Emergent Biosolutions (EBS) AI Stock Analysis

• Market Cap: $652.30M
• Dividend Yield: N/A
• Average Volume (3M): 838.09K
• Price to Earnings (P/E): 9.6
• Beta (1Y): 3.15
• Revenue Growth: -29.91%
• EPS Growth: N/A
• Country: US
• Employees: 900
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): 1.06
• Shares Outstanding: 52,519,962
• 10 Day Avg. Volume: 858,728
• 30 Day Avg. Volume: 838,089
• PEG Ratio: 0.04
• Price to Book (P/B): 1.05
• Price to Sales (P/S): 0.49
• P/FCF Ratio: 14.15
• Enterprise Value/Market Cap: 1.41
• Enterprise Value/Revenue: 1.17
• Enterprise Value/Gross Profit: 2.02
• Enterprise Value/Ebitda: 4.26
• 1Y Price Target: $15.00
• Price Target Upside: 20.77% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): 1.27
• Revenue Forecast (FY): $799.07M

• Rating: 71 Outperform
• Price Target: $13.00 ▲(4.67% Upside)

Emergent BioSolutions is showing strong technical momentum and positive earnings call results, with increased financial guidance and strategic growth initiatives. However, financial performance challenges, particularly in cash flow and leverage, temper the overall score.

Positive Factors

FDA Approval

The FDA approval enhances Emergent's manufacturing capabilities, supporting long-term growth and strengthening its competitive position in biodefense.

International Revenue Growth

Increased international sales diversify revenue streams and reduce dependency on domestic markets, supporting sustainable growth.

Naloxone Business Growth

Strong growth in the naloxone business indicates robust market demand and reinforces Emergent's leadership in addressing public health needs.

Negative Factors

Revenue Decline

The decline in revenue highlights challenges in maintaining growth, potentially impacting long-term financial performance if not addressed.

High Leverage

High leverage can strain financial flexibility and increase risk, particularly if earnings do not continue to improve, affecting long-term stability.

Cash Flow Challenges

Weak cash flow generation limits the company's ability to invest in growth opportunities or reduce debt, posing a risk to future financial health.

Emergent Biosolutions Business Overview & Revenue Model

Company Description

Emergent BioSolutions (EBS) is a global life sciences company focused on providing solutions for public health threats. Operating primarily in the biopharmaceutical sector, EBS specializes in developing and manufacturing vaccines, therapeutics, and other products for infectious diseases, including biodefense. The company is known for its core products, such as vaccines for anthrax and smallpox, as well as its work in emerging infectious diseases and specialty pharmaceuticals.

How the Company Makes Money

Emergent BioSolutions generates revenue through multiple streams, primarily by selling its vaccines and therapeutics to government agencies, including the U.S. Department of Health and Human Services and the Department of Defense, as well as international governments. The company's revenue model includes contract manufacturing services for third-party clients, which provides additional income through production capabilities. Significant partnerships, particularly with governmental organizations and large pharmaceutical companies, enhance its earnings by securing multi-year contracts and funding for research and development. Moreover, the company also benefits from grants and funding related to biodefense initiatives and public health preparedness programs.

Emergent Biosolutions Financial Statement Overview

Summary

Emergent Biosolutions shows signs of recovery in profitability with improved margins, but faces challenges in revenue growth and cash flow generation. High leverage remains a concern, although improved return on equity is positive. Focus on enhancing cash flow and reducing debt is crucial.

Income Statement

Emergent Biosolutions has shown a decline in revenue over the TTM period, with a negative revenue growth rate of -7.36%. However, the company has improved its gross profit margin to 57.8% in the TTM, indicating strong cost management. The net profit margin has also turned positive at 9.62%, a significant improvement from previous losses, suggesting a recovery in profitability. Despite these improvements, the EBIT and EBITDA margins remain moderate at 15.13% and 27.37%, respectively.

Balance Sheet

The company's debt-to-equity ratio is relatively high at 1.14, indicating significant leverage, which could pose risks if earnings do not continue to improve. However, the return on equity has improved to 14.09% in the TTM, reflecting better utilization of equity to generate profits. The equity ratio stands at 39.86%, suggesting a balanced capital structure but with room for improvement in reducing debt levels.

