PDLI  Pdl Biopharma Inc.

Exchange

NASDAQ

Sector

Health Care

Industry

Biotechnology: Biological Products (No Diagnostic Substances)

Market Cap.

488.43M

Vuru Grade

95.80/100

Current Price

$3.17
-0.10 (-3.06%)

Growth Price

$6.64
Undervalued by 109.38%

Stability Price

$3.01
Overvalued by 5.01%

Company Metrics

  • P/E 7.29
  • P/S 3.51
  • P/B 0.62
  • EPS 0.44
  • Cash ROIC 65.48%
  • Cash Ratio 1.86
  • Dividend 0 / 0%
  • Avg. Vol. 1.80M
  • Shares 154.08M
  • Market Cap. 488.43M

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: Q2 Update
Seeking Alpha - Sep 6, 2017
PDLI has a Benjamin Graham-like balance sheet adjustment value of $2.30 per share and a current book value of $5.30 per share.
PDL BioPharma to Present at Two Upcoming Investor Conferences - PR Newswire (press release)
PDL BioPharma Inc. (PDLI) Moves Lower on Volume Spike for September 05 - Equities.com
Should Value Investors Consider PDL BioPharma, Inc. (PDLI) Stock?
Nasdaq - Sep 20, 2017
Value investing is easily one of the most popular ways to find great stocks in any market environment. After all, who wouldn't want to find stocks that are either flying under the radar and are compelling buys, or offer up tantalizing discounts when ...
PDL BioPharma Updates Presentation Time for Cantor Fitzgerald Conference
PR Newswire (press release) - Sep 19, 2017
19, 2017 /PRNewswire/ -- PDL BioPharma, Inc. (PDL) (NASDAQ: PDLI) today announced that John P. McLaughlin, PDL's chief executive officer, will present at the 2017 Cantor Fitzgerald Global Healthcare Conference in New York City on Tuesday, ...
PDL BioPharma, Inc. (PDLI): What's the Story? - StockNewsJournal
PDL BioPharma Inc. (PDLI) Moves Higher on Volume Spike for September 18 - Equities.com
PDL BioPharma Appoints Dominique Monnet as President
PR Newswire (press release) - Sep 11, 2017
INCLINE VILLAGE, Nev., Sept. 11, 2017 /PRNewswire/ -- PDL BioPharma, Inc. (PDL) (NASDAQ: PDLI) today announced that the company has appointed Dominique P. Monnet to the position of president.
Is PDL BioPharma, Inc. (PDLI) a good buy? - TopChronicle
PDL BioPharma, Inc. (NASDAQ:PDLI) Closed 17.4% Above Its 50 Day Moving Average - Modern Readers
Dominique P. Monnet, PDL BioPharma, Inc.
Northern Nevada Business Weekly - Sep 15, 2017
Monnet, who has more than 30 years experience in the biotech/pharma industry, previously served as senior vice president and chief marketing officer of Alexion Pharmaceuticals.
Why PDL BioPharma (PDLI) Could Be Positioned for a Surge August 28, 2017
Zacks.com - Aug 28, 2017
PDL BioPharma, Inc. (PDLI - Free Report) is an acquirer and manager of products, royalty agreements, and debt facilities that could be an interesting play for investors.
Biotech Stocks on Investors' Radar -- PDL BioPharma, Progenics Pharma, Agenus ...
Markets Insider - Sep 12, 2017
This Tuesday morning, DailyStockTracker.com looks at the performance of these four Biotechnology stocks: PDL BioPharma Inc.
PDL BioPharma, Inc. (PDLI) Given Average Recommendation of “Hold” by Brokerages
StockNewsTimes - 5 hours ago
PDL BioPharma logo Shares of PDL BioPharma, Inc. (NASDAQ:PDLI) have received an average recommendation of “Hold” from the six research firms that are presently covering the company, MarketBeat reports.
PDL Biopharma Inc (NASDAQ:PDLI) Quarterly Sentiment Report - WeeklyHub
PDL BioPharma, Inc. (NASDAQ:PDLI) Moves -3.35% Over the Past 5 Days - Concord Register
Taking a Look at the Data Behind PDL BioPharma, Inc. (PDLI)
StockNewsJournal - Aug 31, 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 $3.02, up from yesterday's close by 2.72%.
60729 Shares Of PDL BioPharma, Inc. (PDLI) bought By GRYSKA DAVID W - Economic News
The Fundamental Case for and Against PDL BioPharma, Inc. (PDLI) - StockNewsGazette
Brokerages Set PDL BioPharma, Inc. (PDLI) Target Price at $3.50
The Ledger Gazette - Sep 17, 2017
PDL BioPharma logo PDL BioPharma, Inc. (NASDAQ:PDLI) has been given a consensus rating of “Buy” by the six analysts that are presently covering the stock, MarketBeat reports.
PDL BioPharma, Inc. (PDLI) Sees Significant Growth in Short Interest - TrueBlueTribune
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.

$3.17 Current Price

$6.64 Growth Price (DCF)

Undervalued by 109.38%


Growth Rate Assumed by Market: -500.00%


Future Free Cash Flow Growth Rate: 0.0%


Discount Rate: 15.0%


Show Free Cash Flow numbers

$3.01 Stability Price (EPV)

Overvalued by 5.01%


Discount Rate: 15.0%

$-7.30 Book Price

Overvalued by 330.42%


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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Discussion
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1
Posted by thequietplace  (on July 28, 2017)
The stock is listed on Joel Greenblaat's magic formula page. Worth at least double what it's selling for now.
1
Posted by nileslawrence69  (on June 8, 2017)
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