Theratechnologies Inc Debt surged
08.02.2017 • About Theratechnologies Inc (
$TH) • By InTwits
Theratechnologies Inc reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Theratechnologies Inc is a fast growth stock: FY2016 revenue growth was 23.3%, 5 year revenue CAGR was 20.0% at FY2016 ROIC 13.0%
- Theratechnologies Inc spends a lot for Stock Based Compensation (SBC): average SBC/Revenue for FY2012-FY2016 is 0.0%. Average EBITDA Margin for the same period was -11.2%0
- Theratechnologies Inc has low CAPEX intensity: 5 year average CAPEX/Revenue was 2.6%. At the same time it's in pair with industry average of 3.1%.
- CAPEX is quite volatile: 0.031 in FY2016, 0 in FY2015, 0.83 in FY2014, 0 in FY2013, 0.069 in FY2012
- The company has highly profitable business model: ROIC is at 13.0%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Theratechnologies Inc ($TH) key annual financial indicators
| mln. CAD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 13.567 | 7.553 | 6.732 | 30.055 | 37.072 | 23.3% |
| Gross Profit | 8.511 | 3.842 | 4.277 | 26.031 | 30.414 | 16.8% |
| SG&A | | 4.065 | 11.529 | 16.981 | 19.521 | 15.0% |
| EBITDA | -3.580 | -7.473 | -11.727 | 6.062 | 6.046 | -0.3% |
| Net Income | -13.940 | -4.055 | -10.541 | 1.571 | 0.410 | -73.9% |
Balance Sheet
|
|---|
| Cash | 1.512 | 0.967 | 0.694 | 15.350 | 1.059 | -93.1% |
| Short Term Debt | 0.000 | 0.000 | 3.682 | 0.000 | 4.665 | |
| Long Term Debt | 0.000 | 0.000 | 13.470 | 0.000 | 8.902 | |
Cash flow
|
|---|
| Capex | 0.069 | 0.000 | 0.829 | 0.000 | 0.031 | |
Ratios
|
|---|
| Revenue growth | -9.1% | -44.3% | -10.9% | 346.4% | 23.3% | |
| EBITDA growth | -79.8% | 108.7% | 56.9% | -151.7% | -0.3% | |
| Gross Margin | 62.7% | 50.9% | 63.5% | 86.6% | 82.0% | -4.6% |
| EBITDA Margin | -26.4% | -98.9% | -174.2% | 20.2% | 16.3% | -3.9% |
| Net Income Margin | -102.7% | -53.7% | -156.6% | 5.2% | 1.1% | -4.1% |
| SG&A, % of revenue | | 53.8% | 171.3% | 56.5% | 52.7% | -3.8% |
| CAPEX, % of revenue | 0.5% | 0.0% | 12.3% | 0.0% | 0.1% | 0.1% |
| ROIC | -14.0% | -36.9% | -59.1% | 18.4% | 13.0% | -5.4% |
| ROE | -47.2% | -19.7% | -79.9% | 11.3% | 1.7% | -9.5% |
| Net Debt/EBITDA | | | | -2.5x | 2.1x | 4.6x |
Theratechnologies Inc ($TH) key quoterly financial indicators
| mln. CAD | FY16Q1 | FY16Q2 | FY16Q3 | FY16Q4 | YoY change |
|---|
P&L
|
|---|
| Revenue | 9 | 9 | 9 | 10 | 91.3% | 24.0% | -2.9% | 15.2% |
| EBITDA | 1 | 1 | 1 | 3 | | -31.8% | -58.6% | 39.6% |
| Net Income | -0 | -0 | 1 | 0 | | -160.9% | -24.7% | -64.5% |
Balance Sheet
|
|---|
| Cash | 11 | 5 | 0 | 1 | 185.4% | 3.5% | -97.9% | -93.1% |
| Short Term Debt | 5 | 4 | 4 | 5 | 51.1% | -49.8% | -36.1% | |
| Long Term Debt | 13 | 9 | 9 | 9 | -19.9% | -25.4% | -29.4% | |
Ratios
|
|---|
| Gross Margin | 84.3% | 81.6% | 81.5% | 80.9% | -1.6% | -5.7% | -4.3% | -6.2% |
| EBITDA Margin | 11.8% | 14.3% | 11.7% | 25.8% | 17.6% | -11.7% | -15.7% | 4.5% |
| Net Income Margin | -1.7% | -5.5% | 9.9% | 1.7% | 18.2% | -16.8% | -2.9% | -3.7% |
Revenue and profitability
The company's Revenue jumped on 23.3%. Revenue growth showed slow down in FY16Q4 - it was 15.2% YoY. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased slightly on 0.83 pp from 1.0% to 1.9% in FY2016.
Gross Margin decreased on 4.6 pp from 86.6% to 82.0% in FY2016. SG&A as a % of Revenue decreased on 3.8 pp from 56.5% to 52.7% in FY2016.
Net Income marign decreased on 4.1 pp from 5.2% to 1.1% in FY2016.
Capital expenditures (CAPEX) and working capital investments
In FY2016 the company had CAPEX/Revenue of 0.084%. Theratechnologies Inc's CAPEX/Revenue showed almost no change from FY2013 to FY2016.
Return on investment
The company operates at good ROIC (13.02%) while ROE is low (1.75%). ROIC decreased on 5.4 pp from 18.4% to 13.0% in FY2016. ROE decreased on 9.5 pp from 11.3% to 1.7% in FY2016.
Leverage (Debt)
Company's Net Debt / EBITDA is 2.1x and Debt / EBITDA is 2.2x. Net Debt / EBITDA jumped on 4.6x from -2.5x to 2.1x in FY2016. Debt surged while cash dropped on 93.1%.
Appendix 1: Peers in Consumer, Non-cyclical
Below you can find Theratechnologies 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 |
|---|
