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1. Company Snapshot

1.a. Company Description

ImmuCell Corporation, an animal health company, develops, manufactures, and markets products that enhance the health and productivity of dairy and beef cattle in the United States and internationally.It offers First Defense, an orally delivered scours preventive product for newborn dairy and beef calves; and Tri-Shield First Defense, a passive antibody product for the treatment of E.coli, coronavirus, and rotavirus.


The company also provides California Mastitis Test that is used to detect somatic cell counts in milk, as well as to determine, which quarter of the udder is mastitic; and Dual-Force First Defense, including a whey protein concentrate for the nutritional and feed supplement markets.In addition, it is involved in developing Re-Tain, a Nisin-based intramammary treatment of subclinical mastitis in lactating dairy cows.It sells its products through animal health distributors.


ImmuCell Corporation was incorporated in 1982 and is headquartered in Portland, Maine.

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1.b. Last Insights on ICCC

The recent 3-month performance of ImmuCell Corporation was driven by strong sales growth, margin expansion, and increased demand for its flagship product, First Defense. The company reported record Q1 sales, with preliminary unaudited results indicating a significant increase in revenue. Additionally, ImmuCell announced the initiation of Investigational Product use of Re-Tain, a new product that is expected to contribute to the company's growth. The company's ability to expand its margins and return to earnings also suggests a positive trend.

1.c. Company Highlights

2. ImmuCell's Q3 2025 Earnings: A Turnaround Story Unfolds

ImmuCell Corporation reported a mixed bag in its third-quarter 2025 earnings, with total product sales decreasing by 8% compared to the same period last year, largely due to restocking distribution channels. However, domestic sales showed resilience, increasing by 2% during the third quarter compared to the third quarter of 2024, and by 9.5% compared to the second quarter of 2025. The company's net income during the 9-month period ended September 30, 2025, increased by $4.5 million over the net loss during the same period in 2024. Gross margin as a percentage of product sales significantly improved to 43% during the third quarter of 2025, up from 26% in the third quarter of 2024. The company's actual EPS came out at $0.01, beating estimates of -$0.01.

Publication Date: Nov -21

📋 Highlights
  • Net Income Turnaround:: Net income increased by $4.5 million for the 9-month period ending September 30, 2025, compared to a net loss in the same period in 2024.
  • Gross Margin Expansion:: Gross margin as a percentage of product sales rose to 43% in Q3 2025, up from 26% in Q3 2024, driven by improved production and pricing.
  • Domestic Sales Growth:: Domestic sales grew 2% year-over-year in Q3 2025 and surged 9.5% quarter-over-quarter, reflecting progress in restocking distribution channels.
  • Adjusted EBITDA Progress:: Adjusted EBITDA reached $751,000 in Q3 2025, $4.4 million for the 9-month period, and $5.8 million for the trailing 12 months.
  • Inventory Management Focus:: Inventory levels increased but are being actively managed to avoid overstocking key ingredients like colostrum as peak selling season approaches.

Operational Highlights and Future Prospects

The company is poised for growth, driven by its existing products and new launches within the functional feed line. The CEO, Olivier Te Boekhorst, highlighted the commercial opportunity with the First Defense suite of solutions and the potential of Re-Tain, a product awaiting FDA approval for treating subclinical mastitis. The company has started investigational product use studies to gather market feedback, which will inform its strategies for Re-Tain in 2026. Analysts estimate next year's revenue growth at 26.8%, indicating a positive outlook.

Margin Improvement and Inventory Management

Adjusted EBITDA for the 9-month period ended September 30, 2025, was $4.4 million, indicating a significant improvement in profitability. Tim, the executive responsible for inventory management, stated that inventory levels have increased to maintain a desirable level, especially approaching the peak selling season. He attributed the margin improvement in Q3 to improved manufacturing performance, a 6% composite price increase, and increased sales volume. As Olivier Te Boekhorst noted, "We've worked with Tim for 15 years, and we appreciate his disciplined approach to operational and financial execution."

Valuation Metrics

With a P/S Ratio of 0.01 and an EV/EBITDA of 353.99, the market seems to be pricing in significant growth potential. The company's ROE (%) is 0.03, and ROIC (%) is 0.01, indicating room for improvement in returns. The Free Cash Flow Yield (%) is 4.24, suggesting a relatively attractive cash return profile. As the company executes on its plans, these valuation metrics will be closely watched to assess if the growth expectations are being met.

