Arbutus Biopharma Corporation
Arbutus Biopharma Corporation Fundamental Analysis
Arbutus Biopharma Corporation (ABUS) shows moderate financial fundamentals with a PE ratio of 5.24, profit margin of 83.95%, and ROE of 1.29%. The company generates $0.2B in annual revenue with weak year-over-year growth of 1.28%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 84.7/100 based on profitability, valuation, growth, and balance sheet metrics. The B+ grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze ABUS's fundamental strength across five key dimensions:
Efficiency Score
ExcellentABUS demonstrates superior asset utilization.
Valuation Score
ExcellentABUS trades at attractive valuation levels.
Growth Score
ModerateABUS shows steady but slowing expansion.
Financial Health Score
ExcellentABUS maintains a strong and stable balance sheet.
Profitability Score
ModerateABUS maintains healthy but balanced margins.
Key Financial Metrics
Is ABUS Expensive or Cheap?
P/E Ratio
ABUS trades at 5.24 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, ABUS's PEG of 0.00 indicates potential undervaluation.
Price to Book
The market values Arbutus Biopharma Corporation at 3.24 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 5.64 times EBITDA. This is generally considered low.
How Well Does ABUS Make Money?
Net Profit Margin
For every $100 in sales, Arbutus Biopharma Corporation keeps $83.95 as profit after all expenses.
Operating Margin
Core operations generate 80.79 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $1.29 in profit for every $100 of shareholder equity.
ROA
Arbutus Biopharma Corporation generates $57.99 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Arbutus Biopharma Corporation generates limited operating cash flow of $-35.02M, signaling weaker underlying cash strength.
Free Cash Flow
Arbutus Biopharma Corporation generates weak or negative free cash flow of $-35.02M, restricting financial flexibility.
FCF Per Share
Each share generates $-0.18 in free cash annually.
FCF Yield
ABUS converts -4.00% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
5.24
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.005
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.24
vs 25 benchmark
P/S Ratio
Price to sales ratio
4.49
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.002
vs 25 benchmark
Current Ratio
Current assets to current liabilities
54.26
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
1.29
vs 25 benchmark
ROA
Return on assets percentage
0.58
vs 25 benchmark
ROCE
Return on capital employed
0.57
vs 25 benchmark
How ABUS Stacks Against Its Sector Peers
| Metric | ABUS Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 5.24 | 29.06 | Better (Cheaper) |
| ROE | 129.32% | 733.00% | Weak |
| Net Margin | 83.95% | -53111.00% (disorted) | Strong |
| Debt/Equity | 0.00 | 0.38 | Strong (Low Leverage) |
| Current Ratio | 54.26 | 4.02 | Strong Liquidity |
| ROA | 57.99% | -19397.00% (disorted) | Strong |
ABUS outperforms its industry in 5 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Arbutus Biopharma Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-19.38%
Industry Style: Defensive, Growth, Innovation
DecliningEPS CAGR
79.20%
Industry Style: Defensive, Growth, Innovation
High GrowthFCF CAGR
69.50%
Industry Style: Defensive, Growth, Innovation
High Growth