PDLI  Pdl Biopharma Inc.

Exchange

NASDAQ

Sector

Health Care

Industry

Biotechnology: Biological Products (No Diagnostic Substances)

Market Cap.

367.50M

Vuru Grade

86.35/100

Current Price

$2.22
-0.02 (-0.89%)

Growth Price

$11.85
Undervalued by 433.61%

Stability Price

$9.10
Undervalued by 309.76%

Company Metrics

  • P/E 2.1
  • P/S 1.3
  • P/B 0.49
  • EPS 1.06
  • Cash ROIC 18.83%
  • Cash Ratio 6.00
  • Dividend 0.2 / 8.93%
  • Avg. Vol. 2.26M
  • Shares 165.54M
  • Market Cap. 367.50M

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

Why PDL BioPharma Inc. Is Down 14.8% Today
Motley Fool - Nov 23, 2016
Shares in PDL BioPharma (NASDAQ:PDLI) are tumbling 14.8% at 12:30 p.m. EST Wednesday after management closed on a $150 million convertible notes offering and Eli Lilly & Co.
Company Update (NASDAQ:PDLI): Here's Why PDL BioPharma Inc Shares Are Slumping ... - Smarter Analyst
Can PDL BioPharma, Inc. Turn Things Around?
Motley Fool - Oct 28, 2016
In 18 months, PDL BioPharma, Inc. (NASDAQ:PDLI) has lost roughly half of its market cap. The slide wasn't unexpected: Investors have known for a long time that PDL BioPharma's core patents would expire at the end of 2014.
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.
PDL BioPharma, Inc. Is Off 10% in 2016, and This Is a Big Reason Why
Motley Fool - Jun 20, 2016
What: Shares of PDL BioPharma (NASDAQ:PDLI), a small-cap biotech company that invests in patents and royalty-based biotechnology and pharmaceutical assets, has lost 10% of its value so far this year, according to data from S&P Global Market ...
PDL BioPharma to Announce Fourth Quarter / Year-End 2016 Financial Results on ...
PR Newswire (press release) - Feb 22, 2017
INCLINE VILLAGE, Nev., Feb. 22, 2017 /PRNewswire/ -- PDL BioPharma, Inc. (PDL or the Company) (NASDAQ: PDLI) today announced that the Company will release its fourth quarter, year-end 2016 financial results for the period ended December 31, 2016, ...
Analyst's Indicator Review for DSW Inc. (DSW), PDL BioPharma, Inc. (PDLI) - The USA Commerce
PDL BioPharma, Inc. (PDLI) to Release Quarterly Earnings on Thursday - The Cerbat Gem
This Expected News Sent PDL BioPharma Inc. Down 17% in August
Motley Fool - Sep 7, 2016
Shares of PDL BioPharma (NASDAQ:PDLI), a royalty company in the biotech space that earns its keep by reaping the rewards of its acquired intellectual property and low overhead costs, sank 17% in August, according to data from S&P Global Market ...
PDL BioPharma, Inc. Shares Just Fell Off a Cliff -- Here's Why
Motley Fool - Feb 2, 2016
What: Shares of PDL BioPharma (NASDAQ:PDLI), a biotech company that focuses on purchasing and developing royalty-based patented assets, sank as much as 13% after the company outlined its new dividend policy.
PDL BioPharma Announces 2016 First Quarter Dividend - PR Newswire (press release)
PDL BioPharma (PDLI) Cuts Dividend to $0.05 Quarterly; 6.3% Yield - StreetInsider.com
Why PDL BioPharma, Inc.'s 13% Rally in April Probably Isn't Sustainable
Motley Fool - May 10, 2016
What: Shares of PDL BioPharma (NASDAQ:PDLI), a company that specializes in purchasing patents and royalty interests on branded therapeutics, rocketed higher by 13% in April based on data from S&P Global Market Intelligence.
Why PDL BioPharma Inc is Up Big Today
Motley Fool - Feb 23, 2016
What: Shares of PDL Biopharma (NASDAQ:PDLI), a biotech company that primarily generates royalties from its portfolio of pharmaceutical patents, jumped by more than 10% Tuesday morning after it released its fourth quarter earnings.
PDL BioPharma Announces Fourth Quarter and Full Year 2015 Financial Results - PR Newswire (press release)
PDL BioPharma Announces Proposed $150 Million Public Offering of New ...
PR Newswire (press release) - Nov 15, 2016
15, 2016 /PRNewswire/ -- PDL BioPharma, Inc. (PDL) (NASDAQ: PDLI) announced today that it intends to offer, subject to market and other conditions, $150 million aggregate principal amount of new convertible senior notes due December 1, 2021 (the ...
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.

