One-glance verdict
Undervalued
$792.19 our estimate vs market $88.17
Wall Street consensus: $116.59 (-85.3% lower than our fair-value estimate)
89% below our estimate, below the bear case
Fundamentals snapshot
BioNTech SE
BNTX · NMS · Healthcare · Biotechnology
Current price
$88.17
52-week range
$79.52 - $124.00
Market cap
$22.15B
Balance sheet
Healthy
-45.12x Concerning
Net cash $14.70B. Interest coverage shows how many times profit covers the interest bill.
What stands out
2 Rewards
2 Risks
2 rewards · 2 risks
- Reward Revenue grew 4.3% last year.
- Reward Free cash flow was positive in 2/10 years.
- Risk Operating margin compressed from 71.1% to -806.6% over 3 years.
- Risk Return on equity was -9.3% last year — the company lost money on shareholders' equity.
What this company does
BioNTech SE
BioNTech SE makes innovative medicines, primarily a well-known vaccine for COVID-19, which is where they get most of their money. They are also working on a lot of new treatments for cancer and other diseases, showing their commitment to developing future health solutions.
How the company got here
BioNTech SE was founded in 2008 by scientists and physicians with the goal of translating scientific research into life-saving treatments. [2, 7] The company initially focused on developing personalized immunotherapies for cancer, leveraging its expertise in mRNA technology. [7, 13] A significant turning point came with the development of the mRNA-based COVID-19 vaccine, Comirnaty, in partnership with Pfizer. [1, 8] This collaboration propelled BioNTech onto the global stage, providing substantial financial resources and validating its mRNA platform. [8] The success of the COVID-19 vaccine allowed BioNTech to significantly expand its research and development capabilities and its global presence. [8]
What it actually does
BioNTech is a biotechnology company that develops and commercializes innovative therapies, primarily focusing on cancer and infectious diseases. [2, 3, 6] The company utilizes a range of technology platforms, including messenger RNA (mRNA) technology, cell therapies, and targeted antibodies, to create treatments that harness the power of the human immune system. [2, 6, 13] BioNTech's work involves extensive research, clinical development, and manufacturing of these novel medicines, aiming to address serious diseases with unmet medical needs. [6, 7]
Immuno-Oncology
BioNTech is heavily invested in developing immunotherapies for cancer, aiming to transform how cancer is treated. [2] This involves creating treatments that train the immune system to recognize and fight cancer cells more effectively, addressing cancer from multiple angles. [2] Their approach includes mRNA cancer immunotherapies, next-generation immunomodulators, and targeted therapies like antibody-drug conjugates (ADCs). [2, 4, 6] The company is advancing a diversified pipeline with numerous late-stage clinical trials, exploring combination therapies to improve treatment outcomes for various cancer types. [1, 4, 10] This segment represents a significant portion of BioNTech's current focus and future strategy, with the goal of becoming a multi-product oncology company. [4, 10, 11]
Infectious Disease Vaccines
This business line focuses on developing vaccines for infectious diseases, with a notable success in the COVID-19 pandemic. [1, 3, 6] BioNTech's mRNA vaccine technology was instrumental in the rapid development and approval of the COVID-19 vaccine, Comirnaty, in collaboration with Pfizer. [1, 8] The company continues to work on vaccines for other infectious diseases, including malaria, tuberculosis, and mpox, leveraging its established mRNA platform. [1] While the production of the COVID-19 vaccine is being transferred to Pfizer, BioNTech aims to sustain its leadership in the infectious disease vaccine market. [1, 4]
What management is betting on now
BioNTech's current strategic priorities revolve around advancing its diverse oncology pipeline towards commercialization and sustaining its leadership in infectious disease vaccines. [4, 11] The company is focused on developing combination therapies that integrate mRNA, targeted antibodies, and antibody-drug conjugates to create synergistic effects against cancer. [2, 4] A key aspect of their strategy involves leveraging artificial intelligence (AI) and computational medicine to accelerate drug discovery and optimize clinical trials. [4] BioNTech is also expanding its global manufacturing capabilities to support the development and delivery of its therapies. [4] The company is transitioning from its strong reliance on COVID-19 vaccine revenue towards building a sustainable, multi-product oncology business. [4, 8]
Price history
How the share price has moved
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Is it cheap or expensive?
Fair value $792.19 vs current price $88.17
Wall Street consensus is the average analyst price target: $116.59 (-85.3% lower than our fair-value estimate).
Our most-likely fair value is $792.19 a share — about 798.5% above today's price of $88.17, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Healthy
Net cash $14.7B - more cash than debt. Interest coverage -45.1x.
Net debt
$-14.70B
Interest coverage
-45.12x
BioNTech SE's profit covers its interest bill about 0.0 times over. which is weaker than most peers shown here and 1 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Healthy
Worse cushion
Baseline
Better cushion
BNTX
BASELINE
BioNTech SE
Total debt $353.49M Interest coverage -45.12x This is the baseline the peer rows are being compared against.
Total debt $1.29B Interest coverage -307.40x Neither company has much profit cushion over interest right now.
Total debt $3.00B Interest coverage 1.99x This peer still has a real interest-payment cushion, while BNTX does not.
Total debt $37.41M Interest coverage 553.04x This peer still has a real interest-payment cushion, while BNTX does not.
Total debt $5.27B Interest coverage 20.49x This peer still has a real interest-payment cushion, while BNTX does not.
What you should know
The case for and against BNTX
2 Rewards
2 Risks
Rewards
-
Revenue grew 4.3% last year.
-
Free cash flow was positive in 2/10 years.
Risks
-
Operating margin compressed from 71.1% to -806.6% over 3 years.
-
Return on equity was -9.3% last year — the company lost money on shareholders' equity.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
—
Forward P/E
-16.31x
P/B
1.11x
P/S
8.36x
EV/EBITDA
-6.52x
PEG ratio
0.05x
Profitability
How much profit each dollar creates
Gross margin
76.6%
Operating margin
-806.6%
Net margin
-63.6%
ROE
-9.3%
ROA
-5.4%
Health
Liquidity and balance-sheet strength
Debt / equity
0.02x
Current ratio
7.85x
Quick ratio
7.03x
Total debt
$353.49M
Total cash
$15.06B
Growth
How the business has been compounding
Revenue TTM
$2.96B
Revenue 5Y CAGR
-45.1%
EPS TTM
-7.83
EPS 5Y CAGR
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Cash flow
How much cash the business throws off
Operating CF TTM
$509.94M
Free CF TTM
$-327.66M
FCF margin
-11.1%
Dividend
Shareholder payout
Yield
0.0%
Payout ratio
0.0%
Last ex-div date
2022-06-02