PDLI  Pdl Biopharma Inc.

Exchange

NASDAQ

Sector

Health Care

Industry

Biotechnology: Biological Products (No Diagnostic Substances)

Market Cap.

382.34M

Vuru Grade

95.80/100

Current Price

$2.38
+0.035 (+1.496%)

Growth Price

$6.35
Undervalued by 167.48%

Stability Price

$2.88
Undervalued by 21.35%

Company Metrics

  • P/E 26.099
  • P/S 3.648
  • P/B 0.503
  • EPS 0.091
  • Cash ROIC 65.48%
  • Cash Ratio 1.86
  • Dividend 0 / 0%
  • Avg. Vol. 1.89M
  • Shares 160.99M
  • Market Cap. 382.34M

Company Description

PDL BioPharma, Inc. engages in the management of antibody humanization patents and royalty assets, which consist of Queen et al. patents and license agreements with various biotechnology and pharmaceutical companies. Its Queen et al. patents primarily cover humanized antibodies, methods for humanizing antibodies, polynucleotide encoding in humanized antibodies, and methods of producing humanized a... more


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

News

PDL BioPharma: Now Is The Time To Buy
Seeking Alpha - May 18, 2017
PDL BioPharma's (NASDAQ:PDLI) shares are significantly undervalued (I believe this, and so does PDL management).
PDL BioPharma Inc (PDLI) Expected to Post Earnings of $0.05 Per Share - Chaffey Breeze
PDL BioPharma, Inc. (PDLI) rose 13.11 percent over the previous month - StandardOracle
Here's Why PDL BioPharma Inc. Imploded and Fell 32% in November
Motley Fool - Dec 2, 2016
Shares of PDL BioPharma (NASDAQ:PDLI), a biotech royalty company, imploded in November and lost 32% of their value according to data from S&P Global Market Intelligence.
Is PDL BioPharma Inc (PDLI) Going to Burn These Hedge Funds? - Insider Monkey (blog)
PDL BioPharma: 2017 Could Be A Game-Changer
Seeking Alpha - Mar 3, 2017
PDLI is a unique company in the biotech world. Traditionally, their business revolved primarily around purchasing income generating assets in the biotech sector, such as patents or providing debt structures for biotech firms at high interest rates.
PDL BioPharma Announces First Quarter 2017 Financial Results
PR Newswire (press release) - May 3, 2017
In April 2017, PDL received a royalty payment from Valeant Pharmaceuticals International, Inc. in the amount of $8.5 million for royalties earned on sales of Glumetza for the month of March.
PDL BioPharma posts 1Q profit - Yahoo Finance
Did PDL BioPharma Inc (PDLI) Create Value For Shareholders Over The Past One Year? - Simply Wall St
PDL BioPharma, Inc., reports revenue
Northern Nevada Business Weekly - May 4, 2017
PDL BioPharma, Inc.,in Incline Village, reported Total revenues of $45.4 million for the first quarter ended March 31.
PDL BioPharma Announces $30 Million Share Repurchase Program
PR Newswire (press release) - Mar 1, 2017
INCLINE VILLAGE, Nev., March 1, 2017 /PRNewswire/ -- PDL BioPharma, Inc. (PDL) (NASDAQ: PDLI) announced today that the company's board of directors has authorized the repurchase of up to $30 million of the company's common stock through March ...
PDL BioPharma's (PDLI) CEO John McLaughlin on Q4 2016 Results - Earnings Call ... - Seeking Alpha
Revenue Estimates Analysis Of PDL BioPharma, Inc. (PDLI)
News Oracle - 9 hours ago
PDL BioPharma, Inc. (PDLI) will report its next earnings on May 03 AMC. The company reported the earnings of $0.04/Share in the last quarter where the estimated EPS by analysts was $0.05/share.
Analyst's Predictions on PDL BioPharma, Inc. (PDLI), Novavax, Inc. (NVAX) - StockNewsJournal
PDL BioPharma Inc (PDLI) Raised to "Hold" at Zacks Investment Research - Chaffey Breeze
Spark Therapeutics Inc versus PDL BioPharma Inc Head to Head Compare
CML News - May 15, 2017
PDL BioPharma Inc has a substantially higher fundamental rating then Spark Therapeutics Inc which has an impact on the head-to-head comparison.
PDL BioPharma Inc (NASDAQ:PDLI) And LENSARĀ®, Inc On The Final Stages Of The ... - WallStreetPR
LENSARĀ® And PDL BioPharma Complete Strategic Financial Restructuring Of LENSAR
PR Newswire (press release) - May 11, 2017
ORLANDO, Fla., and INCLINE VILLAGE, Nev., May 11, 2017 /PRNewswire/ -- LENSAR, Inc. (LENSAR), a global leader in next generation femtosecond laser technology for refractive cataract surgery, and PDL BioPharma, Inc. (PDL) (NASDAQ: PDLI) today ...
PDL BioPharma, Inc. (PDLI): What's the Story?
StockNewsJournal - May 8, 2017
PDL BioPharma, Inc. (PDLI) is an interesting player in the Healthcare space, with a focus on Biotechnology. The stock has been active on the tape, currently trading at $2.27, up from yesterday's close by 2.25%.
PDL BioPharma Inc. (PDLI) Plunges 5.42% on May 11 - Equities.com
PDL BioPharma, Inc. (NASDAQ:PDLI) Files An 8-K Termination of a Material ... - Market Exclusive
Growth Rate Assumed by Market

