Essex Bio-technology Ltd Net Income surged on 39.4% in 2015 and EBITDA Margin increased slightly on 1.3 pp from 21.3% to 22.6%
18/03/2016 • About Essex Bio-technology Ltd (
$1061) • By InTwits
Essex Bio-technology Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Essex Bio-technology Ltd is a fast growth stock: 2015 revenue growth was 26.2%, 5 year revenue CAGR was 34.9% at 2015 ROIC 31.4%
- Essex Bio-technology Ltd has high CAPEX intensity: 5 year average CAPEX/Revenue was 12.0%. At the same time it's a lot of higher than industry average of 5.7%.
- CAPEX is quite volatile: 11.4 in 2015, 7.5 in 2014, 36.2 in 2013, 97.9 in 2012, 21.1 in 2011
- The company has highly profitable business model: ROIC is at 31.4%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Essex Bio-technology Ltd ($1061) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 212.7 | 267.3 | 347.0 | 518.3 | 654.0 | 26.2% |
| Gross Profit | 192.4 | 243.7 | 310.9 | 411.3 | 529.6 | 28.8% |
| SG&A | | 194.8 | 237.6 | 313.7 | 403.3 | 28.5% |
| EBITDA | 38.3 | 50.8 | 76.0 | 110.2 | 147.9 | 34.2% |
| Net Income | 33.2 | 39.0 | 54.9 | 75.3 | 104.9 | 39.4% |
Balance Sheet
|
|---|
| Cash | 36.8 | 59.8 | 54.5 | 62.0 | 64.6 | 4.3% |
| Short Term Debt | 0.0 | 73.8 | 50.8 | 50.5 | 51.0 | 0.9% |
| Long Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
Cash flow
|
|---|
| Capex | 21.1 | 97.9 | 36.2 | 7.5 | 11.4 | 51.4% |
Ratios
|
|---|
| Revenue growth | 45.4% | 25.6% | 29.9% | 49.3% | 26.2% | |
| EBITDA growth | 8.9% | 32.6% | 49.6% | 45.0% | 34.2% | |
| Gross Margin | 90.5% | 91.2% | 89.6% | 79.3% | 81.0% | 1.6% |
| EBITDA Margin | 18.0% | 19.0% | 21.9% | 21.3% | 22.6% | 1.3% |
| Net Income Margin | 15.6% | 14.6% | 15.8% | 14.5% | 16.0% | 1.5% |
| SG&A, % of revenue | | 72.9% | 68.5% | 60.5% | 61.7% | 1.1% |
| CAPEX, % of revenue | 9.9% | 36.6% | 10.4% | 1.5% | 1.7% | 0.3% |
| ROIC | 24.7% | 22.6% | 25.2% | 28.5% | 31.4% | 3.0% |
| ROE | 22.5% | 21.7% | 24.4% | 25.7% | 28.2% | 2.5% |
| Net Debt/EBITDA | -1.0x | 0.3x | -0.0x | -0.1x | -0.1x | 0.0x |
Revenue and profitability
The company's Revenue jumped on 26.2% in 2015. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin increased slightly on 1.3 pp from 21.3% to 22.6% in 2015.
Gross Margin increased slightly on 1.6 pp from 79.3% to 81.0% in 2015. SG&A as a % of Revenue increased slightly on 1.1 pp from 60.5% to 61.7% in 2015.
Net Income marign increased slightly on 1.5 pp from 14.5% to 16.0% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 Essex Bio-technology Ltd had CAPEX/Revenue of 1.7%. Essex Bio-technology Ltd's CAPEX/Revenue dropped on 34.9 pp from 36.6% in 2012 to 1.7% in 2015. It's average level of CAPEX/Revenue for the last three years was 4.5%.
Return on investment
The company operates at high and attractive ROIC (31.44%) and ROE (28.20%). ROIC increased on 3.0 pp from 28.5% to 31.4% in 2015. ROE increased on 2.5 pp from 25.7% to 28.2% in 2015.
Leverage (Debt)
Debt level is -0.1x Net Debt / EBITDA and 0.3x Debt / EBITDA. Net Debt / EBITDA increased slightly on 0.012x from -0.1x to -0.1x in 2015. Debt increased slightly on 0.89% in 2015 while cash increased on 4.3% in 2015.
