Theravance Biopharma, Inc.
Theravance Biopharma, Inc. Fundamental Analysis
Theravance Biopharma, Inc. (TBPH) shows strong financial fundamentals with a PE ratio of 7.70, profit margin of 98.54%, and ROE of 46.03%. The company generates $0.1B in annual revenue with strong year-over-year growth of 66.92%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 89.5/100 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 TBPH's fundamental strength across five key dimensions:
Efficiency Score
ExcellentTBPH demonstrates superior asset utilization.
Valuation Score
ExcellentTBPH trades at attractive valuation levels.
Growth Score
ModerateTBPH shows steady but slowing expansion.
Financial Health Score
ExcellentTBPH maintains a strong and stable balance sheet.
Profitability Score
ExcellentTBPH achieves industry-leading margins.
Key Financial Metrics
Is TBPH Expensive or Cheap?
P/E Ratio
TBPH trades at 7.70 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, TBPH's PEG of 0.03 indicates potential undervaluation.
Price to Book
The market values Theravance Biopharma, Inc. at 2.75 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 1109.10 times EBITDA. This signals the market has high growth expectations.
How Well Does TBPH Make Money?
Net Profit Margin
For every $100 in sales, Theravance Biopharma, Inc. keeps $98.54 as profit after all expenses.
Operating Margin
Core operations generate -12.33 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $46.03 in profit for every $100 of shareholder equity.
ROA
Theravance Biopharma, Inc. generates $21.81 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Theravance Biopharma, Inc. generates strong operating cash flow of $241.47M, reflecting robust business health.
Free Cash Flow
Theravance Biopharma, Inc. generates strong free cash flow of $241.43M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $4.69 in free cash annually.
FCF Yield
TBPH converts 28.91% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
7.70
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.03
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.75
vs 25 benchmark
P/S Ratio
Price to sales ratio
7.68
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.25
vs 25 benchmark
Current Ratio
Current assets to current liabilities
10.93
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.46
vs 25 benchmark
ROA
Return on assets percentage
0.22
vs 25 benchmark
ROCE
Return on capital employed
-0.03
vs 25 benchmark
How TBPH Stacks Against Its Sector Peers
| Metric | TBPH Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 7.70 | 28.45 | Better (Cheaper) |
| ROE | 46.03% | 763.00% | Weak |
| Net Margin | 98.54% | -45265.00% (disorted) | Strong |
| Debt/Equity | 0.25 | 0.34 | Strong (Low Leverage) |
| Current Ratio | 10.93 | 2795.60 | Strong Liquidity |
| ROA | 21.81% | -16588.00% (disorted) | Strong |
TBPH 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 Theravance Biopharma, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
85.30%
Industry Style: Defensive, Growth, Innovation
High GrowthEPS CAGR
147.19%
Industry Style: Defensive, Growth, Innovation
High GrowthFCF CAGR
100.00%
Industry Style: Defensive, Growth, Innovation
High Growth