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Emergent Biosolutions (EBS)
NYSE:EBS
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Emergent Biosolutions
(NYSE:EBS)
50Neutral
Positive Factors
Revenue Growth
Medical countermeasures products slated to continue to drive revenue growth going forward.
Strategic Alliances
Rocketvax strategic relationship marks expansion of vaccine pipeline and access to novel technological approaches.
Strategic Initiatives
The analyst reiterates a Buy rating for Emergent BioSolutions, reflecting confidence in the company's strategic initiatives and potential growth.
Negative Factors
Competition
Despite competition, the naloxone franchise remains a durable revenue stream, with robust over-the-counter sales expected.
Financial Performance
Emergent BioSolutions reported a moderate miss in top-line revenue, recording $1.04B compared to expectations of ~$1.12B.
Emergent Biosolutions (EBS) vs. S&P 500 (SPY)
Market Cap
$253.21M
Dividend YieldN/A
Average Volume (3M)1.36M
Price to Earnings (P/E)―
Beta (1Y)3.87
Revenue Growth-0.62%
EPS Growth75.57%
CountryUS
Employees900
SectorHealthcare
Sector Strength71
IndustryDrug Manufacturers - Specialty & Generic
Share Statistics
EPS (TTM)-3.72
Shares Outstanding54,337,025
10 Day Avg. Volume1,052,862
30 Day Avg. Volume1,356,174
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.30
Price to Cash Flow (P/CF)-1.00
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$15.00Price Target Upside221.89% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
Emergent Biosolutions Business Overview & Revenue Model
Company DescriptionEmergent BioSolutions Inc. (EBS) is a life sciences company that focuses on providing solutions for public health threats. The company operates in the biotechnology and pharmaceuticals sectors, specializing in the development, manufacturing, and distribution of medical countermeasures against chemical, biological, radiological, nuclear (CBRN) threats, emerging infectious diseases, and opioid overdose. Its core products include vaccines, therapeutics, and devices for biodefense and public health preparedness.
How the Company Makes MoneyEmergent BioSolutions makes money through the sale of its medical countermeasures and public health products to governments, non-governmental organizations, and commercial entities. Key revenue streams include contracts with the U.S. government for the provision of biodefense products such as anthrax vaccines and treatments for chemical exposure. The company also generates revenue from the development and sale of products addressing emerging infectious diseases, such as vaccines for COVID-19. Partnerships with other pharmaceutical and biotechnology companies for product development and commercialization contribute significantly to its earnings. Additionally, Emergent BioSolutions may receive funding from government agencies and organizations to support research and development activities.
Emergent Biosolutions Financial Statement Overview
Summary
Emergent Biosolutions is facing financial challenges, with declining revenue and negative profitability metrics. However, the absence of debt and improvement in cash flow are positives, although they need to be sustained alongside revenue growth.Income Statement
Emergent Biosolutions has faced challenges in recent years, as evidenced by negative EBIT and net income margins. The company's revenue has been declining since 2021, and the net profit margin has been negative for the past three years. This indicates substantial operational and profitability issues. The Gross Profit Margin for the most recent year is unusually high due to the same value for total revenue and gross profit, suggesting data inconsistency or reporting issues.45
Neutral
Balance Sheet
The balance sheet shows a strong equity position relative to liabilities, with a debt-to-equity ratio of 0. This indicates no debt burden, which is positive. However, the Return on Equity is negative due to the negative net income, reflecting poor profitability. The Equity Ratio has decreased over the years, showing a reduced proportion of equity financing.55
