Pharmstandard OJSC reports 26.8% Net Income growth while 1.9 pp EBITDA Margin decline from 30.9% to 29.0%
29 Apr 2016 • About Pharmstandard OJSC (
$PHST) • By InTwits
Pharmstandard OJSC reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Pharmstandard OJSC has low CAPEX intensity: 5 year average CAPEX/Revenue was 4.0%. At the same time it's in pair with industry average of 5.3%.
- CAPEX is quite volatile: 1,697 in 2015, 1,946 in 2014, 798 in 2013, 696 in 2012, 1,260 in 2011
- The company has highly profitable business model: ROIC is at 23.9%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Pharmstandard OJSC ($PHST) key annual financial indicators
| mln. RUB | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 42,654 | 50,784 | 57,056 | 41,223 | 47,195 | 14.5% |
| Gross Profit | 15,925 | 18,759 | 24,472 | 18,216 | 17,797 | -2.3% |
| SG&A | 4,742 | 6,366 | 7,959 | 6,236 | 5,056 | -18.9% |
| EBITDA | 11,976 | 13,241 | 17,301 | 12,727 | 13,675 | 7.4% |
| Net Income | 8,781 | 9,791 | 11,806 | 10,841 | 13,750 | 26.8% |
Balance Sheet
|
|---|
| Cash | 5,383 | 8,463 | 15,365 | 8,542 | 14,389 | 68.5% |
| Short Term Debt | 1,011 | 242 | 7,279 | 4,434 | 4,627 | 4.3% |
| Long Term Debt | 0 | 0 | 0 | 0 | 0 | |
Cash flow
|
|---|
| Capex | 1,752 | 1,368 | 1,475 | 2,381 | 2,312 | -2.9% |
Ratios
|
|---|
| Revenue growth | 43.7% | 19.1% | 12.4% | -27.7% | 14.5% | |
| EBITDA growth | 20.1% | 10.6% | 30.7% | -26.4% | 7.4% | |
| Gross Margin | 37.3% | 36.9% | 42.9% | 44.2% | 37.7% | -6.5% |
| EBITDA Margin | 28.1% | 26.1% | 30.3% | 30.9% | 29.0% | -1.9% |
| Net Income Margin | 20.6% | 19.3% | 20.7% | 26.3% | 29.1% | 2.8% |
| SG&A, % of revenue | 11.1% | 12.5% | 14.0% | 15.1% | 10.7% | -4.4% |
| CAPEX, % of revenue | 4.1% | 2.7% | 2.6% | 5.8% | 4.9% | -0.9% |
| ROIC | 37.1% | 34.0% | 42.6% | 28.8% | 23.9% | -4.8% |
| ROE | 31.2% | 29.1% | 36.2% | 32.5% | 29.6% | -2.8% |
| Net Debt/EBITDA | -0.4x | -0.6x | -0.5x | -0.3x | -0.7x | -0.4x |
Revenue and profitability
The company's Revenue surged on 14.5% in 2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin jumped on 13.0 pp from 11.8% to 24.8% in 2015.
Gross Margin decreased on 6.5 pp from 44.2% to 37.7% in 2015. SG&A as a % of Revenue decreased on 4.4 pp from 15.1% to 10.7% in 2015.
Net Income marign increased on 2.8 pp from 26.3% to 29.1% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 the company had CAPEX/Revenue of 4.9%. CAPEX/Revenue increased on 2.2 pp from 2.7% in 2012 to 4.9% in 2015. It's average CAPEX/Revenue for the last three years was 4.4%.
Return on investment
The company operates at high and attractive ROIC (23.95%) and ROE (29.62%). ROIC decreased on 4.8 pp from 28.8% to 23.9% in 2015. ROE decreased on 2.8 pp from 32.5% to 29.6% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is -0.7x and Debt / EBITDA is 0.3x. Net Debt / EBITDA dropped on 0.4x from -0.3x to -0.7x in 2015. Debt increased on 4.3% in 2015 while cash surged on 68.5% in 2015.
