Emergent Biosolutions (EBS) AI Stock Analysis

• Market Cap: $341.95M
• Dividend Yield: N/A
• Average Volume (3M): 1.28M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.70
• Revenue Growth: -18.56%
• EPS Growth: 76.88%
• Country: US
• Employees: 900
• Sector: Healthcare
• Sector Strength: 41
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): 0.71
• Shares Outstanding: 54,277,830
• 10 Day Avg. Volume: 1,027,300
• 30 Day Avg. Volume: 1,282,234
• PEG Ratio: -0.09
• Price to Book (P/B): 0.63
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 3.68
• Enterprise Value/Market Cap: 2.53
• Enterprise Value/Revenue: 0.20
• Enterprise Value/Gross Profit: 2.85
• Enterprise Value/Ebitda: -4.35
• 1Y Price Target: $13.50
• Price Target Upside: 113.27% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 61 Neutral
• Price Target: $7.00 ▲(10.58%Upside)

The overall stock score of 61 reflects a mixed outlook. The most significant factor is the financial performance, which shows challenges in revenue and profitability. The earnings call and corporate events provide some positive momentum with significant improvements and strategic initiatives. However, technical analysis and valuation indicate caution due to longer-term indicators and negative earnings.

Positive Factors

Financial Performance

The company recorded $68M in net income for the quarter, significantly ahead of our expectation for net income of only $14.9M.

Stock Valuation

The announcement of a share repurchase program reflects management's belief that the shares remain undervalued.

Strategic Partnerships

Emergent inked a collaboration with Rocketvax to develop next-generation products and broadened its naloxone portfolio.

Negative Factors

Competition

Risks include faster-than-anticipated NARCAN franchise erosion due to greater-than-anticipated levels of generic competition.

Market Performance

Emergent shares are down roughly 49% compared to a roughly 10% decline in the benchmark XBI index.

Emergent Biosolutions Business Overview & Revenue Model

Company Description

Emergent BioSolutions Inc., a life sciences company, focuses on the provision of preparedness and response solutions that address accidental, deliberate, and naturally occurring public health threats (PHTs) in the United States. The company's products address PHTs, which include chemical, biological, radiological, nuclear, and explosives; emerging infectious diseases; travel health; and emerging health crises and acute/emergency care. It offers BioThrax, an anthrax vaccine; ACAM2000, a smallpox vaccine; Botulism Antitoxin Heptavalent to treat botulinum disease; vaccinia immune globulin intravenous that addresses complications from smallpox vaccine; raxibacumab for the treatment and prophylaxis of inhalational anthrax; Anthrasil to for inhalational anthrax; reactive skin decontamination lotion kits; and Trobigard, a combination drug-device auto injector product candidate; and Trobigard, a combination drug-device auto injector product candidate. The company also provides NARCAN, a nasal spray for the emergency treatment of known or suspected opioid overdose; Vivotif, an oral vaccine for typhoid fever; and Vaxchora, a single-dose oral vaccine to treat cholera. In addition, it is developing AP003, a Naloxone multidose nasal spray; AP007, a sustained release Nalmefene injection for treatment of opioid use disorder; AV7909, an anthrax vaccine; CGRD-001, a pralidoxime chloride/atropine auto-injector; CHIKV VLP, a chikungunya virus VLP vaccine; COVID-HIG for the treatment of SARS-CoV2; EGRD-001, a diazepam auto-injector; SIAN, an antidote for the initial treatment of acute poisoning of cyanide; and UniFlu, a universal influenza vaccine. Further, the company provides contract development and manufacturing services comprising drug substance and product manufacturing, and packaging, as well as technology transfer, process, and analytical development services. The company was incorporated in 1998 and is headquartered in Gaithersburg, Maryland.

How the Company Makes Money

Emergent 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 faces challenges with declining revenue and profitability, as indicated by negative net income and shrinking margins. The balance sheet reflects moderate leverage but declining equity, while cash flow performance shows some recovery but remains volatile.

Income Statement

Emergent Biosolutions has experienced a decline in revenue from 2021 to TTM 2025, coupled with negative net income over the past few periods, indicating profitability issues. The gross profit margin for TTM 2025 is approximately 31.6%, showing a decrease compared to historical figures. The company also faces challenges with negative EBIT and EBITDA margins, signaling operational inefficiencies.

Balance Sheet

The company's debt-to-equity ratio for TTM 2025 stands at approximately 1.20, indicating a moderate level of leverage. While the equity ratio is around 38.8%, showing a reasonable balance between equity and assets, the declining stockholders' equity over the years raises concerns about financial stability. The negative ROE underscores ongoing profitability challenges.

