Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, biopharmaceutical company Sinovac Biotech (SVA) has received the dreaded one-star ranking.
With that in mind, let's take a closer look at Sinovac and see what CAPS investors are saying about the stock right now.
Sinovac facts
|
Headquarters (founded) |
Beijing, China (1999) |
|
Market Cap |
$205.0 million |
|
Industry |
Biotechnology |
|
Trailing-12-Month Revenue |
$48.6 million |
|
Management |
Chairman/CEO Wei dong Yin |
|
Return on Equity (average, past 3 years) |
(8.5%) |
|
Cash/Debt |
$90.9 million / $34.5 million |
|
Competitors |
GlaxoSmithKline |
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 33% of the 66 All-Star members who have rated Sinovac believe the stock will underperform the S&P 500 going forward.
Earlier today, one of those Fools, zzlangerhans, succinctly summed up the bear case for our community:
Sinovac is now back in unsustainable territory due to the double whammy of a new bird flu epidemic and positive results for the EV71 vaccine for hand-foot-mouth disease. As always, the flu scare will resolve itself without any contribution from Sinovac or any long-term impact on their revenues. And EV71 is no doubt benefiting from public confusion over hand-foot-mouth disease, a benign illness of children that sounds a lot like hoof-and-mouth disease, an economically disastrous disease of cattle. Not every childhood viral illness requires a vaccine. I suspect that even though a few hundred children die of hand-foot-mouth out the million who contract it every year in China, the Chinese government won't see it as a public health issue pressing enough to require a new vaccination program. Eventually, Sinovac will have to live or die based on their hepatitis vaccine programs which of late have looked somewhat stagnant.
{sfr%}
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