Appendix 1: Peers in Pharmaceuticals & Biotechnology
Below we provide Pharmstandard OJSC benchmarking against other companies in Pharmaceuticals & Biotechnology 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 |
|---|
| Ergomed ($ERGO) | | 21.1% | 3.7% | 39.7% | 42.7% |
| Cyprotex ($CRX) | | 5.3% | 17.3% | 18.5% | 34.9% |
| Animalcare Group ($ANCR) | | -8.2% | 11.6% | 6.3% | 5.1% |
| Source Bioscience ($SBS) | | 8.2% | 18.8% | 28.9% | 4.5% |
| Eastpharma Ltd ($EAST) | | -4.2% | -6.4% | -3.0% | -0.3% |
| |
|---|
| Median (8 companies) | 69.2% | 6.7% | 11.0% | 6.6% | 2.1% |
|---|
| Pharmstandard OJSC ($PHST) | | 19.1% | 12.4% | -27.7% | 14.5% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Pfizer Inc ($PFZ) | 78.4% | 82.0% | 81.4% | 80.7% | 80.3% |
| Cyprotex ($CRX) | 83.2% | 81.9% | 80.0% | 75.0% | 77.3% |
| Animalcare Group ($ANCR) | 54.0% | 54.0% | 56.0% | 55.4% | 55.9% |
| Source Bioscience ($SBS) | 44.4% | 45.1% | 46.0% | 48.6% | 50.5% |
| Anpario ($ANP) | 30.0% | 32.6% | 35.0% | 40.5% | 44.9% |
| |
|---|
| Median (8 companies) | 46.2% | 46.2% | 46.1% | 46.3% | 47.7% |
|---|
| Pharmstandard OJSC ($PHST) | 37.3% | 36.9% | 42.9% | 44.2% | 37.7% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Pfizer Inc ($PFZ) | 36.3% | 41.9% | 41.9% | 37.9% | 34.8% |
| Animalcare Group ($ANCR) | 29.9% | 24.2% | 25.2% | 24.5% | 25.4% |
| Eastpharma Ltd ($EAST) | 2.8% | 21.1% | 15.6% | 16.1% | 23.3% |
| Source Bioscience ($SBS) | -6.8% | 16.1% | 16.7% | 20.1% | 20.5% |
| Cyprotex ($CRX) | 14.8% | 11.2% | 14.5% | 2.7% | 20.0% |
| |
|---|
| Median (8 companies) | 14.3% | 16.2% | 15.0% | 17.3% | 20.2% |
|---|
| Pharmstandard OJSC ($PHST) | 28.1% | 26.1% | 30.3% | 30.9% | 29.0% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Eastpharma Ltd ($EAST) | 9.5% | 11.9% | 12.3% | 7.1% | 6.2% |
| Cathay International Hldgs Ltd ($CTI) | 19.0% | 16.7% | 12.1% | 4.0% | 5.5% |
| Cyprotex ($CRX) | 4.0% | 3.5% | 12.0% | 12.9% | 5.3% |
| Source Bioscience ($SBS) | 46.3% | 13.7% | 7.9% | 5.3% | 5.3% |
| Pfizer Inc ($PFZ) | 2.5% | 2.4% | 2.3% | 2.4% | 2.9% |
| |
|---|
| Median (8 companies) | 3.2% | 3.0% | 5.5% | 3.2% | 4.1% |
|---|
| Pharmstandard OJSC ($PHST) | 4.1% | 2.7% | 2.6% | 5.8% | 4.9% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Cyprotex ($CRX) | 9.7% | 4.3% | 8.4% | -9.7% | 15.0% |
| Animalcare Group ($ANCR) | 18.1% | 14.0% | 15.4% | 14.2% | 14.8% |
| Ergomed ($ERGO) | | 82.0% | 148.0% | 15.5% | 14.6% |
| Anpario ($ANP) | 11.9% | 15.9% | 14.7% | 13.6% | 13.8% |
| Pfizer Inc ($PFZ) | 10.8% | 11.6% | 10.9% | 9.9% | 9.1% |
| |
|---|
| Median (8 companies) | 9.5% | 8.4% | 8.7% | 8.5% | 11.5% |
|---|
| Pharmstandard OJSC ($PHST) | 37.1% | 34.0% | 42.6% | 28.8% | 23.9% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Cathay International Hldgs Ltd ($CTI) | 8.2x | 15.0x | 12.2x | 6.3x | 12.7x |
| Cyprotex ($CRX) | -0.2x | 0.6x | -4.3x | 20.0x | 3.9x |
| Eastpharma Ltd ($EAST) | 15.6x | 2.7x | 3.8x | 4.3x | 2.7x |
| Pfizer Inc ($PFZ) | 1.5x | 1.2x | 1.6x | 1.8x | 2.1x |
| Source Bioscience ($SBS) | | 0.3x | 1.5x | 0.8x | 0.7x |
| |
|---|
| Median (8 companies) | -0.2x | 0.5x | 0.2x | 1.2x | 1.4x |
|---|
| Pharmstandard OJSC ($PHST) | -0.4x | -0.6x | -0.5x | -0.3x | -0.7x |
