Societal Cdmo Intrinsic Value Calculation – SOCIETAL CDMO Reports Second Quarter Financial Results for FY2023
August 27, 2023
🌥️Earnings Overview
SOCIETAL CDMO ($NASDAQ:SCTL) announced their financial results for the second quarter of FY2023 ending August 14 2023 on June 30 2023. Total revenue for the quarter was USD 21.8 million, representing a 5.8% reduction compared to the same period in the previous year. Net income for the quarter was reported at USD -3.2 million, slightly lower than the loss of USD -3.1 million reported in the same period last year.
Price History
This represented a 6.1% drop from the previous closing price of $0.8. Analysts attributed the sharp decline in the stock price to investors’ concerns about the company’s quarterly earnings and revenue figures. This suggests that SOCIETAL CDMO is managing its resources more efficiently and prudently. Management has also announced a new cost-cutting program that will focus on reducing company expenses while maintaining revenue growth.
SOCIETAL CDMO’s second quarter results demonstrate that the company is making progress towards becoming more financially stable and efficient. Investors are optimistic that the company’s new strategies will lead to improved financial performance in the future. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Societal Cdmo. More…
| Total Revenues | Net Income | Net Margin |
| 89.19 | -20.39 | -19.5% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Societal Cdmo. More…
| Operations | Investing | Financing |
| 0.84 | -10.56 | -1.05 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Societal Cdmo. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 148.74 | 94.42 | 0.64 |
Key Ratios Snapshot
Some of the financial key ratios for Societal Cdmo are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 3.6% | -77.9% | -8.4% |
| FCF Margin | ROE | ROA |
| -10.9% | -8.5% | -3.2% |
Analysis – Societal Cdmo Intrinsic Value Calculation
At GoodWhale, we have conducted an analysis of SOCIETAL CDMO‘s wellbeing. Our proprietary Valuation Line shows that the fair value of SOCIETAL CDMO share is around $1.2. However, the current market price of SOCIETAL CDMO stock is only $0.7, which is an undervaluation of 42.4%. This provides an excellent opportunity for investors to capitalize on the underperformance of SOCIETAL CDMO’s stock. More…
Peers
It is one of the leading companies in the field, competing with major industry players such as Shionogi & Co Ltd, Windlas Biotech Ltd, and Lifecore Biomedical Inc. The CDMO provides its clients end-to-end solutions for drug development and manufacturing. It has state-of-the-art facilities and the latest technology to support its clients in the development of their products.
– Shionogi & Co Ltd ($TSE:4507)
Shionogi & Co Ltd is a leading pharmaceutical company located in Japan. The company has a market cap of 1.8T as of 2023, making it one of the largest companies in Japan. Its Return on Equity (ROE) is 15.21%, which is higher than the average in the industry and is a sign of the company’s strong financial health. Shionogi & Co Ltd specializes in developing, manufacturing, and marketing pharmaceuticals and has over 100 years of experience in the pharmaceutical industry. It is one of the most successful and well-respected pharmaceutical companies in the world, and its success is reflected in its market cap and ROE figures.
– Windlas Biotech Ltd ($BSE:543329)
Windlas Biotech Ltd is a pharmaceutical and biotechnology company that focuses on developing, manufacturing, and marketing innovative solutions to diseases and health problems throughout the world. It has a market cap of 4.97B as of 2023, reflecting its long-term potential and growth prospects. The company’s Return on Equity (ROE) of 8.66% indicates its ability to generate profits from its investments and operations. With its cutting-edge research, strong portfolio of products, and efficient operations, Windlas Biotech Ltd is poised to become a major player in the global healthcare industry.
– Lifecore Biomedical Inc ($NASDAQ:LFCR)
Lifecore Biomedical Inc is a medical device manufacturer that specializes in producing medical implants. Its products are designed to restore physical function and quality of life for patients who have suffered from injury or trauma. With a market cap of 114.61M as of 2023, the company has seen an impressive growth in its stock price over the past few years. Despite this impressive growth, Lifecore Biomedical Inc also has a negative Return on Equity (ROE) of -38.21%. This indicates that the company is not generating enough returns to cover its debt obligations. While this is not ideal, it may be indicative of the ongoing investments the company is making in order to expand its product offerings, improve its technologies and increase its market share.
Summary
SOCIETAL CDMO reported total revenue of USD 21.8 million for the second quarter of FY2023, 5.8% lower than the same period in the previous year. This resulted in a net loss of USD -3.2 million, slightly worse than the same period last year. On the same day, the company’s stock price dropped.
This indicates that investors may be hesitant to invest in SOCIETAL CDMO due to its recent financial performance. Investors should evaluate the company’s long-term prospects, including its pipeline of products and overall financial situation, before making any investment decisions.
