Microbix Biosystems Inc Net Income jumped on 263% in 2015 while EBITDA Margin decreased on 3.5 pp from 20.5% to 17.0%
31.12.2015 • About Microbix Biosystems Inc (
$MBX) • By InTwits
Microbix Biosystems Inc reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Microbix Biosystems Inc has high CAPEX intensity: 5 year average CAPEX/Revenue was 16.8%. At the same time it's a lot of higher than industry average of 8.8%.
- CAPEX is quite volatile: 3.4 in FY2015, 3.4 in FY2014, 0.23 in FY2013, 0.080 in FY2012, 0.063 in FY2011
- The company has potentially unprofitable business model: ROIC is at 6.3%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Microbix Biosystems Inc ($MBX) key annual financial indicators
| mln. CAD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 6.228 | 6.670 | 7.575 | 8.397 | 8.874 | 5.7% |
| Gross Profit | 2.798 | 2.755 | 3.834 | 4.512 | 5.840 | 29.4% |
| SG&A | 3.678 | 3.771 | 2.683 | 2.504 | 3.471 | 38.6% |
| EBITDA | | | | 1.720 | 1.510 | -12.2% |
| Net Income | -2.566 | -2.389 | 0.001 | 0.169 | 0.614 | 263.3% |
Balance Sheet
|
|---|
| Cash | 0.125 | 0.228 | 0.260 | 0.547 | 0.104 | -81.0% |
| Short Term Debt | 0.274 | 0.617 | 0.120 | 0.814 | 1.458 | 79.1% |
| Long Term Debt | 6.097 | 5.182 | 5.109 | 4.424 | 5.045 | 14.0% |
Cash flow
|
|---|
| Capex | 0.063 | 0.080 | 0.226 | 3.380 | 3.439 | 1.7% |
Ratios
|
|---|
| Revenue growth | -3.6% | 7.1% | 13.6% | 10.9% | 5.7% | |
| EBITDA growth | | | | | -12.2% | |
| Gross Margin | 44.9% | 41.3% | 50.6% | 53.7% | 65.8% | 12.1% |
| EBITDA Margin | 0.0% | 0.0% | 0.0% | 20.5% | 17.0% | -3.5% |
| Net Income Margin | -41.2% | -35.8% | 0.0% | 2.0% | 6.9% | 4.9% |
| SG&A, % of revenue | 59.0% | 56.5% | 35.4% | 29.8% | 39.1% | 9.3% |
| CAPEX, % of revenue | 1.0% | 1.2% | 3.0% | 40.3% | 38.7% | -1.5% |
| ROIC | -13.6% | -15.1% | 6.4% | 10.1% | 6.3% | -3.8% |
| ROE | -70.8% | -47.7% | 0.0% | 2.2% | 5.2% | 3.0% |
| Net Debt/EBITDA | | | | 2.7x | 4.2x | 1.5x |
Revenue and profitability
The company's Revenue increased on 5.7% in FY2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased slightly on 0.61 pp from 6.8% to 7.4% in FY2015.
Gross Margin jumped on 12.1 pp from 53.7% to 65.8% in FY2015. SG&A as a % of Revenue increased on 9.3 pp from 29.8% to 39.1% in FY2015.
Net Income marign increased on 4.9 pp from 2.0% to 6.9% in FY2015.
Capital expenditures (CAPEX) and working capital investments
In FY2015 the company had CAPEX/Revenue of 38.7%. The company's CAPEX/Revenue jumped on 37.6 pp from 1.2% in FY2012 to 38.7% in FY2015. Average CAPEX/Revenue for the last three years was 27.3%.Microbix Biosystems Inc investments to CAPEX were large: 228% of EBITDA.
Return on investment
The company operates at low ROIC (6.29%) and ROE (5.22%). ROIC decreased on 3.8 pp from 10.1% to 6.3% in FY2015. ROE increased on 3.0 pp from 2.2% to 5.2% in FY2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 4.2x and Debt / EBITDA is 4.3x. Net Debt / EBITDA jumped on 1.5x from 2.7x to 4.2x in FY2015. Debt surged on 24.1% in FY2015 while cash dropped on 81.0% in FY2015.
Appendix 1: Peers in Consumer, Non-cyclical
Below we provide Microbix Biosystems Inc benchmarking against other companies in Consumer, Non-cyclical industry for the last 5 years. We show data for the top-5 companies by key financial metric together with the median value for all the companies in the industry.
