NYSE:EBS

Stock Analysis Report

Executive Summary

Emergent BioSolutions Inc., a life sciences company, focuses on the provision of specialty products for civilian and military populations that address accidental, deliberate, and naturally occurring public health threats (PHTs).


Snowflake Analysis

Fair value with mediocre balance sheet.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: EBS's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-2.5%

EBS

4.2%

US Biotechs

5.3%

US Market


1 Year Return

6.9%

EBS

1.6%

US Biotechs

-10.7%

US Market

Return vs Industry: EBS exceeded the US Biotechs industry which returned 1.8% over the past year.

Return vs Market: EBS exceeded the US Market which returned -10.4% over the past year.


Shareholder returns

EBSIndustryMarket
7 Day-2.5%4.2%5.3%
30 Day-7.1%-3.9%-13.6%
90 Day1.0%-5.2%-19.8%
1 Year6.9%6.9%2.4%1.6%-8.9%-10.7%
3 Year91.7%91.7%14.2%11.3%15.5%8.0%
5 Year102.1%89.1%-4.1%-8.4%35.2%20.4%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: EBS ($54.5) is trading below our estimate of fair value ($140.96)

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


Price To Earnings Ratio

PE vs Industry: EBS is poor value based on its PE Ratio (51.5x) compared to the Biotechs industry average (16.2x).

PE vs Market: EBS is poor value based on its PE Ratio (51.5x) compared to the US market (13.1x).


Price to Earnings Growth Ratio

PEG Ratio: EBS is poor value based on its PEG Ratio (3.2x)


Price to Book Ratio

PB vs Industry: EBS is good value based on its PB Ratio (2.6x) compared to the US Biotechs industry average (2.6x).


Next Steps

Future Growth

How is Emergent BioSolutions forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

16.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: EBS's forecast earnings growth (16.3% per year) is above the savings rate (1.7%).

Earnings vs Market: EBS's earnings (16.3% per year) are forecast to grow faster than the US market (12.2% per year).

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

Revenue vs Market: EBS's revenue (4.6% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: EBS's revenue (4.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: EBS's Return on Equity is forecast to be low in 3 years time (12.7%).


Next Steps

Past Performance

How has Emergent BioSolutions performed over the past 5 years?

-10.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: EBS has a large one-off loss of $36.8M impacting its December 31 2019 financial results.

Growing Profit Margin: EBS's current net profit margins (4.9%) are lower than last year (8%).


Past Earnings Growth Analysis

Earnings Trend: EBS's earnings have declined by -10.2% per year over the past 5 years.

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

Earnings vs Industry: EBS had negative earnings growth (-13.1%) over the past year, making it difficult to compare to the Biotechs industry average (22%).


Return on Equity

High ROE: EBS's Return on Equity (5%) is considered low.


Next Steps

Financial Health

How is Emergent BioSolutions's financial position?


Financial Position Analysis

Short Term Liabilities: EBS's short term assets ($686.2M) exceed its short term liabilities ($216.3M).

Long Term Liabilities: EBS's short term assets ($686.2M) do not cover its long term liabilities ($1.0B).


Debt to Equity History and Analysis

Debt Level: EBS's debt to equity ratio (74.7%) is considered high.

Reducing Debt: EBS's debt to equity ratio has increased from 45.4% to 74.7% over the past 5 years.

Debt Coverage: EBS's debt is well covered by operating cash flow (23.1%).

Interest Coverage: EBS's interest payments on its debt are well covered by EBIT (3.9x coverage).


Balance Sheet

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

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


Next Steps

Dividend

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


Dividend Yield vs Market

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

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

Growing Dividend: Insufficient data to determine if EBS'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 EBS'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?

2.8yrs

Average management tenure


CEO

Bob Kramer (62yo)

0.83

Tenure

US$2,212,484

Compensation

Mr. Robert G. Kramer., also known as Bob, has been President at Emergent BioSolutions Inc. since March 26, 2018 and has been its Chief Executive Officer and Director since April 01, 2019. Mr. Kramer was Ch ...


CEO Compensation Analysis

Compensation vs Market: Bob's total compensation ($USD2.21M) is below average for companies of similar size in the US market ($USD5.48M).

