Emergent Biosolutions (EBS) AI Stock Analysis

• Market Cap: $339.24M
• Dividend Yield: N/A
• Average Volume (3M): 1.21M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.73
• Revenue Growth: -18.56%
• EPS Growth: 76.88%
• Country: US
• Employees: 900
• Sector: Healthcare
• Sector Strength: 55
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): 0.71
• Shares Outstanding: 54,277,830
• 10 Day Avg. Volume: 859,298
• 30 Day Avg. Volume: 1,213,379
• PEG Ratio: 0.01
• Price to Book (P/B): 0.43
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -3.95
• Enterprise Value/Market Cap: 10.09
• Enterprise Value/Revenue: 0.81
• Enterprise Value/Gross Profit: 11.28
• Enterprise Value/Ebitda: -17.22
• 1Y Price Target: $13.50
• Price Target Upside: 116.35% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 52 Neutral
• Price Target: $6.50 ▲(4.17%Upside)

The overall stock score of 51.75 reflects the financial and operational challenges faced by Emergent BioSolutions. Despite some positive developments in earnings and strategic contracts, the company's current financial instability, negative valuation metrics, and mixed technical indicators weigh heavily on the score.

Positive Factors

Contracts and Agreements

The establishment of a three-year agreement valued at about $65M to supply the Ontario Ministry of Health with NARCAN Nasal Spray highlights the company's strong contracting capabilities.

Earnings

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

Financial Performance

Emergent has now lowered its net leverage ratio to 2.8x from 5.7x one year ago, and increased its combined liquidity to $250 million including cash and revolver from $79 million one year ago.

Negative Factors

Competitive Risks

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

Market Performance

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

Revenue

Revenue was moderately below forecast, raising concerns about meeting future expectations.

Emergent Biosolutions Business Overview & Revenue Model

Company Description

Emergent BioSolutions Inc. (EBS) is a global life sciences company focused on providing specialty products to address public health threats. The company operates in the biotechnology sector and is known for its development, manufacturing, and distribution of vaccines, therapeutics, and other medical products. Emergent's core products include vaccines for anthrax and smallpox, as well as treatments for opioid overdose and chemical threats.

How the Company Makes Money

Emergent BioSolutions generates revenue through the sale of its medical countermeasures, which are primarily purchased by government agencies as part of national defense and public health preparedness strategies. Key revenue streams include contracts with the U.S. government for the procurement of anthrax and smallpox vaccines, as well as agreements for the supply of Narcan, an opioid overdose reversal drug. The company also engages in partnerships and collaborations with other pharmaceutical companies and government entities to develop and manufacture new products, further enhancing its revenue potential. Additionally, Emergent earns income from contract development and manufacturing services offered to other biopharmaceutical companies.

Emergent Biosolutions Financial Statement Overview

Summary

Emergent BioSolutions is facing profitability issues with declining revenues and negative net income. While there is some recovery in cash flow, it remains volatile. The balance sheet shows moderate leverage but declining equity, raising concerns about financial stability.

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
149.10M	99.50M	111.70M	642.60M	576.10M	621.30M
	Total Assets
1.43B	1.39B	1.82B	3.17B	2.96B	2.88B
	Total Debt
665.70M	663.70M	860.20M	1.41B	841.00M	874.80M
	Net Debt
516.60M	564.20M	748.50M	763.20M	264.90M	253.50M
	Total Liabilities
873.40M	906.90M	1.17B	1.78B	1.34B	1.44B
	Stockholders Equity
552.70M	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: Negative
• Last Price: 6.24
• 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 Negative. The current price of 6.24 is below the 20-day moving average (MA) of 6.47, above the 50-day MA of 5.63, and below the 200-day MA of 7.75, indicating a neutral trend. The MACD of 0.18 indicates Positive momentum. The RSI at 50.36 is Neutral, neither overbought nor oversold. The STOCH value of 39.26 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for EBS.

Emergent Biosolutions Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SIGA	80 Outperform	$464.37M	9.57	25.47%	10.13%	-23.37%	-39.03%
ANIP	64 Neutral	$1.39B	―	-5.19%	―	30.26%	-173.36%
Sector *	54 Neutral	$5.34B	3.27	-45.10%	3.30%	16.80%	0.02%
AQST	53 Neutral	$351.62M	―	77.48%	―	5.29%	-37.31%
EBS	52 Neutral	$339.24M	―	-21.63%	―	-18.56%	76.88%
DVAX	48 Neutral	$1.23B	64.45	-10.45%	―	24.76%	-783.38%
LFCR	46 Neutral	$246.96M	―	-83.58%	―	6.88%	-17.54%

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.