Cash Flow

Emergent Biosolutions has faced challenges in cash flow generation, with a drastic decline in free cash flow growth at -99.10% in the TTM. The operating cash flow to net income ratio is low at 0.095, indicating weak cash conversion from earnings. Additionally, the free cash flow to net income ratio is 0.108, suggesting limited free cash flow relative to net income, which could constrain future investments or debt repayments.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	788.90M	1.04B	1.05B	1.12B	1.77B	1.58B
Gross Profit	456.00M	375.40M	360.00M	473.00M	793.20M	863.10M
EBITDA	215.90M	53.40M	-47.00M	15.70M	504.20M	609.20M
Net Income	75.90M	-190.60M	-760.50M	-211.60M	219.50M	305.80M
Balance Sheet
Total Assets	1.46B	1.39B	1.82B	3.17B	2.96B	2.88B
Cash, Cash Equivalents and Short-Term Investments	245.50M	99.50M	111.70M	642.60M	576.30M	621.30M
Total Debt	663.10M	676.10M	860.20M	1.43B	871.00M	923.00M
Total Liabilities	878.50M	906.90M	1.17B	1.78B	1.35B	1.44B
Stockholders Equity	582.50M	482.80M	649.30M	1.39B	1.61B	1.45B
Cash Flow
Free Cash Flow	1.40M	35.80M	-257.90M	-149.90M	96.10M	395.00M
Operating Cash Flow	13.00M	58.70M	-206.30M	-34.10M	321.10M	536.90M
Investing Cash Flow	101.90M	125.20M	212.30M	-381.30M	-225.00M	-151.90M
Financing Cash Flow	-22.20M	-190.00M	-535.70M	481.20M	-141.00M	69.50M

Emergent Biosolutions Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 12.42
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EBS, the sentiment is Positive. The current price of 12.42 is above the 20-day moving average (MA) of 11.54, above the 50-day MA of 10.64, and above the 200-day MA of 7.73, indicating a bullish trend. The MACD of 0.51 indicates Negative momentum. The RSI at 64.02 is Neutral, neither overbought nor oversold. The STOCH value of 74.85 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for EBS.

Emergent Biosolutions Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AMPH	77 Outperform	$1.22B	11.79	14.84%	―	-0.03%	-27.66%
SIGA	73 Outperform	$449.00M	6.02	39.94%	―	-0.85%	-13.50%
EBS	71 Outperform	$652.30M	9.60	13.92%	―	-29.91%	―
DVAX	70 Outperform	$1.28B	-28.44	-7.14%	―	26.73%	-310.39%
PCRX	69 Neutral	$1.13B	59.07	2.90%	―	3.14%	―
ANIP	64 Neutral	$1.86B	50.81	7.83%	―	48.87%	―
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Emergent Biosolutions Corporate Events

Emergent BioSolutions Gains FDA Approval for Winnipeg Facility

On December 12, 2025, Emergent BioSolutions announced that the U.S. FDA approved its Winnipeg, Canada facility for the manufacturing of raxibacumab, a monoclonal antibody for treating inhalational anthrax. This approval is part of Emergent’s multi-year transformation strategy to consolidate its manufacturing operations, supporting long-term growth and enhancing its manufacturing network. The Winnipeg facility, with over 45 years of experience, will play a crucial role in the company’s strategic manufacturing partnerships and operational focus.

Emergent BioSolutions Announces Board Member Retirement

Emergent BioSolutions announced the retirement of Dr. Louis W. Sullivan from its Board of Directors, effective November 14, 2025, after 19 years of service. Dr. Sullivan, who has been a key advisor and leader, contributed significantly to the company’s mission and strategic decisions, including its ongoing multi-year transformation.

Emergent BioSolutions Raises Full-Year Revenue Guidance

On October 29, 2025, Emergent BioSolutions reported its financial results for the third quarter of 2025, with total revenues of $231.1 million, surpassing its guidance by $21 million. Despite a decrease in revenues compared to the previous year, the company experienced strong growth in its naloxone franchise, driven by NARCAN® Nasal Spray, and secured multiple contract modifications for its medical countermeasures products. The company raised its full-year revenue and profitability guidance, reflecting confidence in its product demand and strategic positioning in the market.