BioAmber, Inc. :BIOA-US: Earnings Analysis: 2016 By the Numbers : March 21, 2017

BioAmber, Inc. reports financial results for the year ended December 31, 2016.

We analyze the earnings along side the following peers of BioAmber, Inc. – General Electric Company, E. I. du Pont de Nemours and Company and International Flavors & Fragrances Inc. (GE-US, DD-US and IFF-US) that have also reported for this period.


  • Gross margins narrowed from -70.04% to -123.75% compared to the same period last year, operating (EBITDA) margins now -301.75% from -1,626.32%.
  • Year-on-year change in operating cash flow of -16.82% is about the same as the change in earnings, likely no significant movement in accruals or reserves.
  • Earnings decline largely a result of non-operational activity, pretax margins improved from -1,895.73% to -342.64%.

The table below shows the preliminary results and recent trends for key metrics such as revenues and net income growth:

2016 2015 2014 2013 2012
Relevant Numbers (Annual)
Revenues 8.27 2.17 1.54 2.67 2.29
Revenue Growth (YOY) N/A N/A N/A N/A N/A
Earnings -22.48 -37.23 -46.42 -33.22 -39.35
Earnings Growth (YOY) 39.62 19.81 -39.75 15.59 -28.51
Net Margin -271.72 -1713.94 -3008.45 -1246.33 -1717.36
EPS -0.78 -1.52 -2.32 -2.13 -2.01
Return on Equity -28.64 -48.77 -62.37 -40.22 -49.99
Return on Assets -14.77 -25.19 -34.84 -24.76 -35.4

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Earnings Growth Analysis

The company’s gross margins showed no year-on-year improvement. In spite of this, the company’s earnings rose, influenced primarily by the improvement in operating margins (EBITDA margins) from -1,626.32% to -301.75%. For comparison, gross margins were -70.04% and EBITDA margins were -1,626.32% in the last period.

Gross Margin Versus EBITDA Margin

Quadrant label definitions. Hover to know more

Differentiated; Low Cost, Commodity; Low Cost, Commodity; High Cost, Differentiated; High Cost

Cash Versus Earnings – Sustainable Performance?

It is important to examine a company�s cash versus earnings numbers to gauge whether its performance is sustainable.

BIOA-US‘s change in operating cash flow of -16.82% compared to the same period last year is about the same as its change in earnings this period. Additionally, this change in operating cash flow is about average among its peer group. This suggests that the company did not use accruals or reserves to manage earnings this period, and that, all else being equal, the earnings number is sustainable.

Operating Cash Flow Growth Versus Earnings Growth

Quadrant label definitions. Hover to know more

Cash Flow based Earnings, Likely Non-cash Earnings, Low Cash Flow Base, Likely Undeclared Earnings


The company’s earnings decline is largely a result of non-operational activity. As a matter of fact, the company showed increases in operating (EBIT) and pretax margins. EBIT margins improved from -1,676.07% to -360.30% and pretax margins widened from -1,895.73% to -342.64%.

EBIT Margin Versus PreTax Margin

Quadrant label definitions. Hover to know more

Operation driven Earnings, One-time Favorables, Low Earnings Base, One-time Unfavorables
EBIT Margin History
PreTax Margin History

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Company Profile

BioAmber, Inc. is an industrial biotechnology company producing sustainable chemicals. Its proprietary technology platform combines industrial biotechnology and chemical catalysis to convert renewable feedstock into chemicals for use in everyday products, including plastics, resins, paints, food additives and personal care products. The company’s products include bio-based succinic acid, butanediol and bio-based disodium succinate. BioAmber was founded on October 15, 2008 and is headquartered in Montreal, Canada.

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