Simple Concepts Research Group

Will Quidel (NASDAQ: QDEL) Stock Regain Momentum?

by | Feb 7, 2022 | 52 Week Lows, Stock Picks

quidel corporation qdel stock valuation

Quidel (QDEL) Company Overview & Stock Price Forecast

This article provides a brief analysis and stock rating for Quidel Corporation (QDEL) including an updated stock price target. Additional data on the company’s earnings yield, price/earnings ratio, return on invested capital and YTD performance are discussed as well.

Quidel Fundamentals

QDEL Stock Rating

Stock Price Target: $152.39

In the section below, we discuss the earnings yield, P/E, return on invested capital and YTD performance for Quidel in comparison to the Healthcare Products industry and the S&P 500.

Quidel is a Small Cap company with a Market Cap of $3.71B.

How are investors using Quidel earnings yield to assess the company?

Quidel (QDEL)_ Earnings Yield in Comparison to the Healthcare Products Industry, S&P 500 and 10 Year Treasury Rate

The earnings yield is used to show the percentage of a company’s earnings per share. Investors typically use earnings yield to determine which assets are underpriced or overpriced relative to other variables, like sector, industry or bond yields. Simply put, the earnings yield of a company can be used to assess how expensive a company is in relation to the earnings that are generated. When valuing companies, the SIS Research Group does not utilize the inverse P/E ratio to calculate the earnings yield. Instead, we use an adjusted earning yield calculation to capture variation amongst companies (i.e. debt and tax rates).

The current earnings yield for Quidel is 15.17%, in comparison to 3.90% for the S&P 500 and 1.93% for the 10-year treasury bond. The median earnings yield for the Healthcare Products industry is 4.14%.

What does Quidel Price-to-Earnings Ratio (P/E) tell investors about the company?

Quidel (QDEL)_ Price-to-Earnings, Price-to-Sales and Price-to-Book Value in Comparison to the Healthcare Products Industry and the S&P 500

The price-to-earnings ratio (P/E) is a relatively popular metric used by investors and analysts for valuing a company’s stock. The P/E ratio can be used to show how a stock’s valuation compares to other companies and the total market. Investors use the P/E ratio to determine what the market is willing to pay today based on a company’s past or future earnings. A high P/E ratio could mean that a stock’s price is too high relative to earnings, which could be a signal that a stock is currently overvalued. In turn, a low P/E ratio could indicate that a company’s current stock price is low relative to earnings. 

Quidel is currently trading at a P/E of 4.88. The P/E for the Healthcare Products industry is 54.02 and the P/E for the S&P 500 is 25.66.

What is the current Price-to-Sales Ratio (P/S) for Quidel?

The Price-to-Sales Ratio (P/S) looks at a company’s market cap and revenue to determine valuation. The P/S ratio is calculated by taking a company’s market cap and dividing by the total sales or revenue. The P/S ratio gives an idea of how much the market values every dollar of a company’s sales and can be effective in valuing unprofitable growth stocks or companies that are currently undergoing special situations or challenges. A lower the P/S ratio can be an indicator of good value.

Quidel is currently trading at a P/S of 2.61. The P/S for the Healthcare Products industry is 6.67 and the P/S for the S&P 500 is 2.98.

How does Quidel Price-to-BookRatio (P/B) compare to the Healthcare Products industry?

Price-to-book value (P/B) is the ratio of the market value of a company’s shares divided by its book value of equity (the value of it’s assets on the books). The book value is the difference between the book value of assets and liabilities. Typically, investors use the P/B ratio to assess if a stock is valued properly (a value of one means that the stock price is trading in line with the book value of the company). A company with a high P/B ratio could mean the stock price is overvalued as well as the converse.

Quidel P/B ratio is 3.16. The P/B for the Healthcare Products industry is 6.30 and the P/B for the S&P 500 is 4.58.

How attractive is Quidel Return on Invested Capital (ROIC) to investors?

Quidel (QDEL)_ Return on Invested Capital in Comparison to the Healthcare Products Industry and the S&P 500

Investors use the return on invested capital (ROIC) to assess how efficient a company is at turning capital into profits. The ROIC is the amount of money a company makes on it’s investments that is above the average cost of debt and equity.

Investors can use the ROIC to provide context for metrics like the (P/E) ratio. For instance, when used in isolation a low P/E ratio could suggest a company is oversold but the decline could be because a company is no longer generating value for shareholders. Conversely, companies that consistently generate high rates of ROIC can plausibly trade at a premium compared to other stocks, even if their P/E ratios are high.

Quidel ROIC is currently 64.90% in comparison to 11.14% for the Healthcare Products industry and 9.10% for the S&P 500.

Quidel (QDEL)_ Price Target & 52-Week Price Range

How has QDEL stock performed over the past year? What is the current analyst price target?

Over the past 52 weeks, Quidel has traded between the range of $91.14 and $254.82.

The current Analyst Price Target for Quidel is $152.39.

What is Quidel YOY Performance in comparison to its industry and the total market?

The YOY performance for Quidel is -58.28%. The Healthcare Products industry has a YOY performance of 6.34% in comparison to the YOY S&P 500 performance of 17.62%.

Quidel (QDEL)_ YOY Performance in Comparison to the Healthcare Products Industry and the S&P 500

Recent Financial Results (Q3, 2021)

  • Total revenues increased 7% to $509.7M, from $476.1M in the third quarter of 2020
  • Total sales of COVID-19 products increased 7% to $402.6M, from $375.7M in the third quarter of 2020
  • Total sales of Influenza products were $13.8M, compared to $9M in the third quarter of 2020
  • Resolved ongoing litigation with Beckman Coulter; substantially completed transition of the BNP business to Beckman Coulter for cash payments to Quidel of between $70M and $75M per year from 2022 through 2029, and pro-rated for 2021
  • Received the CE Mark for Savanna multiplex molecular analyzer and Savanna RVP4 assay
  • Made QuickVue At-Home OTC COVID-19 Test available to consumers at CVS Pharmacy and online
  • Secured 12-month agreement with U.S. government worth over $500M to supply QuickVue At-Home OTC COVID-19 Tests

Stock Price Target: $152.39

Company Overview

QDEL Stock Rating

Quidel Corporation develops, manufactures, and markets diagnostic testing solutions for applications in infectious diseases, cardiology, thyroid, women’s and general health, eye health, gastrointestinal diseases, and toxicology worldwide.

The company markets its products through distributors and direct sales force for use in physician offices, hospitals, clinical laboratories, reference laboratories, universities, retail and urgent care clinics, pharmacies, and wellness screening centers. Quidel Corporation was incorporated in 1979 and is headquartered in San Diego, California. The current CEO is Douglas C. Bryant.

Be sure to add Quidel (QDEL) to your Watch List and if you haven’t done so already, check in on the performance of our Current Portfolio. Keep it simple and always do your due diligence.

This material is provided for informational purposes only and is not financial advice. The information contained herein should not solely be used for the formation of an investment decision, whether you are a long term or short term investor.