CNJ.TO  Cangene Cp

Exchange

TSX

Sector

Life Sciences

Industry

Market Cap.

240.3M

Vuru Grade

37.31/100

Current Price

$3.60
0.00 (0.00%)

Growth Price

$4.52
Undervalued by 25.65%

Stability Price

$2.17
Overvalued by 39.67%

Company Metrics

  • P/E 169
  • P/S 2.08
  • P/B 1.25
  • EPS -0.15
  • Cash ROIC 5.13%
  • Cash Ratio 1.47
  • Dividend 0 / 0%
  • Avg. Vol. 255,197.00
  • Shares 66.75M
  • Market Cap. 240.3M

Company Description

Cangene Corporation develops, manufactures, and commercializes therapeutics for infectious diseases or biodefence applications in the United States, Canada, and internationally. The company develops hyperimmunes, which are concentrated specialty antibody preparations made from plasma; and recombinant biopharmaceuticals that are therapeutic proteins made by introducing a particular gene into a host... more


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

News

Emergent BioSolutions pays $222M to acquire life sciences firm Cangene Corp.
Washington Post - Dec 12, 2013
Emergent BioSolutions established itself as a leading biodefense company by selling Anthrax vaccines en masse to the federal government in the wake of Sept.
Cangene bought by US rival for $236-million, latest Canadian biotech taken private - The Globe and Mail
Cangene to be acquired by Emergent BioSolutions - CBC.ca
Emergent BioSolutions Completes Acquisition of Cangene Corporation
Business Wire (press release) - Feb 21, 2014
ROCKVILLE, Md.--(BUSINESS WIRE)--Emergent BioSolutions Inc. (NYSE: EBS) announced today that it has completed its acquisition of Cangene Corporation for $222 million in cash. After payment by Cangene of transaction related costs, Emergent expects ...
Cangene Appoints New Chief Financial Officer
Canada NewsWire (press release) - Jun 15, 2012
WINNIPEG, June 15, 2012 /CNW/ - Cangene Corporation, a biopharmaceutical company primarily focused on hospital based therapeutics, today announces that it has appointed Mr. Jeff Lamothe as its new Chief Financial Officer, to be effective August 1, ...
Cangene To Be Acquired By Emergent BioSolutions For US$222 Million
Canada NewsWire (press release) - Dec 11, 2013
11, 2013 /CNW/ - Cangene Corporation ("Cangene") (TSX: CNJ) today announced the signing of a definitive agreement under which Emergent BioSolutions ("Emergent") (NYSE: EBS) of Rockville, Maryland will acquire Cangene in an all-cash transaction ...
Cangene takeover might not be a bad thing
Winnipeg Free Press - Dec 20, 2013
The recently announced proposed sale of Cangene Corp. to Emergent BioSolutions Inc. of Maryland for $222 million is bringing up those concerns once again.
Cangene Granted Exclusive US Commercialization Rights for episilĀ® by Camurus AB
Canada NewsWire (press release) - Jul 9, 2012
WINNIPEG AND LUND, Sweden, July 9, 2012 /CNW/ - Cangene Corporation (Cangene) and Camurus AB announced today that they have entered into an agreement under which Cangene bioPharma Inc., a wholly-owned subsidiary of Cangene, will have ...
Cangene Names John A. Sedor as President and Chief Executive Officer
PR Newswire (press release) - Aug 16, 2011
16, 2011 /PRNewswire/ - Cangene Corporation (TSX: CNJ), a biopharmaceutical company primarily focused on specialty plasma products, today announces that its board of directors has unanimously appointed John A. Sedor as president and chief executive ...
Ipsen and Inspiration Biopharmaceuticals Announce Closing of the IB1001 Sale ...
Business Wire (press release) - Feb 20, 2013
Ipsen (Paris:IPN) (Euronext: IPN; ADR: IPSEY) and Inspiration Biopharmaceuticals Inc. (Inspiration) today announced the closing of the sale of the proprietary hemophilia B product, IB1001 (recombinant FIX), to Cangene Corporation (TSX: CNJ) (Cangene).
CANGENE bioPHARMA FACILITY RENOVATION IS COMPLETE AND OPERATING AT EXPANDED ...
PR Newswire (press release) - May 2, 2011
BALTIMORE AND WINNIPEG, May 2 /PRNewswire/ - Cangene Corporation's Baltimore-based injectable pharmaceutical contract-manufacturing subsidiary, Cangene bioPharma, Inc., has completed a US$11-million renovation of its sterile filling and support ...
Emergent BioSolutions Announces Executive Management Team of New Spin-Off ...
GlobeNewswire (press release) - Jan 21, 2016
Mr. Lamothe assumed this role in 2014 when Emergent concluded the acquisition of Cangene Corporation, where he was Chief Financial Officer.
Growth Rate Assumed by Market