$2.22 Current Price

$11.85 Growth Price (DCF)

Undervalued by 433.61%


Growth Rate Assumed by Market: -500.00%


Future Free Cash Flow Growth Rate: 1.3%


Discount Rate: 15.0%


Show Free Cash Flow numbers

$9.10 Stability Price (EPV)

Undervalued by 309.76%


Discount Rate: 15.0%

$-5.68 Book Price

Overvalued by 355.87%


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 $18.83 of cash for every $100 invested.
Figures in USD. Fiscal year ends in December
20112012201320142015
Free Cash Flow 169.78M 210.17M 29.57M 211.13M 186.46M
divided by
Invested Capital -74.38M 120.80M 36.99M 480.68M 759.09M
Cash ROIC -228.26% 173.97% 79.95% 43.92% 24.56%

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 $70.18 of Earnings for every $100 of Shareholders' Equity.
Figures in USD. Fiscal year ends in December
20112012201320142015
Net Income 199.39M 211.67M 264.53M 322.24M 332.80M
divided by
Stockholders' Equity -204.27M -68.12M 113.49M 460.44M 695.95M
Return on Equity - - 233.09% 69.99% 47.82%

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
2006200720082009201020112012201320142015
Free Cash Flow 23.48M -27.77M 76.88M 186.92M 184.30M 169.78M 210.17M 29.57M 211.13M 186.46M

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
2006200720082009201020112012201320142015
Cash 333.12M 412.51M 144.26M 303.23M 246.23M 210.85M 148.69M 99.54M 293.69M 220.35M
Current Assets 379.50M 720.43M 180.68M 315.84M 284.66M 233.51M 182.99M 107.70M 355.90M 282.71M
Total Assets 1.14B 1.19B 191.14M 338.41M 316.67M 269.47M 279.97M 543.96M 962.35M 1.02B
Current Liabilities 105.46M 122.09M 31.51M 293.52M 193.99M 133.01M 10.47M 407.42M 187.98M 36.74M
Total Liabilities 674.35M 684.58M 543.71M 754.36M 640.85M 473.74M 348.09M 430.47M 501.91M 320.23M
Stockholder' Equity 467.54M 507.61M -352.57M -415.95M -324.18M -204.27M -68.12M 113.49M 460.44M 695.95M
Current Ratio 3.60 5.90 5.73 1.08 1.47 1.76 17.47 0.26 1.89 7.69
TL-to-TA 0.59 0.57 2.84 2.23 2.02 1.76 1.24 0.79 0.52 0.32

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
2006200720082009201020112012201320142015
Retained Earnings -570.13M -591.35M -522.96M -333.30M -241.42M -42.04M 169.63M 350.15M 575.74M 810.04M
Retained Earnings Growth - -3.72% 11.56% 36.27% 27.57% 82.59% 503.55% 106.42% 64.43% 40.69%

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.

$35.31 of every $100 of Revenue have been pure profit, on average over the past 10 years.
Figures in USD. Fiscal year ends in December
2006200720082009201020112012201320142015
Net Income -130.02M -21.06M 68.39M 189.66M 91.87M 199.39M 211.67M 264.53M 322.24M 332.80M
divided by
Revenue 414.77M 258.93M 294.27M 318.18M 344.98M 362.04M 374.53M 442.92M 581.23M 590.45M
Net Profit Margin -31.35% -8.13% 23.24% 59.61% 26.63% 55.07% 56.52% 59.72% 55.44% 56.36%

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.

$97.79 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
2006200720082009201020112012201320142015
Gross Profit 328.48M 258.93M 294.27M 318.18M 344.98M 362.04M 374.53M 437.28M 581.23M 590.45M
divided by
Revenue 414.77M 258.93M 294.27M 318.18M 344.98M 362.04M 374.53M 442.92M 581.23M 590.45M
Gross Margin 79.20% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 98.73% 100.00% 100.00%

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.

25.97% 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
2006200720082009201020112012201320142015
Capital Expenditure 55.30M 94.74M 3.27M 39,000.00 - - 51,000.00 241.32M 81.15M 115.01M
divided by
Net Income -130.02M -21.06M 68.39M 189.66M 91.87M 199.39M 211.67M 264.53M 322.24M 332.80M
Capital Expenditure Ratio -42.53% -449.83% 4.79% 0.02% - - 0.02% 91.22% 25.18% 34.56%

Strong Dividend History over the past 10 years

PDLI has consistently distributed a dividend for the past 8 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
2006200720082009201020112012201320142015
Dividend Paid - - 912.58M 319.02M 130.04M 83.83M 83.94M 84.01M 96.56M 98.31M
divided by
Shares Outstanding 113.57M 116.37M 167.87M 184.40M 178.80M 177.44M 146.40M 159.34M 173.11M 163.55M
Dividend Paid Per Share - - 5.44 1.73 0.73 0.47 0.57 0.53 0.56 0.60
Price at Year End 5.36 4.57 3.32 5.36 5.63 6.20 7.09 8.47 7.71 3.58
Dividend Yield - - 163.74% 32.28% 12.92% 7.62% 8.09% 6.22% 7.23% 16.79%

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
2006200720082009201020112012201320142015
Shares Outstanding 113.57M 116.37M 167.87M 184.40M 178.80M 177.44M 146.40M 159.34M 173.11M 163.55M
Stock Bought Back - -2.40% -30.68% -8.96% 3.13% 0.77% 21.20% -8.12% -7.95% 5.84%
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