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One way to evaluate a company's sales trends is by comparing growth in revenue to growth in accounts receivable. Companies with rising revenues and falling receivables may be in a stronger sales position.

Since accounts receivable is the portion of revenues not yet received, and there's no guarantee they will ever be received in full, the lower the portion of revenue the better.

We screened the biotech industry for stocks with strong trends in revenue relative to receivables: growth in revenue outpacing growth in accounts receivable year-over-year, as well as receivables decreasing as a portion of current assets.

Interactive Chart: Press Play to compare changes in analyst ratings over the last two years for the stocks mentioned below. Analyst ratings sourced from Zacks Investment Research.‬

We also created a price-weighted index of the stocks mentioned below, and monitored the performance of the list relative to the S&P 500 index over the last month. To access a complete analysis of this list's recent performance, click here.

Do you think these companies are in a strong financial position? Use this list as a starting point for your own analysis.

1. Biogen Idec Inc. (NASDAQ:BIIB): Develops, manufactures, and markets therapeutics in the areas of neurology, immunology, hemophilia, and oncology in the United States and internationally. Revenue grew by 8.83% during the most recent quarter ($1,326.71M vs. $1,219.07M y/y). Accounts receivable grew by -1.04% during the same time period ($831.23M vs. $839.99M y/y). Receivables, as a percentage of current assets, decreased from 33.07% to 27.94% during the most recent quarter (comparing 3 months ending 2011-12-31 to 3 months ending 2010-12-31).

2. Cambrex Corporation. (NYSE:CBM): Provides products and services for the development and commercialization of new and generic therapeutics. Revenue grew by 4.04% during the most recent quarter ($67.53M vs. $64.91M y/y). Accounts receivable grew by -6.43% during the same time period ($36.51M vs. $39.02M y/y). Receivables, as a percentage of current assets, decreased from 28.88% to 26.73% during the most recent quarter (comparing 3 months ending 2011-12-31 to 3 months ending 2010-12-31).

3. Sinovac Biotech Ltd. (NASDAQ:SVA): Engages in the research, development, manufacture, and commercialization of vaccines against the hepatitis A, hepatitis B, and influenza viruses in the People's Republic of China. Revenue grew by 60.84% during the most recent quarter ($15.36M vs. $9.55M y/y). Accounts receivable grew by -38.41% during the same time period ($22.13M vs. $35.93M y/y). Receivables, as a percentage of current assets, decreased from 23.27% to 16.94% during the most recent quarter (comparing 3 months ending 2011-09-30 to 3 months ending 2010-09-30).

*Accounting data sourced from Google Finance, all other data sourced from Finviz.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

Source: 3 Biotech Stocks With Encouraging Receivable Trends