Appendix 1: Peers in Biotechnology
Below you can find Essex Bio-technology Ltd benchmarking vs. other companies in Biotechnology 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 |
|---|
| Bloomage BioTechnology Corp Ltd ($963) | 34.1% | 33.4% | 36.4% | 28.3% | |
| Uni-Bio Science Group Ltd ($690) | -48.2% | -25.7% | 46.1% | 23.1% | |
| Shanghai Fudan-Zhangjiang Bio-Pharmaceutical Co Ltd ($1349) | | 73.7% | 78.9% | 13.2% | 23.1% |
| Amgen Inc ($4332) | | 10.8% | 8.2% | 7.4% | 8.0% |
| CK Life Sciences International Holdings Inc ($775) | | 29.4% | 9.4% | -0.3% | -0.7% |
| |
|---|
| Median (8 companies) | 26.6% | 20.1% | 22.9% | 3.5% | 15.5% |
|---|
| Essex Bio-technology Ltd ($1061) | | 25.6% | 29.9% | 49.3% | 26.2% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Shanghai Fudan-Zhangjiang Bio-Pharmaceutical Co Ltd ($1349) | 82.8% | 89.9% | 92.2% | 92.2% | 91.4% |
| Uni-Bio Science Group Ltd ($690) | 62.1% | 67.2% | 79.5% | 80.0% | |
| Bloomage BioTechnology Corp Ltd ($963) | 73.2% | 69.3% | 79.9% | 78.0% | |
| Amgen Inc ($4332) | 84.4% | 81.5% | 82.1% | 78.0% | 80.5% |
| CK Life Sciences International Holdings Inc ($775) | 33.6% | 34.2% | 35.0% | 35.1% | 35.4% |
| |
|---|
| Median (8 companies) | 63.2% | 50.7% | 57.3% | 56.5% | 64.8% |
|---|
| Essex Bio-technology Ltd ($1061) | 90.5% | 91.2% | 89.6% | 79.3% | 81.0% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Bloomage BioTechnology Corp Ltd ($963) | 56.2% | 46.8% | 39.2% | 45.2% | |
| Amgen Inc ($4332) | 34.5% | 38.6% | 38.3% | 41.3% | 48.8% |
| Shanghai Fudan-Zhangjiang Bio-Pharmaceutical Co Ltd ($1349) | 35.5% | 33.4% | 29.0% | 31.5% | 29.3% |
| CK Life Sciences International Holdings Inc ($775) | 9.3% | 9.9% | 10.0% | 10.7% | 11.3% |
| Tianjin TEDA Biomedical Engineering Co Ltd ($8189) | 6.0% | 6.9% | 7.4% | 9.1% | |
| |
|---|
| Median (8 companies) | 14.7% | 8.4% | 8.7% | 9.9% | 20.3% |
|---|
| Essex Bio-technology Ltd ($1061) | 18.0% | 19.0% | 21.9% | 21.3% | 22.6% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| China Regenerative Medicine International Ltd ($8158) | 1,076.2% | 40,271.9% | 810.7% | 3,305.9% | 1,295.1% |
| Uni-Bio Science Group Ltd ($690) | 5.1% | 23.9% | 28.9% | 35.5% | |
| Bloomage BioTechnology Corp Ltd ($963) | 7.0% | 35.8% | 30.4% | 24.6% | |
| CK Life Sciences International Holdings Inc ($775) | 5.4% | 3.8% | 5.8% | 9.9% | 6.0% |
| Shanghai Fudan-Zhangjiang Bio-Pharmaceutical Co Ltd ($1349) | 24.6% | 49.3% | 13.6% | 9.4% | 6.6% |
| |
|---|
| Median (8 companies) | 6.2% | 20.8% | 9.7% | 9.6% | 6.3% |
|---|
| Essex Bio-technology Ltd ($1061) | 9.9% | 36.6% | 10.4% | 1.5% | 1.7% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Bloomage BioTechnology Corp Ltd ($963) | 33.7% | 30.1% | 24.1% | 27.2% | |
| Shanghai Fudan-Zhangjiang Bio-Pharmaceutical Co Ltd ($1349) | 15.7% | 20.0% | 20.9% | 18.6% | 17.6% |
| Amgen Inc ($4332) | 11.1% | 13.0% | 11.7% | 11.2% | 14.6% |
| Tianjin TEDA Biomedical Engineering Co Ltd ($8189) | 7.5% | 12.4% | 10.1% | 9.8% | |
| CK Life Sciences International Holdings Inc ($775) | 3.0% | 4.2% | 4.1% | 4.3% | 4.8% |
| |
|---|
| Median (8 companies) | 9.3% | 8.3% | 7.1% | 7.0% | 9.7% |
|---|
| Essex Bio-technology Ltd ($1061) | 24.7% | 22.6% | 25.2% | 28.5% | 31.4% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| CK Life Sciences International Holdings Inc ($775) | 5.4x | 4.3x | 6.1x | 6.4x | 6.0x |
| Amgen Inc ($4332) | 2.7x | 3.5x | 4.0x | 3.3x | 2.6x |
| Tianjin TEDA Biomedical Engineering Co Ltd ($8189) | 2.0x | 2.0x | 1.4x | 0.9x | |
| Bloomage BioTechnology Corp Ltd ($963) | -1.2x | -0.5x | -0.3x | -0.5x | |
| Shanghai Fudan-Zhangjiang Bio-Pharmaceutical Co Ltd ($1349) | -0.7x | -0.4x | -2.4x | -2.2x | -1.9x |
| |
|---|
| Median (5 companies) | 2.1x | 2.7x | 1.4x | 0.9x | 2.6x |
|---|
| Essex Bio-technology Ltd ($1061) | -1.0x | 0.3x | -0.0x | -0.1x | -0.1x |
