Md Medical Group Invest reports 75.1% CAPEX decline while 32.0% Revenue growth
21 Mar 2016 • About Md Medical Group Invest (
$MDMG) • By InTwits
Md Medical Group Invest reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Md Medical Group Invest is a growth stock: 2015 revenue growth was 32.0%, 5 year revenue CAGR was 36.0% at 2015 ROIC 11.8%
- Md Medical Group Invest has high CAPEX intensity: 5 year average CAPEX/Revenue was 44.4%. At the same time it's a lot of higher than industry average of 7.5%.
- CAPEX is quite volatile: 780 in 2015, 3,126 in 2014, 2,430 in 2013, 2,646 in 2012, 1,812 in 2011
- The company has business model with average profitability: ROIC is at 11.8%
- It operates with high leverage: Net Debt/EBITDA is 0.6x while industry average is -0.1x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Md Medical Group Invest ($MDMG) key annual financial indicators
| mln. RUB | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 2,908 | 4,061 | 5,673 | 7,201 | 9,507 | 32.0% |
| Gross Profit | 1,444 | 2,048 | 2,283 | 2,971 | 3,589 | 20.8% |
| EBITDA | 1,292 | 1,694 | 1,586 | 2,083 | 2,656 | 27.5% |
| Net Income | 860 | 1,399 | 636 | 1,196 | 1,604 | 34.1% |
Balance Sheet
|
|---|
| Cash | 133 | 2,583 | 3,273 | 891 | 1,774 | 99.2% |
| Short Term Debt | 162 | 263 | 1,238 | 1,739 | 1,163 | -33.1% |
| Long Term Debt | 1,060 | 2,696 | 2,380 | 3,251 | 2,300 | -29.3% |
Cash flow
|
|---|
| Capex | 1,812 | 2,646 | 2,430 | 3,126 | 780 | -75.1% |
Ratios
|
|---|
| Revenue growth | 42.2% | 39.7% | 39.7% | 26.9% | 32.0% | |
| EBITDA growth | 18.7% | 31.1% | -6.4% | 31.3% | 27.5% | |
| Gross Margin | 49.7% | 50.4% | 40.3% | 41.3% | 37.7% | -3.5% |
| EBITDA Margin | 44.4% | 41.7% | 28.0% | 28.9% | 27.9% | -1.0% |
| Net Income Margin | 29.6% | 34.5% | 11.2% | 16.6% | 16.9% | 0.3% |
| CAPEX, % of revenue | 62.3% | 65.2% | 42.8% | 43.4% | 8.2% | -35.2% |
| ROIC | 45.2% | 19.9% | 9.5% | 11.0% | 11.8% | 0.8% |
| ROE | 45.9% | 25.8% | 7.4% | 12.9% | 15.4% | 2.5% |
| Net Debt/EBITDA | 0.8x | 0.2x | 0.2x | 2.0x | 0.6x | -1.3x |
Revenue and profitability
The company's Revenue jumped on 32.0% in 2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased slightly on 1.3 pp from 20.8% to 22.0% in 2015.
Gross Margin decreased on 3.5 pp from 41.3% to 37.7% in 2015.
Net Income marign showed almost no change in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 the company had CAPEX/Revenue of 8.2%. The company showed big decline in CAPEX/Revenue of 57.0 pp from 65.2% in 2012 to 8.2% in 2015. Average CAPEX/Revenue for the last three years was 31.5%.
Return on investment
The company operates at good ROE (15.39%) while ROIC is low (11.79%). ROIC increased slightly on 0.80 pp from 11.0% to 11.8% in 2015. ROE increased on 2.5 pp from 12.9% to 15.4% in 2015.
Leverage (Debt)
Debt level is 0.6x Net Debt / EBITDA and 1.3x Debt / EBITDA. Net Debt / EBITDA dropped on 1.3x from 2.0x to 0.6x in 2015. Debt dropped on 30.6% in 2015 while cash surged on 99.2% in 2015.
Valuation
The company's trades at EV/EBITDA 0.6x and P/E 0.0x while industy averages are 10.5x and 26.1x. The company's EV/(EBITDA-CAPEX) is 0.9x with the industry average at 4.7x.