We did a reverse valuation to calculate the growth rate the market is assuming for CNJ.TO 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 CNJ.TO'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.

$3.60 Current Price

$4.52 Growth Price (DCF)

Undervalued by 25.65%


Growth Rate Assumed by Market: -23.93%


Future Free Cash Flow Growth Rate: 0.0%


Discount Rate: 15.0%


Show Free Cash Flow numbers

$2.17 Stability Price (EPV)

Overvalued by 39.67%


Discount Rate: 15.0%

$0.59 NCA Price

Overvalued by 83.53%

$5.65 Book Price

Undervalued by 56.95%


Poor Cash Return on Invested Capital over the past 5 years

CNJ.TO has been unable to consistently generate sufficient returns from its investments in buildings, projects and equipment. This could be due to poor management, lack of an economic moat or the capital intensive nature of the business.

CNJ.TO has only created $5.13 of cash for every $100 invested.
Figures in CAD. Fiscal year ends in July
20092010201120122013
Free Cash Flow 47.85M -973,000.00 8.17M -9.37M 16.69M
divided by
Invested Capital 251.11M 277.96M 193.96M 177.77M 208.52M
Cash ROIC 19.05% -0.35% 4.21% -5.27% 8.00%

Poor Return on Equity over the past 5 years

CNJ.TO has shown an inability to deliver strong results for shareholders. This could be due to poor management, CNJ.TO operating in a highly competitive industry, or having a weak business in general.

CNJ.TO has only generated $2.05 of Earnings for every $100 of Shareholders' Equity.
Figures in CAD. Fiscal year ends in July
20092010201120122013
Net Income 59.87M 8.40M 1.51M -28.29M 1.36M
divided by
Stockholders' Equity 291.69M 296.61M 223.20M 195.35M 196.91M
Return on Equity 20.52% 2.83% 0.68% -14.48% 0.69%

Mediocre Business Performance over the past 10 years

CNJ.TO isn't a strong business and might be consistently attempting to fuel growth with debt or has trouble staying profitable. The lack of predictability in free cash flow should be concerning for the reliability of future earnings.

CNJ.TO has been unable to consistently create value for shareholders.
Figures in CAD. Fiscal year ends in July
2004200520062007200820092010201120122013
Free Cash Flow 14.24M -22.70M -6.53M -14.69M 21.23M 47.85M -973,000.00 8.17M -9.37M 16.69M

Strong Balance Sheet

CNJ.TO is financially strong with Current Assets covering Total Liabilities. It's in a fairly liquid position and dependent on the amount and saleability of any inventory; it may have the financial security to survive an economic downturn.
Figures in CAD. Fiscal year ends in July
2004200520062007200820092010201120122013
Cash 4.00M 3.99M 7.69M - 14.68M 56.13M 41.83M 45.18M 35.87M 46.41M
Current Assets 47.72M 69.32M 69.31M 100.48M 133.22M 199.81M 173.14M 146.99M 122.43M 129.50M
Total Assets 201.03M 209.42M 225.15M 256.75M 282.82M 345.19M 349.30M 266.10M 235.32M 286.52M
Current Liabilities 26.99M 37.54M 26.22M 30.99M 32.73M 37.95M 29.51M 26.96M 21.68M 31.59M
Total Liabilities 40.89M 59.73M 59.22M 46.09M 44.20M 53.50M 52.69M 42.90M 39.97M 89.61M
Stockholder' Equity 160.13M 149.69M 165.94M 210.67M 238.62M 291.69M 296.61M 223.20M 195.35M 196.91M
Current Ratio 1.77 1.85 2.64 3.24 4.07 5.27 5.87 5.45 5.65 4.10
TL-to-TA 0.20 0.29 0.26 0.18 0.16 0.15 0.15 0.16 0.17 0.31

