NYSE:CBM

Stock Analysis Report

Executive Summary

Cambrex Corporation, a life sciences company, provides various products and services for the development and commercialization of new and generic therapeutics worldwide.


Snowflake Analysis

Moderate growth potential with mediocre balance sheet.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

0.03%

CBM

-1.7%

US Life Sciences

-2.6%

US Market


1 Year Return

32.5%

CBM

-7.3%

US Life Sciences

-13.3%

US Market

Return vs Industry: CBM exceeded the US Life Sciences industry which returned 29.7% over the past year.

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


Shareholder returns

CBMIndustryMarket
7 Day0.03%-1.7%-2.6%
30 Day0.3%-10.5%-15.2%
90 Day0.2%-17.3%-22.2%
1 Year32.5%32.5%-7.1%-7.3%-11.5%-13.3%
3 Year14.3%14.3%60.7%59.6%13.2%5.7%
5 Year153.6%153.6%83.1%80.6%31.8%17.2%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

56.28x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: CBM ($59.99) is trading above our estimate of fair value ($42.12)

Significantly Below Fair Value: CBM is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: CBM is poor value based on its PE Ratio (56.3x) compared to the Life Sciences industry average (37.4x).

PE vs Market: CBM is poor value based on its PE Ratio (56.3x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: CBM is poor value based on its PEG Ratio (2.4x)


Price to Book Ratio

PB vs Industry: CBM is good value based on its PB Ratio (3x) compared to the US Life Sciences industry average (5.3x).


Next Steps

Future Growth

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

23.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CBM's forecast earnings growth (23.6% per year) is above the savings rate (1.7%).

Earnings vs Market: CBM's earnings (23.6% per year) are forecast to grow faster than the US market (14.3% per year).

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

Revenue vs Market: CBM's revenue (4.8% per year) is forecast to grow slower than the US market (7.5% per year).

High Growth Revenue: CBM's revenue (4.8% 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 CBM's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Cambrex performed over the past 5 years?

8.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CBM has high quality earnings.

Growing Profit Margin: CBM's current net profit margins (5.8%) are lower than last year (22.8%).


Past Earnings Growth Analysis

Earnings Trend: CBM's earnings have grown by 8.7% per year over the past 5 years.

Accelerating Growth: CBM's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: CBM had negative earnings growth (-72.9%) over the past year, making it difficult to compare to the Life Sciences industry average (34.6%).


Return on Equity

High ROE: CBM's Return on Equity (5.3%) is considered low.


Next Steps

Financial Health

How is Cambrex's financial position?


Financial Position Analysis

Short Term Liabilities: CBM's short term assets ($405.9M) exceed its short term liabilities ($171.1M).

Long Term Liabilities: CBM's short term assets ($405.9M) do not cover its long term liabilities ($659.6M).


Debt to Equity History and Analysis

Debt Level: CBM's debt to equity ratio (74%) is considered high.

Reducing Debt: CBM's debt to equity ratio has increased from 26% to 74% over the past 5 years.

Debt Coverage: CBM's debt is well covered by operating cash flow (26.1%).

Interest Coverage: CBM's interest payments on its debt are well covered by EBIT (5.1x coverage).


Balance Sheet


Next Steps

Dividend

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


Dividend Yield vs Market

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

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

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


Current Payout to Shareholders

Dividend Coverage: CBM is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of CBM'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?

1.3yrs

Average management tenure


CEO

Steve Klosk (62yo)

11.58s

Tenure

US$4,006,117

Compensation

Mr. Steven M. Klosk, also known as Steve, has been the Chief Executive Officer and President at Cambrex Corporation and its subsidiary, Zenara Pharma Limited since May 14, 2008. Mr. Klosk has over 14 years ...


CEO Compensation Analysis

Compensation vs Market: Steve's total compensation ($USD4.01M) is about average for companies of similar size in the US market ($USD3.86M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Steven Klosk
President11.58yrsUS$4.01m0.31% $6.2m
Gregory Sargen
Executive VP of Corporate Development & Strategy and CFO1.25yrsUS$2.91m0.078% $1.6m
Shawn Cavanagh
Executive VP & COO8.92yrsUS$3.29m0.074% $1.5m
Samantha Hanley
Senior VP4.83yrsUS$1.34mno data
Alex Maw
Director of Marketing & Communicationsno datano datano data
Dorothy Donnelly-Brienza
Senior VP & Chief Human Resources Officer0.50yrno datano data
Bruno Biscaro
President of Drug Products0.50yrno datano data
Joe Nettleton
President of Drug Substance0.50yrno datano data
Simon Edwards
President of CDMO Sales & Marketing0.50yrno datano data
James Farrell
VP & Corporate Controller14.25yrsno datano data

1.3yrs

Average Tenure

53yo

Average Age

Experienced Management: CBM's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Steven Klosk
President11.58yrsUS$4.01m0.31% $6.2m
Claes Glassell
Independent Director3.75yrsUS$196.00k0.018% $369.6k
Kathryn Harrigan
Independent Director25.92yrsUS$196.00k0.18% $3.7m
Ilan Kaufthal
Independent Director36.92yrsUS$212.00k0.12% $2.4m
Bernhard Hampl
Independent Director3.17yrsUS$185.00k0.015% $305.5k
Shlomo Yanai
Non-Executive Chairman5.67yrsUS$360.00k0.046% $929.0k
Gregory Brown
Independent Director2.17yrsUS$39.41k0.012% $234.5k
Louis Grabowsky
Independent Director4.08yrsUS$196.00k0.014% $290.5k

4.9yrs

Average Tenure

68yo

Average Age

Experienced Board: CBM's board of directors are considered experienced (4.9 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.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

Cambrex Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Cambrex Corporation
  • Ticker: CBM
  • Exchange: NYSE
  • Founded: 1981
  • Industry: Life Sciences Tools and Services
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: US$2.023b
  • Shares outstanding: 33.72m
  • Website: https://www.cambrex.com

Number of Employees


Location

  • Cambrex Corporation
  • One Meadowlands Plaza
  • East Rutherford
  • New Jersey
  • 7073
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CBMNYSE (New York Stock Exchange)YesCommon StockUSUSDSep 1987
XBXDB (Deutsche Boerse AG)YesCommon StockDEEURSep 1987

Biography

Cambrex Corporation, a life sciences company, provides various products and services for the development and commercialization of new and generic therapeutics worldwide. Its products comprise active pharmaceutical ingredients and pharmaceutical intermediates that are used in the production of prescription and over-the-counter drug products, as well as finished dosage forms. The company serves generic drug companies; and companies that discover and commercialize small molecule human therapeutics. The company sells its products directly, as well as through independent agents. Cambrex Corporation was founded in 1981 and is headquartered in East Rutherford, New Jersey. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/08 23:33
End of Day Share Price2019/12/03 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.