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

$2.38 Current Price

$6.35 Growth Price (DCF)

Undervalued by 167.48%


Growth Rate Assumed by Market: -500.00%


Future Free Cash Flow Growth Rate: 0.0%


Discount Rate: 15.0%


Show Free Cash Flow numbers

$2.88 Stability Price (EPV)

Undervalued by 21.35%


Discount Rate: 15.0%

$-7.30 Book Price

Overvalued by 407.54%


Varying Cash Return on Invested Capital over the past 5 years

PDLI has efficiently invested its financial resources in buildings, projects, and equipment, resulting in strong returns. However, there is a substantial variation in their Cash ROIC from year-to-year. This company may have unreliable free cash flow or operates in a business where invested capital costs increase substantially on a sporadic basis. Look at reasons for this inconsistency to determine the likelihood of future sustainability.

PDLI has created $65.48 of cash for every $100 invested.
Figures in USD. Fiscal year ends in December
20122013201420152016
Free Cash Flow 210.17M 29.57M 211.13M 186.46M 42.19M
divided by
Invested Capital 120.80M 36.99M 480.68M 759.09M 842.93M
Cash ROIC 173.97% 79.95% 43.92% 24.56% 5.01%

Varying Return on Equity over the past 5 years

PDLI has generated strong profits with money shareholders have invested. However, there is a substantial variation in their Return on Equity from year-to-year. This may reflect management's inability to generate consistent returns or may be caused by one-time events. Look at reasons for this inconsistency to determine the likelihood of future sustainability.

PDLI has generated $71.87 of Earnings for every $100 of Shareholders' Equity.
Figures in USD. Fiscal year ends in December
20122013201420152016
Net Income 211.67M 264.53M 322.24M 332.80M 63.66M
divided by
Stockholders' Equity -68.12M 113.49M 460.44M 695.95M 751.14M
Return on Equity - 233.09% 69.99% 47.82% 8.47%

Excellent Business Performance over the past 10 years

PDLI has been able to maintain profitability in good times and bad. This could mean PDLI 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.