Low or No Reinvestment of Profits over the past 10 years

CNJ.TO has either been retaining a small amount of their earnings or has done so inconsistently. A lack of consistency could be due to CNJ.TO operating at a loss or them having such a strong economic moat they feel comfortable spending profits on growth. Be wary of future prospects and if applicable, inspect the moat's sustainability.
Figures in CAD. Fiscal year ends in July
2004200520062007200820092010201120122013
Retained Earnings 139.88M 121.77M 134.92M 145.00M 172.90M 227.27M 233.03M 172.34M 144.05M 145.41M
Retained Earnings Growth - -12.95% 10.79% 7.47% 19.24% 31.44% 2.54% -26.05% -16.41% 0.94%

Competitive Industry over the past 10 years

CNJ.TO is likely operating in an industry with medium to low barriers to entry. This may mean that CNJ.TO doesn't have a characteristic that's hard to replicate, such as exclusive distribution, branding or the ability to keep costs low. If Gross Margins are at least satisfactory, it's likely that CNJ.TO invests heavily in R&D and Sales, General & Administrative expenses.

Only $5.34 of every $100 of Revenue have been profit, on average over the past 10 years.
Figures in CAD. Fiscal year ends in July
2004200520062007200820092010201120122013
Net Income 32.54M -15.46M 13.14M 10.08M 29.63M 59.87M 8.40M 1.51M -28.29M 1.36M
divided by
Revenue 156.90M 102.73M 109.34M 92.40M 166.06M 238.75M 158.86M 149.71M 111.03M 127.32M
Net Profit Margin 20.74% -15.05% 12.02% 10.91% 17.84% 25.08% 5.29% 1.01% -25.48% 1.07%

Strong Pricing Power over the past 10 years

CNJ.TO 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.

$48.17 of every $100 worth of sales have been Gross Profit, on average over the past 10 years.
Figures in CAD. Fiscal year ends in July
2004200520062007200820092010201120122013
Gross Profit 91.83M 68.44M 68.70M 50.01M 77.71M 119.93M 67.20M 53.70M 25.86M 52.29M
divided by
Revenue 156.90M 102.73M 109.34M 92.40M 166.06M 238.75M 158.86M 149.71M 111.03M 127.32M
Gross Margin 58.53% 66.63% 62.83% 54.12% 46.80% 50.23% 42.30% 35.87% 23.29% 41.07%

High Capital Intensity over the past 10 years

CNJ.TO 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.

179.23% of Profits are being spent on Capital Expenditures, like Property, Plant, & Equipment, required to run the business.
Figures in CAD. Fiscal year ends in July
2004200520062007200820092010201120122013
Capital Expenditure 24.88M 13.39M 26.99M 9.45M 7.53M 12.74M 23.23M 7.53M 3.71M 3.20M
divided by
Net Income 32.54M -15.46M 13.14M 10.08M 29.63M 59.87M 8.40M 1.51M -28.29M 1.36M
Capital Expenditure Ratio 76.46% -86.61% 205.33% 93.75% 25.40% 21.28% 276.66% 499.01% -13.12% 235.94%

No Dividend History over the past 10 years

CNJ.TO has never distributed dividends or has recently suspended their dividend distribution.
Figures in CAD. Fiscal year ends in July
2004200520062007200820092010201120122013
Dividend Paid - - - - - - - - - -
divided by
Shares Outstanding 65.08M 75.46M 65.72M 67.23M 70.45M 69.46M 68.41M 66.75M 66.75M 67.34M
Dividend Paid Per Share - - - - - - - - - -
Price at Year End 11.15 10.20 8.18 6.90 5.92 5.00 3.05 1.98 1.84 3.39
Dividend Yield - - - - - - - - - -

History of Stock Buybacks over the past 10 years

CNJ.TO 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 CAD. Fiscal year ends in July
2004200520062007200820092010201120122013
Shares Outstanding 65.08M 75.46M 65.72M 67.23M 70.45M 69.46M 68.41M 66.75M 66.75M 67.34M
Stock Bought Back - -13.75% 14.83% -2.25% -4.58% 1.42% 1.54% 2.49% - -0.88%
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