Animalcare Group revenue increased on 8.6% in 2016 while EBITDA Margin decreased slightly on 1.9 pp from 25.4% to 23.5%
12 Oct 2016 • About Animalcare Group (
$ANCR) • By InTwits
Animalcare Group reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is relatively stable: 23.5% in FY2016 vs. 25.4% in FY2015 vs. 24.2% in FY2012
- Animalcare Group has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.8%.
- The company has highly profitable business model: ROIC is at 13.8%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Animalcare Group ($ANCR) key annual financial indicators
| mln. £ | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 10.856 | 12.118 | 12.881 | 13.536 | 14.701 | 8.6% |
| Gross Profit | 5.862 | 6.781 | 7.142 | 7.573 | 7.999 | 5.6% |
| SG&A | | | 4.199 | 4.430 | 4.826 | 8.9% |
| EBITDA | 2.622 | 3.059 | 3.162 | 3.441 | 3.452 | 0.3% |
| Net Income | 1.729 | 1.885 | 2.137 | 2.534 | 2.634 | 3.9% |
Balance Sheet
|
|---|
| Cash | 2.305 | 3.745 | 3.812 | 5.777 | 7.118 | 23.2% |
| Short Term Debt | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | |
| Long Term Debt | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | |
Cash flow
|
|---|
| Capex | 0.055 | 0.379 | 0.032 | 0.007 | 0.041 | 485.7% |
Ratios
|
|---|
| Revenue growth | -8.2% | 11.6% | 6.3% | 5.1% | 8.6% | |
| EBITDA growth | -25.9% | 16.7% | 3.4% | 8.8% | 0.3% | |
| Gross Margin | 54.0% | 56.0% | 55.4% | 55.9% | 54.4% | -1.5% |
| EBITDA Margin | 24.2% | 25.2% | 24.5% | 25.4% | 23.5% | -1.9% |
| Net Income Margin | 15.9% | 15.6% | 16.6% | 18.7% | 17.9% | -0.8% |
| SG&A, % of revenue | | | 32.6% | 32.7% | 32.8% | 0.1% |
| CAPEX, % of revenue | 0.5% | 3.1% | 0.2% | 0.1% | 0.3% | 0.2% |
| ROIC | 14.0% | 15.4% | 14.2% | 14.8% | 13.8% | -1.0% |
| ROE | 10.6% | 10.8% | 11.4% | 12.5% | 12.1% | -0.4% |
| Net Debt/EBITDA | -0.9x | -1.2x | -1.2x | -1.7x | -2.1x | -0.4x |
Revenue and profitability
The company's Revenue increased on 8.6% in FY2016. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin jumped on 45.7 pp from -71.9% to -26.2% in FY2016.
Gross Margin decreased slightly on 1.5 pp from 55.9% to 54.4% in FY2016. SG&A as a % of Revenue showed almost no change in FY2016.
Net Income marign decreased slightly on 0.80 pp from 18.7% to 17.9% in FY2016.
Capital expenditures (CAPEX) and working capital investments
In FY2016 the company had CAPEX/Revenue of 0.28%. CAPEX/Revenue decreased on 2.8 pp from 3.1% in FY2013 to 0.28% in FY2016. Average CAPEX/Revenue for the last three years was 0.19%.
Return on investment
The company operates at good ROIC (13.75%) and ROE (12.11%). ROIC decreased slightly on 1.0 pp from 14.8% to 13.8% in FY2016. ROE showed almost no change in FY2016.
Leverage (Debt)
The company has no debt. Cash jumped on 23.2% in FY2016.
Valuation
Animalcare Group's trades at EV/EBITDA 15.3x and P/E 22.7x while industy averages are 15.6x and 19.1x.
