Lincoln Pharmaceuticals Net Income surged on 40.9% in 2015 and Revenue surged on 25.9%
30-05-2015 • About Lincoln Pharmaceuticals (
$LINCOPH) • By InTwits
Lincoln Pharmaceuticals reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Lincoln Pharmaceuticals has medium CAPEX intensity: 5 year average CAPEX/Revenue was 5.9%. At the same time it's a lot of higher than industry average of 4.5%.
- CAPEX is quite volatile: 39.4 in FY2015, 39.2 in FY2014, 188 in FY2013, 171 in FY2012, 128 in FY2011
- The company has highly profitable business model: ROIC is at 12.4%
- It operates with high leverage: Net Debt/EBITDA is 2.3x while industry average is 1.0x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Lincoln Pharmaceuticals ($LINCOPH) key annual financial indicators
| mln. INR | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 1,765 | 1,876 | 1,947 | 2,113 | 2,661 | 25.9% |
| EBITDA | 97 | 139 | 156 | 211 | 276 | 30.7% |
| Net Income | 42 | 51 | 97 | 107 | 150 | 40.9% |
Balance Sheet
|
|---|
| Cash | 115 | 120 | 94 | 50 | 115 | 131.6% |
| Short Term Debt | 420 | 512 | 585 | 489 | 507 | 3.6% |
| Long Term Debt | 41 | 143 | 171 | 192 | 255 | 32.5% |
Cash flow
|
|---|
| Capex | 128 | 171 | 188 | 39 | 39 | 0.5% |
Ratios
|
|---|
| Revenue growth | -44.6% | 6.3% | 3.8% | 8.5% | 25.9% | |
| EBITDA growth | -19.7% | 44.0% | 11.9% | 35.5% | 30.7% | |
| EBITDA Margin | 5.5% | 7.4% | 8.0% | 10.0% | 10.4% | 0.4% |
| Net Income Margin | 2.4% | 2.7% | 5.0% | 5.0% | 5.6% | 0.6% |
| CAPEX, % of revenue | 7.2% | 9.1% | 9.7% | 1.9% | 1.5% | -0.4% |
| ROIC | 7.3% | 8.4% | 7.8% | 10.0% | 12.4% | 2.4% |
| ROE | 6.4% | 6.5% | 11.4% | 11.3% | 14.3% | 3.0% |
| Net Debt/EBITDA | 3.6x | 3.8x | 4.3x | 3.0x | 2.3x | -0.6x |
Revenue and profitability
The company's Revenue surged on 25.9% in FY2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased on 2.2 pp from 0.45% to -1.7% in FY2015.
Net Income marign increased slightly on 0.60 pp from 5.0% to 5.6% in FY2015.
Capital expenditures (CAPEX) and working capital investments
In FY2015 Lincoln Pharmaceuticals had CAPEX/Revenue of 1.5%. Lincoln Pharmaceuticals showed decline in CAPEX/Revenue of 7.6 pp from 9.1% in FY2012 to 1.5% in FY2015. Average CAPEX/Revenue for the last three years was 4.3%.
Return on investment
The company operates at good ROIC (12.36%) and ROE (14.29%). ROIC increased on 2.4 pp from 10.0% to 12.4% in FY2015. ROE increased on 3.0 pp from 11.3% to 14.3% in FY2015.
Leverage (Debt)
Debt level is 2.3x Net Debt / EBITDA and 2.8x Debt / EBITDA. Net Debt / EBITDA dropped on 0.6x from 3.0x to 2.3x in FY2015. Debt surged on 11.8% in FY2015 while cash surged on 132% in FY2015.
