It hasn't been a great morning session for BioNTech SE investors, who have watched their shares sink by -2.4% to a price of $85.19. Some of you might be wondering if it's time to buy the dip. If you are considering this, make sure to check the company's fundamentals first to determine if the shares are fairly valued at today's prices.
Trades Close Its Graham Number but Has an Elevated P/E Ratio:
BioNTech SE, a biotechnology company, develops and commercializes immunotherapies for cancer and other infectious diseases. The company belongs to the Health Care sector, which has an average price to earnings (P/E) ratio of 27.61 and an average price to book (P/B) ratio of 3.69. In contrast, BioNTech SE has a trailing 12 month P/E ratio of -36.4 and a P/B ratio of 1.06.
P/E rations can be placed into context by dividing them by the firm's expected 5-year EPS growth rate, which gives us its Price to Earnings Growth (PEG) ratio. BioNTech SE's PEG ratio is 1.0, which tells us the company is fairly valued in terms of growth. PEG ratios under 1 are considered an indicator of undervalued growth, but we need to keep in mind that many successful companies with excellent share performance have maintained much higher PEG ratios.
As always, a quantitative approach to a stock should be supplemented with a look at qualitative factors, such as the competence of its management team, quality of its corporate culture, and the wide variety of social and economic factors that can impact the success of its product.
Generally Positive Cash Flows and an Excellent Current Ratio:
| 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | |
|---|---|---|---|---|---|---|
| Revenue (M) | $128 | $109 | $482 | $18,977 | $17,311 | $3,819 |
| Operating Margins | -42% | -167% | -17% | 81% | 73% | 18% |
| Net Margins | -38% | -165% | 3% | 54% | 55% | 24% |
| Net Income (M) | -$48 | -$179 | $15 | $10,292 | $9,434 | $930 |
| Earnings Per Share | n/a | -$0.85 | $0.06 | $39.63 | $37.77 | $3.83 |
| Free Cash Flow (M) | -$59 | -$198 | -$14 | $890 | $13,577 | $5,371 |
| Current Ratio | 3.56 | 4.05 | 2.75 | 4.33 | 7.43 | 9.43 |
BioNTech SE has generally positive cash flows, an excellent current ratio of 9.43, and decent operating margins with a stable trend.
