CBPO  China Biologic Products Inc.

Exchange

NASDAQ

Sector

Health Care

Industry

Biotechnology: Biological Products (No Diagnostic Substances)

Market Cap.

2.96B

Vuru Grade

75.22/100

Current Price

$109.10
-1.05 (-0.95%)

Growth Price

$48.43
Overvalued by 55.61%

Stability Price

$22.80
Overvalued by 79.10%

Company Metrics

  • P/E 29.91
  • P/S 9.01
  • P/B 6.28
  • EPS 3.65
  • Cash ROIC 25.40%
  • Cash Ratio 2.50
  • Dividend 0 / 0%
  • Avg. Vol. 151,905.00
  • Shares 27.13M
  • Market Cap. 2.96B

Company Description

China Biologic Products, Inc., a biopharmaceutical company, engages in the research, development, production, and manufacture of plasma-based pharmaceutical products in the People's Republic of China. It offers Human Albumin for the treatment of shock caused by blood loss trauma or burn; raised intracranial pressure caused by hydrocephalus or trauma; oedema or ascites caused by hepatocirrhosis and... more


Download 10 Years of Financial Statements:
Income Statement   Balance Sheet   Cash Flow

News

China Biologic Products Inc. Bottom Line Advances 31% In Q4
Nasdaq - Feb 23, 2017
(RTTNews.com) - China Biologic Products Inc. ( CBPO ) revealed a profit for its fourth quarter that increased compared to the same period last year.
China Biologic Products posts 4Q profit - Yahoo Finance
China Biologic Products Inc (CBPO) Releases Earnings Results, Beats ... - Highland Mirror
China Biologic Products' (CBPO) CEO David Gao on Q4 2016 Results - Earnings ...
Seeking Alpha - 2 hours ago
Today you will hear from China Biologics Chairman and Chief Executive Officer, Mr. David Gao, who will start off the call with a review of recent Company developments, strategies, and basic operating results; followed by the Company's Senior Vice ...
The China Biologic Products, Inc. (CBPO) to Release Quarterly Earnings on Thursday - DailyQuint
China Biologic Products: An Alternative To The US Sector
Seeking Alpha - May 17, 2016
China Biologic Products Inc. is a mid cap biotech focused on plasma based technology. The firm manufactures twenty products for use in emergency rooms and in the treatment of immuno-deficiency related illnesses.
Option Market: China Biologic Products Inc Risk Hits A Reduced Level
CML News - Feb 21, 2017
We're going to look at a proprietary risk rating for the next 30-days built by Capital Market Laboratories (CMLviz) based on a large number of interactions of data points, many of which come directly from the option market for China Biologic Products ...
China Biologic Products Q4 2014 Earnings: Primed For A Sell-Off?
Seeking Alpha (registration) - Feb 23, 2015
The stock has risen to record highs since my initial report. Shares traded around $80 earlier in the week, up 47% from when my SA article was published last year.
China Biologic Acquires Full Ownership of Guizhou Taibang
PR Newswire (press release) - Oct 26, 2016
BEIJING, Oct. 26, 2016 /PRNewswire/ -- China Biologic Products, Inc. (NASDAQ: CBPO, "China Biologic" or the "Company"), a leading fully integrated plasma-based biopharmaceutical company in China, today announced that Guizhou Taibang Biological ...
Option Trading: China Biologic Products Inc (NASDAQ:CBPO) Powerful Short Put ...
CML News - Feb 22, 2017
We find a very powerful outcome examining short put spreads for China Biologic Products Inc when we use a clever earnings risk management approach.
China Biologic Products Inc (NASDAQ:CBPO) Stock Technicals Hit Strength
CML News - Feb 6, 2017
This is a technical analysis stock rating for China Biologic Products Inc (NASDAQ:CBPO) . The company has a four bull technical rating which indicates some strength.
China Biologic Products: Lucrative Business And Favorable Technical Setup ...
Seeking Alpha - Dec 24, 2015
Blood plasma is the liquid portion of blood, which contains wide array of vital proteins such as blood cells, platelet and others.
China Biologic Receives CFDA Clinical Trial Approval for Human Coagulation ...
PR Newswire (press release) - Sep 19, 2016
BEIJING, Sept. 19, 2016 /PRNewswire/ -- China Biologic Products, Inc. (NASDAQ: CBPO, "China Biologic" or the "Company"), a leading fully integrated plasma-based biopharmaceutical company in China, today announced that Shandong Taibang Biological ...
Growth Rate Assumed by Market

We did a reverse valuation to calculate the growth rate the market is assuming for CBPO to be considered fairly valued at its current market price. It's useful to compare this to the growth rate we're assuming for the Growth Price.

