Avid Bioservices, Inc.

CDMO

Pharmaceutical Preparations

Mkt Cap

$543.9M

PE

-30.76

Debt

$54.91M

Cash

$30.71M

EV

$568.1M

FCF

-$38.5M

Market Cap

$543.9M

P/E Ratio

-30.76

Debt

$54.91M

Cash

$30.71M

EV

$568.1M

FCF

-$38.5M

Charts data: {"Earnings":[{"time":"2015-04-29","value":-54054000},{"time":"2016-04-29","value":-60136000},{"time":"2017-04-29","value":-32799000},{"time":"2018-04-29","value":-26499000},{"time":"2019-04-29","value":-8901000},{"time":"2020-04-29","value":-15152000},{"time":"2021-04-29","value":3318000},{"time":"2022-04-29","value":127672000},{"time":"2023-04-29","value":560000}],"Sales":[{"time":"2015-04-29","value":26781000},{"time":"2016-04-29","value":44686000},{"time":"2017-04-29","value":57630000},{"time":"2018-04-29","value":53621000},{"time":"2019-04-29","value":53603000},{"time":"2020-04-29","value":59702000},{"time":"2021-04-29","value":95868000},{"time":"2022-04-29","value":119597000},{"time":"2023-04-29","value":149266000}],"Net Margins":[{"time":"2015-04-29","value":-2.018371233337067},{"time":"2016-04-29","value":-1.3457458711900818},{"time":"2017-04-29","value":-0.5691306611140031},{"time":"2018-04-29","value":-0.49419070886406447},{"time":"2019-04-29","value":-0.16605413876089026},{"time":"2020-04-29","value":-0.25379384275233663},{"time":"2021-04-29","value":0.034610088872199275},{"time":"2022-04-29","value":1.0675184160137796},{"time":"2023-04-29","value":0.00375169161094958}],"Assets":[{"time":"2015-04-29","value":97464000},{"time":"2016-04-29","value":109043000},{"time":"2017-04-29","value":118112000},{"time":"2018-04-29","value":95760000},{"time":"2019-04-29","value":78395000},{"time":"2020-04-29","value":107620000},{"time":"2021-04-29","value":265510000},{"time":"2022-04-29","value":429843000},{"time":"2023-04-29","value":451054000}],"Stockholders Equity":[{"time":"2015-04-29","value":59035000},{"time":"2016-04-29","value":50074000},{"time":"2017-04-29","value":53582000},{"time":"2018-04-29","value":55738000},{"time":"2019-04-29","value":53068000},{"time":"2020-04-29","value":41896000},{"time":"2021-04-29","value":77736000},{"time":"2022-04-29","value":174526000},{"time":"2023-04-29","value":189470000}],"ROE":[{"time":"2015-04-29","value":-0.9156263233674938},{"time":"2016-04-29","value":-1.2009426049446819},{"time":"2017-04-29","value":-0.6121272068978388},{"time":"2018-04-29","value":-0.47542071836090277},{"time":"2019-04-29","value":-0.16772819778397527},{"time":"2020-04-29","value":-0.36165743746419704},{"time":"2021-04-29","value":0.042682926829268296},{"time":"2022-04-29","value":0.7315357024168319},{"time":"2023-04-29","value":0.0029556130258088353}],"ROA":[{"time":"2015-04-29","value":-0.5181297709923665},{"time":"2016-04-29","value":0.03298698678502976},{"time":"2017-04-29","value":0.011793890544567868},{"time":"2018-04-29","value":-0.21473475355054303},{"time":"2019-04-29","value":-0.06811658906818037},{"time":"2020-04-29","value":-0.09724958186210741},{"time":"2021-04-29","value":0.04611125757975217},{"time":"2022-04-29","value":0.03587821599979527},{"time":"2023-04-29","value":0.00798352303715298}]}

Avid Bioservices, Inc., a contract development and manufacturing organization, provides process development and current good manufacturing practices (CGMP) clinical and commercial manufacturing services focused on biopharmaceutical drug substances derived from mammalian cell culture. The company produces monoclonal antibodies and recombinant proteins; and offers services, including CGMP clinical and commercial drug substance manufacturing, bulk packaging, release and stability testing, and regulatory submission and support. It also provides various process development services, such as upstream and downstream development and optimization, analytical methods development, testing, and characterization. The company serves biotechnology and biopharmaceutical industries. The company was formerly known as Peregrine Pharmaceuticals, Inc. and changed its name to Avid Bioservices, Inc. in January 2018. Avid Bioservices, Inc. was incorporated in 1981 and is headquartered in Tustin, California.

Sector

10-Q
7/31/23
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10-Q
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10-K
4/30/18
10-Q
1/31/18

Chart P/E ratio

In the chart Earnings are multiplied by this value.

Earnings Growth 87%

Earnings Stability -95%

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	04-2015	04-2016	04-2017	04-2018	04-2019	04-2020	04-2021	04-2022	04-2023	TTM
Net Margin	-200%	-130%	-57%	-49%	-17%	-25%	3.5%	110%	0.38%	-13%
ROA	-52%	3.3%	1.2%	-21%	-6.8%	-9.7%	4.6%	3.6%	0.8%	-3.6%
ROE	-92%	-120%	-61%	-48%	-17%	-36%	4.3%	73%	0.3%	-9.8%

What is the average Net Margin?

The average Net Margin over the past 5 years is +3.2%.

What is the trend of Net Margin?

The trend of Net Margin over the past 5 years is +18.51%.

What is the average Return on Assets (ROA)?

The average ROA over the past 5 years is -4.84%.

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

The trend of ROA over the past 5 years is +4.48%.

What is the average Return on Equity (ROE)?

The average ROE over the past 5 years is -3.79%.

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

The trend of ROE over the past 5 years is +15.7%.

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.

Under the assumption that FCF does not diminish and debt does not increase, the current years to repay the debt are acceptable.

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

Years	04-2015	04-2016	04-2017	04-2018	04-2019	04-2020	04-2021	04-2022	04-2023	TTM
Debt FCF	-	-	-	-	0.00	2.17	4.55	-2.97	-0.54	-1.43
Debt Equity	-	-	-	-	0.00	0.10	1.25	0.80	0.26	0.30
MIN
Graham Stability	-	-	-	-	-	-	-	-	1.5%	1.5%

What is the Debt/FCF?

The Debt/FCF trailing twelve month is -1.43.

What is the trend of Debt/FCF?

The trend of Debt/FCF over the past 5 years is -0.62.

What is the Graham’s Stability?

Graham’s Stability measure stands at 0.01.

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.

Earnings growth has not been increasing in the past years.

Years	04-2016	04-2018	04-2020	04-2022	Trend
Revenue	19%	23%	36%	25%	-1.2%
Net Income	-	-	-	-100%	-3.8K%
Stockholders Equity	21%	28%	65%	8.6%	12%
FCF	-	-	-	-	-

What is the 5 year Revenue CAGR?

The Revenue CAGR over the past 5 years is +22.72%.

What is the trend of Revenue growth?

The trend of Revenue growth rate over the past 5 years is -1.21%.

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 -3.85K%.

What is the 5 year Equity CAGR?

The Equity CAGR over the past 5 years is +27.73%.

What is the trend of Equity growth?

The trend of Equity growth rate over the past 5 years is +11.69%.

What is the 5 year FCF CAGR?

The FCF CAGR over the past 5 years is +24.9%.

What is the trend of FCF growth?

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