Beximco Pharmaceuticals Net Income surged on 27.9% in 2015 and Revenue surged on 15.7%
18 May 2016 • About Beximco Pharmaceuticals (
$BXP) • By InTwits
Beximco Pharmaceuticals reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Beximco Pharmaceuticals has high CAPEX intensity: 5 year average CAPEX/Revenue was 19.1%. At the same time it's a lot of higher than industry average of 4.7%.
- CAPEX is quite volatile: 2,520 in 2015, 2,779 in 2014, 2,739 in 2013, 1,034 in 2012, 1,112 in 2011
- The company has business model with low profitability: ROIC is at 9.6%
- It operates with medium-size leverage: Net Debt/EBITDA is 1.4x while industry average is 1.3x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Beximco Pharmaceuticals ($BXP) key annual financial indicators
| mln. BDT | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 7,890 | 9,289 | 10,491 | 11,207 | 12,966 | 15.7% |
| Gross Profit | 3,787 | 4,389 | 4,839 | 5,104 | 6,000 | 17.6% |
| SG&A | | | | 399 | 448 | 12.4% |
| EBITDA | 2,406 | 2,706 | 2,817 | 3,043 | 3,443 | 13.1% |
| Net Income | 1,199 | 1,319 | 1,405 | 1,528 | 1,954 | 27.9% |
Balance Sheet
|
|---|
| Cash | 519 | 553 | 596 | 222 | 147 | -33.6% |
| Short Term Debt | 2,006 | 2,191 | 3,531 | 3,817 | 3,888 | 1.9% |
| Long Term Debt | 0 | 1,470 | 1,151 | 902 | 917 | 1.7% |
Cash flow
|
|---|
| Capex | 1,112 | 1,034 | 2,739 | 2,779 | 2,520 | -9.3% |
Ratios
|
|---|
| Revenue growth | 21.6% | 17.7% | 12.9% | 6.8% | 15.7% | |
| EBITDA growth | 16.2% | 12.5% | 4.1% | 8.0% | 13.1% | |
| Gross Margin | 48.0% | 47.3% | 46.1% | 45.5% | 46.3% | 0.7% |
| EBITDA Margin | 30.5% | 29.1% | 26.9% | 27.2% | 26.6% | -0.6% |
| Net Income Margin | 15.2% | 14.2% | 13.4% | 13.6% | 15.1% | 1.4% |
| SG&A, % of revenue | | | | 3.6% | 3.5% | -0.1% |
| CAPEX, % of revenue | 14.1% | 11.1% | 26.1% | 24.8% | 19.4% | -5.4% |
| ROIC | 9.4% | 9.7% | 8.9% | 8.7% | 9.6% | 1.0% |
| ROE | 7.2% | 7.4% | 7.4% | 7.5% | 9.0% | 1.5% |
| Net Debt/EBITDA | 0.6x | 1.1x | 1.5x | 1.5x | 1.4x | -0.1x |
Revenue and profitability
Beximco Pharmaceuticals's Revenue surged on 15.7% in 2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased slightly on 1.3 pp from 14.8% to 16.1% in 2015.
Gross Margin increased slightly on 0.73 pp from 45.5% to 46.3% in 2015. SG&A as a % of Revenue showed almost no change in 2015.
Net Income marign increased slightly on 1.4 pp from 13.6% to 15.1% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 the company had CAPEX/Revenue of 19.4%. Beximco Pharmaceuticals showed CAPEX/Revenue growth of 8.3 pp from 11.1% in 2012 to 19.4% in 2015. It's average level of CAPEX/Revenue for the last three years was 23.4%.The company invested a big chunk of EBITDA (73.2%) to CAPEX to fuel its growth.
Return on investment
The company operates at low ROIC (9.62%) and ROE (9.01%). ROIC increased slightly on 0.96 pp from 8.7% to 9.6% in 2015. ROE increased slightly on 1.5 pp from 7.5% to 9.0% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 1.4x and Debt / EBITDA is 1.4x. Net Debt / EBITDA dropped on 0.1x from 1.5x to 1.4x in 2015. Debt increased slightly on 1.8% in 2015 while cash dropped on 33.6% in 2015.
Appendix 1: Peers in Pharmaceuticals & Biotechnology
Below you can find Beximco Pharmaceuticals benchmarking vs. other companies in Pharmaceuticals & 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 |
|---|
| Ergomed ($ERGO) | | 21.1% | 3.7% | 39.7% | 42.7% |
| Cyprotex ($CRX) | | 5.3% | 17.3% | 18.5% | 34.9% |
| Quantum Pharma ($QP.) | | | 26.0% | 10.8% | 15.4% |
| Pharmstandard OJSC ($PHST) | | 19.1% | 12.4% | -27.7% | 14.5% |
| Animalcare Group ($ANCR) | | -8.2% | 11.6% | 6.3% | 5.1% |
| |
|---|
| Median (10 companies) | 116.8% | 6.7% | 11.6% | 6.3% | 4.8% |
|---|
| Beximco Pharmaceuticals ($BXP) | | 17.7% | 12.9% | 6.8% | 15.7% |
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 ($ANP) | 30.0% | 32.6% | 35.0% | 40.5% | 44.9% |
| |
|---|
| Median (10 companies) | 44.1% | 42.7% | 42.9% | 44.2% | 44.4% |
|---|
| Beximco Pharmaceuticals ($BXP) | 48.0% | 47.3% | 46.1% | 45.5% | 46.3% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Pfizer Inc ($PFZ) | 36.3% | 41.9% | 41.9% | 37.9% | 34.8% |
| Pharmstandard OJSC ($PHST) | 28.1% | 26.1% | 30.3% | 30.9% | 29.0% |
| 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 ($SBS) | -6.8% | 16.1% | 16.7% | 20.1% | 20.5% |
| |
|---|
| Median (10 companies) | 14.3% | 16.1% | 14.5% | 16.1% | 20.2% |
|---|
| Beximco Pharmaceuticals ($BXP) | 30.5% | 29.1% | 26.9% | 27.2% | 26.6% |
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% |
| Pharmstandard OJSC ($PHST) | 4.1% | 2.7% | 2.6% | 5.8% | 4.9% |
| |
|---|
| Median (10 companies) | 3.2% | 2.7% | 3.1% | 2.4% | 3.9% |
|---|
| Beximco Pharmaceuticals ($BXP) | 14.1% | 11.1% | 26.1% | 24.8% | 19.4% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Pharmstandard OJSC ($PHST) | 37.1% | 34.0% | 42.6% | 28.8% | 23.9% |
| Quantum Pharma ($QP.) | | | 8.9% | 4.6% | 17.8% |
| 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 ($ERGO) | | 82.0% | 148.0% | 15.5% | 14.6% |
| |
|---|
| Median (10 companies) | 9.7% | 9.3% | 8.9% | 8.4% | 14.2% |
|---|
| Beximco Pharmaceuticals ($BXP) | 9.4% | 9.7% | 8.9% | 8.7% | 9.6% |
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 |
| Quantum Pharma ($QP.) | | 6.4x | 8.3x | 15.5x | 0.8x |
| |
|---|
| Median (10 companies) | -0.3x | 0.3x | -0.5x | 0.8x | 0.7x |
|---|
| Beximco Pharmaceuticals ($BXP) | 0.6x | 1.1x | 1.5x | 1.5x | 1.4x |