Appendix 1: Peers in Pharmaceuticals
Below you can find Lincoln Pharmaceuticals benchmarking vs. other companies in Pharmaceuticals 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 |
|---|
| Mangalam Drugs & Organics ($MANGALAM) | | 16.6% | -18.2% | -2.1% | 79.8% |
| Sun Pharmaceutical Industries ($SUNPHARMA) | | 39.9% | 40.4% | 42.4% | 70.2% |
| Marksans Pharma ($MARKSANS) | | 16.7% | 23.3% | 43.3% | 26.8% |
| Torrent Cables ($TORRCABS) | | 27.5% | 17.4% | -42.9% | 26.5% |
| Divi'S Laboratories ($DIVISLAB) | | 42.2% | 15.1% | 18.0% | 23.3% |
| |
|---|
| Median (37 companies) | -16.1% | 16.7% | 14.9% | 13.7% | 9.2% |
|---|
| Lincoln Pharmaceuticals ($LINCOPH) | | 6.3% | 3.8% | 8.5% | 25.9% |
Top companies by Gross margin, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Dr.Reddy'S Laboratories ($DRREDDY) | | | 52.1% | 57.4% | 57.6% |
| Omega Laboratories ($OMEGALAB) | | 0.0% | 0.0% | 0.0% | 0.0% |
| |
|---|
| Median (2 companies) | | 46.9% | 26.1% | 28.7% | 28.8% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Divi'S Laboratories ($DIVISLAB) | 38.1% | 37.2% | 38.2% | 40.2% | 37.4% |
| Hester Biosciences ($HESTERBIO) | | | | | 32.9% |
| Sun Pharmaceutical Industries ($SUNPHARMA) | 34.3% | 40.8% | 44.3% | 44.9% | 29.2% |
| Natco Pharma ($NATCOPHARM) | 21.3% | 21.5% | 23.2% | 24.9% | 26.2% |
| Dr.Reddy'S Laboratories ($DRREDDY) | 21.7% | 25.8% | 22.9% | 25.1% | 23.2% |
| |
|---|
| Median (46 companies) | 16.5% | 12.9% | 13.4% | 15.0% | 14.1% |
|---|
| Lincoln Pharmaceuticals ($LINCOPH) | 5.5% | 7.4% | 8.0% | 10.0% | 10.4% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Claris Lifesciences ($CLARIS) | 32.5% | 58.1% | 42.9% | | 103.1% |
| Wintac ($WINTAC) | | | | | 22.8% |
| Hester Biosciences ($HESTERBIO) | | | | | 21.5% |
| Ipca Laboratories ($IPCALAB) | 10.3% | 11.2% | 8.3% | 11.6% | 17.8% |
| Natco Pharma ($NATCOPHARM) | 20.0% | 24.4% | 16.3% | 14.4% | 14.1% |
| |
|---|
| Median (30 companies) | 7.4% | 7.7% | 7.5% | 5.8% | 6.3% |
|---|
| Lincoln Pharmaceuticals ($LINCOPH) | 7.2% | 9.1% | 9.7% | 1.9% | 1.5% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Marksans Pharma ($MARKSANS) | -25.8% | -142.4% | 34.9% | 33.8% | 41.2% |
| Alembic Pharmaceuticals ($APLLTD) | | 27.5% | 29.1% | 41.5% | 35.7% |
| Jenburkt Pharmaceuticals ($JENBURPH) | 43.6% | 34.1% | 29.0% | 32.4% | 35.3% |
| Abbott India ($ABBOTINDIA) | 36.0% | 29.6% | 26.9% | 30.5% | 34.2% |
| Divi'S Laboratories ($DIVISLAB) | 25.6% | 30.6% | 30.4% | 32.3% | 30.5% |
| |
|---|
| Median (53 companies) | 14.0% | 14.0% | 13.8% | 15.6% | 14.1% |
|---|
| Lincoln Pharmaceuticals ($LINCOPH) | 7.3% | 8.4% | 7.8% | 10.0% | 12.4% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Jubilant Life Sciences Limited ($JUBILANT) | 5.3x | 4.0x | 3.5x | 3.5x | 6.4x |
| Shasun Pharmaceuticals ($SHASUNPHAR) | 4.5x | 2.8x | 4.5x | 6.0x | 6.2x |
| Claris Lifesciences ($CLARIS) | 1.5x | 1.9x | 1.1x | 1.8x | 3.2x |
| Dishman Pharmaceuticals & Chemicals ($DISHMAN) | 3.7x | 3.6x | 2.6x | 2.3x | 2.9x |
| Neuland Laboratories ($NEULANDLAB) | 4.9x | 4.2x | 3.5x | 2.6x | 2.6x |
| |
|---|
| Median (42 companies) | 1.5x | 1.4x | 1.2x | 0.3x | 0.6x |
|---|
| Lincoln Pharmaceuticals ($LINCOPH) | 3.6x | 3.8x | 4.3x | 3.0x | 2.3x |
