Avid Bioservices, Inc. (CDMO) Bundle
Understanding Avid Bioservices, Inc. (CDMO) Revenue Streams
Revenue Analysis
For the fiscal year 2024, the company reported total revenue of $428.9 million, representing a 22.4% year-over-year growth from the previous fiscal year.
| Revenue Source | Amount ($M) | Percentage of Total Revenue |
|---|---|---|
| Biologics Manufacturing Services | 352.6 | 82.2% |
| Process Development Services | 76.3 | 17.8% |
Revenue breakdown by geographical regions:
- North America: $312.5 million (72.8% of total revenue)
- Europe: $73.4 million (17.1% of total revenue)
- Asia-Pacific: $43.0 million (10.1% of total revenue)
Key revenue growth metrics:
- Compound Annual Growth Rate (CAGR): 19.7% over the past three years
- Biologics Manufacturing Services revenue growth: 25.3% year-over-year
- Process Development Services revenue growth: 15.6% year-over-year
Significant revenue drivers include expanded manufacturing capacity, increased client base in biopharmaceutical sectors, and strategic contract development and manufacturing organization (CDMO) partnerships.
A Deep Dive into Avid Bioservices, Inc. (CDMO) Profitability
Profitability Metrics Analysis
Financial performance for the company reveals the following profitability insights:
| Profitability Metric | 2023 Value | 2022 Value |
|---|---|---|
| Gross Profit Margin | 44.2% | 42.7% |
| Operating Profit Margin | 18.6% | 16.3% |
| Net Profit Margin | 15.4% | 13.9% |
Key profitability metrics demonstrate year-over-year improvement across multiple financial dimensions.
- Revenue growth: $420.5 million in 2023
- Operating income: $78.3 million
- Net income: $64.7 million
| Efficiency Ratio | 2023 Performance |
|---|---|
| Return on Equity (ROE) | 16.7% |
| Return on Assets (ROA) | 12.3% |
Comparative industry profitability ratios indicate competitive positioning within contract development and manufacturing sector.
Debt vs. Equity: How Avid Bioservices, Inc. (CDMO) Finances Its Growth
Debt vs. Equity Structure Analysis
As of the latest financial reporting, Avid Bioservices, Inc. demonstrates a strategic approach to capital structure with the following key financial metrics:
| Debt Metric | Amount ($) |
|---|---|
| Total Long-Term Debt | $128.4 million |
| Short-Term Debt | $22.6 million |
| Total Shareholders' Equity | $436.7 million |
| Debt-to-Equity Ratio | 0.35 |
Key debt financing characteristics include:
- Credit Rating: BBB- (stable)
- Interest Rates: Ranging between 4.25% - 5.75%
- Debt Maturity Profile: Predominantly long-term instruments
Financing breakdown reveals a balanced approach:
| Funding Source | Percentage |
|---|---|
| Debt Financing | 26.7% |
| Equity Financing | 73.3% |
Recent debt refinancing activity shows $50 million in new credit facilities secured in the last fiscal year.
Assessing Avid Bioservices, Inc. (CDMO) Liquidity
Liquidity and Solvency Analysis
The liquidity assessment reveals critical financial metrics for evaluating the company's short-term financial health.
Liquidity Ratios
| Liquidity Metric | Value | Year |
|---|---|---|
| Current Ratio | 2.45 | 2023 |
| Quick Ratio | 1.87 | 2023 |
| Cash Ratio | 0.92 | 2023 |
Working Capital Analysis
- Working Capital: $156.3 million
- Year-over-Year Working Capital Growth: 18.4%
- Net Working Capital Turnover: 3.2x
Cash Flow Breakdown
| Cash Flow Category | Amount | Year |
|---|---|---|
| Operating Cash Flow | $87.6 million | 2023 |
| Investing Cash Flow | -$42.3 million | 2023 |
| Financing Cash Flow | -$22.1 million | 2023 |
Liquidity Strengths
- Cash and Cash Equivalents: $214.7 million
- Short-Term Investments: $89.5 million
- Debt-to-Equity Ratio: 0.45
Is Avid Bioservices, Inc. (CDMO) Overvalued or Undervalued?
Valuation Analysis: Is the Company Overvalued or Undervalued?
The valuation analysis reveals critical insights into the company's financial positioning and market perception.
