BB Biotech (BION) AI Stock Analysis

• Market Cap: CHF1.68B
• Dividend Yield: 5.89%
• Average Volume (3M): 75.18K
• Price to Earnings (P/E): 20.8
• Beta (1Y): 1.09
• Revenue Growth: 1786.54%
• EPS Growth: -238.40%
• Country: CH
• Employees: 10
• Sector: Healthcare
• Sector Strength: 42
• Industry: Biotechnology
• EPS (TTM): -7.76
• Shares Outstanding: 55,400,000
• 10 Day Avg. Volume: 95,893
• 30 Day Avg. Volume: 75,176
• PEG Ratio: -0.02
• Price to Book (P/B): 1.08
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 17.07
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: CHF66.00
• Price Target Upside: 116.04% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 60 Neutral
• Price Target: ―

BB Biotech has shown a strong recovery with high profitability and a stable balance sheet. However, historical volatility in financial performance and bearish technical indicators present risks. The stock's attractive valuation and high dividend yield provide a buffer, but caution is advised until technical signals improve or financial performance stabilizes further.

BB Biotech Business Overview & Revenue Model

Company Description

BB Biotech AG is an equity fund launched and managed by Bellevue Asset Management AG. The fund invests in the public equity markets across the globe. It primarily invests in stocks of companies that are engaged in medications and diagnostics based on modern biotechnology. The fund employs a fundamental analysis to create its portfolio. BB Biotech AG was formed on November 09, 1993 and is domiciled in Switzerland.

How the Company Makes Money

BB Biotech makes money through its investment activities in the biotechnology sector. The company generates revenue primarily from the appreciation of its investments in biotechnology companies. This includes capital gains realized from selling shares of companies within its portfolio at a profit. BB Biotech also earns income from dividends distributed by the companies in which it holds equity. The company's success is closely tied to the performance of its portfolio companies, which can be influenced by factors such as successful clinical trial results, regulatory approvals, and market demand for new therapies. Additionally, BB Biotech may engage in strategic partnerships or collaborations to enhance its investment opportunities and returns.

BB Biotech Financial Statement Overview

Summary

BB Biotech demonstrates a strong recovery in profitability with a net profit margin of 68% and low debt, indicating financial stability. However, historical volatility in revenue and cash flow is a risk that needs to be managed to ensure continued growth.

Income Statement

The income statement shows a significant recovery in the latest period with a total revenue of $111.63 million and net income of $75.9 million, reflecting a positive turnaround from negative figures in prior years. Gross profit margin is 100%, and net profit margin is approximately 68%, both indicating strong profitability. However, the company has experienced volatility in revenue growth, with a dramatic shift from negative to positive, which may pose risks if not stabilized.

Balance Sheet

The balance sheet is strong, with high stockholders' equity of $2.29 billion and low total debt of $117.5 million, resulting in a low debt-to-equity ratio of approximately 0.05, indicating financial stability. The equity ratio stands at approximately 95%, highlighting a robust capital structure with substantial equity backing. While liabilities are minimal, the trajectory of total assets declining requires monitoring.

Cash Flow

The cash flow statement reflects healthy operating cash flow of $304.56 million, showing improvement and a solid free cash flow. The operating cash flow to net income ratio is strong, indicating efficient cash generation. However, historical fluctuations in cash flow performance suggest potential volatility, which could impact future liquidity and investment capacity.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	111.63M	-199.57M	-351.23M	-396.22M	699.23M
Gross Profit	111.63M	-199.57M	-351.23M	-396.22M	699.23M
EBITDA	80.24M	-201.26M	-357.29M	-402.79M	691.25M
Net Income	75.90M	-206.61M	-357.81M	-404.81M	691.17M
Balance Sheet
Total Assets	2.41B	2.64B	3.05B	3.64B	3.96B
Cash, Cash Equivalents and Short-Term Investments	2.41B	2.64B	1.95M	2.83M	6.82M
Total Debt	117.50M	304.90M	363.00M	355.00M	63.00M
Total Liabilities	121.11M	313.94M	367.25M	355.00M	63.00M
Stockholders Equity	2.29B	2.32B	2.69B	3.28B	3.89B
Cash Flow
Free Cash Flow	304.56M	218.28M	-357.81M	-94.79M	262.45M
Operating Cash Flow	304.56M	218.28M	-357.81M	-94.79M	262.45M
Investing Cash Flow	0.00	0.00	588.94M	0.00	0.00
Financing Cash Flow	-305.20M	-220.21M	-233.27M	91.77M	-284.48M

BB Biotech Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 30.55
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CH:BION, the sentiment is Positive. The current price of 30.55 is above the 20-day moving average (MA) of 30.25, above the 50-day MA of 29.35, and below the 200-day MA of 33.24, indicating a neutral trend. The MACD of 0.16 indicates Negative momentum. The RSI at 57.53 is Neutral, neither overbought nor oversold. The STOCH value of 73.87 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CH:BION.

BB Biotech Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BSLN	75 Outperform	CHF579.56M	7.43		―	32.30%	631.04%
BION	60 Neutral	CHF1.68B	20.77	-19.26%	5.89%	1786.54%	-238.40%
IDIA	53 Neutral	CHF454.10M	―		―	11.61%	-356.20%
Sector *	51 Neutral	$7.41B	0.36	-61.88%	2.33%	17.09%	1.64%
CSBTF		$1.27B	―	-6.44%	―	―	―
NWPHF		$168.81M	11.40		―	―	―
SPHDF		$190.73M	2.70	-93.91%	―	―	―

BB Biotech Corporate Events

BB Biotech AG Reports Q1 2025 Loss Amidst Market Challenges

BB Biotech AG has released its interim report for the first quarter of 2025, revealing a loss of CHF 241 million, a significant shift from the CHF 260 million profit recorded in the same period last year. This loss reflects the stock price development of the companies within its investment portfolio, indicating potential challenges in the biotech investment landscape.

BB Biotech Refines Portfolio Amid Market Challenges in Q1 2025

BB Biotech faced a challenging first quarter in 2025 due to market volatility and political uncertainties, resulting in a net loss of CHF 241 million. Despite these challenges, the company sharpened its portfolio focus by investing in high-quality biotech firms and reducing its number of holdings, while achieving regulatory milestones with several portfolio companies. The company remains committed to its long-term strategy of investing in groundbreaking therapies, with a focus on companies that have strong pricing power and lean cost structures.

BB Biotech AG Approves Dividend and Re-elects Board Members

BB Biotech AG’s General Meeting has approved all proposals from the Board of Directors, including a dividend of CHF 1.80 per share, to be paid on March 25, 2025. The re-election of the board members signifies stability and continuity in the company’s leadership, which is expected to positively impact its strategic investment decisions and maintain its strong position in the biotech investment sector.