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Catalent Inc CTLT

Morningstar Rating
$56.16 −0.33 (0.58%)
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Company Report

Narrow-Moat Catalent Remains on Track To Be Acquired by Novo Nordisk to Expand Wegovy Manufacturing

Catalent is a leading contract development and manufacturing organization, or CDMO. The company has an extensive network of partnerships with pharmaceutical and biotechnology firms that leverage its expertise and scale to optimize drug production and avoid the risks of in-house drug manufacturing. The challenges and compliance risks associated with changing a drug’s manufacturing process create a sticky relationship for Catalent’s customers. Drug companies tend to stick with trusted suppliers with good track records of regulatory compliance, which makes them unlikely to switch to a different CDMO.

Price vs Fair Value

CTLT is trading at a 296% premium.
Price
$56.47
Fair Value
$29.90
Uncertainty
High
1-Star Price
$45.47
5-Star Price
$76.70
Economic Moat
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Capital Allocation
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Bulls Say, Bears Say

Bulls

Contract development and manufacturing organizations like Catalent have sticky businesses thanks to their customers' long-term contracts and high switching costs.

Bears

Catalent is vulnerable to facility closures whether from natural disasters or manufacturing issues, and a warning letter from the FDA or other regulatory agency can result in manufacturing delays or closures.

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News

Trading Information

Previous Close Price
$56.49
Day Range
$56.1156.42
52-Week Range
$31.8160.21
Bid/Ask
$56.15 / $56.16
Market Cap
$10.16 Bil
Volume/Avg
628,446 / 1.7 Mil

Key Statistics

Price/Earnings (Normalized)
99.14
Price/Sales
2.48
Dividend Yield (Trailing)
Dividend Yield (Forward)
Total Yield

Company Profile

Catalent is a contract development and manufacturing organization, or CDMO. It operates under four segments: biologics, softgel and oral technologies, oral and specialty delivery, and clinical supply services. Catalent derives its revenues primarily from long-term supply agreements with pharmaceutical customers. The company provides a range of development and manufacturing solutions for drugs, protein-based biologics, cell and gene therapies, and consumer health products throughout the entire life cycle of a product from the drug development process to commercial supply. Catalent has over 50 facilities across four continents.
Sector
Healthcare
Industry
Drug Manufacturers - Specialty & Generic
Stock Style Box
Mid Core
Total Number of Employees
17,219

Competitors

Valuation

Metric
CTLT
ICLR
LONN
Price/Earnings (Normalized)
99.1423.1830.15
Price/Book Value
2.832.783.69
Price/Sales
2.483.195.30
Price/Cash Flow
42.0619.6726.77
Price/Earnings
CTLT
ICLR
LONN

Financial Strength

Metric
CTLT
ICLR
LONN
Quick Ratio
1.561.161.12
Current Ratio
2.511.211.77
Interest Coverage
−4.073.379.00
Quick Ratio
CTLT
ICLR
LONN

Profitability

Metric
CTLT
ICLR
LONN
Return on Assets (Normalized)
−3.09%4.85%5.28%
Return on Equity (Normalized)
−7.79%9.19%9.02%
Return on Invested Capital (Normalized)
−0.96%8.41%7.29%
Return on Assets
CTLT
ICLR
LONN
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