PDLI 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 -27.77M 76.88M 186.92M 184.30M 169.78M 210.17M 29.57M 211.13M 186.46M 42.19M

Strong Balance Sheet

PDLI 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 USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Cash 412.51M 144.26M 303.23M 246.23M 210.85M 148.69M 99.54M 293.69M 220.35M 242.14M
Current Assets 720.43M 180.68M 315.84M 284.66M 233.51M 182.99M 107.70M 355.90M 282.71M 398.03M
Total Assets 1.19B 191.14M 338.41M 316.67M 269.47M 279.97M 543.96M 962.35M 1.02B 1.22B
Current Liabilities 122.09M 31.51M 293.52M 193.99M 133.01M 10.47M 407.42M 187.98M 36.74M 130.32M
Total Liabilities 684.58M 543.71M 754.36M 640.85M 473.74M 348.09M 430.47M 501.91M 320.23M 464.24M
Stockholder' Equity 507.61M -352.57M -415.95M -324.18M -204.27M -68.12M 113.49M 460.44M 695.95M 751.14M
Current Ratio 5.90 5.73 1.08 1.47 1.76 17.47 0.26 1.89 7.69 3.05
TL-to-TA 0.57 2.84 2.23 2.02 1.76 1.24 0.79 0.52 0.32 0.38

Consistent Reinvestment of Profits over the past 10 years

PDLI has consistently retained profits. This may put PDLI 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, PDLI can greatly improve their long-term economic picture.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Retained Earnings -591.35M -522.96M -333.30M -241.42M -42.04M 169.63M 350.15M 575.74M 810.04M 857.12M
Retained Earnings Growth - 11.56% 36.27% 27.57% 82.59% 503.55% 106.42% 64.43% 40.69% 5.81%

Varying Competitive Advantage over the past 10 years

PDLI 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.

$41.05 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 -21.06M 68.39M 189.66M 91.87M 199.39M 211.67M 264.53M 322.24M 332.80M 63.66M
divided by
Revenue 258.93M 294.27M 318.18M 344.98M 362.04M 374.53M 442.92M 581.23M 590.45M 244.30M
Net Profit Margin -8.13% 23.24% 59.61% 26.63% 55.07% 56.52% 59.72% 55.44% 56.36% 26.06%

Strong Pricing Power over the past 10 years

PDLI 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.

$99.71 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 258.93M 294.27M 318.18M 344.98M 362.04M 374.53M 437.28M 581.23M 590.45M 240.24M
divided by
Revenue 258.93M 294.27M 318.18M 344.98M 362.04M 374.53M 442.92M 581.23M 590.45M 244.30M
Gross Margin 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 98.73% 100.00% 100.00% 98.34%

Medium Capital Intensity over the past 10 years

PDLI has used a reasonable amount of their financial resources to invest in facilities and equipment required to produce its goods and services. This isn't perfect, but it shouldn't be an area of concern unless this number is strongly trending upwards.

35.61% 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 94.74M 3.27M 39,000.00 - - 51,000.00 241.32M 81.15M 115.01M 59.53M
divided by
Net Income -21.06M 68.39M 189.66M 91.87M 199.39M 211.67M 264.53M 322.24M 332.80M 63.66M
Capital Expenditure Ratio -449.83% 4.79% 0.02% - - 0.02% 91.22% 25.18% 34.56% 93.51%

Strong Dividend History over the past 10 years

PDLI has consistently distributed a dividend for the past 9 years. This suggests PDLI is established and will likely continue to distribute its dividend for the foreseeable future.
Figures in USD. Fiscal year ends in December
2007200820092010201120122013201420152016
Dividend Paid - 912.58M 319.02M 130.04M 83.83M 83.94M 84.01M 96.56M 98.31M 16.58M
divided by
Shares Outstanding 116.37M 167.87M 184.40M 178.80M 177.44M 146.40M 159.34M 173.11M 163.55M 164.19M
Dividend Paid Per Share - 5.44 1.73 0.73 0.47 0.57 0.53 0.56 0.60 0.10
Price at Year End 4.57 3.32 5.36 5.63 6.20 7.09 8.47 7.71 3.58 2.12
Dividend Yield - 163.74% 32.28% 12.92% 7.62% 8.09% 6.22% 7.23% 16.79% 4.76%

History of Stock Buybacks over the past 10 years

PDLI 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 116.37M 167.87M 184.40M 178.80M 177.44M 146.40M 159.34M 173.11M 163.55M 164.19M
Stock Bought Back - -30.68% -8.96% 3.13% 0.77% 21.20% -8.12% -7.95% 5.84% -0.39%
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