Cash Flow

Emergent Biosolutions shows a positive trend in operating cash flow for TTM 2025, with an operating cash flow to net income ratio of approximately -0.84, reflecting cash flow generation despite losses. The free cash flow has improved compared to previous years, suggesting some recovery in cash management. However, the significant fluctuations in cash flow metrics highlight potential volatility.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
960.00M	1.01B	1.05B	1.12B	1.79B	1.56B
	Gross Profit
303.40M	305.20M	343.90M	427.20M	1.04B	1.03B
	EBIT
-54.20M	-108.70M	-726.40M	-166.00M	352.60M	433.80M
	EBITDA
106.30M	36.90M	-505.30M	-32.90M	458.20M	549.00M
	Net Income Common Stockholders
-131.60M	-190.60M	-760.50M	-223.80M	219.50M	305.80M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
99.50M	99.50M	111.70M	642.60M	576.10M	621.30M
	Total Assets
1.39B	1.39B	1.82B	3.17B	2.96B	2.88B
	Total Debt
663.70M	663.70M	860.20M	1.41B	841.00M	874.80M
	Net Debt
564.20M	564.20M	748.50M	763.20M	264.90M	253.50M
	Total Liabilities
906.90M	906.90M	1.17B	1.78B	1.34B	1.44B
	Stockholders Equity
482.80M	482.80M	649.30M	1.38B	1.62B	1.45B
Cash Flow		Free Cash Flow
94.40M	35.80M	-257.90M	-149.90M	96.10M	395.00M
	Operating Cash Flow
110.10M	58.70M	-206.30M	-34.10M	321.10M	536.00M
	Investing Cash Flow
195.50M	125.20M	212.30M	-381.30M	-225.00M	-151.00M
	Financing Cash Flow
-231.10M	-190.00M	-535.70M	481.20M	-141.00M	69.50M

Emergent Biosolutions Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 6.33
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EBS, the sentiment is Neutral. The current price of 6.33 is above the 20-day moving average (MA) of 6.19, above the 50-day MA of 5.40, and below the 200-day MA of 7.90, indicating a neutral trend. The MACD of 0.26 indicates Positive momentum. The RSI at 55.47 is Neutral, neither overbought nor oversold. The STOCH value of 30.35 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for EBS.

Emergent Biosolutions Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SIGA	81 Outperform	$434.36M	9.13	25.47%	10.13%	-23.37%	-39.03%
ANIP	67 Neutral	$1.34B	―	-5.19%	―	30.26%	-173.36%
EBS	61 Neutral	$341.95M	―	-21.63%	―	-18.56%	76.88%
Sector *	53 Neutral	$5.23B	3.23	-44.27%	2.82%	16.82%	0.11%
DVAX	48 Neutral	$1.18B	64.45	-10.45%	―	24.76%	-783.38%
LFCR	46 Neutral	$254.36M	―	-83.58%	―	6.88%	-17.54%
AQST	45 Neutral	$279.11M	―	77.48%	―	5.29%	-37.31%

Emergent Biosolutions Corporate Events

Emergent Biosolutions Settlement Receives Preliminary Approval

On May 9, 2025, the United States District Court for the District of Maryland granted preliminary approval for a proposed settlement of shareholder derivative actions against Emergent BioSolutions Inc. The settlement, which includes no admission of fault by the defendants, addresses allegations of fiduciary breaches related to the company’s Bayview facility and its role in manufacturing COVID-19 vaccines. The court has scheduled a hearing for August 6, 2025, to determine final approval. The allegations claimed that Emergent’s management failed to ensure regulatory compliance, leading to significant financial losses and legal challenges.

The most recent analyst rating on (EBS) stock is a Buy with a $16.00 price target. To see the full list of analyst forecasts on Emergent Biosolutions stock, see the EBS Stock Forecast page.

Emergent BioSolutions Reports 656% Net Income Surge

Emergent BioSolutions reported a significant financial turnaround in the first quarter of 2025, with a net income increase of 656% despite a 26% drop in total revenues compared to the previous year. The company attributes this improvement to its strategic plan aimed at stabilizing operations and enhancing profitability, as evidenced by increased gross and EBITDA margins. Recent business developments include securing contracts with the U.S. Department of Defense and other international orders, as well as strategic partnerships and asset sales, all of which are expected to support future growth and stability.

Emergent BioSolutions Stockholders Elect Directors at Meeting

On April 30, 2025, Emergent BioSolutions Inc. held its annual meeting of stockholders, where approximately 67% of the company’s shares were represented. During the meeting, stockholders elected three Class I directors, ratified the appointment of Ernst & Young LLP as the company’s independent auditor for 2025, and approved the 2024 compensation for the company’s named executive officers.

Emergent BioSolutions Sells Baltimore Facility to Syngene

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.