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PROC

Procaps Group NasdaqGM:PROC Stock Report

Last Price

US$6.78

Market Cap

US$764.6m

7D

-5.2%

1Y

-32.7%

Updated

05 Oct, 2022

Data

Company Financials +
PROC fundamental analysis
Snowflake Score
Valuation5/6
Future Growth4/6
Past Performance0/6
Financial Health2/6
Dividends0/6

PROC Stock Overview

Procaps Group S.A. develops, produces, and markets pharmaceutical solutions worldwide.

Procaps Group Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Procaps Group
Historical stock prices
Current Share PriceUS$6.78
52 Week HighUS$11.98
52 Week LowUS$5.86
Beta-0.021
1 Month Change-7.29%
3 Month Change-22.28%
1 Year Change-32.70%
3 Year Changen/a
5 Year Changen/a
Change since IPO-31.13%

Recent News & Updates

Aug 30

Procaps Group reports Q2 results

Procaps Group press release (NASDAQ:PROC): Q2 Adj. EBITDA of $28M Revenue of $112M (+12.0% Y/Y) misses by $0.2M.

Shareholder Returns

PROCUS PharmaceuticalsUS Market
7D-5.2%0.02%1.9%
1Y-32.7%6.2%-18.8%

Return vs Industry: PROC underperformed the US Pharmaceuticals industry which returned 5.8% over the past year.

Return vs Market: PROC underperformed the US Market which returned -18.2% over the past year.

Price Volatility

Is PROC's price volatile compared to industry and market?
PROC volatility
PROC Average Weekly Movement6.6%
Pharmaceuticals Industry Average Movement11.3%
Market Average Movement7.0%
10% most volatile stocks in US Market15.5%
10% least volatile stocks in US Market2.9%

Stable Share Price: PROC is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: PROC's weekly volatility (7%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19774,993Ruben Minskihttps://www.procapsgroup.com

Procaps Group S.A. develops, produces, and markets pharmaceutical solutions worldwide. The company formulates, manufactures, and markets branded prescription drugs in various therapeutic areas, including feminine care products, pain relief, skin care, digestive health, growth and development, cardiology, vision care, central nervous system, and respiratory. It also provides drugs for hospital use, such as antibiotic, blood clot, personal protective equipment, immunosuppressant, oncology, and analgesics products.

Procaps Group Fundamentals Summary

How do Procaps Group's earnings and revenue compare to its market cap?
PROC fundamental statistics
Market CapUS$764.60m
Earnings (TTM)-US$73.37m
Revenue (TTM)US$431.42m

1.8x

P/S Ratio

-10.4x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
PROC income statement (TTM)
RevenueUS$431.42m
Cost of RevenueUS$173.75m
Gross ProfitUS$257.67m
Other ExpensesUS$331.04m
Earnings-US$73.37m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)-0.65
Gross Margin59.73%
Net Profit Margin-17.01%
Debt/Equity Ratio-748.0%

How did PROC perform over the long term?

See historical performance and comparison
We’ve recently updated our valuation analysis.

Valuation

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

Valuation Score

5/6

Valuation Score 5/6

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

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

Other financial metrics that can be useful for relative valuation.

PROC 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/Revenue2.3x
Enterprise Value/EBITDA12x
PEG Ration/a

Price to Sales Ratio vs Peers

How does PROC's PS Ratio compare to its peers?

PROC PS Ratio vs Peers
The above table shows the PS ratio for PROC vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPSEstimated GrowthMarket Cap
Peer Average8.4x
INVA Innoviva
2.1x-41.4%US$850.4m
SIGA SIGA Technologies
4.7x-7.9%US$689.3m
AERI Aerie Pharmaceuticals
3.6x19.5%US$746.8m
VRNA Verona Pharma
23.2x66.6%US$928.7m
PROC Procaps Group
1.8x12.1%US$764.6m

Price-To-Sales vs Peers: PROC is good value based on its Price-To-Sales Ratio (1.8x) compared to the peer average (8.4x).


Price to Earnings Ratio vs Industry

How does PROC's PE Ratio compare vs other companies in the US Pharmaceuticals Industry?

Price-To-Sales vs Industry: PROC is good value based on its Price-To-Sales Ratio (1.8x) compared to the US Pharmaceuticals industry average (3x)


Price to Sales Ratio vs Fair Ratio

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

PROC PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio1.8x
Fair PS Ratio3.5x

Price-To-Sales vs Fair Ratio: PROC is good value based on its Price-To-Sales Ratio (1.8x) compared to the estimated Fair Price-To-Sales Ratio (3.5x).


Share Price vs Fair Value

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

Below Fair Value: PROC ($6.78) is trading below our estimate of fair value ($9.43)

Significantly Below Fair Value: PROC is trading below fair value by more than 20%.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.


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Future Growth

How is Procaps Group forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

Future Growth Score

4/6

Future Growth Score 4/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


129.4%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PROC is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.9%).

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

High Growth Earnings: PROC is expected to become profitable in the next 3 years.

Revenue vs Market: PROC's revenue (12.1% per year) is forecast to grow faster than the US market (7.6% per year).

High Growth Revenue: PROC's revenue (12.1% 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 PROC's Return on Equity is forecast to be high in 3 years time


Discover growth companies

Past Performance

How has Procaps Group performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-737.2%

Last years earnings growth

Earnings and Revenue History

Quality Earnings: PROC is currently unprofitable.

