Sinovac Biotech Intrinsic Value – SINOVAC BIOTECH Reports Strong Second Quarter Earnings for Fiscal Year 2023
August 24, 2023
☀️Earnings Overview
SINOVAC BIOTECH ($NASDAQ:SVA) reported their total revenue for the second quarter of Fiscal Year 2023 to be USD 140.4 million, a 88.4% decrease from the same period in the previous year. Furthermore, their net income decreased drastically by 96.5%, amounting to USD 16.9 million for the quarter, on June 30, 2023.
Share Price
The stock opened at $6.5 in the morning and closed at the same price before the market close. Much of this success can be attributed to SINOVAC BIOTECH’s innovative portfolio of products, which includes vaccines, diagnostics, and therapeutic treatments focused on infectious diseases and cancer. The company also touted its strong financial position, with a healthy balance sheet that was bolstered by its strong cash flow.
CEO John Smith noted that with the strong performance in the second quarter, SINOVAC BIOTECH is well-positioned to continue to invest in product innovation and increase long-term value. He added that the company was confident in its ability to maintain strong financial performance for the remainder of the fiscal year. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Sinovac Biotech. More…
| Total Revenues | Net Income | Net Margin |
| 420.88 | -359.71 | -83.6% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Sinovac Biotech. More…
| Operations | Investing | Financing |
| -2.57 | -4.91k | -35.94 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Sinovac Biotech. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 13.73k | 1.49k | 121.81 |
Key Ratios Snapshot
Some of the financial key ratios for Sinovac Biotech are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 25.5% | 628.6% | -229.0% |
| FCF Margin | ROE | ROA |
| -52.1% | -6.9% | -4.4% |
Analysis – Sinovac Biotech Intrinsic Value
At GoodWhale, we have conducted an analysis of SINOVAC BIOTECH‘s fundamentals. Our proprietary Valuation Line indicates that the fair value of SINOVAC BIOTECH’s share is around $2.6. However, the current market price of SINOVAC BIOTECH stock is at $6.5, indicating that it is overvalued by 151.3%. More…
Peers
It has many competitors such as Sunshine Guojian Pharmaceutical (Shanghai) Co Ltd, Onxeo SA, and Genfit SA, all of which are well-known in the biopharmaceutical industry. Sinovac Biotech Ltd is a highly respected company due to its innovative research and development and impeccable safety standards.
– Sunshine Guojian Pharmaceutical (Shanghai) Co Ltd ($SHSE:688336)
Sunshine Guojian Pharmaceutical (Shanghai) Co Ltd is a Chinese pharmaceutical and healthcare company focused on the production, research, and development of traditional Chinese medicines. The company has a strong presence in the Chinese medicines market, and currently has a market cap of 11.36B as of 2023. In addition, the company has a strong financial performance with a Return on Equity of 1.07%. This indicates that the company has been able to generate a good return on its investments and is a reliable investment choice.
– Onxeo SA ($LTS:0NWK)
Onxeo SA is a biotechnology company focused on the research, development, and commercialization of innovative drugs for the treatment of cancer. The company has a current market capitalization of 23.41 million dollars, which is considered small when compared to larger companies within the healthcare sector. Onxeo’s Return on Equity (ROE) is -40.94%, which indicates that the company has been unable to generate profits from its investments, although it may being making progress on its research and development activities.
– Genfit SA ($OTCPK:GNFTF)
Fit SA is a French-based global healthcare company that offers a comprehensive range of health services including diagnostics, medical treatments, and patient care. It operates in more than 20 countries around the world and has a presence in Europe, North America, Asia, South America, and Africa. As of 2023, Fit SA has a market cap of 175.14 million euros, making it one of the top health care companies in the world. Its Return on Equity (ROE) is -11.92%, indicating that the company is not generating sufficient returns on its equity investments. Despite this, Fit SA remains a viable business as it is continuing to gain market share and has been expanding into new markets. Furthermore, its strong balance sheet and experienced management team make it a good long-term investment opportunity.
Summary
SINOVAC BIOTECH reported a significant decrease in earnings for the second quarter of 2023, with total revenue dropping 88.4% year-on-year and net income declining 96.5%. Despite these poor results, investors should take into consideration the long-term potential of the company. SINOVAC BIOTECH has a diverse product portfolio, and its recent collaborations with major players in the industry could be beneficial to its growth in the future.
It is also important to note that the healthcare sector is highly cyclical and so the negative results may be short-lived. Investors should conduct their own research and analysis before investing in SINOVAC BIOTECH.
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