Appendix 1: Peers in Pharmaceuticals & Biotechnology
Below you can find Animalcare Group 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 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Ergomed ($ERGO) | 21.1% | 3.7% | 39.7% | 42.7% | |
| Cyprotex ($CRX) | 5.3% | 17.3% | 18.5% | 34.9% | |
| Beximco Pharmaceuticals ($BXP) | 17.7% | 12.9% | 6.8% | 15.7% | |
| Quantum Pharma ($QP.) | | 26.0% | 10.8% | 15.4% | 13.4% |
| Pharmstandard OJSC ($PHST) | 19.1% | 12.4% | -27.7% | 14.5% | |
| |
|---|
| Median (11 companies) | 12.9% | 12.4% | 6.8% | 4.5% | 13.4% |
|---|
| Animalcare Group ($ANCR) | | 11.6% | 6.3% | 5.1% | 8.6% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Pfizer Inc ($PFZ) | 82.0% | 81.4% | 80.7% | 80.3% | |
| Cyprotex ($CRX) | 81.9% | 80.0% | 75.0% | 77.3% | |
| Source Bioscience ($SBS) | 45.1% | 46.0% | 48.6% | 50.5% | |
| Beximco Pharmaceuticals ($BXP) | 47.3% | 46.1% | 45.5% | 46.3% | |
| Anpario ($ANP) | 32.6% | 35.0% | 40.5% | 44.9% | |
| |
|---|
| Median (11 companies) | 42.7% | 42.9% | 44.2% | 44.0% | 37.5% |
|---|
| Animalcare Group ($ANCR) | 54.0% | 56.0% | 55.4% | 55.9% | 54.4% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Pfizer Inc ($PFZ) | 41.9% | 41.9% | 37.9% | 34.8% | |
| Pharmstandard OJSC ($PHST) | 26.1% | 30.3% | 30.9% | 29.0% | |
| Beximco Pharmaceuticals ($BXP) | 29.1% | 26.9% | 27.2% | 26.6% | |
| Eastpharma Ltd ($EAST) | 21.1% | 15.6% | 16.1% | 23.3% | |
| Source Bioscience ($SBS) | 16.1% | 16.7% | 20.1% | 20.5% | |
| |
|---|
| Median (11 companies) | 16.1% | 14.5% | 16.1% | 20.0% | 12.6% |
|---|
| Animalcare Group ($ANCR) | 24.2% | 25.2% | 24.5% | 25.4% | 23.5% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Taihua ($TAIH) | 0.9% | 0.1% | 1.6% | 62.2% | |
| Beximco Pharmaceuticals ($BXP) | 11.1% | 26.1% | 24.8% | 19.4% | |
| Eastpharma Ltd ($EAST) | 11.9% | 12.3% | 7.1% | 6.2% | |
| Cathay International Hldgs Ltd ($CTI) | 16.7% | 12.1% | 4.0% | 5.5% | |
| Cyprotex ($CRX) | 3.5% | 12.0% | 12.9% | 5.3% | |
| |
|---|
| Median (11 companies) | 3.5% | 4.7% | 4.0% | 5.3% | 3.0% |
|---|
| Animalcare Group ($ANCR) | 0.5% | 3.1% | 0.2% | 0.1% | 0.3% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Pharmstandard OJSC ($PHST) | 34.0% | 42.6% | 28.8% | 23.9% | |
| Quantum Pharma ($QP.) | | 8.9% | 4.6% | 17.8% | 9.1% |
| Cyprotex ($CRX) | 4.3% | 8.4% | -9.7% | 15.0% | |
| Ergomed ($ERGO) | 82.0% | 148.0% | 15.5% | 14.6% | |
| Anpario ($ANP) | 15.9% | 14.7% | 13.6% | 13.8% | |
| |
|---|
| Median (11 companies) | 8.4% | 8.9% | 8.4% | 9.6% | 9.1% |
|---|
| Animalcare Group ($ANCR) | 14.0% | 15.4% | 14.2% | 14.8% | 13.8% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Cathay International Hldgs Ltd ($CTI) | 15.0x | 12.2x | 6.3x | 12.7x | |
| Cyprotex ($CRX) | 0.6x | -4.3x | 20.0x | 3.9x | |
| Eastpharma Ltd ($EAST) | 2.7x | 3.8x | 4.3x | 2.7x | |
| Pfizer Inc ($PFZ) | 1.2x | 1.6x | 1.8x | 2.1x | |
| Beximco Pharmaceuticals ($BXP) | 1.1x | 1.5x | 1.5x | 1.4x | |
| |
|---|
| Median (10 companies) | 0.6x | 1.5x | 1.5x | 1.1x | 2.8x |
|---|
| Animalcare Group ($ANCR) | -0.9x | -1.2x | -1.2x | -1.7x | -2.1x |
