Microbix Biosystems Inc reports 79.6% CAPEX decline while 7.2% Revenue growth
23.12.2016 • About Microbix Biosystems Inc (
$MBX) • By InTwits
Microbix Biosystems Inc reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Microbix Biosystems Inc has high CAPEX intensity: 5 year average CAPEX/Revenue was 18.1%. At the same time it's a lot of higher than industry average of 3.1%.
- CAPEX is quite volatile: 0.70 in FY2016, 3.4 in FY2015, 3.4 in FY2014, 0.23 in FY2013, 0.080 in FY2012
- The company has potentially unprofitable business model: ROIC is at 4.1%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Microbix Biosystems Inc ($MBX) key annual financial indicators
| mln. CAD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 6.670 | 7.575 | 8.397 | 8.874 | 9.517 | 7.2% |
| Gross Profit | 2.755 | 3.834 | 4.512 | 5.840 | 4.980 | -14.7% |
| SG&A | 3.771 | 2.683 | 2.504 | 3.471 | 3.647 | 5.1% |
| EBITDA | | | 1.720 | 1.510 | 1.253 | -17.0% |
| Net Income | -2.389 | 0.001 | 0.169 | 0.614 | 0.748 | 21.9% |
Balance Sheet
|
|---|
| Cash | 0.228 | 0.260 | 0.547 | 0.104 | 0.005 | -94.8% |
| Short Term Debt | 0.617 | 0.120 | 0.814 | 1.458 | 2.667 | 82.9% |
| Long Term Debt | 5.182 | 5.109 | 4.424 | 5.045 | 4.072 | -19.3% |
Cash flow
|
|---|
| Capex | 0.080 | 0.226 | 3.380 | 3.439 | 0.703 | -79.6% |
Ratios
|
|---|
| Revenue growth | 7.1% | 13.6% | 10.9% | 5.7% | 7.2% | |
| EBITDA growth | | | | -12.2% | -17.0% | |
| Gross Margin | 41.3% | 50.6% | 53.7% | 65.8% | 52.3% | -13.5% |
| EBITDA Margin | 0.0% | 0.0% | 20.5% | 17.0% | 13.2% | -3.9% |
| Net Income Margin | -35.8% | 0.0% | 2.0% | 6.9% | 7.9% | 0.9% |
| SG&A, % of revenue | 56.5% | 35.4% | 29.8% | 39.1% | 38.3% | -0.8% |
| CAPEX, % of revenue | 1.2% | 3.0% | 40.3% | 38.7% | 7.4% | -31.4% |
| ROIC | -15.1% | 6.4% | 10.1% | 6.3% | 4.1% | -2.1% |
| ROE | -47.7% | 0.0% | 2.2% | 5.2% | 5.2% | -0.1% |
| Net Debt/EBITDA | | | 2.7x | 4.2x | 5.4x | 1.1x |
Microbix Biosystems Inc ($MBX) key quoterly financial indicators
| mln. CAD | FY16Q1 | FY16Q2 | FY16Q3 | FY16Q4 | YoY change |
|---|
P&L
|
|---|
| Revenue | 1 | 3 | 2 | 3 | -46.7% | 7.3% | 1.5% | 64.2% |
| EBITDA | -0 | 0 | 0 | 1 | -141.1% | 45.5% | -65.5% | 93.1% |
| Net Income | -0 | 0 | 0 | 1 | -17,544.3% | 38.8% | -41.6% | 114.1% |
Balance Sheet
|
|---|
| Cash | 0 | 0 | 0 | 0 | -91.6% | -99.3% | | -94.8% |
| Short Term Debt | 2 | 3 | 3 | 3 | 129.6% | 181.0% | 208.3% | 82.9% |
| Long Term Debt | 5 | 4 | 4 | 4 | -4.7% | -14.9% | -18.9% | -19.3% |
Ratios
|
|---|
| Gross Margin | 33.6% | 48.8% | 51.3% | 61.4% | -22.9% | -3.5% | -5.3% | |
| EBITDA Margin | -13.8% | 16.8% | 6.5% | 22.9% | -31.8% | 4.4% | -12.7% | 3.4% |
| Net Income Margin | -31.8% | 6.4% | 2.1% | 24.9% | -31.9% | 1.5% | -1.6% | 5.8% |
Revenue and profitability
The company's Revenue increased on 7.2%. Revenue growth showed acceleration in FY16Q4 - it increased 64.2% YoY. Despite revenue decline the EBITDA margin expanded. EBITDA Margin surged on 40.4 pp from -113% to -72.8% in FY2016.
Gross Margin dropped on 13.5 pp from 65.8% to 52.3% in FY2016. SG&A as a % of Revenue decreased slightly on 0.79 pp from 39.1% to 38.3% in FY2016.
Net Income marign increased slightly on 0.94 pp from 6.9% to 7.9% in FY2016.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 7.4% in FY2016. Microbix Biosystems Inc's CAPEX/Revenue increased on 4.4 pp from 3.0% in FY2013 to 7.4% in FY2016. For the last three years the average CAPEX/Revenue was 28.8%.Microbix Biosystems Inc invested a large share of EBITDA (56.1%) to CAPEX.
