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.

Risks

  • Cambrex has significant price volatility in the past 3 months.

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

-1.1%

NYSE:CBM

-2.0%

US Life Sciences

-1.6%

US Market


1 Year Return

-8.1%

NYSE:CBM

5.2%

US Life Sciences

-3.0%

US Market

CBM underperformed the Life Sciences industry which returned 5.2% over the past year.

CBM underperformed the Market in United States of America which returned -3% over the past year.


Share holder returns

CBMIndustryMarket
7 Day-1.1%-2.0%-1.6%
30 Day33.5%-6.9%-5.8%
90 Day42.2%-0.9%0.2%
1 Year-8.1%-8.1%5.4%5.2%-0.8%-3.0%
3 Year34.6%34.6%67.5%66.2%38.0%29.1%
5 Year170.3%170.3%104.5%94.8%50.8%34.1%

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 based on future cash flows and its price relative to the stock market?

36.62x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Cambrex's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Cambrex's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

Cambrex is overvalued based on earnings compared to the US Life Sciences industry average.

Cambrex is overvalued based on earnings compared to the United States of America market.


Price Based on Expected Growth

Cambrex is poor value based on expected growth next year.


Price Based on Value of Assets

Cambrex is good value based on assets compared to the US Life Sciences industry average.


Next Steps

Future Growth

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

13.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Cambrex's revenue is expected to grow by 6.5% yearly, however this is not considered high growth (20% yearly).

Cambrex's earnings are expected to grow by 13.5% yearly, however this is not considered high growth (20% yearly).

Cambrex's revenue growth is positive but not above the United States of America market average.

Cambrex's earnings growth is positive but not above the United States of America market average.

Cambrex's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Cambrex is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


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

Cambrex's year on year earnings growth rate has been positive over the past 5 years, however the most recent earnings are below average.

Cambrex's 1-year earnings growth is negative, it can't be compared to the 5-year average.

Cambrex's 1-year earnings growth is negative, it can't be compared to the US Life Sciences industry average.


Return on Equity

Cambrex has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Cambrex used its assets less efficiently than the US Life Sciences industry average last year based on Return on Assets.


Return on Capital Employed

Cambrex's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Cambrex's financial position?


Financial Position Analysis

Cambrex is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Cambrex's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Cambrex's level of debt (75.6%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (31.6% vs 75.6% today).

Debt is well covered by operating cash flow (22.6%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 6.2x coverage).


Balance Sheet

High level of physical assets or inventory.

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 and Payments Analysis

Unable to evaluate Cambrex's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate Cambrex's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as Cambrex has not reported any payouts.

Unable to verify if Cambrex's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as Cambrex has not reported any payouts.


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

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

0.9yrs

Average management tenure


CEO

Steve Klosk (62yo)

11.3yrs

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

Steve's remuneration is about average for companies of similar size in United States of America.

Steve's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

0.9yrs

Average Tenure

53yo

Average Age

The average tenure for the Cambrex management team is less than 2 years, this suggests a new team.


Board Age and Tenure

4.5yrs

Average Tenure

68yo

Average Age

The tenure for the Cambrex board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


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: 11.3yrs
    • Compensation: US$4.01m
  • Gregory Sargen (53yo)

    Executive VP of Corporate Development & Strategy and CFO

    • Tenure: 0.9yrs
    • Compensation: US$2.91m
  • Shawn Cavanagh (53yo)

    Executive VP & COO

    • Tenure: 8.6yrs
    • Compensation: US$3.29m
  • Bruno Biscaro

    President of Drug Products

    • Tenure: 0.2yrs
  • James Farrell (52yo)

    VP & Corporate Controller

    • Tenure: 13.9yrs
  • Alex Maw

    Director of Marketing & Communications

    • Tenure: 0.0yrs
  • Samantha Hanley (41yo)

    Senior VP

    • Tenure: 4.5yrs
    • Compensation: US$1.34m
  • Joe Nettleton

    President of Drug Substance

    • Tenure: 0.2yrs
  • Simon Edwards

    President of CDMO Sales & Marketing

    • Tenure: 0.2yrs
  • Dottie Donnelly-Brienza

    Senior VP & Chief Human Resources Officer

    • Tenure: 0.2yrs

Board Members

  • Claes Glassell (68yo)

    Director

    • Tenure: 3.4yrs
    • Compensation: US$196.00k
  • Steve Klosk (62yo)

    President

    • Tenure: 11.3yrs
    • Compensation: US$4.01m
  • Kathryn Harrigan (68yo)

    Director

    • Tenure: 25.6yrs
    • Compensation: US$196.00k
  • Ilan Kaufthal (71yo)

    Director

    • Tenure: 36.6yrs
    • Compensation: US$212.00k
  • Bernhard Hampl (69yo)

    Director

    • Tenure: 2.8yrs
    • Compensation: US$185.00k
  • Shlomo Yanai (67yo)

    Non-Executive Chairman

    • Tenure: 5.3yrs
    • Compensation: US$360.00k
  • Greg Brown (65yo)

    Director

    • Tenure: 1.8yrs
    • Compensation: US$39.41k
  • Lou Grabowsky (68yo)

    Director

    • Tenure: 3.8yrs
    • 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$1.995b
  • Shares outstanding: 33.66m
  • 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 Analysis2019/08/24 23:33
End of Day Share Price2019/08/23 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.