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Emergent BioSolutions (Emergent BioSolutions) Piotroski F-Score : 2 (As of Apr. 25, 2024)


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What is Emergent BioSolutions Piotroski F-Score?

Warning Sign:

Piotroski F-Score of 2 is low, which usually implies poor business operation.

The zones of discrimination were as such:

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Emergent BioSolutions has an F-score of 2. It is a bad or low score, which usually implies poor business operation.

The historical rank and industry rank for Emergent BioSolutions's Piotroski F-Score or its related term are showing as below:

EBS' s Piotroski F-Score Range Over the Past 10 Years
Min: 2   Med: 6   Max: 7
Current: 2

During the past 13 years, the highest Piotroski F-Score of Emergent BioSolutions was 7. The lowest was 2. And the median was 6.


Emergent BioSolutions Piotroski F-Score Historical Data

The historical data trend for Emergent BioSolutions's Piotroski F-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Emergent BioSolutions Piotroski F-Score Chart

Emergent BioSolutions Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Piotroski F-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only 6.00 7.00 6.00 3.00 2.00

Emergent BioSolutions Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Piotroski F-Score Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 3.00 3.00 2.00 2.00 2.00

Competitive Comparison of Emergent BioSolutions's Piotroski F-Score

For the Drug Manufacturers - Specialty & Generic subindustry, Emergent BioSolutions's Piotroski F-Score, along with its competitors' market caps and Piotroski F-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Emergent BioSolutions's Piotroski F-Score Distribution in the Drug Manufacturers Industry

For the Drug Manufacturers industry and Healthcare sector, Emergent BioSolutions's Piotroski F-Score distribution charts can be found below:

* The bar in red indicates where Emergent BioSolutions's Piotroski F-Score falls into.


How is the Piotroski F-Score calculated?

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

This Year (Dec23) TTM:Last Year (Dec22) TTM:
Net Income was -183 + -261.3 + -263.4 + -49.5 = $-757 Mil.
Cash Flow from Operations was -184 + -114.4 + 60 + 32.1 = $-206 Mil.
Revenue was 158.6 + 331.3 + 264 + 269.9 = $1,024 Mil.
Gross Profit was 3.5 + 140.7 + 87.2 + 84.8 = $316 Mil.
Average Total Assets from the begining of this year (Dec22)
to the end of this year (Dec23) was
(3166.3 + 2949.8 + 2178.8 + 1893.1 + 1823.2) / 5 = $2402.24 Mil.
Total Assets at the begining of this year (Dec22) was $3,166 Mil.
Long-Term Debt & Capital Lease Obligation was $447 Mil.
Total Current Assets was $680 Mil.
Total Current Liabilities was $651 Mil.
Net Income was -3.7 + -56.4 + -87.1 + -67 = $-214 Mil.

Revenue was 297.9 + 235.4 + 222.5 + 323.1 = $1,079 Mil.
Gross Profit was 142 + 65.6 + 75.3 + 102.6 = $386 Mil.
Average Total Assets from the begining of last year (Dec21)
to the end of last year (Dec22) was
(2957.7 + 2780.4 + 2735.4 + 2908.5 + 3166.3) / 5 = $2909.66 Mil.
Total Assets at the begining of last year (Dec21) was $2,958 Mil.
Long-Term Debt & Capital Lease Obligation was $449 Mil.
Total Current Assets was $1,210 Mil.
Total Current Liabilities was $1,229 Mil.

*Note: If the latest quarterly/semi-annual/annual total assets data is 0, then we will use previous quarterly/semi-annual/annual data for all the items in the balance sheet.

Profitability

Question 1. Return on Assets (ROA)

Net income before extraordinary items for the year divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Emergent BioSolutions's current Net Income (TTM) was -757. ==> Negative ==> Score 0.

Question 2. Cash Flow Return on Assets (CFROA)

Net cash flow from operating activities (operating cash flow) divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Emergent BioSolutions's current Cash Flow from Operations (TTM) was -206. ==> Negative ==> Score 0.

Question 3. Change in Return on Assets

Compare this year's return on assets (1) to last year's return on assets.

Score 1 if it's higher, 0 if it's lower.

