Hello Friends! This is another stock that I jumped the gun on and bought in my trading account earlier this morning after unloading ENDP with a 20% loss. Yikes. Anyhow, I hope this makes up for that one.
SFBC International (SFCC) is currently trading at $34.60, up $2.05 or 6.30% on the day. This stock appears to be in the same business as PPDI, another recent purchase in the trading account. According to money.cnn.com, SFCC "...is a contract research organization that conducts clinical trials and provides related services to pharmaceutical and biotechnology companies and other contract research organizations." What drove the stock up today, was an outstanding earnings report.
This morning, 10/20/03, SFCC reported results for the third quarter of 2003 ended September 30, 2003. Revenue was $29.1 million, an increase of 66.3% compared to $17.5 million for the same quarter last year. On a per share basis, this was $.42 in the third quarter of 2003 compared to $.30 in the same quarter in 2002, an increase of 40.0%.
Morningstar.com shows a beautiful picture of revenue growth from $5.9 million in 1998, $8.3 million in 1999, $19.7 million in 2000, $31.5 million in 2001 and $64.7 million in 2002. For 2003, if we extrapolate the current quarter, we would get over $100 million for the year.
Earnings per share have grown from $.21/share in 1998 to $1.05/share in the trailing twelve months.
Free cash flow has not been quite as impressive with ($1) million in 2000, $1 million in 2001, and $0 million in 2002.
Looking at the balance sheet we find $8.8 million in cash per Morningstar with $26.6 million in other current assets. Current liabilities are $14.6 million, with $2.8 million in long-term debt. Clearly the assets outweigh the liabilities.
Switching over to Yahoo for some statistics, we find that the Market Cap is $268.55 million with a trailing p/e of 26.90. The PEG ratio shows that this is a great value at 0.84. Price/sales a little rich at 3.10.
There are only 7.77 million shares outstanding with 6.00 million of them that float. There are 351,000 shares out short as of 9/8/03 representing 1.773 trading days. No dividend is paid.
I like this stock a lot. In fact I like it so much I BOUGHT it! 200 shares this morning. The growth reported is phenomenal...even though much appears to be related to acquisitions. The p/e is cheap for this growth (26.90) and the PEG ratio is under 1.0. What else could a guy want? Anyhow, have a great day and a great week.
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