$878.63k
    • Rick Hancock (60yo)

      Interim President

      • Tenure: 0.7yrs
      • Compensation: US$146.80k
    • Mark Ziebell (55yo)

      VP, General Counsel & Corporate Secretary

      • Tenure: 7.6yrs
      • Compensation: US$485.05k
    • Shelley Fussey (53yo)

      Vice President of Intellectual Property

      • Tenure: 14.9yrs
      • Compensation: US$428.00k
    • Alan Schroit

      Medical & Scientific Advisor

      • Tracy Kinjerski

        Vice President of Business Operations

        • Lorna Larson

          Senior Director of Human Resources

          • Tim Compton

            Chief Commercial Officer


            Board Members

            • Pat Walsh (58yo)

              Independent Director

              • Tenure: 2.3yrs
              • Compensation: US$144.72k
            • Joe Carleone (73yo)

              Independent Chairman

              • Compensation: US$170.14k
            • Mark Bamforth (56yo)

              Independent Director

              • Tenure: 2.3yrs
              • Compensation: US$146.80k
            • Kitty Mackey (64yo)

              Independent Director

              • Tenure: 0.5yrs
            • Gregory Sargen (53yo)

              Independent Director

              • Tenure: 2.2yrs
              • Compensation: US$161.80k
            • Rick Hancock (60yo)

              Interim President

              • Tenure: 0.7yrs
              • Compensation: US$146.80k

            Company Information

            Avid Bioservices, Inc.'s company bio, 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$374.649m
            • Shares outstanding: 56.34m
            • Website: https://avidbio.com

            Number of Employees


            Location

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

            Listings

            TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
            CDMONasdaqCM (Nasdaq Capital Market)YesCommon StockUSUSDAug 1988
            A2JBKVDB (Deutsche Boerse AG)YesCommon StockDEEURAug 1988
            CDMO.PNasdaqCM (Nasdaq Capital Market)10.50% CON PFD EUSUSDFeb 2014

            Biography

            Avid Bioservices, Inc., a contract development and manufacturing organization, provides process development and Current Good Manufacturing Practices (CGMP) commercial manufacturing services focused on biopharmaceutical products derived from mammalian cell culture for biotechnology and pharmaceutical companies. The company produces monoclonal antibodies and recombinant proteins in batch, fed-batch, and perfusion modes; and offers services, including cGMP clinical and commercial product manufacturing, purification, bulk packaging, stability testing, and regulatory submission and support. It also provides various process development services, such as cell line development and optimization, cell culture and feed optimization, analytical methods development, and product characterization. The company was formerly known as Peregrine Pharmaceuticals, Inc. and changed its name to Avid Bioservices, Inc. in January 2018. Avid Bioservices, Inc. was founded in 1981 and is headquartered in Tustin, California. 


            Company Analysis and Financial Data Status

            All financial data provided by Standard & Poor's Capital IQ.
            DataLast Updated (UTC time)
            Company Analysis2020/01/28 23:47
            End of Day Share Price2020/01/28 00:00
            Earnings2019/10/31
            Annual Earnings2019/04/30


            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.