One-glance verdict
Undervalued
$50.34 our estimate vs market $4.40
Wall Street consensus: $7.00 (-86.1% lower than our fair-value estimate)
91% below our estimate, below the bear case
Fundamentals snapshot
BioStem Technologies, Inc.
BSEM · NCM · Healthcare · Biotechnology
Current price
$4.40
52-week range
$2.25 - $8.40
Market cap
$78.92M
Balance sheet
Healthy
53.13x Strong cushion
Net cash $5.74M. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
3 Risks
3 rewards · 3 risks
- Reward Revenue grew 1708.9% last year.
- Reward Free cash flow was positive in 1/10 years.
- Risk Forward P/E (15.2x) is higher than trailing (5.0x) - earnings are expected to drop.
- Risk Return on equity was -74.7% last year — the company lost money on shareholders' equity.
What this company does
BioStem Technologies, Inc.
BioStem Technologies creates advanced medical products, like specialized bandages, from donated human placental tissue to help heal serious wounds and eye injuries. The company makes its money selling these tissue grafts (transplants from a donor) to healthcare providers, operating within the growing field of regenerative medicine which aims to help the body repair and regrow itself.
How the company got here
Originally incorporated in 2006 and previously known as Caribbean International Holdings Inc., the company changed its name to BioStem Technologies, Inc. in August 2014. Since then, it has focused on regenerative medicine, specifically developing products from donated perinatal tissues (related to birth tissues like the placenta). A key part of its journey has been developing its own special ways of processing these tissues to keep their natural healing properties. The company recently moved its stock listing to the Nasdaq exchange, a step taken to increase its visibility to investors and better fund its growth.
What it actually does
BioStem Technologies creates advanced medical products for wound care using human placental tissues donated after healthy births. Think of these products as sophisticated, natural bandages that help the body heal difficult wounds, like certain ulcers or surgical sites. The company takes the donated tissue, processes it in its lab to ensure safety and preserve its healing components, and then sells these products to hospitals and doctors' offices. These products are used by medical professionals as a covering to protect wounds and support the body's own repair processes.
Placental-Derived Allografts
This is the company's single and primary business. It makes money by selling its tissue-based products, which are called allografts (a tissue graft from a donor), to healthcare providers. These products are sold under brand names like VENDAJE®, VENDAJE AC®, Neox®, and Clarix®. Hospitals and physician offices purchase these allografts for use in advanced wound care and in surgical procedures to help patients heal. This core business represents all of the company's revenue (the total money it brings in from sales before any costs are taken out).
What management is betting on now
The company's main focus is on growing its sales force and getting its products into more hospitals across the country. They are doing this by securing contracts with Group Purchasing Organizations (GPOs), which are entities that help hospitals buy supplies at a better price, giving BioStem access to a wider network of customers. Management is also investing in clinical trials (studies to test the effectiveness of their products) for treating specific conditions like diabetic foot ulcers. By recently securing a new equity facility (an arrangement that allows the company to sell its stock to raise money over time), they are ensuring they have the funds needed for these growth plans and for general working capital (the money needed for day-to-day operations).
Price history
How the share price has moved
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Is it cheap or expensive?
Fair value $50.34 vs current price $4.40
Wall Street consensus is the average analyst price target: $7.00 (-86.1% lower than our fair-value estimate).
Our most-likely fair value is $50.34 a share — about 1,044.2% above today's price of $4.40, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Healthy
Net cash $5.7M - more cash than debt. Interest coverage 53.1x.
Net debt
$-5.74M
Interest coverage
53.13x
BioStem Technologies, Inc.'s profit covers its interest bill about 53.1 times over. which is stronger than most peers shown here and 2 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Healthy
Worse cushion
Baseline
Better cushion
BSEM
BASELINE
BioStem Technologies, Inc.
Total debt $1.22M Interest coverage 53.13x This is the baseline the peer rows are being compared against.
Total debt $74.71M Interest coverage -9.08x -100% vs BSEM This peer has almost no interest-payment cushion compared with BSEM.
Total debt $34.91M Interest coverage -26.76x -100% vs BSEM This peer has almost no interest-payment cushion compared with BSEM.
Total debt $26.01M Interest coverage 1.98x -96% vs BSEM Carries about 26.8x less debt cushion than BSEM.
Total debt $17.21M Interest coverage 63.51x +20% vs BSEM Carries about 1.2x more debt cushion than BSEM.
What you should know
The case for and against BSEM
3 Rewards
3 Risks
Rewards
-
Revenue grew 1708.9% last year.
-
Free cash flow was positive in 1/10 years.
-
Trades at 5.0x P/E vs peer median 120.2x (95.8% cheaper).
Risks
-
Forward P/E (15.2x) is higher than trailing (5.0x) - earnings are expected to drop.
-
Return on equity was -74.7% last year — the company lost money on shareholders' equity.
-
Operating margin compressed from -37.0% to -106.3% over 3 years.
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)
5.00x
Forward P/E
15.17x
P/B
2.84x
P/S
2.28x
EV/EBITDA
-3.31x
PEG ratio
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Profitability
How much profit each dollar creates
Gross margin
79.9%
Operating margin
-106.3%
Net margin
-81.8%
ROE
-74.7%
ROA
-18.1%
Health
Liquidity and balance-sheet strength
Debt / equity
0.04x
Current ratio
0.98x
Quick ratio
0.64x
Total debt
$1.22M
Total cash
$6.96M
Growth
How the business has been compounding
Revenue TTM
$34.59M
Revenue 5Y CAGR
311.2%
EPS TTM
0.88
EPS 5Y CAGR
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Cash flow
How much cash the business throws off
Operating CF TTM
$24.48M
Free CF TTM
$24.05M
FCF margin
69.5%
Dividend
Shareholder payout
Yield
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Payout ratio
0.0%
Last ex-div date
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