Critical Analysis: Cambrex (CBM) versus Its Competitors

Cambrex (NYSE: CBM) is one of 104 public companies in the “Pharmaceuticals” industry, but how does it weigh in compared to its rivals? We will compare Cambrex to related businesses based on the strength of its analyst recommendations, profitability, valuation, risk, institutional ownership, earnings and dividends.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Cambrex and its rivals, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Cambrex 0 0 3 0 3.00
Cambrex Competitors 873 3797 6780 181 2.54

Cambrex currently has a consensus price target of $62.33, suggesting a potential upside of 27.47%. As a group, “Pharmaceuticals” companies have a potential upside of 26.26%. Given Cambrex’s stronger consensus rating and higher possible upside, analysts plainly believe Cambrex is more favorable than its rivals.

Profitability

This table compares Cambrex and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Cambrex 18.79% 23.42% 16.19%
Cambrex Competitors -2,402.47% -68.58% -7.25%

Volatility & Risk

Cambrex has a beta of 2.26, meaning that its share price is 126% more volatile than the S&P 500. Comparatively, Cambrex’s rivals have a beta of 34.16, meaning that their average share price is 3,316% more volatile than the S&P 500.

Earnings & Valuation

This table compares Cambrex and its rivals revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Cambrex $490.64 million $81.67 million 16.30
Cambrex Competitors $8.17 billion $1.09 billion 141.49

Cambrex’s rivals have higher revenue and earnings than Cambrex. Cambrex is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Insider and Institutional Ownership

44.8% of shares of all “Pharmaceuticals” companies are held by institutional investors. 2.5% of Cambrex shares are held by insiders. Comparatively, 11.4% of shares of all “Pharmaceuticals” companies are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Summary

Cambrex rivals beat Cambrex on 7 of the 13 factors compared.

Cambrex Company Profile

Cambrex Corporation (Cambrex) is a life sciences company. It provides products and services for the development and commercialization of generic therapeutics. It operates through four segments, which are manufacturing facilities that have been aggregated as a single segment. Its manufacturing facilities are owned by the subsidiaries, including Cambrex Charles City, Inc., Cambrex Karlskoga AB and Cambrex Profarmaco Milano S.r.l. Its products consist of active pharmaceutical ingredients (APIs) and pharmaceutical intermediates. It delivers services, such as custom organic synthesis and process development; current good manufacturing practices (cGMP) manufacturing of API and intermediates from grams to hundreds of kilograms; cGMP analytical services; controlled substance research and development (R&D) and manufacture, Schedule II-V, and contract research. It has API R&D and cGMP facilities in the United States and Europe. It supplies over 90 generic APIs.

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