Return on investment
The company operates at low ROIC (4.14%) and ROE (5.17%). ROIC decreased on 2.1 pp from 6.3% to 4.1% in FY2016. ROE showed almost no change in FY2016.
Leverage (Debt)
Debt level is 5.4x Net Debt / EBITDA and 5.4x Debt / EBITDA. Net Debt / EBITDA jumped on 1.1x from 4.2x to 5.4x in FY2016. Debt increased on 3.6% while cash dropped on 94.8%.
Appendix 1: Peers in Consumer, Non-cyclical
Below you can find Microbix Biosystems 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 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Concordia Healthcare Corp ($CXR) | | | 159.5% | 275.7% | 107.0% |
| Heritage Global Inc ($HGP) | | -37.0% | 76.2% | 11.2% | 80.8% |
| EnerCare Inc ($ECI) | | 8.6% | 21.1% | 55.7% | 76.6% |
| CRH Medical Corp ($CRH) | | 12.5% | 56.0% | 284.2% | 70.2% |
| Nuvo Research Inc ($NRI) | | -25.3% | -29.1% | 57.0% | 31.9% |
| |
|---|
| Median (41 companies) | | 8.6% | 13.8% | 15.2% | 12.8% |
|---|
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Cipher Pharmaceuticals Inc ($CPH) | | 99.5% | 98.3% | 92.7% | |
| Ritchie Bros Auctioneers Inc ($RBA) | 88.7% | 88.4% | 88.0% | 89.1% | 88.3% |
| Information Services Corp ($ISV) | 77.5% | 80.4% | 80.9% | 87.6% | 85.1% |
| Biosyent Inc ($RX) | 79.3% | 79.2% | 78.1% | 78.7% | |
| Concordia Healthcare Corp ($CXR) | | 79.4% | 86.0% | 76.1% | 72.9% |
| |
|---|
| Median (35 companies) | 32.5% | 37.1% | 35.7% | 35.7% | 31.1% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| CRH Medical Corp ($CRH) | 21.0% | 24.5% | 29.1% | 44.1% | |
| Valeant Pharmaceuticals International Inc ($VRX) | 30.6% | 27.8% | 45.6% | 39.8% | 23.8% |
| Concordia Healthcare Corp ($CXR) | | 43.7% | 37.0% | 39.8% | -92.8% |
| Ritchie Bros Auctioneers Inc ($RBA) | 36.8% | 36.3% | 36.4% | 39.7% | 31.4% |
| EnerCare Inc ($ECI) | 52.8% | 51.0% | 45.5% | 39.3% | 26.6% |
| |
|---|
| Median (44 companies) | 9.2% | 12.4% | 13.4% | 11.8% | 10.1% |
|---|
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| ProMetic Life Sciences Inc ($PLI) | 2.1% | 33.6% | 34.6% | 23.3% | |
| EnerCare Inc ($ECI) | 25.7% | 26.5% | 23.6% | 20.7% | 15.5% |
| Black Diamond Group Ltd ($BDI) | 61.9% | 27.5% | 31.0% | 17.6% | |
| easyhome Ltd ($EH) | 32.2% | 25.6% | 21.6% | 16.9% | 12.7% |
| K-Bro Linen Inc ($KBL) | 10.0% | 19.0% | 11.4% | 16.6% | |
| |
|---|
| Median (43 companies) | 3.1% | 2.7% | 2.3% | 2.4% | 2.1% |
|---|
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Information Services Corp ($ISV) | 71.8% | 72.8% | 58.9% | 38.1% | 27.6% |
| Colliers International Group Inc ($CIG) | 10.5% | 11.2% | 15.2% | 10.9% | 26.1% |
| Nuvo Research Inc ($NRI) | -11.6% | -17.4% | -37.9% | 12.9% | 20.8% |
| International Road Dynamics Inc ($IRD) | 0.9% | 6.7% | 4.4% | 10.6% | 16.5% |
| Premium Brands Holdings Corp ($PBH) | 10.3% | 9.9% | 6.9% | 12.6% | 15.3% |
| |
|---|
| Median (44 companies) | 8.8% | 8.4% | 8.4% | 6.9% | 8.0% |
|---|
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Concordia Healthcare Corp ($CXR) | | -1.3x | 5.6x | 20.2x | |
| SunOpta Inc ($SOY) | 2.9x | 3.5x | 1.3x | 16.9x | 140.8x |
| Centric Health Corp ($CHH) | 5.6x | 10.2x | 11.2x | 15.6x | |
| Sienna Senior Living Inc ($SIA) | 9.5x | 11.8x | 9.2x | 9.1x | 9.1x |
| Valeant Pharmaceuticals International Inc ($VRX) | 9.5x | 10.4x | 4.0x | 7.3x | 12.7x |
| |
|---|
| Median (38 companies) | 2.8x | 2.3x | 3.4x | 2.5x | 2.8x |
|---|
