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Abcam: Growth Has Come At A Cost To Equity Holders

Feb. 13, 2023 12:36 AM ETAbcam plc (ABCM)
Zach Bristow profile picture
Zach Bristow


  • Abcam stock trades at a premium of ~122% to peers at 43x forward earnings.
  • The premium seems unjustified, as growth has come at a cost to equity holders.
  • The reinvestment of post-tax earnings for growth hasn't delivered high rates of return, either.
  • Net-net, rate hold.

Drought and Climate change impact

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Investment Summary

There's numerous selective opportunities trading at respectable multiples within the life sciences space. Moreover, we are happy to pay a high multiple if a company can generate high degrees of free cash to equity holders after


Data: Updata


Data: Seeking Alpha, ABCM, see: "Revenues"


Note, all figures are represented in USD (Data: Author, using data from ABCM's SEC Filings, and regulatory filings before listing in FY20')


Note: As above (Data: As above)


Note, all figures are represented in USD (Data: Author)


Data: Author


Data: Seeking Alpha

This article was written by

Zach Bristow profile picture
Buy side equity strategist conducting a blend of fundamental, technical, long-term analysis across the broad healthcare, commodities and industrials spectrum in developed markets. Helping you position your portfolios for the future is my top priority. Shoot me a message to discuss trade ides or talk portfolio construction. Disclaimer:The opinions expressed in all articles do not constitute as investment advice. Please remember to conduct your own due diligence.

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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