Harvard Bioscience Inc (NASDAQ: HBIO)

Sector: Healthcare Industry: Medical Instruments & Supplies CIK: 0001123494
Market Cap 28.03 Mn
P/B 1.99
P/E -0.52
P/S 0.32
ROIC (Qtr) -96.63
Div Yield % 0.00
Rev 1y % (Qtr) -6.28
Total Debt (Qtr) 41.30 Mn
Debt/Equity (Qtr) 2.94

About

Price action

Investment thesis

Bull case

  • Tangible assets of 60.09M provide exceptional 20.87x coverage of deferred revenue 2.88M, showing strong service capability backing.
  • Robust free cash flow of 6.82M exceeds capital expenditure of 1.73M by 3.94x, indicating strong organic growth funding capability.
  • Operating cash flow of 8.55M provides strong 11.66x coverage of tax liabilities 733000, showing excellent fiscal position.
  • R&D investment of 8.97M represents healthy 3.12x of deferred revenue 2.88M, indicating strong future innovation pipeline.
  • Cash reserves of 6.82M provide comfortable 9.30x coverage of tax obligations 733000, showing strong fiscal management.

Bear case

  • Operating cash flow of 8.55M barely covers its investment activities of (1.73M), with a coverage ratio of -4.94, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of (1.73M) provide weak support for R&D spending of 8.97M, which is -0.19x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • The company's operating cash flow of 8.55M shows concerning coverage of stock compensation expenses of 2.36M, with a 3.63 ratio indicating potential earnings quality issues.
  • Operating earnings of (50.18M) show weak coverage of depreciation charges of 6.36M, with a -7.90 ratio indicating high capital intensity and potential reinvestment needs.
  • Free cash flow of 6.82M represents just -1.46x of debt issuance (4.69M), suggesting concerning reliance on leverage rather than internal cash generation for growth.

Geographical Breakdown of Revenue (2024)

Product and Service Breakdown of Revenue (2024)

Peer comparison

Companies in the Medical Instruments & Supplies
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 ISRG Intuitive Surgical Inc 209.14 Bn 76.14 21.76 0.00 Bn
2 BDX Becton Dickinson & Co 58.36 Bn 34.78 2.67 19.18 Bn
3 ALC Alcon Inc 39.57 Bn 37.80 3.89 5.24 Bn
4 RMD Resmed Inc 37.01 Bn 25.74 7.04 0.85 Bn
5 WST West Pharmaceutical Services Inc 19.95 Bn 40.58 6.61 0.30 Bn
6 HOLX Hologic Inc 16.94 Bn 29.95 4.13 2.52 Bn
7 COO Cooper Companies, Inc. 16.64 Bn 44.39 4.07 2.51 Bn
8 SOLV Solventum Corp 15.00 Bn 9.84 1.79 5.14 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.80 3.14
EV to Cash from Ops. EV/CFO 7.30 37.60
EV to Debt EV to Debt 1.51 23.10
EV to EBIT EV/EBIT -1.24 50.25
EV to EBITDA EV/EBITDA -1.42 19.58
EV to Free Cash Flow [EV/FCF] EV/FCF 9.16 -19.40
EV to Market Cap EV to Market Cap 2.23 -1.68
EV to Revenue EV/Rev 0.71 171.31
Price to Book Value [P/B] P/B 1.99 6.03
Price to Earnings [P/E] P/E -0.52 204.20
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 -1.11
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 1.52
Dividend per Basic Share Div per Share (Qtr) 0.00 0.25
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 8.75
Interest Coverage Int. cover (Qtr) -14.71 -119.10
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) 55.16 -55.01
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 49.20 200.65
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 -1.49
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -363.19 -56.39
EBITDA Growth (1y) % EBITDA 1y % (Qtr) -3,659.48 -106.80
EBIT Growth (1y) % EBIT 1y % (Qtr) -391.58 -36.51
EBT Growth (1y) % EBT 1y % (Qtr) -301.20 -47.44
EPS Growth (1y) % EPS 1y % (Qtr) -266.67 -15.70
FCF Growth (1y) % FCF 1y % (Qtr) 4,162.50 59.41
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) -12.84 68.22
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 1.12 0.54
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.03
Cash Ratio Cash Ratio (Qtr) 0.13 2.49
Current Ratio Curr Ratio (Qtr) 0.81 7.77
Debt to Equity Ratio Debt/Equity (Qtr) 2.94 0.55
Interest Cover Ratio Int Coverage (Qtr) -14.71 -119.10
Times Interest Earned Times Interest Earned (Qtr) -14.71 -119.10
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) -50.20 -2,368.64
EBIT Margin % EBIT Margin % (Qtr) -57.43 -2,472.65
EBT Margin % EBT Margin % (Qtr) -61.34 -2,442.59
Gross Margin % Gross Margin % (Qtr) 56.90 30.07
Net Profit Margin % Net Margin % (Qtr) -61.60 -2,438.52