Medicure Inc reports 646% EBITDA growth and 10.1 pp EBITDA Margin growth from 14.4% to 24.5%
30.03.2016 • About Medicure Inc (
$MPH) • By InTwits
Medicure Inc reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Medicure Inc is a fast growth stock: 2015 revenue growth was 337%, 5 year revenue CAGR was 46.1% at 2015 ROIC 129%
- Medicure Inc has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.3%.
- The company has highly profitable business model: ROIC is at 129.4%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Medicure Inc ($MPH) key annual financial indicators
| mln. CAD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 3.628 | 4.797 | 2.603 | 5.051 | 22.083 | 337.2% |
| Gross Profit | 2.115 | 3.728 | 1.937 | 4.183 | 19.823 | 373.9% |
| SG&A | | | 2.323 | 3.330 | 10.237 | 207.5% |
| EBITDA | -0.343 | 0.887 | -1.550 | 0.726 | 5.412 | 645.8% |
| Net Income | -1.635 | 23.386 | -2.574 | -1.639 | 1.668 | -201.8% |
Balance Sheet
|
|---|
| Cash | 0.750 | 1.124 | 0.127 | 0.234 | 3.569 | 1,423.1% |
| Short Term Debt | 22.469 | 0.000 | 1.272 | 0.000 | 1.625 | |
| Long Term Debt | 0.000 | 4.648 | 3.510 | 4.847 | 2.618 | -46.0% |
Cash flow
|
|---|
| Capex | 0.002 | 0.001 | 0.003 | 0.006 | 0.227 | 4,009.7% |
Ratios
|
|---|
| Revenue growth | 9.4% | 32.2% | -45.7% | 94.1% | 337.2% | |
| EBITDA growth | -83.8% | -358.5% | -274.7% | -146.8% | 645.8% | |
| Gross Margin | 58.3% | 77.7% | 74.4% | 82.8% | 89.8% | 7.0% |
| EBITDA Margin | -9.5% | 18.5% | -59.5% | 14.4% | 24.5% | 10.1% |
| Net Income Margin | -45.1% | 487.5% | -98.9% | -32.4% | 7.6% | 40.0% |
| SG&A, % of revenue | | | 89.2% | 65.9% | 46.4% | -19.6% |
| CAPEX, % of revenue | 0.1% | 0.0% | 0.1% | 0.1% | 1.0% | 0.9% |
| ROIC | | | -127.1% | | 129.4% | 129.4% |
| Net Debt/EBITDA | | 4.0x | | 6.4x | 0.1x | -6.2x |
Revenue and profitability
The company's Revenue jumped on 337% in 2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin surged on 10.1 pp from -34.3% to -24.1% in 2015.
Gross Margin increased on 7.0 pp from 82.8% to 89.8% in 2015. SG&A as a % of Revenue dropped on 19.6 pp from 65.9% to 46.4% in 2015.
Net Income marign jumped on 40.0 pp from -32.4% to 7.6% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 Medicure Inc had CAPEX/Revenue of 1.0%. CAPEX/Revenue increased slightly on 0.99 pp from 0.031% in 2012 to 1.0% in 2015. It's average level of CAPEX/Revenue for the last three years was 0.42%.
Leverage (Debt)
Debt level is 0.1x Net Debt / EBITDA and 0.8x Debt / EBITDA. Net Debt / EBITDA dropped on 6.2x from 6.4x to 0.1x in 2015. Debt dropped on 12.5% in 2015 while cash surged on 1,423% in 2015.