ROA (This Year)=Net Income/Total Assets (Dec22)
=-757.2/3166.3
=-0.23914348

ROA (Last Year)=Net Income/Total Assets (Dec21)
=-214.2/2957.7
=-0.07242114

Emergent BioSolutions's return on assets of this year was -0.23914348. Emergent BioSolutions's return on assets of last year was -0.07242114. ==> Last year is higher ==> Score 0.

Question 4. Quality of Earnings (Accrual)

Compare Cash flow return on assets (2) to return on assets (1)

Score 1 if CFROA > ROA, 0 if CFROA <= ROA.

Emergent BioSolutions's current Net Income (TTM) was -757. Emergent BioSolutions's current Cash Flow from Operations (TTM) was -206. ==> -206 > -757 ==> CFROA > ROA ==> Score 1.

Funding

Question 5. Change in Gearing or Leverage

Compare this year's gearing (long-term debt divided by average total assets) to last year's gearing.

Score 0 if this year's gearing is higher, 1 otherwise.

Gearing (This Year: Dec23)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Dec22 to Dec23
=446.5/2402.24
=0.18586819

Gearing (Last Year: Dec22)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Dec21 to Dec22
=448.5/2909.66
=0.15414172

Emergent BioSolutions's gearing of this year was 0.18586819. Emergent BioSolutions's gearing of last year was 0.15414172. ==> Last year is lower than this year ==> Score 0.

Question 6. Change in Working Capital (Liquidity)

Compare this year's current ratio (current assets divided by current liabilities) to last year's current ratio.

Score 1 if this year's current ratio is higher, 0 if it's lower

Current Ratio (This Year: Dec23)=Total Current Assets/Total Current Liabilities
=679.5/651.3
=1.04329802

Current Ratio (Last Year: Dec22)=Total Current Assets/Total Current Liabilities
=1210.4/1228.9
=0.98494589

Emergent BioSolutions's current ratio of this year was 1.04329802. Emergent BioSolutions's current ratio of last year was 0.98494589. ==> This year's current ratio is higher. ==> Score 1.

Question 7. Change in Shares in Issue

Compare the number of shares in issue this year, to the number in issue last year.

Score 0 if there is larger number of shares in issue this year, 1 otherwise.

Emergent BioSolutions's number of shares in issue this year was 52.1. Emergent BioSolutions's number of shares in issue last year was 49.8. ==> There is larger number of shares in issue this year. ==> Score 0.

Efficiency

Question 8. Change in Gross Margin

Compare this year's gross margin (Gross Profit divided by sales) to last year's.

Score 1 if this year's gross margin is higher, 0 if it's lower.

Gross Margin (This Year: TTM)=Gross Profit/Revenue
=316.2/1023.8
=0.30884938

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=385.5/1078.9
=0.35730837

Emergent BioSolutions's gross margin of this year was 0.30884938. Emergent BioSolutions's gross margin of last year was 0.35730837. ==> Last year's gross margin is higher ==> Score 0.

Question 9. Change in asset turnover

Compare this year's asset turnover (total sales for the year divided by total assets at the beginning of the year) to last year's asset turnover ratio.

Score 1 if this year's asset turnover ratio is higher, 0 if it's lower

Asset Turnover (This Year)=Revenue/Total Assets at the Beginning of This Year (Dec22)
=1023.8/3166.3
=0.3233427

Asset Turnover (Last Year)=Revenue/Total Assets at the Beginning of Last Year (Dec21)
=1078.9/2957.7
=0.36477668

Emergent BioSolutions's asset turnover of this year was 0.3233427. Emergent BioSolutions's asset turnover of last year was 0.36477668. ==> Last year's asset turnover is higher ==> Score 0.

Evaluation

Piotroski F-Score= Que. 1+ Que. 2+ Que. 3+Que. 4+Que. 5+Que. 6+Que. 7+Que. 8+Que. 9
=0+0+0+1+0+1+0+0+0
=2

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Emergent BioSolutions has an F-score of 2. It is a bad or low score, which usually implies poor business operation.

