As part of our ongoing series here at The Acquirer’s Multiple, we provide this feature article titled ‘Stock in Focus‘ where we focus on one of the stocks from our Stock Screeners.
One of the cheapest stocks in our Stock Screeners is:
Emergent BioSolutions Inc (EBS)
Emergent BioSolutions offers public health products to government and healthcare providers. The company has four main units: vaccines, which produces specialty vaccines for public health threats; devices, such as nasal sprays, skin lotions, and injections; therapeutics, which includes antibody-based treatments; and contract development and manufacturing, which brings treatments to market through collaboration with the pharmaceutical and biotechnology industries and the United States government. Most revenue comes from U.S. government purchases of vaccine, device, and therapeutic products.
A quick look at the share price history (below) over the past twelve months shows that the price is down 54%. Here’s why the company is undervalued.
Summary
Market Cap: $1.44 Billion
Enterprise Value: $1.86 Billion
Operating Earnings
Operating Earnings: $308 Million
Acquirer’s Multiple
Acquirer’s Multiple: 6.06
Free Cash Flow (TTM)
Free Cash Flow: $77.6 Million
FCF/EV Yield
FCF/EV Yield: 5.4%
Shareholder Yield:
Shareholder Yield: 12.31
Other Indicators
Piotroski F-Score: 4
Altman Z-Score: 2.82
ROA (5 Year Avge): 11.07
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