Biomarin Pharmaceutical Inc

BMRN

Pharmaceutical Preparations

Mkt Cap

$14.06B

PE

68.42

Debt

$1.594B

Cash

$747M

EV

$14.9B

FCF

$181.8M

Market Cap

$14.06B

P/E Ratio

68.42

Debt

$1.594B

Cash

$747M

EV

$14.9B

FCF

$181.8M

Charts data: {"Earnings":[{"time":"2014-12-30","value":-133969000},{"time":"2015-12-30","value":-171799000},{"time":"2016-12-30","value":-630210000},{"time":"2017-12-30","value":-117042000},{"time":"2018-12-30","value":-77211000},{"time":"2019-12-30","value":-23848000},{"time":"2020-12-30","value":859100000},{"time":"2021-12-30","value":-64080000},{"time":"2022-12-30","value":141561000},{"time":"2023-12-30","value":167645000}],"Sales":[{"time":"2014-12-30","value":751040000},{"time":"2015-12-30","value":889895000},{"time":"2016-12-30","value":1116854000},{"time":"2017-12-30","value":1313646000},{"time":"2018-12-30","value":1491212000},{"time":"2019-12-30","value":1704048000},{"time":"2020-12-30","value":1860455000},{"time":"2021-12-30","value":1846275000},{"time":"2022-12-30","value":2096039000},{"time":"2023-12-30","value":2419226000}],"Net Margins":[{"time":"2014-12-30","value":-0.1783779825308905},{"time":"2015-12-30","value":-0.19305536046387495},{"time":"2016-12-30","value":-0.5642725011505533},{"time":"2017-12-30","value":-0.08909706267898658},{"time":"2018-12-30","value":-0.051777346212342715},{"time":"2019-12-30","value":-0.013994910941475827},{"time":"2020-12-30","value":0.46176876086763724},{"time":"2021-12-30","value":-0.034707722305723686},{"time":"2022-12-30","value":0.06753738837874677},{"time":"2023-12-30","value":0.06929695696061468}],"Assets":[{"time":"2014-12-30","value":2490453000},{"time":"2015-12-30","value":3729368000},{"time":"2016-12-30","value":4023690000},{"time":"2017-12-30","value":4633125000},{"time":"2018-12-30","value":4427128000},{"time":"2019-12-30","value":4690039000},{"time":"2020-12-30","value":5848020000},{"time":"2021-12-30","value":6003325000},{"time":"2022-12-30","value":6375074000},{"time":"2023-12-30","value":6841603000}],"Stockholders Equity":[{"time":"2014-12-30","value":1527894000},{"time":"2015-12-30","value":2400847000},{"time":"2016-12-30","value":2766275000},{"time":"2017-12-30","value":2808663000},{"time":"2018-12-30","value":2967940000},{"time":"2019-12-30","value":3122381000},{"time":"2020-12-30","value":4106002000},{"time":"2021-12-30","value":4270740000},{"time":"2022-12-30","value":4603156000},{"time":"2023-12-30","value":4951549000}],"ROE":[{"time":"2014-12-30","value":-0.08768212978125446},{"time":"2015-12-30","value":-0.07155766277484571},{"time":"2016-12-30","value":-0.22781899847267534},{"time":"2017-12-30","value":-0.041671784760222215},{"time":"2018-12-30","value":-0.026015013780602034},{"time":"2019-12-30","value":-0.007637761054784794},{"time":"2020-12-30","value":0.20923029263015458},{"time":"2021-12-30","value":-0.015004425462566206},{"time":"2022-12-30","value":0.03075303118121567},{"time":"2023-12-30","value":0.03385708189497872}],"ROA":[{"time":"2014-12-30","value":-0.03542568360053372},{"time":"2015-12-30","value":-0.02968384991773405},{"time":"2016-12-30","value":-0.1967226600458783},{"time":"2017-12-30","value":0.0014745986779981114},{"time":"2018-12-30","value":-0.022371388403497706},{"time":"2019-12-30","value":-0.015213306328582768},{"time":"2020-12-30","value":-0.0022251975882435424},{"time":"2021-12-30","value":-0.012551377778147943},{"time":"2022-12-30","value":0.02346262961026021},{"time":"2023-12-30","value":0.027561230898665124}]}

