Cipher Pharmaceuticals Inc reports 91.9% Net Income decline and 51.0 pp EBITDA Margin decline from 63.7% to 12.8%
24.02.2016 • About Cipher Pharmaceuticals Inc (
$CPH) • By InTwits
Cipher Pharmaceuticals Inc reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Cipher Pharmaceuticals Inc doesn't have a profitable business model yet: 2015 ROIC is -0.1%
- EBITDA Margin is quite volatile: 12.8% in 2015, 63.7% in 2014, 71.4% in 2013, 40.6% in 2012, -50.0% in 2011
- Cipher Pharmaceuticals Inc has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.2%.
- The company has unprofitable business model: ROIC is at -0.1%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Cipher Pharmaceuticals Inc ($CPH) key annual financial indicators
| mln. $ | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 3.610 | 8.464 | 26.230 | 26.469 | 26.944 | 1.8% |
| Gross Profit | | | 26.092 | 26.008 | 24.967 | -4.0% |
| SG&A | | 3.529 | 6.034 | 8.144 | 19.893 | 144.3% |
| EBITDA | -1.806 | 3.436 | 18.725 | 16.871 | 3.443 | -79.6% |
| Net Income | -2.338 | 2.546 | 24.245 | 17.004 | 1.385 | -91.9% |
Balance Sheet
|
|---|
| Cash | 9.479 | 15.924 | 22.750 | 39.060 | 19.657 | -49.7% |
| Short Term Debt | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | |
| Long Term Debt | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | |
Cash flow
|
|---|
| Capex | 0.012 | 0.020 | 0.015 | 0.014 | 0.134 | 824.0% |
Ratios
|
|---|
| Revenue growth | -31.0% | 134.5% | 209.9% | 0.9% | 1.8% | |
| EBITDA growth | -348.9% | -290.3% | 444.9% | -9.9% | -79.6% | |
| Gross Margin | | | 99.5% | 98.3% | 92.7% | -5.6% |
| EBITDA Margin | -50.0% | 40.6% | 71.4% | 63.7% | 12.8% | -51.0% |
| Net Income Margin | -64.8% | 30.1% | 92.4% | 64.2% | 5.1% | -59.1% |
| SG&A, % of revenue | | 41.7% | 23.0% | 30.8% | 73.8% | 43.1% |
| CAPEX, % of revenue | 0.3% | 0.2% | 0.1% | 0.1% | 0.5% | 0.4% |
| ROIC | -22.9% | 21.8% | 81.4% | 44.6% | -0.1% | -44.8% |
| ROE | -22.0% | 23.2% | 97.6% | 40.4% | 3.3% | -37.2% |
| Net Debt/EBITDA | | -4.6x | -1.2x | -2.3x | -5.7x | -3.4x |
Revenue and profitability
Cipher Pharmaceuticals Inc's Revenue increased slightly on 1.8% in 2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased slightly on 1.9 pp from 9.3% to 11.2% in FY2015.
Gross Margin decreased on 5.6 pp from 98.3% to 92.7% in 2015. SG&A as a % of Revenue jumped on 43.1 pp from 30.8% to 73.8% in 2015.
Net Income marign dropped on 59.1 pp from 64.2% to 5.1% in 2015.
Capital expenditures (CAPEX) and working capital investments
Cipher Pharmaceuticals Inc's CAPEX/Revenue was 0.50% in 2015. The company's CAPEX/Revenue showed almost no change from 2012 to 2015. It's average CAPEX/Revenue for the last three years was 0.20%.
Return on investment
The company operates at negative ROIC (-0.14%) and low but positive ROE (3.27%). ROIC dropped on 44.8 pp from 44.6% to -0.14% in 2015. ROE dropped on 37.2 pp from 40.4% to 3.3% in 2015.
Leverage (Debt)
The company has no debt. Cash dropped on 49.7% in 2015.
Appendix 1: Peers in Consumer, Non-cyclical
Below you can find Cipher Pharmaceuticals Inc benchmarking vs. other companies in Consumer, Non-cyclical industry. It's shown for the period of 5 years for the key financial metrics. Each table has median value for all the companies in the industry together with individual financial data of the top-5 companies in the industry by particular financial metric.
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% | |
| Patient Home Monitoring Corp ($PHM) | | 170.2% | 1.9% | 433.0% | 238.4% |
| Family Memorials Inc ($FAM) | -13.6% | 54.7% | 22.9% | 245.3% | |
| Nobilis Health Corp ($NHC) | 16.6% | 45.3% | 49.0% | 169.9% | |
| |
|---|
| Median (86 companies) | 17.0% | 8.1% | 5.3% | 13.2% | 11.4% |
|---|
| Cipher Pharmaceuticals Inc ($CPH) | | 134.5% | 209.9% | 0.9% | 1.8% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Nobilis Health Corp ($NHC) | | | | 99.8% | |
| Heritage Global Inc ($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% | |
| Merus Labs International Inc ($MSL) | | 88.6% | 91.4% | 82.8% | 84.6% |
| |
|---|
| Median (74 companies) | 35.4% | 37.4% | 35.9% | 35.1% | 33.1% |
|---|
| Cipher Pharmaceuticals Inc ($CPH) | | | 99.5% | 98.3% | 92.7% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| 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% | |
| Concordia Healthcare Corp ($CXR) | | | 43.7% | 37.0% | |
| |
|---|
| Median (85 companies) | 8.1% | 7.4% | 8.7% | 10.6% | 10.8% |
|---|
| Cipher Pharmaceuticals Inc ($CPH) | -50.0% | 40.6% | 71.4% | 63.7% | 12.8% |
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% | |
| Microbix Biosystems Inc ($MBX) | 1.0% | 1.2% | 3.0% | 40.3% | 38.7% |
| |
|---|
| Median (86 companies) | 2.4% | 2.8% | 2.4% | 2.6% | 2.1% |
|---|
| Cipher Pharmaceuticals Inc ($CPH) | 0.3% | 0.2% | 0.1% | 0.1% | 0.5% |
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 ($COV) | -49.6% | -75.8% | -30.1% | 50.6% | -12.4% |
| Ceapro Inc ($CZO) | 69.9% | -33.5% | 15.5% | 43.5% | |
| Nobilis Health Corp ($NHC) | -20.2% | 49.4% | 29.7% | 39.0% | |
| |
|---|
| Median (86 companies) | 8.0% | 6.3% | 6.7% | 6.7% | 7.5% |
|---|
| Cipher Pharmaceuticals Inc ($CPH) | -22.9% | 21.8% | 81.4% | 44.6% | -0.1% |
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 | 4.9x |
| CRH Medical Corp ($CRH) | -2.3x | -3.1x | -3.5x | 12.0x | |
| |
|---|
| Median (70 companies) | 1.8x | 2.8x | 2.2x | 2.7x | 1.6x |
|---|
| Cipher Pharmaceuticals Inc ($CPH) | | -4.6x | -1.2x | -2.3x | -5.7x |