Neutral
Cash Flow
While the company has managed to generate positive operating cash flow in the latest year, the free cash flow has only recently turned positive. The Operating Cash Flow to Net Income Ratio is strong due to negative net income, indicating an ability to generate cash despite accounting losses. However, historical free cash flow was negative, showing past liquidity issues.60
Neutral
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 1.01B | 1.05B | 1.12B | 1.79B | 1.56B | Gross Profit |
| 1.01B | 343.90M | 427.20M | 1.04B | 1.03B | EBIT |
| -108.70M | -726.40M | -166.00M | 352.60M | 433.80M | EBITDA |
| 36.90M | -505.30M | -32.90M | 458.20M | 549.00M | Net Income Common Stockholders |
| -190.60M | -760.50M | -223.80M | 219.50M | 305.80M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 99.50M | 111.70M | 642.60M | 576.10M | 621.30M | Total Assets |
| 1.39B | 1.82B | 3.17B | 2.96B | 2.88B | Total Debt |
| 663.70M | 860.20M | 1.41B | 841.00M | 874.80M | Net Debt |
| 564.20M | 748.50M | 763.20M | 264.90M | 253.50M | Total Liabilities |
| 906.90M | 1.17B | 1.78B | 1.34B | 1.44B | Stockholders Equity |
| 482.80M | 649.30M | 1.38B | 1.62B | 1.45B |
| Cash Flow | Free Cash Flow | |||
| 35.80M | -257.90M | -149.90M | 96.10M | 395.00M | Operating Cash Flow |
| 58.70M | -206.30M | -34.10M | 321.10M | 536.00M | Investing Cash Flow |
| 125.20M | 212.30M | -381.30M | -225.00M | -151.00M | Financing Cash Flow |
| -190.00M | -535.70M | 481.20M | -141.00M | 69.50M |
Emergent Biosolutions Technical Analysis
Negative
4.66
Price Trends
8.05
Negative
8.69
Negative
8.72
Negative
Market Momentum
-0.77
Negative
24.15
Positive
12.55
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EBS, the sentiment is Negative. The current price of 4.66 is below the 20-day moving average (MA) of 5.70, below the 50-day MA of 8.05, and below the 200-day MA of 8.72, indicating a bearish trend. The MACD of -0.77 indicates Negative momentum. The RSI at 24.15 is Positive, neither overbought nor oversold. The STOCH value of 12.55 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for EBS.
Emergent Biosolutions Risk Analysis
Emergent Biosolutions disclosed 57 risk factors in its most recent earnings report. Emergent Biosolutions reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Emergent Biosolutions Peers Comparison
Overall Rating
UnderperformOutperform
Sector (49)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $394.52B | 28.28 | 20.06% | 3.03% | -4.51% | 3.69% | |
68 Neutral | $142.98B | 17.89 | 9.05% | 6.70% | 8.77% | 272.80% | |
54 Neutral | $17.31B | 136.07 | -9.24% | 2.73% | -14.00% | -184.82% | |
50 Neutral | $253.21M | ― | -33.67% | ― | -0.62% | 75.57% | |
49 Neutral | $6.85B | 0.81 | -52.91% | 2.50% | 19.94% | 1.20% | |
48 Neutral | $12.01B | ― | -28.77% | ― | -52.75% | 25.00% | |
39 Underperform | $1.13B | ― | 30.06% | ― | -30.65% | 77.62% |
* Healthcare Sector Average
Performance Comparison
EBS
Emergent Biosolutions
4.66
2.36
102.61%
BAX
Baxter International
33.75
-8.67
-20.44%
JNJ
Johnson & Johnson
163.71
10.83
7.08%
NVAX
Novavax
7.00
2.35
50.54%
PFE
Pfizer
25.21
-0.87
-3.34%
MRNA
Moderna
31.12
-74.48
-70.53%
Emergent Biosolutions Earnings Call Summary
Earnings Call Date: Mar 3, 2025 | % Change Since: -31.77% | Next Earnings Date: Apr 24, 2025
Earnings Call Sentiment Neutral
The earnings call presented significant achievements in financial stability and operational efficiency, highlighted by debt reduction and cost savings. However, revenue challenges, including a decline in NARCAN sales and conservative future guidance, indicate ongoing challenges. The sentiment is balanced with notable improvements offset by revenue pressures.Highlights
Debt Reduction and Financial Stability
Emergent BioSolutions Inc. reduced net debt by $156 million (21%) and improved the balance sheet, extending debt maturity to 2029.
