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

Fundamentals

Mediocre balance sheet and overvalued.


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


Market Performance


7 Day Return

-0.3%

CBM

0.4%

US Life Sciences

0.4%

US Market


1 Year Return

5.5%

CBM

13.5%

US Life Sciences

6.9%

US Market

Return vs Industry: CBM underperformed the US Life Sciences industry which returned 13.5% over the past year.

Return vs Market: CBM underperformed the US Market which returned 6.9% over the past year.


Shareholder returns

CBMIndustryMarket
7 Day-0.3%0.4%0.4%
30 Day-0.2%-4.7%-1.1%
90 Day32.3%-3.9%-0.5%
1 Year5.5%5.5%13.7%13.5%9.3%6.9%
3 Year44.3%44.3%78.4%76.9%45.8%36.4%
5 Year229.3%229.3%111.6%102.1%62.9%45.1%

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?

36.78x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: CBM ($59.51) is trading above our estimate of fair value ($49.27)

Significantly Undervalued: 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 (36.8x) compared to the Life Sciences industry average (33x).

PE vs Market: CBM is poor value based on its PE Ratio (36.8x) compared to the US market (17.6x).


Price to Earnings Growth Ratio

Low PEG Ratio: CBM is poor value based on its PEG Ratio (2.6x)


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 (4.5x).


Next Steps

Future Growth

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

13.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CBM's forecast earnings growth (13.9% per year) is above the savings rate (2.7%).

Earnings vs Market: CBM's earnings (13.9% per year) are forecast to grow slower than the US market (14.6% per year).

High Growth Earnings: CBM's earnings are forecast to grow, but not significantly.

Revenue vs Market: CBM's revenue (6.6% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: CBM's revenue (6.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: CBM's Return on Equity is forecast to be low in 3 years time (6.1%).


Next Steps

Past Performance

How has Cambrex performed over the past 5 years?

14.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: CBM's earnings have grown by 14.6% 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 (-55.7%) over the past year, making it difficult to compare to the Life Sciences industry average (45%).


Return on Equity

High ROE: CBM's Return on Equity (8%) is considered low.


Return on Assets

ROA vs Industry: CBM's Return on Assets is below or equal to the Life Sciences industry average last year.


Return on Capital Employed

ROCE Improving: CBM's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Cambrex's financial position?


Financial Position Analysis

Short Term Liabilities: CBM's short term assets ($400.8M) exceeds its short term liabilities ($164.2M)

Long Term Liabilities: CBM's short term assets (400.8M) do not cover its long term liabilities (675.0M)


Debt to Equity History and Analysis

Debt Level: CBM's debt to equity ratio (75.6%) is considered high

Reducing Debt: CBM's debt to equity ratio has increased from 31.6% to 75.6% over the past 5 years.

Debt Coverage: CBM's debt is well covered by operating cash flow (22.6%).

Interest Coverage: CBM's interest payments on its debt are well covered by EBIT (6.2x coverage).


Balance Sheet

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

Debt Coverage by Assets: CBM's debt is not covered by short term assets (assets are 0.8x debt).


Next Steps

Dividend

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


Dividend Yield vs Market

company0%marketbottom25%1.4%markettop25%3.7%industryaverage0.4%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

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.

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

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

1.1yrs

Average management tenure


CEO

Steve Klosk (62yo)

11.4yrs

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 ($USD4.01M) is about average for companies of similar size in the US market ($USD4.00M).

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


Management Age and Tenure

1.1yrs

Average Tenure

53yo

Average Age

Experienced Management: CBM's management team is not considered experienced ( 1.1 years average tenure), which suggests a new team.


Board Age and Tenure

4.7yrs

Average Tenure

68yo

Average Age

Experienced Board: CBM's board of directors are considered experienced (4.7 years average tenure).


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

SellUS$217,28519 Feb 19
Gregory Sargen
EntityIndividual
Role
Chief Financial Officer
Executive VP of Corporate Development & Strategy and CFO
Shares5,802
Max PriceUS$37.45
SellUS$254,51419 Feb 19
Shawn Cavanagh
EntityIndividual
Role
Chief Operating Officer
Executive VP & COO
Shares6,769
Max PriceUS$37.60

Ownership Breakdown


Management Team

  • Steve Klosk (62yo)

    President

    • Tenure: 11.4yrs
    • Compensation: US$4.01m
  • Gregory Sargen (53yo)

    Executive VP of Corporate Development & Strategy and CFO

    • Tenure: 1.1yrs
    • Compensation: US$2.91m
  • Shawn Cavanagh (53yo)

    Executive VP & COO

    • Tenure: 8.8yrs
    • Compensation: US$3.29m
  • Bruno Biscaro

    President of Drug Products

    • Tenure: 0.3yrs
  • James Farrell (52yo)

    VP & Corporate Controller

    • Tenure: 14.1yrs
  • Alex Maw

    Director of Marketing & Communications

    • Tenure: 0yrs
  • Samantha Hanley (41yo)

    Senior VP

    • Tenure: 4.7yrs
    • Compensation: US$1.34m
  • Joe Nettleton

    President of Drug Substance

    • Tenure: 0.3yrs
  • Simon Edwards

    President of CDMO Sales & Marketing

    • Tenure: 0.3yrs
  • Dottie Donnelly-Brienza

    Senior VP & Chief Human Resources Officer

    • Tenure: 0.3yrs

Board Members

  • Claes Glassell (68yo)

    Director

    • Tenure: 3.6yrs
    • Compensation: US$196.00k
  • Steve Klosk (62yo)

    President

    • Tenure: 11.4yrs
    • Compensation: US$4.01m
  • Kathryn Harrigan (68yo)

    Director

    • Tenure: 25.8yrs
    • Compensation: US$196.00k
  • Ilan Kaufthal (71yo)

    Director

    • Tenure: 36.8yrs
    • Compensation: US$212.00k
  • Bernhard Hampl (69yo)

    Director

    • Tenure: 3yrs
    • Compensation: US$185.00k
  • Shlomo Yanai (67yo)

    Non-Executive Chairman

    • Tenure: 5.5yrs
    • Compensation: US$360.00k
  • Greg Brown (65yo)

    Director

    • Tenure: 2yrs
    • Compensation: US$39.41k
  • Lou Grabowsky (68yo)

    Director

    • Tenure: 3.9yrs
    • Compensation: US$196.00k

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$2.007b
  • 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 pharma ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/19 23:32
End of Day Share Price2019/10/18 00:00
Earnings2019/06/30
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.