Growing Profit Margin: PROC is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: Insufficient data to determine if PROC's year-on-year earnings growth rate was positive over the past 5 years.

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

Earnings vs Industry: PROC is unprofitable, making it difficult to compare its past year earnings growth to the Pharmaceuticals industry (5%).


Return on Equity

High ROE: PROC's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.


Discover strong past performing companies

Financial Health

How is Procaps Group's financial position?

Financial Health Score

2/6

Financial Health Score 2/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Stable Cash Runway

  • Forecast Cash Runway

Financial Position Analysis

Short Term Liabilities: PROC has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.

Long Term Liabilities: PROC has negative shareholder equity, which is a more serious situation than short term assets not covering long term liabilities.


Debt to Equity History and Analysis

Debt Level: PROC has negative shareholder equity, which is a more serious situation than a high debt level.

Reducing Debt: PROC's has negative shareholder equity, so we do not need to check if its debt has reduced over time.


Balance Sheet


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 PROC has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: PROC is unprofitable but has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by 79.8% per year.


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Dividend

What is Procaps Group 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

  • Cash Flow Coverage

Dividend Yield vs Market

Procaps Group Dividend Yield vs Market
How does Procaps Group dividend yield compare to the market?
SegmentDividend Yield
Company (Procaps Group)n/a
Market Bottom 25% (US)1.6%
Market Top 25% (US)4.5%
Industry Average (Pharmaceuticals)2.6%
Analyst forecast in 3 Years (Procaps Group)n/a

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

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

Growing Dividend: Insufficient data to determine if PROC'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 PROC has not reported any payouts.


Discover strong dividend paying companies

Management

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

3.8yrs

Average management tenure


CEO

Ruben Minski (70 yo)

no data

Tenure

Mr. Ruben Minski is Founded Procaps Group, S.A. in 1976 ant has been its Chief Executive Officer and serves as its Chairman. He received a Chemical Engineering degree from Northeastern University in Boston...


Leadership Team

Experienced Management: PROC's management team is considered experienced (3.8 years average tenure).


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.


Ownership Breakdown

What is the ownership structure of PROC?
Owner TypeNumber of SharesOwnership Percentage
Institutions2,090,9841.9%
VC/PE Firms9,492,4278.4%
General Public15,932,01014.1%
Private Companies17,960,14615.9%
Individual Insiders67,348,61659.7%

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Top 23 shareholders own 85.88% of the company
OwnershipNameSharesCurrent ValueChange %Portfolio %
27.78%
Ruben Minski
31,338,454$212.4m0%no data
15.92%
Jose Minski
17,960,146$121.7m0%no data
15.92%
Deseja Trust
17,960,146$121.7m0%no data
14.07%
Sam Toney
15,877,516$107.6m0%no data
8.41%
International Finance Corporation
9,492,427$64.3m0%5.32%
1.86%
Kyle Bransfield
2,097,500$14.2m0%no data
0.93%
Compass Group LLC
1,048,388$7.1m-23.29%0.55%
0.24%
Credicorp Capital Asset Management S.A. Administradora General De Fondos
274,407$1.9m10.18%1.22%
0.17%
D. E. Shaw & Co., L.P.
194,612$1.3m541.78%no data
0.16%
Itau USA Asset Management Inc.
177,974$1.2m0%0.07%
0.11%
Moneda S.A. Administradora General de Fondos
120,830$818.9k-12.49%0.07%
0.09%
Millennium Management LLC
101,430$687.4k15.89%no data
0.071%
Itau Unibanco S.A., Asset Management Arm
80,000$542.2k-55.05%0.01%
0.066%
Daniel Fink
75,000$508.3k0%no data
0.025%
Citadel Advisors LLC
28,187$191.0k0%no data
0.017%
Marshall Wace LLP
18,883$128.0k0%no data
0.017%
Geode Capital Management, LLC
18,661$126.5k0%no data
0.012%
United Maritime Capital LLC
14,000$94.9k0%0.84%
0.0078%
State Street Global Advisors, Inc.
8,753$59.3k0%no data
0.002%
Penserra Capital Management LLC
2,209$15.0k5.19%no data
0.0017%
Morgan Stanley, Investment Banking and Brokerage Investments
1,900$12.9k0%no data
0.00062%
FNY Investment Advisers, LLC
700$4.7k0%no data
0.00004%
UBS Asset Management
50$338.8-95.39%no data

Company Information

Procaps Group S.A.'s employee growth, exchange listings and data sources


Key Information

  • Name: Procaps Group S.A.
  • Ticker: PROC
  • Exchange: NasdaqGM
  • Founded: 1977
  • Industry: Pharmaceuticals
  • Sector: Pharmaceuticals & Biotech
  • Implied Market Cap: US$764.598m
  • Shares outstanding: 112.82m
  • Website: https://www.procapsgroup.com

Number of Employees


Location

  • Procaps Group S.A.
  • 9 Rue de Bitbourg
  • Luxembourg City
  • 1273
  • Luxembourg


Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PROCNasdaqGM (Nasdaq Global Market)YesOrdinary SharesUSUSDDec 2019
9X1DB (Deutsche Boerse AG)YesOrdinary SharesDEEURDec 2019

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/10/05 00:00
End of Day Share Price2022/10/05 00:00
Earnings2022/06/30
Annual Earnings2021/12/31


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.