Appendix 1: Peers in Health Care Equipment & Services
Below we provide Md Medical Group Invest benchmarking against other companies in Health Care Equipment & Services 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 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Tristel ($TSTL) | | 17.8% | -3.5% | 27.6% | 13.8% |
| Ekf Diagnostics Holdings ($EKF) | 234.1% | 20.3% | 22.0% | 16.7% | |
| Smith & Nephew ($SN.) | | -3.1% | 5.2% | 6.1% | 0.4% |
| Lifeline Scientific Inc ($LSIC) | 9.6% | 18.7% | 10.2% | 6.0% | |
| Synergy Health ($SYR) | | 8.6% | 15.8% | 5.3% | 7.5% |
| |
|---|
| Median (10 companies) | 7.4% | 9.9% | 3.2% | 5.2% | 2.6% |
|---|
| Md Medical Group Invest ($MDMG) | | 39.7% | 39.7% | 26.9% | 32.0% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Smith & Nephew ($SN.) | 73.3% | 74.1% | 74.7% | 74.8% | 75.3% |
| Tristel ($TSTL) | 63.5% | 67.9% | 66.4% | 69.8% | 69.5% |
| Immunodiagnostic Systems Hldgs ($IDH) | 74.7% | 74.7% | 73.1% | 68.1% | 62.5% |
| Omega Diagnostics Group ($ODX) | 59.6% | 63.0% | 62.6% | 63.6% | 63.4% |
| Lifeline Scientific Inc ($LSIC) | 63.8% | 60.6% | 59.8% | 61.3% | |
| |
|---|
| Median (10 companies) | 59.8% | 57.8% | 56.5% | 57.9% | 62.9% |
|---|
| Md Medical Group Invest ($MDMG) | 49.7% | 50.4% | 40.3% | 41.3% | 37.7% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Immunodiagnostic Systems Hldgs ($IDH) | 34.1% | | 35.3% | 34.1% | 23.6% |
| Synergy Health ($SYR) | 28.0% | 26.0% | 26.4% | 25.8% | 24.3% |
| Smith & Nephew ($SN.) | 27.1% | 27.8% | 26.9% | 25.2% | 23.1% |
| Abbott Laboratories ($ABT) | 22.6% | 21.8% | 19.6% | 20.5% | 21.3% |
| Tristel ($TSTL) | 11.8% | 17.0% | 13.7% | 20.1% | 22.9% |
| |
|---|
| Median (10 companies) | 15.8% | 17.0% | 14.9% | 19.1% | 23.0% |
|---|
| Md Medical Group Invest ($MDMG) | 44.4% | 41.7% | 28.0% | 28.9% | 27.9% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Puricore ($PURI) | 1.5% | 2.4% | 3.2% | 15.4% | |
| Synergy Health ($SYR) | 13.1% | 15.2% | 13.2% | 10.3% | 15.1% |
| Bioquell ($BQE) | 9.6% | 7.6% | 8.8% | 8.9% | |
| Smith & Nephew ($SN.) | 7.5% | 6.4% | 7.8% | 8.1% | 7.7% |
| Abbott Laboratories ($ABT) | 3.8% | 8.4% | 5.8% | 5.3% | 5.4% |
| |
|---|
| Median (10 companies) | 7.3% | 5.7% | 4.5% | 5.2% | 6.1% |
|---|
| Md Medical Group Invest ($MDMG) | 62.3% | 65.2% | 42.8% | 43.4% | 8.2% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Tristel ($TSTL) | 4.0% | 6.5% | 3.5% | 15.9% | 20.1% |
| Smith & Nephew ($SN.) | 25.5% | 22.0% | 18.6% | 14.7% | 11.1% |
| Immunodiagnostic Systems Hldgs ($IDH) | 21.7% | | | 12.3% | 4.3% |
| Lifeline Scientific Inc ($LSIC) | 12.1% | 1.9% | 11.2% | 11.7% | |
| Synergy Health ($SYR) | 9.2% | 8.0% | 8.5% | 9.1% | 9.1% |
| |
|---|
| Median (10 companies) | 10.7% | 4.3% | 5.3% | 8.7% | 9.2% |
|---|
| Md Medical Group Invest ($MDMG) | 45.2% | 19.9% | 9.5% | 11.0% | 11.8% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Synergy Health ($SYR) | 1.4x | 2.1x | 1.9x | 1.5x | 1.6x |
| Smith & Nephew ($SN.) | 0.1x | 0.3x | 0.2x | 1.4x | 1.3x |
| Abbott Laboratories ($ABT) | 1.0x | 2.1x | 0.8x | 0.9x | 0.9x |
| Bioquell ($BQE) | -0.5x | -0.2x | -0.3x | -0.3x | |
| Lifeline Scientific Inc ($LSIC) | -3.6x | -4.4x | -0.6x | -0.3x | |
| |
|---|
| Median (9 companies) | -0.3x | 0.1x | -0.2x | -0.3x | -0.1x |
|---|
| Md Medical Group Invest ($MDMG) | 0.8x | 0.2x | 0.2x | 2.0x | 0.6x |