Appendix 1: Peers in Consumer, Non-cyclical
Below you can find Medicure 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 |
|---|
| Theratechnologies Inc ($TH) | | -9.1% | -44.3% | -10.9% | 346.4% |
| CRH Medical Corp ($CRH) | | 23.7% | 12.5% | 56.0% | 284.2% |
| Concordia Healthcare Corp ($CXR) | | | | 159.5% | 275.7% |
| Patient Home Monitoring Corp ($PHM) | | 170.2% | 1.9% | 433.0% | 238.4% |
| Nobilis Health Corp ($NHC) | | 45.3% | 49.0% | 169.9% | 172.8% |
| |
|---|
| Median (76 companies) | 46.5% | 8.7% | 6.7% | 12.7% | 13.3% |
|---|
| Medicure Inc ($MPH) | | 32.2% | -45.7% | 94.1% | 337.2% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Cipher Pharmaceuticals Inc ($CPH) | | | 99.5% | 98.3% | 92.7% |
| Ritchie Bros Auctioneers Inc ($RBA) | 87.9% | 88.7% | 88.4% | 88.0% | 89.1% |
| Information Services Corp ($ISV) | 77.4% | 77.5% | 80.4% | 80.9% | 87.6% |
| Theratechnologies Inc ($TH) | 38.7% | 62.7% | 50.9% | 63.5% | 86.6% |
| Merus Labs International Inc ($MSL) | | 88.6% | 91.4% | 82.8% | 84.6% |
| |
|---|
| Median (63 companies) | 35.4% | 36.1% | 35.9% | 35.1% | 35.7% |
|---|
| Medicure Inc ($MPH) | 58.3% | 77.7% | 74.4% | 82.8% | 89.8% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Merus Labs International Inc ($MSL) | | 32.9% | 64.7% | 46.2% | 61.5% |
| CRH Medical Corp ($CRH) | 22.1% | 21.0% | 24.5% | 29.1% | 44.1% |
| Valeant Pharmaceuticals International Inc ($VRX) | 37.0% | 30.6% | 27.8% | 45.6% | 39.8% |
| Concordia Healthcare Corp ($CXR) | | | 43.7% | 37.0% | 39.8% |
| Ritchie Bros Auctioneers Inc ($RBA) | 36.9% | 36.8% | 36.3% | 36.4% | 39.7% |
| |
|---|
| Median (75 companies) | 7.9% | 7.4% | 9.0% | 10.6% | 10.6% |
|---|
| Medicure Inc ($MPH) | -9.5% | 18.5% | -59.5% | 14.4% | 24.5% |
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% |
| Westbond Enterprises Corp ($WBE) | 3.5% | 7.6% | 2.4% | 4.7% | 39.5% |
| Microbix Biosystems Inc ($MBX) | 1.0% | 1.2% | 3.0% | 40.3% | 38.7% |
| ProMetic Life Sciences Inc ($PLI) | | 2.1% | 33.6% | 34.6% | 23.3% |
| |
|---|
| Median (75 companies) | 2.4% | 2.8% | 2.4% | 2.6% | 2.4% |
|---|
| Medicure Inc ($MPH) | 0.1% | 0.0% | 0.1% | 0.1% | 1.0% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Response Biomedical Corp ($RBM) | -75.0% | -158.5% | | | 52.0% |
| Biosyent Inc ($RX) | 45.5% | 71.7% | 62.4% | 62.9% | 48.2% |
| Immunotec Inc ($IMM) | -11.5% | 1.8% | 8.8% | -10.5% | 40.8% |
| Information Services Corp ($ISV) | 56.0% | 71.8% | 72.8% | 58.9% | 38.1% |
| Medical Facilities Corp ($DR) | 41.0% | 36.1% | 39.5% | 26.5% | 28.5% |
| |
|---|
| Median (76 companies) | 7.4% | 6.7% | 6.9% | 6.9% | 6.7% |
|---|
| Medicure Inc ($MPH) | | | -127.1% | | 129.4% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Concordia Healthcare Corp ($CXR) | | | -1.3x | 5.6x | 20.2x |
| CIBT Education Group Inc ($MBA) | | -7.0x | -0.3x | | 18.4x |
| SunOpta Inc ($SOY) | 2.9x | 2.9x | 3.5x | 1.3x | 16.9x |
| Centric Health Corp ($CHH) | 10.3x | 5.6x | 10.2x | 11.2x | 15.6x |
| Amica Mature Lifestyles Inc ($ACC) | 11.7x | 9.4x | 14.7x | 13.8x | 12.3x |
| |
|---|
| Median (65 companies) | 1.9x | 2.5x | 2.2x | 2.6x | 1.9x |
|---|
| Medicure Inc ($MPH) | | 4.0x | | 6.4x | 0.1x |