Emergent BioSolutions  (NYSE:EBS) Piotroski F-Score Explanation

The developer of the system is Joseph D. Piotroski is relatively unknown accounting professor who shuns publicity and rarely gives interviews.

He graduated from the University of Illinois with a B.S. in accounting in 1989, received an M.B.A. from Indiana University in 1994. Five years later, in 1999, after earning a Ph.D. in accounting from the University of Michigan, he became an associate professor of accounting at the University of Chicago.

In 2000, he wrote a research paper called "Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers" (pdf).

He wanted to see if he can develop a system (using a simple nine-point scoring system) that can increase the returns of a strategy of investing in low price to book (referred to in the paper as high book to market) value companies.

What he found was something that exceeded his most optimistic expectations.

Buying only those companies that scored highest (8 or 9) on his nine-point scale, or F-Score as he called it, over the 20 year period from 1976 to 1996 led to an average out-performance over the market of 13.4%.

Even more impressive were the results of a strategy of investing in the highest F-Score companies (8 or 9) and shorting companies with the lowest F-Score (0 or 1).

Over the same period from 1976 to 1996 (20 years) this strategy led to an average yearly return of 23%, substantially outperforming the average S&P 500 index return of 15.83% over the same period.


Emergent BioSolutions Piotroski F-Score Related Terms

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Emergent BioSolutions (Emergent BioSolutions) Business Description

Traded in Other Exchanges
Address
400 Professional Drive, Suite 400, Gaithersburg, MD, USA, 20879
Emergent BioSolutions Inc offers public health products to the government and healthcare providers. The company has four main units: vaccines, which produces specialty vaccines for public health threats; devices, such as nasal sprays, skin lotions, and injections; therapeutics, which includes antibody-based treatments; and contract development and manufacturing, which brings treatments to market through collaboration with the pharmaceutical and biotechnology industries and the United States government. Most revenue comes from U.S. government purchases of vaccines, devices, and therapeutic products. The company operates in two reportable segments; the Products Segment and the Services Segment.
Executives
Neal Franklin Fowler director C/O EMERGENT BIOSOLUTIONS INC., 400 PROFESSIONAL DR. STE. 400, GAITHERSBURG MD 20879
Donald W Degolyer director 400 PROFESSIONAL DR. STE. 400, GAITHERSBURG MD 20879
William Hartzel officer: SVP, Bioservices 400 PROFESSIONAL DRIVE, STE. 400, GAITHERSBURG MD 20879
Miller H Haywood Iii officer: Interim CEO EMERGENT BIOSOLUTIONS INC., 400 PROFESSIONAL DR. STE. 400, GAITHERSBURG MD 20879
Kathryn C Zoon director 400 PROFESSIONAL DRIVE, SUITE 400, GAITHERSBURG MD 20879
Paul Anthony Williams officer: SVP, Products Business 400 PROFESSIONAL DRIVE, SUITE 400, GAITHERSBURG MD 20879
Ronald Richard director 2273 RESEARCH BLVD, SUITE 400, ROCKVILLE MD 20850
Sujata Tyagi Dayal director C/O BIOMET, INC., P.O. BOX 587, WARSAW IN 46581-0587
Keith Katkin director C/O UROVANT SCIENCES, INC., 5281 CALIFORNIA AVENUE, SUITE 100, IRVINE CA 92617
Glessner Coleen officer: EVP, Quality & Ethics, and CPL 400 PROFESSIONAL DRIVE, SUITE 400, GAITHERSBURG MD 20879
Jennifer Lynne Fox officer: EVP, Ext Aff, GC, Corp Sec 400 PROFESSIONAL DRIVE, GAITHERSBURG MD 20879
Richard S Lindahl officer: EVP, Chief Financial Officer NEXTEL, 2001 EDMUND HALLEY DR, RESTON VA 20191
Sue Bailey director 400 PROFESSIONAL DRIVE, SUITE 400, GAITHERSBURG MD 20850
Adam Havey officer: EVP, BioDefense Division 2273 RESEARCH BLVD SUITE 400, ROCKVILLE MD 20853
Robert Kramer officer: Interim, EVP, BioSciences 2273 RESEARCH BLVD, SUITE 400, ROCKVILLE MD 20850

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