Future Free Cash Flow Growth Rate

This is the annual growth rate we've applied to calculate CBPO's Free Cash Flow for the next 10 years. To calculate it, we looked at several time periods of the last 10 years. Feel free to adjust it, but we limit the initial growth rate to 20% and slow it down over the years. Otherwise, long-term sustainability issues come into play.

Discount Rate

The discount rate is the annual rate of return an investor requires to take the risk of investing in a single stock. To account for that risk, this should be above 8-10%, as this is the avg. annual rate of return for the S&P500 over the past 100 years.

$109.10 Current Price

$48.43 Growth Price (DCF)

Overvalued by 55.61%


Growth Rate Assumed by Market: 40.49%


Future Free Cash Flow Growth Rate: 15.0%


Discount Rate: 15.0%


Show Free Cash Flow numbers

$22.80 Stability Price (EPV)

Overvalued by 79.10%


Discount Rate: 15.0%

$9.24 NCA Price

Overvalued by 91.53%

$85.51 Book Price

Overvalued by 21.62%


Excellent Cash Return on Invested Capital over the past 5 years

CBPO has efficiently invested its financial resources in buildings, projects, and equipment, resulting in strong returns. Annual Reports can be useful in identifying the cause of one-time events and future sustainability.

CBPO has created $25.40 of cash for every $100 invested.
Figures in USD. Fiscal year ends in December
20122013201420152016
Free Cash Flow 43.15M 52.48M 71.64M 57.10M 72.25M
divided by
Invested Capital 133.72M 189.60M 245.35M 334.87M 347.75M
Cash ROIC 32.27% 27.68% 29.20% 17.05% 20.78%

Excellent Return on Equity over the past 5 years

Over the past 5 years, CBPO has generated strong profits with money shareholders have invested. This is considered one of the best indicators of quality management. Beware of extremely high Return on Equity (> 50%) as this is often unsustainable.

CBPO has generated $33.82 of Earnings for every $100 of Shareholders' Equity.
Figures in USD. Fiscal year ends in December
20122013201420152016
Net Income 65.97M 76.86M 96.11M 114.11M 128.79M
divided by
Stockholders' Equity 195.47M 237.69M 212.09M 382.34M 462.20M
Return on Equity 33.75% 32.34% 45.32% 29.84% 27.87%

Excellent Business Performance over the past 10 years

CBPO has been able to maintain profitability in good times and bad. This could mean CBPO has an extremely strong business or has the ability to scale down costs when needed. This should be a fairly resilient business, but double check for future sustainability by looking at its Risk Factors in the Annual Report.

CBPO has created positive free cash flow for 9 or more of the past 10 years.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Free Cash Flow 3.31M 15.99M 48.43M 28.47M 30.08M 43.15M 52.48M 71.64M 57.10M 72.25M

Very Strong Balance Sheet

CBPO has more Cash than its Total Liabilities, resulting in $1.51 Net Cash per share. In other words, if you buy CBPO today, the price you're paying for shares is actually $107.59 because $1.51 of Cash is included in the current share price. This much Cash is very healthy. It can help CBPO sustain itself in the face of any economic turmoil and makes a stock buyback more of a possibility.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Cash 5.01M 8.81M 53.84M 64.94M 89.41M 129.61M 150.75M 80.82M 144.94M 183.77M
Current Assets 15.73M 25.20M 95.51M 132.82M 183.69M 222.16M 264.29M 279.99M 369.11M 393.37M
Total Assets 33.31M 67.17M 167.84M 220.92M 248.89M 311.05M 403.78M 446.85M 551.47M 604.96M
Current Liabilities 6.88M 18.93M 51.12M 71.45M 67.82M 47.72M 63.44M 120.68M 71.66M 73.44M
Total Liabilities 10.91M 29.33M 117.32M 121.72M 113.38M 115.58M 166.09M 234.76M 169.12M 142.76M
Stockholder' Equity 22.40M 37.84M 50.51M 99.20M 135.51M 195.47M 237.69M 212.09M 382.34M 462.20M
Current Ratio 2.29 1.33 1.87 1.86 2.71 4.66 4.17 2.32 5.15 5.36
TL-to-TA 0.33 0.44 0.70 0.55 0.46 0.37 0.41 0.53 0.31 0.24

