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Catalent Inc CTLT

Morningstar Rating
$58.00 +0.04 (0.07%)
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Company Report

Catalent Earnings: COVID-19 Product Sales Fall; Novo Holdings Acquisition to Expand Wegovy Capacity

Catalent reported second-quarter revenue for fiscal 2024 of $1.03 billion, representing a 10% decrease compared to the second quarter of 2023. The declines were primarily due to falling demand for COVID-19-related products and operational challenges the company is working to right-size. We think Novo Holdings’ recently announced acquisition of Catalent for $16.5 billion or $63.50 per share in cash, represents a fair price for Catalent as it is very close to our intrinsic valuation of $65 per share. Pending regulatory approvals, we anticipate the transaction will close around the end of 2024.

Price vs Fair Value

CTLT is trading at a 9% discount.
Price
$57.94
Fair Value
$92.20
Uncertainty
High
1-Star Price
$68.84
5-Star Price
$44.60
Economic Moat
Wyynm
Capital Allocation
Kpcmyqrq

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
$57.96
Day Range
$57.9958.08
52-Week Range
$31.5074.46
Bid/Ask
$57.97 / $58.01
Market Cap
$10.49 Bil
Volume/Avg
103,275 / 2.8 Mil

Key Statistics

Price/Earnings (Normalized)
101.72
Price/Sales
2.57
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 Growth
Total Number of Employees
17,219

Competitors

Valuation

Metric
CTLT
ICLR
LONN
Price/Earnings (Normalized)
101.7223.4332.42
Price/Book Value
2.842.893.35
Price/Sales
2.573.295.45
Price/Cash Flow
56.2420.9721.74
Price/Earnings
CTLT
ICLR
LONN

Financial Strength

Metric
CTLT
ICLR
LONN
Quick Ratio
1.541.161.36
Current Ratio
2.481.212.07
Interest Coverage
−5.232.9918.29
Quick Ratio
CTLT
ICLR
LONN

Profitability

Metric
CTLT
ICLR
LONN
Return on Assets (Normalized)
−2.51%6.18%5.83%
Return on Equity (Normalized)
−6.08%11.98%9.76%
Return on Invested Capital (Normalized)
−0.60%10.27%8.06%
Return on Assets
CTLT
ICLR
LONN
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