Improved Profitability and Cost Savings
Operating expenditures were reduced by $130 million, with a total of $250 million in savings over two years. Adjusted EBITDA improved to $183 million from a negative $22 million in 2023.
NARCAN Distribution and Market Leadership
Distributed 11 million two-dose cartons of NARCAN across the US and Canada, maintaining a 75% market share in the growing naloxone nasal spray market.
Strong Contract Awards and BioDefense Performance
Secured $550 million in MCM contract awards and maintained strong performance in biodefense product sales including anthrax and smallpox vaccines.
Lowlights
Revenue Decline
Fourth-quarter total revenues were $195 million, down from the prior year due to lower NARCAN sales and anthrax sales timing.
Conservative 2025 Guidance
2025 revenue guidance is set at $750 million to $850 million, reflecting a decrease due to transitions in governmental procurement and divestitures.
NARCAN Pricing Pressure
NARCAN experienced pricing pressures, with prices lower compared to 2023, impacting revenue despite maintaining market share.
Company Guidance
During the fourth quarter and full year 2024 earnings call, Emergent BioSolutions provided guidance for 2025, highlighting a conservative revenue forecast due to administrative transitions, with total revenue projected between $750 million and $850 million. They expect adjusted EBITDA to be in the range of $150 million to $200 million, indicating a strong margin improvement despite a lower top-line revenue. Key metrics from 2024 included total revenues of $1.04 billion and adjusted EBITDA of $183 million, with significant improvements in gross margin and a reduction in operating expenses by $130 million. The company also announced a strategic focus on their medical countermeasure (MCM) products and NARCAN nasal spray, with 2024 sales of 11 million two-dose cartons distributed across the US and Canada. They reported a net debt reduction of $156 million, ending the year with $200 million in liquidity. For 2025, they anticipate continued operational cash flow growth and strategic capital deployment to drive long-term profitable growth.Emergent Biosolutions Corporate Events
M&A TransactionsBusiness Operations and Strategy
Emergent BioSolutions Sells Baltimore Facility to Syngene
Neutral
Mar 10, 2025
On March 10, 2025, Emergent BioSolutions announced the sale of its Baltimore-Bayview drug substance manufacturing facility to Syngene International for $36.5 million. The agreement allows Emergent to retain rights to manufacturing services at the facility for future growth and pandemic response. This transaction is part of Emergent’s multi-year transformation plan to streamline operations and enhance its manufacturing network, which includes facilities in Lansing, Michigan, and Winnipeg, Canada. The sale is expected to close in the first quarter of 2025, following customary closing conditions.
M&A TransactionsBusiness Operations and StrategyFinancial Disclosures
Emergent BioSolutions Reports 2024 Financial Results
Positive
Mar 3, 2025
Emergent BioSolutions reported its financial results for the fourth quarter and full year 2024, highlighting a total revenue of $1.04 billion for the year. Despite a net loss of $31.3 million in Q4, this marked a 37% improvement from the previous year. The company achieved a significant increase in adjusted EBITDA, reaching $183.1 million for the year compared to a loss in 2023, and is guiding for an adjusted EBITDA between $150 million and $200 million in 2025. Strategic actions, including debt repayment and asset divestitures, have strengthened its financial position. The company also received substantial contract awards and FDA approval for expanding the use of ACAM2000®.
Business Operations and Strategy
Emergent BioSolutions Outlines Growth at J.P. Morgan Conference
Positive
Jan 15, 2025
On January 15, 2025, Joe C. Papa, the CEO of Emergent BioSolutions, presented at the 43rd Annual J.P. Morgan Healthcare Conference. The presentation highlighted the company’s focus on future growth and operational improvements, emphasizing its capability to continue leading in public health through strategic transformations aimed at long-term profitability. The announcement reflects the company’s ongoing commitment to stabilizing its financial position, enhancing shareholder value, and adapting to a competitive market landscape.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.