Consistent Reinvestment of Profits over the past 10 years

CBPO has consistently retained profits. This may put CBPO in a strong position to invest for the future, by buying new machinery, investing in R&D or a number of other options. By effectively using these earnings, CBPO can greatly improve their long-term economic picture.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Retained Earnings 5.88M 15.39M 5.30M 55.74M 73.92M 119.14M 173.74M 244.66M 333.70M 438.48M
Retained Earnings Growth - 161.63% -65.55% 951.16% 32.62% 61.18% 45.83% 40.82% 36.39% 31.40%

Varying Competitive Advantage over the past 10 years

CBPO likely has a competitive advantage which prevents other companies from entering or competing in their industry. However, there is a substantial variation in their Net Profit Margins from year-to-year, which indicates inconsistent performance. Look at reasons for this inconsistency to determine the likelihood of future sustainability.

$27.56 of every $100 of Revenue have been pure profit, on average over the past 10 years.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Net Income 8.18M 11.99M 1.26M 31.54M 18.18M 65.97M 76.86M 96.11M 114.11M 128.79M
divided by
Revenue 32.40M 46.75M 119.00M 139.70M 153.09M 184.81M 203.36M 243.25M 296.46M 341.17M
Net Profit Margin 25.25% 25.64% 1.06% 22.58% 11.88% 35.70% 37.80% 39.51% 38.49% 37.75%

Strong Pricing Power over the past 10 years

CBPO has maintained substantial gross margins, suggesting that they have been able to set prices without consideration of the cost of goods sold. This potentially leaves flexibility in inflationary environments to raise prices on consumers and maintain profitability.

$71.36 of every $100 worth of sales have been Gross Profit, on average over the past 10 years.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Gross Profit 22.45M 32.71M 86.38M 102.74M 149.11M 125.98M 137.87M 163.23M 189.98M 217.13M
divided by
Revenue 32.40M 46.75M 119.00M 139.70M 153.09M 184.81M 203.36M 243.25M 296.46M 341.17M
Gross Margin 69.30% 69.97% 72.59% 73.55% 97.40% 68.16% 67.80% 67.10% 64.08% 63.64%

High Capital Intensity over the past 10 years

CBPO spends large amounts of capital buying new equipment or investing in new facilities to stay competitive. Over the long term, those costs may have to be fuelled by debt. Look at the growth of Shareholders' Equity to see if this strategy is having a positive or negative impact.

54.89% of Profits are being spent on Capital Expenditures, like Property, Plant, & Equipment, required to run the business.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Capital Expenditure 8.94M 4.03M 1.87M 10.31M 8.39M 27.95M 21.82M 21.87M 52.29M 51.01M
divided by
Net Income 8.18M 11.99M 1.26M 31.54M 18.18M 65.97M 76.86M 96.11M 114.11M 128.79M
Capital Expenditure Ratio 109.34% 33.65% 148.10% 32.70% 46.17% 42.36% 28.39% 22.76% 45.83% 39.60%

No Dividend History over the past 10 years

CBPO has never distributed dividends or has recently suspended their dividend distribution.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Dividend Paid - - - - - - - - - -
divided by
Shares Outstanding 21.86M 21.56M 22.64M 24.18M 26.65M 26.84M 27.57M 25.69M 26.57M 27.25M
Dividend Paid Per Share - - - - - - - - - -
Price at Year End - 1.99 12.05 15.74 10.46 16.85 28.92 67.67 140.91 107.52
Dividend Yield - - - - - - - - - -

History of Stock Buybacks over the past 10 years

CBPO has some history of delivering increased value for shareholders in the form of stock buybacks. These have helped improve financial metrics and increase each shareholders' relative ownership stake in the company, due to fewer shares outstanding and holding the same number of shares.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Shares Outstanding 21.86M 21.56M 22.64M 24.18M 26.65M 26.84M 27.57M 25.69M 26.57M 27.25M
Stock Bought Back - 1.41% -4.80% -6.34% -9.30% -0.69% -2.66% 7.35% -3.32% -2.50%
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