SIGA Technologies Inc (SIGA) stock analysis

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

SIGA Technologies's price-to-book of 1.38 is below the Drugs median of 2.29.

Trading below fair value

The share price of $3.14 is below our fair value estimate of $6.12.

Margin of safety over 20%

The price is 48.7% below fair value, more than the 20% cushion we look for.

Revenue growing under 10% a year

Revenue grew -5.1% a year over the last three fiscal years, short of the 10% we look for.

EPS growing under 10% a year

Diluted EPS grew -11.4% a year over the last three fiscal years.

Earnings growth not accelerating

Net income grew -99.1% over the last twelve months, against a 5-year average of -16.2% a year.

Growing slower than the industry

Revenue grew -69.6% over the last twelve months; the Drugs median is 8.0%.

Company guidance

No outlook found in earnings releases from the last twelve months.

Gross margin slipping

Gross margin was 54.0% over the last twelve months, against 76.3% a year earlier.

Return on equity under 15%

Return on equity was 0.4% over the last twelve months and averaged 28.5% over five years; we look for 15% on both.

Return on capital under 10%

Return on invested capital was -15.0%, below the 10% that usually covers the cost of capital.

Return on equity above the industry

SIGA Technologies's return on equity of 0.4% is above the Drugs median of -58.9%.

Earnings shrank over 5 years

Net income shrank 16.2% a year on average over the last five fiscal years.

Net margin below its 5-year average

Net margin was 1.3% over the last twelve months, against a 5-year average of 39.7%.

Net margin above the industry

SIGA Technologies's net margin of 1.3% is above the Drugs median of -53.0%.

No debt

SIGA Technologies has no borrowings on its latest balance sheet.

Debt not rising

With no debt today, leverage cannot have risen.

Debt covered by cash flow

There is no debt to cover.

Interest well covered

No meaningful interest expense to cover.

Short-term assets cover short-term debts

Current assets are 24.57 times current liabilities.

Low bankruptcy risk

The Altman Z-score is 15.02; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

SIGA Technologies paid dividends worth 19.1% of the share price over the last twelve months.

Yield above Treasuries

The 19.1% yield is above the 4.4% on a 1-year Treasury.

Yield in the top quarter

The top quarter of US dividend payers yield 3.8% or more; SIGA Technologies yields 19.1%.

Dividend stability

Fewer than five years of dividend history.

Not covered by earnings

Dividends take 6325% of net income, leaving little room.

Cash-flow cover

Needs dividends paid and free cash flow.