3. NewsRoom

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ImmuCell's Two-Product Edge in Cattle Health Fuels Growth

Dec -04

Source: zacks.com

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ICCC Stock Down Despite Y/Y Q3 Earnings Improvement & Margin Strength

Nov -20

Source: zacks.com

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ImmuCell Corporation (ICCC) Q3 2025 Earnings Call Transcript

Nov -14

Source: seekingalpha.com

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ImmuCell Announces Unaudited Financial Results for the Quarter Ended September 30, 2025

Nov -13

Source: globenewswire.com

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ImmuCell to Announce Unaudited Financial Results for the Quarter Ended September 30, 2025

Nov -06

Source: globenewswire.com

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ImmuCell Announces Onboarding of New CEO and Related Management Changes

Nov -04

Source: globenewswire.com

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ImmuCell Announces Preliminary, Unaudited Sales Results for Q3 of 2025

Oct -07

Source: globenewswire.com

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ImmuCell Announces Selection of its Next President and CEO

Sep -29

Source: globenewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (7.40%)

6. Segments

Scours

Expected Growth: 7.4%

Growing demand for animal health products, increasing awareness about neonatal calf diarrhea, and rising adoption of vaccines in livestock industry drive the market growth.

Mastitis

Expected Growth: 7.4%

Growing demand for dairy products, increasing awareness of cow health, and rising adoption of mastitis prevention products drive the market growth, with ImmuCell's First Defense playing a key role in promoting cow health and milk production.

7. Detailed Products

First Defense

A natural, non-antibiotic product that helps to support a healthy immune system in newborn calves, reducing the risk of scours and other diseases.

Tri-Shield

A vaccine that helps to protect against three major diseases in cattle: BVD, IBR, and PI3.

Calf-Guard

A vaccine that helps to protect against scours and other diseases in calves.

Mast Out

A natural, non-antibiotic product that helps to reduce the incidence of mastitis in dairy cows.

8. ImmuCell Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

ImmuCell Corporation's products are moderately susceptible to substitutes, as there are alternative products available in the market, but they are not perfect substitutes.

Bargaining Power Of Customers

ImmuCell Corporation's customers have limited bargaining power due to the company's strong brand reputation and limited availability of alternative products.

Bargaining Power Of Suppliers

ImmuCell Corporation's suppliers have moderate bargaining power due to the availability of alternative suppliers, but the company's large scale of operations gives it some negotiating power.

Threat Of New Entrants

The threat of new entrants is low due to the high barriers to entry in the biotechnology industry, including high research and development costs and stringent regulatory requirements.

Intensity Of Rivalry

The intensity of rivalry in the biotechnology industry is high due to the presence of several established players and the need for continuous innovation to stay competitive.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 33.54%
Debt Cost 3.95%
Equity Weight 66.46%
Equity Cost 7.00%
WACC 5.97%
Leverage 50.47%

11. Quality Control: ImmuCell Corporation passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Cidara Therapeutics

A-Score: 4.2/10

Value: 6.8

Growth: 3.2

Quality: 5.4

Yield: 0.0

Momentum: 10.0

Volatility: 0.0

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Arcturus Therapeutics

A-Score: 4.2/10

Value: 8.4

Growth: 6.3

Quality: 4.2

Yield: 0.0

Momentum: 5.0

Volatility: 1.0

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ImmuCell

A-Score: 4.2/10

Value: 4.6

Growth: 3.0

Quality: 4.7

Yield: 0.0

Momentum: 10.0

Volatility: 2.7

1-Year Total Return ->

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Zevra Therapeutics

A-Score: 3.9/10

Value: 4.6

Growth: 4.0

Quality: 5.8

Yield: 0.0

Momentum: 6.5

Volatility: 2.3

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Verrica Pharmaceuticals

A-Score: 3.4/10

Value: 9.0

Growth: 3.7

Quality: 6.0

Yield: 0.0

Momentum: 0.5

Volatility: 1.0

1-Year Total Return ->

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Orgenesis

A-Score: 2.9/10

Value: 7.7

Growth: 4.2

Quality: 5.8

Yield: 0.0

Momentum: 0.0

Volatility: 0.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

5.64$

Current Price

5.64$

Potential

-0.00%

Expected Cash-Flows