Endo International PLC EBITDA dropped on 146% in 2015 while Revenue jumped on 37.3%
29.02.2016 • About Endo International PLC (
$ENL) • By InTwits
Endo International PLC reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Endo International PLC doesn't have a profitable business model yet: 2015 ROIC is -8.2%
- The company operates at negative EBITDA Margin: -9.2%
- EBITDA Margin is quite volatile: -9.2% in 2015, 27.6% in 2014, -6.5% in 2013, -9.0% in 2012, 27.3% in 2011
- Endo International PLC has low CAPEX intensity: 5 year average CAPEX/Revenue was 3.1%. At the same time it's in pair with industry average of 8.5%.
- CAPEX is quite volatile: 87 in FY2015, 283 in FY2014, 418 in FY2013, 902 in FY2012, 1,039 in FY2011
- The company has unprofitable business model: ROIC is at -8.2%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Endo International PLC ($ENL) key annual financial indicators
| mln. $ | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 2,730 | 2,816 | 2,617 | 2,381 | 3,269 | 37.3% |
| Gross Profit | 1,665 | 1,680 | 1,577 | 1,149 | 1,193 | 3.8% |
| SG&A | 825 | 864 | 849 | 568 | 741 | 30.5% |
| EBITDA | 746 | -254 | -170 | 658 | -301 | -145.7% |
| Net Income | 188 | -740 | -685 | -721 | -1,495 | 107.3% |
Balance Sheet
|
|---|
| Cash | 548 | 530 | 527 | 406 | 272 | -32.9% |
| Short Term Debt | 88 | 132 | 415 | 156 | 329 | 110.8% |
| Long Term Debt | 3,424 | 3,035 | 3,324 | 4,101 | 8,252 | 101.2% |
Cash flow
|
|---|
| Capex | 59 | 100 | 96 | 80 | 82 | 1.7% |
Ratios
|
|---|
| Revenue growth | 59.1% | 3.1% | -7.1% | -9.0% | 37.3% | |
| EBITDA growth | 30.0% | -134.1% | -33.2% | -487.2% | -145.7% | |
| Gross Margin | 61.0% | 59.7% | 60.3% | 48.3% | 36.5% | -11.8% |
| EBITDA Margin | 27.3% | -9.0% | -6.5% | 27.6% | -9.2% | -36.8% |
| Net Income Margin | 6.9% | -26.3% | -26.2% | -30.3% | -45.7% | -15.4% |
| SG&A, % of revenue | 30.2% | 30.7% | 32.5% | 23.9% | 22.7% | -1.2% |
| CAPEX, % of revenue | 2.2% | 3.5% | 3.7% | 3.4% | 2.5% | -0.9% |
| ROIC | 11.5% | -10.2% | -9.5% | 5.6% | -8.2% | -13.8% |
| ROE | 10.1% | -48.5% | -85.7% | -49.7% | -35.8% | 13.9% |
| Net Debt/EBITDA | 4.0x | | | 5.9x | | -5.9x |
Revenue and profitability
The company's Revenue jumped on 37.3% in 2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin surged on 94.6 pp from -86.5% to 8.1% in FY2015.
Gross Margin dropped on 11.8 pp from 48.3% to 36.5% in 2015. SG&A as a % of Revenue decreased slightly on 1.2 pp from 23.9% to 22.7% in 2015.
Net Income marign dropped on 15.4 pp from -30.3% to -45.7% in 2015.
Capital expenditures (CAPEX) and working capital investments
Endo International PLC's CAPEX/Revenue was 2.5% in 2015. CAPEX/Revenue decreased slightly on 1.0 pp from 3.5% in 2012 to 2.5% in 2015. Average CAPEX/Revenue for the last three years was 3.2%.
Return on investment
The company operates at negative ROIC (-8.20%) and ROE (-35.84%). ROIC dropped on 13.8 pp from 5.6% to -8.2% in 2015. ROE jumped on 13.9 pp from -49.7% to -35.8% in 2015.
Leverage (Debt)
Debt level is -1.3x Net Debt / EBITDA and Debt / EBITDA. Net Debt / EBITDA dropped on 5.9x from 5.9x to in 2015. Debt surged on 102% in 2015 while cash dropped on 32.9% in 2015.
Appendix 1: Peers in Consumer, Non-cyclical
Below we provide Endo International PLC 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 ($GDI) | | -38.8% | -72.9% | 218,969.1% | 18.7% |
| Cardiome Pharma Corp ($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 ($NHC) | 16.6% | 45.3% | 49.0% | 169.9% | |
| |
|---|
| Median (86 companies) | 17.0% | 9.3% | 6.7% | 13.2% | 11.4% |
|---|
| Endo International PLC ($ENL) | | 3.1% | -7.1% | -9.0% | 37.3% |
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% | 92.7% |
| Heritage Global Inc ($HGP) | 99.5% | | | 95.7% | |
| Ritchie Bros Auctioneers Inc ($RBA) | 87.9% | 88.7% | 88.4% | 88.0% | 89.1% |
| Concordia Healthcare Corp ($CXR) | | | 79.4% | 86.0% | |
| |
|---|
| Median (74 companies) | 34.5% | 36.1% | 35.9% | 35.1% | 33.1% |
|---|
| Endo International PLC ($ENL) | 61.0% | 59.7% | 60.3% | 48.3% | 36.5% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Cipher Pharmaceuticals Inc ($CPH) | -50.0% | 40.6% | 71.4% | 63.7% | 12.8% |
| Merus Labs International Inc ($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 ($ISV) | 34.1% | 39.6% | 39.6% | 37.6% | |
| |
|---|
| Median (85 companies) | 7.7% | 8.5% | 9.0% | 10.6% | 10.8% |
|---|
| Endo International PLC ($ENL) | 27.3% | -9.0% | -6.5% | 27.6% | -9.2% |
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 ($MBX) | 1.0% | 1.2% | 3.0% | 40.3% | 38.7% |
| |
|---|
| Median (86 companies) | 2.4% | 2.6% | 2.4% | 2.5% | 2.1% |
|---|
| Endo International PLC ($ENL) | 2.2% | 3.5% | 3.7% | 3.4% | 2.5% |
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 ($COV) | -49.6% | -75.8% | -30.1% | 50.6% | -12.4% |
| Cipher Pharmaceuticals Inc ($CPH) | -22.9% | 21.8% | 81.4% | 44.6% | -0.1% |
| Ceapro Inc ($CZO) | 69.9% | -33.5% | 15.5% | 43.5% | |
| |
|---|
| Median (86 companies) | 7.4% | 7.1% | 6.9% | 7.3% | 7.5% |
|---|
| Endo International PLC ($ENL) | 11.5% | -10.2% | -9.5% | 5.6% | -8.2% |
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 ($CRH) | -2.3x | -3.1x | -3.5x | 12.0x | 1.3x |
| |
|---|
| Median (70 companies) | 1.8x | 2.6x | 2.2x | 2.6x | 1.6x |
|---|
| Endo International PLC ($ENL) | 4.0x | | | 5.9x | |
