Interesting StatsI pulled some data from the past number of annual reports. The book value has been dropping each year which is obviously not a good thing. However, the shares outstanding have been decreasing more, resulting in an increasing BV per share. This cannot continue in perpetuity, and so a turn to profitability will need to happen in the next couple of years. YTD we are positive EBIT for the first time since GBT. Let's see if this is the beginning of the real turn around.
What I do find interesting in terms of sentiment is that prior to the GBT announcement you can look at the premium the share price had to book value which was a positive 7-15%. Today that is sitting at -42%. Goes to show you how the management premium for Goodman et al. has been totally wiped out and now priced in as a negative.
If they can clean up GBT and begin to show that the company is in fact a profitable drug company after covering for D&A that will be a powerful reversal to todays large discount to BV.
| | 2018 | 2019 | 2020 | 2021 | 2022 | YTD-23 |
| Book Value | 1,030,032,000 | 915,106,000 | 886,241,000 | 842,018,000 | 825,857,000 | 807,199,000 |
| BV/Share | 7.21 | 6.55 | 6.73 | 6.76 | 7.19 | 7.59 |
| | | | | | | |
| Shares Outstanding | 142,827,616 | 139,758,522 | 131,738,255 | 124,480,259 | 114,890,252 | 106,400,000 |
| Market Cap | 1,098,344,367 | 1,059,369,597 | 704,799,664 | 659,745,373 | 595,131,505 | 469,224,000 |
| Historical Price | 7.69 | 7.58 | 5.35 | 5.3 | 5.18 | 4.41 |
| Discount/Premium to BV | 0.48 | 1.03 | -1.38 | -1.46 | -2.01 | -3.18 |