Compensation vs Earnings: Bob's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Fuad El-Hibri
Founder & Executive Chairman of the Board15.67yrsUS$2.70m2.83% $80.1m
Robert Kramer
CEO, President & Director0.83yrUS$2.21m0.15% $4.3m
Richard Lindahl
Executive VP2yrsUS$1.69m0.0038% $108.5k
Atul Saran
Executive VP of Corporate Development2.83yrsUS$1.70m0.018% $522.3k
Adam Havey
Executive VP of Business Operationsno dataUS$1.66m0.027% $775.1k
Sean Kirk
Executive Vice President of Manufacturing & Technical Operations0.83yrno data0.0056% $159.8k
Sharon Solomon
Senior VP & Chief Information Officerno datano datano data
Robert Burrows
Vice President of Investor Relations13.67yrsno datano data
Laura Kennedy
Senior VP and Chief Ethics & Compliance Officer3.42yrsno datano data
Lynn Kieffer
Vice President of Corporate Communicationsno datano datano data

2.8yrs

Average Tenure

55yo

Average Age

Experienced Management: EBS's management team is considered experienced (2.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Fuad El-Hibri
Founder & Executive Chairman of the Board15.67yrsUS$2.70m2.83% $80.1m
Robert Kramer
CEO, President & Director0.83yrUS$2.21m0.15% $4.3m
Seamus Mulligan
Director1yrno data0.093% $2.6m
Louis Sullivan
Independent Director13.67yrsUS$346.50k0.094% $2.7m
George Joulwan
Independent Director6.67yrsUS$338.00k0.039% $1.1m
Ronald Richard
Lead Independent Directorno dataUS$382.50k0.0089% $253.1k
Jerome Hauer
Independent Director5.17yrsUS$346.50kno data
Zsolt Harsanyi
Independent Director15.58yrsUS$354.00k0.035% $987.6k
Sue Bailey
Independent Director12.67yrsUS$332.00k0.054% $1.5m
Kathryn Zoon
Independent Director3.25yrsUS$334.44k0.0090% $254.5k

6.7yrs

Average Tenure

68.5yo

Average Age

Experienced Board: EBS's board of directors are considered experienced (6.7 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: EBS insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 2.8%.


Top Shareholders

Company Information

Emergent BioSolutions Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Emergent BioSolutions Inc.
  • Ticker: EBS
  • Exchange: NYSE
  • Founded: 1998
  • Industry: Biotechnology
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: US$2.834b
  • Shares outstanding: 52.00m
  • Website: https://www.emergentbiosolutions.com

Number of Employees


Location

  • Emergent BioSolutions Inc.
  • 400 Professional Drive
  • Suite 400
  • Gaithersburg
  • Maryland
  • 20879
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
EBSNYSE (New York Stock Exchange)YesCommon StockUSUSDNov 2006
ER4DB (Deutsche Boerse AG)YesCommon StockDEEURNov 2006
0IGALSE (London Stock Exchange)YesCommon StockGBUSDNov 2006
ER4BRSE (Berne Stock Exchange)YesCommon StockCHCHFNov 2006

Biography

Emergent BioSolutions Inc., a life sciences company, focuses on the provision of specialty products for civilian and military populations that address accidental, deliberate, and naturally occurring public health threats (PHTs). Its products address PHTs, which include chemical, biological, radiological, nuclear, and explosives; emerging infectious diseases; travel health; and emerging health crises and acute/emergency care. The company offers BioThrax, an anthrax vaccine; ACAM2000, a smallpox vaccine; Vaxchora, a cholera vaccine; and Vivotif, a typhoid vaccine. It also provides NARCAN for the emergency treatment of known or suspected opioid overdose; Reactive Skin Decontamination Lotion Kit, a medical device to remove or neutralize chemical warfare agents from the skin; and Trobigard a combination drug-device auto injector product candidate. In addition, the company offers raxibacumab for the treatment and prophylaxis of inhalational anthrax; Anthrasil to treat inhalational anthrax; Botulism Antitoxin Heptavalent for treating botulinum disease; vaccinia immune globulin intravenous that addresses complications from smallpox vaccination; CHIKUNGUNYA, a chikungunya virus-like particle vaccine; and ADENOVIRUS 4/7. Further, it offers other discovery and preclinical product candidates addressing PHTs, including viral hemorrhagic fevers caused by Ebola, Marburg, Sudan, and Lassa viruses; diarrheal disease caused by Shigella; and heat-labile toxin producing enterotoxigenic Escherichia coli, etc. Additionally, the company offers FLU-IGIV to treat Influenza A infection; and ZIKV-IG, a prophylaxis for Zika infections, as well as contract development and manufacturing services to pharma and biotech industries, and government agencies/non-governmental organizations. Emergent BioSolutions Inc. has a development and manufacturing agreement with Novavax Inc. for coronavirus disease vaccine candidate. The company was founded in 1998 and is headquartered in Gaithersburg, Maryland. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/31 00:59
End of Day Share Price2020/03/30 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.