Trinity Biotech Plc: Gathering momentum, but may lack support

Trinity Biotech Plc relative valuation is UNDERVALUED and it has a fundamental analysis score of 25.

Our analysis is based on comparing Trinity Biotech Plc with the following peers – OraSure Technologies, Inc., Bio-Rad Laboratories, Inc. Class A, Chembio Diagnostics, Inc., Quidel Corporation, Abbott Laboratories, Danaher Corporation, Thermo Fisher Scientific Inc. and Vermillion, Inc. (OSUR-US, BIO-US, CEMI-US, QDEL-US, ABT-US, DHR-US, TMO-US and VRML-US).

Trinity Biotech Plc has shown underwhelming performance over the last one year while growing strongly over the last month. Trinity Biotech Plc’s price momentum over the last month, at 10.24% has been better than that over the last year, which was -20.89%. Also from a peer group perspective, Trinity Biotech Plc has performed better, since the peer group performance was 5.19% over the last month.

Company Snapshot

  • Compared to peers, relative underperformance over the last year is in contrast with the more recent outperformance.
  • It trades at a lower Price/Book multiple (1.22) than its peer median (3.08).
  • The market expects TRIB-US to grow more slowly than its peers and for its median ROE to decline.
  • TRIB-US employs relatively high amounts of assets while generating relatively median profit margins.
  • Compared with its chosen peers, the company’s annual revenues and earnings change at a slower rate, implying a lack of strategic focus and/or lack of execution success.
  • TRIB-US’s return on assets currently and over the past five years is around the peer median and suggest that it does not have any particular operational advantages versus peers.
  • The company’s margins are around the peer medians and do not suggest any benefit from a pricing or an operating cost advantage versus peers.
  • While TRIB-US’s revenue growth in recent years has been above the peer median, the stock’s P/E ratio is less than the peer median suggesting that the company’s earnings may be peaking and the market expects a decline in its growth expectations.
  • The company’s relatively low level of capital investment and below peer median returns on capital suggest that the company is in maintenance mode.
  • TRIB-US seems too levered to raise additional debt.
  • Our analysis rates Trinity Biotech Plc as UNDERVALUED relative to its peers.

Share Price Performance

Compared to peers, relative underperformance over the last year is in contrast with the more recent outperformance.

TRIB-US’s share price performance of -20.89% over the last 12 months is below its peer median but its 30-day trend in share price performance of 10.24% is better than the peer median. This recent rising stock price may herald a change in relative share price performance.

Share Price Performance

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Leading, Fading, Lagging, Rising

Relative Valuation

Relative Valuation
Fundamental Score

Trinity Biotech Plc’s price of USD 5.49 is lower than CapitalCube’s implied price of USD 9.32. CapitalCube believes that at these levels, Trinity Biotech Plc is undervalued and has upside potential. Over the last 52 week period, the stock has fluctuated between USD 4.22 and USD 7.27.

Valuation & Peer Metrics

A complete list of valuation metrics is available on the company page.

Company Profile

Trinity Biotech Plc develops, manufactures and markets diagnostic test kits for the clinical laboratory and Point-of-Care segments of the diagnostic market. Its products are used to detect infectious diseases, sexually transmitted diseases, blood disorders and autoimmune disorders, as well as monitoring and diagnosing diabetes and haemoglobin variants. The company was founded by Ronan O’Caoimh and Denis R. Burger in June 1992 and is headquartered in Bray, Ireland.

Disclaimer

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