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Emergent BioSolutions Inc. (EBS) stock analysis

EBSNYSEPharmaceutical PreparationsFiscal year ends December 31
Financials through Q3 FY2026, quarter ended Sep 30, 2026Last filing: 10-Q on Nov 3, 2026Score 7/3072% below fair value
$6.04−0.01 (-0.17%)

Close on Nov 11, 2026Market cap $309.69MP/E –Yield –

StockData Score

Prices as of Nov 11, 2026How the score works

Value3Growth0Performance2Health2Dividend0

Weak7 of 30 checks passed

Emergent BioSolutions passes 7 of the 30 checks behind our score; 9 could not be run for lack of data and count as not passed. Each dot in the shape is one check — hover it for the numbers.

Valuation
3/6
Growth
0/6
Past performance
2/6
Financial health
2/6
Dividend
0/6

What stands out

  • Margin of safety over 20%

    The price is 71.5% below fair value, more than the 20% cushion we look for.

  • Trading below fair value

    The share price of $6.04 is below our fair value estimate of $21.23.

  • Debt covered by cash flow

    Operating cash flow over the last twelve months equals 39.4% of total debt.

  • P/B below the industry

    Emergent BioSolutions's price-to-book of 0.99 is below the Drugs median of 2.29.

What to watch

  • Return on equity under 15%

    Return on equity was -58.2% over the last twelve months and averaged -19.5% over five years; we look for 15% on both.

  • Return on capital under 10%

    Return on invested capital was -17.3%, below the 10% that usually covers the cost of capital.

  • High debt

    Debt is 162% of shareholders' equity, above the 40% we consider low.

  • Earnings shrank over 5 years

    Net income shrank 29.7% a year on average over the last five fiscal years.

Valuation3/6

  • P/E against its history

    Not enough price and earnings history to compare.

  • P/E against the industry

    Needs positive earnings and enough profitable companies in the industry.

  • EV/EBITDA against its history

    Needs positive EBITDA and price history.

  • P/B below the industry

    Emergent BioSolutions's price-to-book of 0.99 is below the Drugs median of 2.29.

  • Trading below fair value

    The share price of $6.04 is below our fair value estimate of $21.23.

  • Margin of safety over 20%

    The price is 71.5% below fair value, more than the 20% cushion we look for.

Growth0/6

  • Revenue growing under 10% a year

    Revenue grew -12.7% a year over the last three fiscal years, short of the 10% we look for.

  • EPS growth over 3 years

    Needs positive EPS three years ago and today.

  • Earnings growth not accelerating

    Net income grew -443% over the last twelve months, against a 5-year average of -29.7% a year.

  • Growing slower than the industry

    Revenue grew -17.7% over the last twelve months; the Drugs median is 8.0%.

  • Guidance lowered

    Emergent BioSolutions lowered its full year 2026 Total revenues outlook on Aug 5, 2026.

  • Gross margin slipping

    Gross margin was 48.4% over the last twelve months, against 54.5% a year earlier.

Past performance2/6

  • Return on equity under 15%

    Return on equity was -58.2% over the last twelve months and averaged -19.5% over five years; we look for 15% on both.

  • Return on capital under 10%

    Return on invested capital was -17.3%, below the 10% that usually covers the cost of capital.

  • Return on equity above the industry

    Emergent BioSolutions's return on equity of -58.2% is above the Drugs median of -58.9%.

  • Earnings shrank over 5 years

    Net income shrank 29.7% a year on average over the last five fiscal years.

  • Net margin below its 5-year average

    Net margin was -40.2% over the last twelve months, against a 5-year average of -18.0%.

  • Net margin above the industry

    Emergent BioSolutions's net margin of -40.2% is above the Drugs median of -53.0%.

Financial health2/6

  • High debt

    Debt is 162% of shareholders' equity, above the 40% we consider low.

  • Debt rising against equity

    Debt to equity rose from 60.3% five years ago to 162%.

  • Debt covered by cash flow

    Operating cash flow over the last twelve months equals 39.4% of total debt.

  • Interest not well covered

    Operating income covers interest expense -4.0 times; we look for at least 5.

  • Short-term assets cover short-term debts

    Current assets are 4.58 times current liabilities.

  • Elevated bankruptcy risk

    The Altman Z-score is 0.34; above 3 is the safe zone and below 1.8 the distress zone.

Dividend0/6

  • No dividend

    Emergent BioSolutions has not paid a dividend in the last twelve months.

  • Yield against Treasuries

    No dividend.

  • Yield against the market

    No dividend.

  • Dividend stability

    No dividend.

  • Earnings cover

    No dividend.

  • Cash-flow cover

    No dividend.

Scores of similar companies

Fair value

How we estimate it

Our estimate per share

$21.23

The share price is 72% below this estimate.

20%+ below
Near fair value
20%+ above
$6.04Price$21.23Fair value
MethodMultiple usedOwn 5Y medianIndustry medianValue per shareWeight
P/B1.5×0.8×2.3×$9.3950%
P/S2.6×0.5×4.8×$33.0650%
Fair value$21.23100%

Valuation over time

Using the earnings and balance sheet published at each date, not today's.

  • P/E at month end
  • Own 5-year median 10.4
  • Drugs median 25.1

An estimate from reported numbers and market multiples, not a price target or investment advice. It can be far off for companies whose profits are about to change sharply.

Market risk

From the past year of daily prices.

Liquidity

Medium risk

Average value traded per day
$7.34M
Value traded per 1% price move
$2.38M

Downside

High risk

Typical loss in a bad month
39.6%
Volatility (annualized)
69%
Sharpe ratio, 1 year
-0.72
Beta to the S&P 500 (5Y)
1.85

Typical bad-month loss, week by week

25%: high

Margins

Share of revenue, fiscal years 2011 to 2025

Gross margin

56.1%−2.6 pts over 5 years

Operating margin

13.5%−14.3 pts over 5 years

Net margin

7.1%−12.3 pts over 5 years

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