Top companies by Revenue growth, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| GDI Integrated Facility Services Inc ($GDI) | 43.8% | -38.8% | -72.9% | 218,969.1% | |
| Cardiome Pharma Corp ($COM) | -97.7% | -47.6% | 471.7% | 566.0% | |
| Family Memorials Inc ($FAM) | -13.6% | 54.7% | 22.9% | 245.3% | |
| Nobilis Health Corp ($NHC) | 16.6% | 45.3% | 49.0% | 169.9% | |
| Concordia Healthcare Corp ($CXR) | | | | 159.5% | |
| |
|---|
| Median (85 companies) | 12.9% | 8.7% | 6.0% | 13.2% | 6.3% |
|---|
| Microbix Biosystems Inc ($MBX) | | 7.1% | 13.6% | 10.9% | 5.7% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Nobilis Health Corp ($NHC) | | | | 99.8% | |
| Cipher Pharmaceuticals Inc ($CPH) | | | 99.5% | 98.3% | |
| Heritage Global Inc ($HGP) | 99.5% | | | 95.7% | |
| Ritchie Bros Auctioneers Inc ($RBA) | 87.9% | 88.7% | 88.4% | 88.0% | |
| Concordia Healthcare Corp ($CXR) | | | 79.4% | 86.0% | |
| |
|---|
| Median (73 companies) | 33.7% | 35.8% | 35.5% | 34.6% | 28.1% |
|---|
| Microbix Biosystems Inc ($MBX) | 44.9% | 41.3% | 50.6% | 53.7% | 65.8% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Cipher Pharmaceuticals Inc ($CPH) | -50.0% | 40.6% | 71.4% | 63.7% | |
| Merus Labs International Inc ($MSL) | | 32.9% | 64.7% | 46.2% | 61.5% |
| Valeant Pharmaceuticals International Inc ($VRX) | 37.0% | 30.6% | 27.8% | 45.6% | |
| EnerCare Inc ($ECI) | 59.0% | 52.8% | 51.0% | 45.5% | |
| Information Services Corp ($ISV) | 34.1% | 39.6% | 39.6% | 37.6% | |
| |
|---|
| Median (84 companies) | 8.1% | 8.5% | 8.7% | 10.5% | 10.3% |
|---|
| Microbix Biosystems Inc ($MBX) | | | | 20.5% | 17.0% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Neptune Technologies & Bioressources Inc ($NTB) | 6.0% | 4.7% | 73.6% | 84.6% | 119.0% |
| CanaDream Corp ($CDN) | 68.6% | 43.3% | 38.1% | 70.4% | 63.4% |
| Ceapro Inc ($CZO) | 2.2% | 3.9% | 35.3% | 52.0% | |
| Feronia Inc/Canada ($FRN) | 129.0% | 191.4% | 117.4% | 42.4% | |
| ProMetic Life Sciences Inc ($PLI) | | 2.1% | 33.6% | 34.6% | 23.3% |
| |
|---|
| Median (85 companies) | 2.4% | 2.6% | 2.4% | 2.4% | 2.4% |
|---|
| Microbix Biosystems Inc ($MBX) | 1.0% | 1.2% | 3.0% | 40.3% | 38.7% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Biosyent Inc ($RX) | 45.5% | 71.7% | 62.4% | 62.9% | |
| Information Services Corp ($ISV) | 56.0% | 71.8% | 72.8% | 58.9% | |
| Covalon Technologies Ltd ($COV) | -49.6% | -75.8% | -30.1% | 50.6% | |
| Cipher Pharmaceuticals Inc ($CPH) | -22.9% | 21.8% | 81.4% | 44.6% | |
| Ceapro Inc ($CZO) | 69.9% | -33.5% | 15.5% | 43.5% | |
| |
|---|
| Median (85 companies) | 8.0% | 7.2% | 6.7% | 6.9% | 7.2% |
|---|
| Microbix Biosystems Inc ($MBX) | -13.6% | -15.1% | 6.4% | 10.1% | 6.3% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Noble Iron Inc ($NIR) | | 25.5x | 12.9x | 227.3x | |
| Family Memorials Inc ($FAM) | | | | 15.2x | |
| Amica Mature Lifestyles Inc ($ACC) | 11.7x | 9.4x | 14.7x | 13.8x | 12.3x |
| Cott Corp ($BCB) | 2.6x | 2.0x | 2.2x | 13.4x | |
| CRH Medical Corp ($CRH) | -2.3x | -3.1x | -3.5x | 12.0x | |
| |
|---|
| Median (69 companies) | 1.8x | 2.6x | 2.2x | 2.7x | 1.5x |
|---|
| Microbix Biosystems Inc ($MBX) | | | | 2.7x | 4.2x |