BioMarin Pharmaceutical Inc. develops and commercializes therapies for people with serious and life-threatening rare diseases and medical conditions. Its commercial products include Vimizim, an enzyme replacement therapy for the treatment of mucopolysaccharidosis (MPS) IV type A, a lysosomal storage disorder; Naglazyme, a recombinant form of N-acetylgalactosamine 4-sulfatase for patients with MPS VI; and Kuvan, a proprietary synthetic oral form of 6R-BH4 that is used to treat patients with phenylketonuria (PKU), an inherited metabolic disease. The company's commercial products also comprise Palynziq, a PEGylated recombinant phenylalanine ammonia lyase enzyme, which is delivered through subcutaneous injection to reduce blood Phe concentrations; Brineura, a recombinant human tripeptidyl peptidase 1 for the treatment of patients with ceroid lipofuscinosis type 2, a form of Batten disease; Voxzogo, a once daily injection analog of c-type natriuretic peptide for the treatment of achondroplasia; and Aldurazyme, a purified protein designed to be identical to a naturally occurring form of the human enzyme alpha-L-iduronidase. In addition, it develops Roctavian, an adeno associated virus vector, for the treatment of patients with severe hemophilia A; BMN 331, an AAV5 mediated gene therapy, which is in Phase 1/2 clinical trial for people living with Hereditary Angioedema (HAE); and BMN 255 that is in Phase 1/2 clinical trial for treating primary hyperoxaluria. The company serves specialty pharmacies, hospitals, and non-U.S. government agencies, as well as distributors and pharmaceutical wholesalers in the United States, Europe, Latin America, and internationally. BioMarin Pharmaceutical Inc. has license and collaboration agreements with Sarepta Therapeutics, Ares Trading S.A., Catalyst Pharmaceutical Partners, Inc., and Asubio Pharma Co., Ltd. The company was incorporated in 1996 and is headquartered in San Rafael, California.

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DCF

Discounted Cash Flow Valuation of Biomarin Pharmaceutical Inc

Calculate

Growth Years

Growth

Start

End

Discount

Start

End

Multiple

g\r	+10%	+11%	+12%	+13%	+14%
0%	10	9	8	8	7
+1%	11	10	9	8	8
+2%	13	11	10	9	8
+3%	14	13	11	10	9
+4%	17	14	12	11	10

Years	0	1	2	3	4	5	6	7	8	9	10	TV
FCF	$181.8M	$170M	$159M	$148.7M	$139.1M	$130.1M	$121.7M	$113.8M	$106.4M	$99.51M	$93.07M	$930.7M
DCF		$147.9M	$120.2M	$97.79M	$79.53M	$64.67M	$52.6M	$42.77M	$34.78M	$28.29M	$23M	$230M
Value	$921.6M

Chart P/E ratio

In the chart Earnings are multiplied by this value.

Earnings Growth -23%

Earnings Stability -63%

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

The Net Margin is too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Over time the ROA has been increasing indicating a higher marginal ROA with respect to the calculated one, giving a good sign for continued growth.

Years	12-2015	12-2016	12-2017	12-2018	12-2019	12-2020	12-2021	12-2022	12-2023	TTM
Net Margin	-19%	-56%	-8.9%	-5.2%	-1.4%	46%	-3.5%	6.8%	6.9%	8.3%
ROA	-3%	-20%	0.15%	-2.2%	-1.5%	-0.22%	-1.3%	2.3%	2.8%	3.4%
ROE	-7.2%	-23%	-4.2%	-2.6%	-0.76%	21%	-1.5%	3.1%	3.4%	4%

What is the average Net Margin?

The average Net Margin over the past 5 years is +8.3%.

What is the trend of Net Margin?

The trend of Net Margin over the past 5 years is +1.01%.

What is the average Return on Assets (ROA)?

The average ROA over the past 5 years is -0.02%.

What is the trend of Return on Assets (ROA)?

The trend of ROA over the past 5 years is +1.02%.

What is the average Return on Equity (ROE)?

The average ROE over the past 5 years is +3.75%.

What is the trend of Return on Equity (ROE)?

The trend of ROE over the past 5 years is +0.54%.

Safety & Stabiliy

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

The company has high debt with respect to the cashflow it generates.

The Graham’s stability indicate a relevant drawdown, consider checking when it has occured and why.

Years	12-2015	12-2016	12-2017	12-2018	12-2019	12-2020	12-2021	12-2022	12-2023	TTM
Debt FCF	-1.47	-1.82	-5.65	-6.99	-12.73	-38.00	5.26	20.02	25.47	8.77
Debt Equity	0.28	0.25	0.42	0.29	0.39	0.27	0.26	0.24	0.32	0.31
MIN
Graham Stability	-	-	-	-	-	-	-25%	55%	54%	-25%

What is the Debt/FCF?

The Debt/FCF trailing twelve month is 8.77.

What is the trend of Debt/FCF?

The trend of Debt/FCF over the past 5 years is 8.68.

What is the Graham’s Stability?

Graham’s Stability measure stands at -0.25.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Data are missing

Years	12-2016	12-2018	12-2020	12-2022	Trend
Revenue	12%	10%	9.1%	15%	-1.5%
Net Income	-	-	-42%	18%	-
Stockholders Equity	8.7%	11%	6.4%	7.6%	-3.2%
FCF	-	-	-	14%	88%

What is the 5 year Revenue CAGR?

The Revenue CAGR over the past 5 years is +10.16%.

What is the trend of Revenue growth?

The trend of Revenue growth rate over the past 5 years is -1.49%.

What is the 5 year Earnings CAGR?

The Earnings CAGR over the past 5 years is -.

What is the trend of Earnings growth?

The trend of Earnings growth rate over the past 5 years is -.

What is the 5 year Equity CAGR?

The Equity CAGR over the past 5 years is +10.78%.

What is the trend of Equity growth?

The trend of Equity growth rate over the past 5 years is -3.16%.

What is the 5 year FCF CAGR?

The FCF CAGR over the past 5 years is -.

What is the trend of FCF growth?

The trend of FCF growth rate over the past 5 years is +87.58%.