Emergent BioSolutions Inc. Common Stock (EBS)

FairStock Score: 57/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I see Emergent as a small, 900-employee specialty drug company focused on public-health threats, with products such as ACAM2000 for smallpox/mpox and ANTHRASIL for anthrax. That niche can have a narrow moat if government preparedness contracts and approved products create switching costs, but the evidence is not yet a durable franchise. The filed numbers are volatile: in fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $234.3M while net income was -$180.2M and diluted EPS -$3.49. Fiscal Q1 2026 was profitable, with $156.1M revenue and $6.8M net income, so the loss is a major swing. FY2025 showed $742.9M revenue and $52.6M net income, better than FY2024's $1.0B revenue and -$190.6M net income, but revenue is shrinking. FairStock's negative P/E of -1.86 and ROE of -40.29% fit the losses, while P/B of 0.95 at the 2026-10-26 close and TTM FCF of $85.9M, a 26.4% FCF yield, are the main supports. Against that, D/E of 1.72 and an Altman Z-score of 0.81 point to financial fragility; Piotroski is 6/9 and the FairStock Score is 57/100. This is a Lynch-style TURNAROUND because it returned to profit after a loss within three years, but the latest quarter shows how quickly that can reverse. I would want a clear return to positive earnings and lower leverage before calling it a margin-of-safety bargain.

In plain English: Emergent BioSolutions makes vaccines and treatments for public health threats such as smallpox, mpox and anthrax, mainly for government preparedness. The business looks weak right now: it had a large loss in the latest reported quarter, sales have been shrinking, and debt is high. At $6.34, the price looks somewhat cheap compared with the company’s book value, but the losses mean it is not clearly a bargain.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-26 close · note generated 2026-10-28 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer