What happened
Shares of BioNTech SE (NASDAQ: BNTX) fell 12.4% in February, according to data provided by S&P Global Market Intelligence. The stock closed at $172.08 on Jan. 31 then opened on Feb. 1 at more than $10 a share higher at $182.18. BioNTech hit its lowest point in the month on Feb. 24 at $138.57. The stock has a 52-week low of $90.29 and a 52-week high of $464. Over the past 12 months, the stock is up more than 43%.
So what
The good news regarding the drop in COVID-19 cases around the country is being perceived as bad news for BioNTech, whose Comirnaty COVID-19 vaccine it developed with Pfizer has sent the company to record revenue and profits in 2021.
Image source: Getty Images.
Through nine months, the company reported revenue of 13.4 billion euros, approximately $12.3 billion, up 97.2% year over year. Earnings per share were listed at 27.46 euros ($29.82) compared to 1.51 euros ($1.64) in the same period last year.
The biotech company's guidance anticipated between 16 and 17 billion euros in revenue in 2021, roughly between $17.4 billion and $18.5 billion compared to $549.8 million last year. It's reasonable to assume that, with COVID-19 cases declining worldwide for four consecutive weeks now, it will be hard to match those numbers this year, much less come anywhere near that kind of growth.
Now what
The question for investors is what is BioNTech's true worth as a stock? Based on its price-to-earnings ratio (P/E) of 3.525, it appears ridiculously cheap. It really looks inexpensive based on its forward P/E of 3.125. However, it's hard to rate it on those metrics because no one knows how much money the vaccine will deliver two or three years from now. In the short term, we know that Pfizer predicts that the vaccine will bring it $32 billion in 2022. As the companies split the revenue from the drug, BioNTech looks to be a good buy now based on its current valuation. One hidden factor is how the impact of its 2021 revenue will help BioNTech develop its pipeline, which includes 14 late-stage trials regarding oncology therapies.
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Jim Halley owns Pfizer. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
