Endo International PLC revenue jumped on 22.7% in 2016 while EBITDA Margin dropped on 52.8 pp from -9.2% to -62.0%
28.02.2017 • About Endo International PLC (
$ENL) • By InTwits
Endo International PLC reported 2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Endo International PLC doesn't have a profitable business model yet: 2016 ROIC is -26.1%
- The company operates at negative EBITDA Margin: -62.0%
- Endo International PLC motivates its personel by high Stock Based Compensation (SBC): average SBC/Revenue for 2012-2016 was 0.0%. On average EBITDA Margin was -16.9% for the sames years0
- Endo International PLC has low CAPEX intensity: 5 year average CAPEX/Revenue was 3.3%. At the same time it's in pair with industry average of 3.1%.
- CAPEX is quite volatile: 113 in 2016, 148 in 2015, 259 in 2014, 361 in 2013, 306 in 2012
- The company has unprofitable business model: ROIC is at -26.1%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Endo International PLC ($ENL) key annual financial indicators
| mln. $ | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 2,816 | 2,617 | 2,381 | 3,269 | 4,010 | 22.7% |
| Gross Profit | 1,680 | 1,577 | 1,149 | 1,193 | 1,375 | 15.3% |
| SG&A | 864 | 849 | 568 | 741 | 771 | 4.0% |
| EBITDA | -254 | -170 | 658 | -301 | -2,488 | |
| Net Income | -740 | -685 | -721 | -1,495 | -3,347 | |
Balance Sheet
|
|---|
| Cash | 530 | 527 | 406 | 272 | 517 | 89.9% |
| Short Term Debt | 132 | 415 | 156 | 329 | 131 | -60.1% |
| Long Term Debt | 3,035 | 3,324 | 4,101 | 8,252 | 8,141 | -1.3% |
Cash flow
|
|---|
| Capex | 100 | 96 | 80 | 82 | 139 | 69.8% |
Ratios
|
|---|
| Revenue growth | 3.1% | -7.1% | -9.0% | 37.3% | 22.7% | |
| EBITDA growth | -134.1% | -33.2% | -487.2% | -145.7% | 727.4% | |
| Gross Margin | 59.7% | 60.3% | 48.3% | 36.5% | 34.3% | -2.2% |
| EBITDA Margin | -9.0% | -6.5% | 27.6% | -9.2% | -62.0% | -52.8% |
| Net Income Margin | -26.3% | -26.2% | -30.3% | -45.7% | -83.5% | -37.7% |
| SG&A, % of revenue | 30.7% | 32.5% | 23.9% | 22.7% | 19.2% | -3.5% |
| CAPEX, % of revenue | 3.5% | 3.7% | 3.4% | 2.5% | 3.5% | 1.0% |
| ROIC | -10.2% | -9.5% | 5.6% | -8.2% | -26.1% | -17.9% |
| ROE | -48.5% | -85.7% | -49.7% | -35.8% | -77.2% | -41.4% |
| Net Debt/EBITDA | | | 5.9x | | | 0.0x |
Endo International PLC ($ENL) key quoterly financial indicators
| mln. $ | 16Q1 | 16Q2 | 16Q3 | 16Q4 | YoY change |
|---|
P&L
|
|---|
| Revenue | 964 | 921 | 884 | 1,242 | 34.9% | 25.3% | 18.6% | 15.6% |
| EBITDA | 143 | 192 | 203 | -3,028 | -13.2% | 46.8% | | -6,502.0% |
| Net Income | -134 | 344 | -219 | -3,338 | | | | |
Balance Sheet
|
|---|
| Cash | 222 | 668 | 562 | 517 | -41.2% | -73.6% | -32.8% | 89.9% |
| Short Term Debt | 336 | 117 | 124 | 131 | 108.9% | 71.7% | 38.3% | -60.1% |
| Long Term Debt | 8,229 | 8,200 | 8,171 | 8,141 | 52.8% | 52.9% | -8.1% | -1.3% |
Ratios
|
|---|
| Gross Margin | 28.5% | 31.3% | 37.0% | 39.1% | -17.7% | -9.0% | -3.7% | 14.5% |
| EBITDA Margin | 14.9% | 20.9% | 23.0% | -243.9% | -8.3% | 3.1% | 109.4% | -248.3% |
| Net Income Margin | -13.9% | 37.3% | -24.8% | -268.9% | -3.3% | 71.4% | 116.1% | -257.8% |
Revenue and profitability
The company's Revenue surged on 22.7%. Revenue growth showed slow down in 16Q4 - it was 15.6% YoY. Revenue growth was financed by EBITDA margin decline. EBITDA Margin dropped on 52.8 pp from -9.2% to -62.0% in 2016.
Gross Margin decreased on 2.2 pp from 36.5% to 34.3% in 2016. SG&A as a % of Revenue decreased on 3.5 pp from 22.7% to 19.2% in 2016.
Net Income marign dropped on 37.7 pp from -45.7% to -83.5% in 2016.
Capital expenditures (CAPEX) and working capital investments
In 2016 Endo International PLC had CAPEX/Revenue of 3.5%. CAPEX/Revenue showed almost no change from 2013 to 2016. For the last three years the average CAPEX/Revenue was 3.1%.
Return on investment
The company operates at negative ROIC (-26.11%) and ROE (-77.21%). ROIC dropped on 17.9 pp from -8.2% to -26.1% in 2016. ROE dropped on 41.4 pp from -35.8% to -77.2% in 2016.
Leverage (Debt)
Debt level is -1.0x Net Debt / EBITDA and Debt / EBITDA. Net Debt / EBITDA didn't change in 2016. Debt decreased on 3.6% while cash jumped on 89.9%.
Management team
Paul V Campanelli is a Endo International PLC's CEO. Paul V Campanelli is a founder and has spent 2 years at the company. Blaise Coleman is a The company's CFO. Blaise Coleman has spent 2 years at the company.
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 | 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 ($NRI) | | -25.3% | -29.1% | 57.0% | 31.9% |
| |
|---|
| Median (40 companies) | | 9.1% | 13.9% | 14.9% | 12.6% |
|---|
| Endo International PLC ($ENL) | | -7.1% | -9.0% | 37.3% | 22.7% |
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 ($CXR) | | 79.4% | 86.0% | 76.1% | 72.9% |
| |
|---|
| Median (34 companies) | 29.5% | 35.0% | 35.6% | 33.4% | 28.9% |
|---|
| Endo International PLC ($ENL) | 59.7% | 60.3% | 48.3% | 36.5% | 34.3% |
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 ($ECI) | 52.8% | 51.0% | 45.5% | 39.3% | 26.6% |
| |
|---|
| Median (43 companies) | 9.9% | 12.8% | 12.7% | 12.7% | 10.7% |
|---|
| Endo International PLC ($ENL) | -9.0% | -6.5% | 27.6% | -9.2% | -62.0% |
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 ($KBL) | 10.0% | 19.0% | 11.4% | 16.6% | |
| |
|---|
| Median (42 companies) | 3.1% | 2.7% | 2.3% | 2.3% | 2.0% |
|---|
| Endo International PLC ($ENL) | 3.5% | 3.7% | 3.4% | 2.5% | 3.5% |
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 ($PBH) | 10.3% | 9.9% | 6.9% | 12.6% | 15.3% |
| |
|---|
| Median (43 companies) | 8.8% | 9.2% | 8.5% | 7.5% | 8.4% |
|---|
| Endo International PLC ($ENL) | -10.2% | -9.5% | 5.6% | -8.2% | -26.1% |
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 | 3.3x | 2.5x | 2.8x |
|---|
