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Stock In Focus – TAM Stock Screener – Emergent BioSolutions Inc (EBS)

Thursday, June 23, 2022 · Johnny Hopkins

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.

EBS Chart

EBS data by YCharts

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