Selvita SA (SLV) AI Stock Analysis

• Market Cap: €679.15M
• Dividend Yield: N/A
• Average Volume (3M): 40.37K
• Price to Earnings (P/E): 1434.1
• Beta (1Y): 0.73
• Revenue Growth: 14.10%
• EPS Growth: -99.00%
• Country: PL
• Employees: 969
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Diagnostics & Research
• EPS (TTM): -0.25
• Shares Outstanding: 18,355,474
• 10 Day Avg. Volume: 32,911
• 30 Day Avg. Volume: 40,372
• PEG Ratio: 1.37
• Price to Book (P/B): 2.82
• Price to Sales (P/S): 2.66
• P/FCF Ratio: 20.03
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: €40.03
• Price Target Upside: 8.19% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 59 Neutral
• Price Target: zł40.00 ▲(8.11% Upside)

Selvita SA's overall stock score is driven by mixed financial performance and strong technical indicators. However, the extremely high P/E ratio raises concerns about overvaluation. The lack of earnings call data and corporate events limits additional insights.

Selvita SA Business Overview & Revenue Model

Company Description

Selvita S.A. operates as a contract research organization in Poland, rest of Europe, the United States, and internationally. It operates in two segments, Contract Research Organization (CRO) services, and Bioinformatics. The company offers drug discovery services in the areas of assay development and screening, medicinal and synthetic chemistry, computer-aided drug design/ artificial intelligence, structural biology, in vitro/ In Vivo pharmacology, ADME/DMPK and analytical testing. It also provides pharma services in the field of drug testing and bioanalytical analysis, including development and optimization, validation and transfer, stability studies, quality control, and regulatory aspects support services. In addition, the company offers research and development services in the areas of process research, laboratory scale custom synthesis of NCEs, industrial chemistry, and synthesis of isotopically labelled compounds, as well as other services for the agrochemical industry. Further, it provides bio-data science and advanced software services to data-driven life science and healthcare organizations. Selvita S.A. was founded in 2007 and is headquartered in Krakow, Poland.

How the Company Makes Money

Selvita makes money through multiple revenue streams. Primarily, the company generates revenue by providing contract research services to other pharmaceutical and biotechnology companies. These services include drug discovery, preclinical development, and clinical trial support, which are often billed on a project basis or through long-term contracts. Additionally, Selvita has its own pipeline of proprietary drug candidates, which can lead to potential revenue through partnerships, licensing agreements, or royalties if these candidates reach commercialization. The company also engages in collaborations with larger pharmaceutical firms, which can provide upfront payments and milestone payments as development progresses. Overall, Selvita's strategic partnerships and its dual focus on service provision and proprietary drug development play a crucial role in its financial performance.

Selvita SA Financial Statement Overview

Summary

Selvita SA shows mixed financial performance with slight revenue growth and strong cash flow improvements. However, profitability metrics have deteriorated, with negative net profit margins and return on equity. The balance sheet is stable, but challenges in managing costs and operational efficiency need attention.

Income Statement

Selvita SA's income statement shows a mixed performance. The company has experienced a slight revenue growth of 3.27% in the most recent year, but profitability metrics have deteriorated significantly. The net profit margin has turned negative, indicating a loss, and the EBIT margin has also declined. Despite a strong gross profit margin of 78.31%, the negative net income suggests challenges in managing operating expenses or other costs.

Balance Sheet

The balance sheet reflects moderate financial stability. The debt-to-equity ratio of 0.68 indicates a balanced approach to leveraging, though it has slightly increased from previous years. Return on equity has turned negative, highlighting a decline in shareholder returns. However, the equity ratio remains healthy, suggesting a solid asset base relative to equity.

Cash Flow

Cash flow analysis reveals a strong improvement in free cash flow growth, which surged by over 300%. The operating cash flow to net income ratio is positive, indicating that the company generates sufficient cash from operations. However, the free cash flow to net income ratio suggests that a significant portion of cash flow is not translating into net income, which could be a concern if sustained.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	370.93M	342.01M	346.72M	360.68M	310.92M	137.36M
Gross Profit	295.50M	267.82M	275.56M	292.62M	251.26M	116.36M
EBITDA	62.97M	55.30M	125.61M	75.39M	52.43M	33.01M
Net Income	465.00K	-6.10M	69.88M	30.31M	14.90M	18.00M
Balance Sheet
Total Assets	619.09M	642.09M	636.26M	584.91M	466.59M	218.80M
Cash, Cash Equivalents and Short-Term Investments	14.41M	22.51M	52.97M	76.17M	96.98M	103.16M
Total Debt	204.42M	218.54M	224.75M	212.97M	179.80M	41.25M
Total Liabilities	303.25M	320.21M	309.19M	311.75M	261.04M	66.14M
Stockholders Equity	315.84M	321.88M	327.07M	262.18M	196.87M	147.30M
Cash Flow
Free Cash Flow	56.55M	45.36M	5.05M	-26.16M	59.95M	14.35M
Operating Cash Flow	67.74M	64.07M	78.98M	75.43M	87.47M	29.36M
Investing Cash Flow	-13.49M	-36.87M	-65.21M	-79.79M	-164.33M	-25.14M
Financing Cash Flow	-54.16M	-57.34M	-30.97M	-5.67M	66.82M	75.12M

Selvita SA Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 37.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PL:SLV, the sentiment is Neutral. The current price of 37 is above the 20-day moving average (MA) of 36.05, above the 50-day MA of 34.09, and below the 200-day MA of 37.05, indicating a neutral trend. The MACD of 1.41 indicates Negative momentum. The RSI at 57.02 is Neutral, neither overbought nor oversold. The STOCH value of 34.04 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for PL:SLV.

Selvita SA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SLV	59 Neutral	€679.15M	1,434.11	―	―	14.10%	-99.00%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
CLN	46 Neutral	zł1.23B	74.93	―	0.35%	47.79%	―
CTX	44 Neutral	€210.09M	―	-83.02%	―	-40.45%	27.53%
RVU	38 Underperform	€649.68M	―	-80.59%	―	15.45%	-25.81%