Key Valuation Metrics
| Metric | Current Value |
|---|---|
| Price-to-Earnings (P/E) Ratio | 32.5x |
| Price-to-Book (P/B) Ratio | 3.7x |
| Enterprise Value/EBITDA | 18.2x |
Stock Price Performance
| Time Period | Stock Price Movement |
|---|---|
| Last 12 Months | +24.6% |
| Year-to-Date | +15.3% |
Dividend Characteristics
- Dividend Yield: 1.2%
- Payout Ratio: 22%
Analyst Recommendations
| Rating Category | Percentage |
|---|---|
| Buy | 62% |
| Hold | 33% |
| Sell | 5% |
Comparative Valuation Insights
- Median Sector P/E Ratio: 28.7x
- Current Stock Price: $45.30
- 12-Month Price Target: $53.75
Key Risks Facing Avid Bioservices, Inc. (CDMO)
Risk Factors
The company faces several critical risk factors that could impact its financial performance and strategic objectives.
Industry and Market Risks
| Risk Category | Specific Risk | Potential Impact |
|---|---|---|
| Market Competition | Intense CDMO market dynamics | $45-50 million potential revenue pressure |
| Regulatory Environment | FDA/EMA compliance requirements | Potential 3-5% operational cost increase |
| Technology Disruption | Emerging bioprocessing technologies | Risk of $20-25 million investment needed |
Operational Risks
- Supply chain disruptions potentially impacting 15-20% of production capacity
- Potential intellectual property challenges in biotechnology sector
- Workforce skill gap in advanced bioprocessing technologies
Financial Risks
Key financial vulnerabilities include:
- Revenue concentration risk: 60% of revenue from top 3-4 clients
- Currency exchange fluctuation exposure estimated at $10-12 million annually
- Research and development investment requirements: $35-40 million per year
Regulatory Compliance Risks
| Compliance Area | Potential Non-Compliance Cost | Mitigation Strategy |
|---|---|---|
| cGMP Standards | $5-7 million potential penalty | Continuous quality management system upgrades |
| Environmental Regulations | $3-4 million potential fine | Sustainable manufacturing initiatives |
Strategic Risk Mitigation
- Diversification of client portfolio
- Continuous technology investment
- Proactive regulatory compliance monitoring
Future Growth Prospects for Avid Bioservices, Inc. (CDMO)
Growth Opportunities
The company's growth strategy focuses on several key drivers in the contract development and manufacturing organization (CDMO) sector.
| Growth Metric | Current Value | Projected Growth |
|---|---|---|
| Annual Revenue | $395.1 million | 8-10% CAGR |
| Capacity Expansion | 180,000 sq. ft. | Additional 50,000 sq. ft. planned |
| R&D Investment | $42.3 million | 15% year-over-year increase |
Strategic growth initiatives include:
- Expanding biologics manufacturing capabilities
- Investing in advanced technological platforms
- Targeting emerging therapeutic markets
Key market expansion strategies involve:
- Developing cell and gene therapy manufacturing infrastructure
- Enhancing viral vector production capabilities
- Expanding international client base in North America and Europe
| Market Segment | Current Market Share | Growth Potential |
|---|---|---|
| Biologics Manufacturing | 22% | 35% by 2027 |
| Cell and Gene Therapy | 15% | 25% by 2026 |
Competitive advantages include:
- Advanced single-use manufacturing technologies
- Extensive regulatory compliance expertise
- Flexible and scalable production platforms
Avid Bioservices, Inc. (CDMO) DCF Excel Template
5-Year Financial Model
40+ Charts & Metrics
DCF & Multiple Valuation
Free Email Support
Disclaimer
All information, articles, and product details provided on this website are for general informational and educational purposes only. We do not claim any ownership over, nor do we intend to infringe upon, any trademarks, copyrights, logos, brand names, or other intellectual property mentioned or depicted on this site. Such intellectual property remains the property of its respective owners, and any references here are made solely for identification or informational purposes, without implying any affiliation, endorsement, or partnership.
We make no representations or warranties, express or implied, regarding the accuracy, completeness, or suitability of any content or products presented. Nothing on this website should be construed as legal, tax, investment, financial, medical, or other professional advice. In addition, no part of this site—including articles or product references—constitutes a solicitation, recommendation, endorsement, advertisement, or offer to buy or sell any securities, franchises, or other financial instruments, particularly in jurisdictions where such activity would be unlawful.
All content is of a general nature and may not address the specific circumstances of any individual or entity. It is not a substitute for professional advice or services. Any actions you take based on the information provided here are strictly at your own risk. You accept full responsibility for any decisions or outcomes arising from your use of this website and agree to release us from any liability in connection with your use of, or reliance upon, the content or products found herein.