Beximco Pharmaceuticals reports 26.0% CAPEX decline while 6.3% Revenue growth
04 Nov 2016 • About Beximco Pharmaceuticals (
$BXP) • By InTwits
Beximco Pharmaceuticals reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Beximco Pharmaceuticals is a growth stock: FY2016 revenue growth was 6.3%, 5 year revenue CAGR was 11.8% at FY2016 ROIC 10.9%
- Beximco Pharmaceuticals has high CAPEX intensity: 5 year average CAPEX/Revenue was 19.0%. At the same time it's a lot of higher than industry average of 9.3%.
- CAPEX is quite volatile: 362 in 2016, 252 in 2015, 735 in 2014, 1,528 in 2013, 457 in 2012
- The company has business model with average profitability: ROIC is at 10.9%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Beximco Pharmaceuticals ($BXP) key annual financial indicators
| mln. BDT | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 9,289 | 10,491 | 11,207 | 12,966 | 13,785 | 6.3% |
| Gross Profit | 4,389 | 4,839 | 5,104 | 6,000 | 6,409 | 6.8% |
| SG&A | | | 399 | 448 | 3,295 | 634.8% |
| EBITDA | 2,706 | 2,817 | 3,043 | 3,443 | 3,979 | 15.6% |
| Net Income | 1,319 | 1,405 | 1,528 | 1,954 | 1,939 | -0.8% |
Balance Sheet
|
|---|
| Cash | 553 | 596 | 222 | 147 | 221 | 49.9% |
| Short Term Debt | 2,191 | 3,531 | 3,817 | 3,888 | 2,030 | -47.8% |
| Long Term Debt | 1,470 | 1,151 | 902 | 917 | 2,366 | 158.0% |
Cash flow
|
|---|
| Capex | 1,034 | 2,739 | 2,779 | 2,520 | 1,866 | -26.0% |
Ratios
|
|---|
| Revenue growth | 17.7% | 12.9% | 6.8% | 15.7% | 6.3% | |
| EBITDA growth | 12.5% | 4.1% | 8.0% | 13.1% | 15.6% | |
| Gross Margin | 47.3% | 46.1% | 45.5% | 46.3% | 46.5% | 0.2% |
| EBITDA Margin | 29.1% | 26.9% | 27.2% | 26.6% | 28.9% | 2.3% |
| Net Income Margin | 14.2% | 13.4% | 13.6% | 15.1% | 14.1% | -1.0% |
| SG&A, % of revenue | | | 3.6% | 3.5% | 23.9% | 20.4% |
| CAPEX, % of revenue | 11.1% | 26.1% | 24.8% | 19.4% | 13.5% | -5.9% |
| ROIC | 9.7% | 8.9% | 8.7% | 9.6% | 10.9% | 1.3% |
| ROE | 7.4% | 7.4% | 7.5% | 9.0% | 8.5% | -0.5% |
| Net Debt/EBITDA | 1.1x | 1.5x | 1.5x | 1.4x | 1.0x | -0.3x |
Revenue and profitability
Beximco Pharmaceuticals's Revenue increased on 6.3% in FY2016. Despite revenue decline the EBITDA margin expanded. EBITDA Margin increased on 3.0 pp from 34.7% to 37.7% in FY2016.
Gross Margin showed almost no change in FY2016. SG&A as a % of Revenue surged on 20.4 pp from 3.5% to 23.9% in FY2016.
Net Income marign decreased slightly on 1.0 pp from 15.1% to 14.1% in FY2016.
Capital expenditures (CAPEX) and working capital investments
In FY2016 Beximco Pharmaceuticals had CAPEX/Revenue of 13.5%. CAPEX/Revenue dropped on 12.6 pp from 26.1% in FY2013 to 13.5% in FY2016. For the last three years the average CAPEX/Revenue was 19.3%.
Return on investment
The company operates at low ROIC (10.91%) and ROE (8.52%). ROIC increased slightly on 1.3 pp from 9.6% to 10.9% in FY2016. ROE showed almost no change in FY2016.
Leverage (Debt)
Company's Net Debt / EBITDA is 1.0x and Debt / EBITDA is 1.1x. Net Debt / EBITDA dropped on 0.3x from 1.4x to 1.0x in FY2016. Debt decreased on 8.5% in FY2016 while cash surged on 49.9% in FY2016.
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 | 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% | |
| Quantum Pharma ($QP.) | | 26.0% | 10.8% | 15.4% | 13.4% |
| Pharmstandard OJSC ($PHST) | 19.1% | 12.4% | -27.7% | 14.5% | |
| Animalcare Group ($ANCR) | | 11.6% | 6.3% | 5.1% | 8.6% |
| |
|---|
| Median (11 companies) | 8.2% | 11.6% | 6.3% | 4.5% | 11.0% |
|---|
| Beximco Pharmaceuticals ($BXP) | | 12.9% | 6.8% | 15.7% | 6.3% |
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% | |
| Animalcare Group ($ANCR) | 54.0% | 56.0% | 55.4% | 55.9% | 54.4% |
| Source Bioscience ($SBS) | 45.1% | 46.0% | 48.6% | 50.5% | |
| Anpario ($ANP) | 32.6% | 35.0% | 40.5% | 44.9% | |
| |
|---|
| Median (11 companies) | 42.7% | 42.9% | 44.2% | 44.0% | 45.9% |
|---|
| Beximco Pharmaceuticals ($BXP) | 47.3% | 46.1% | 45.5% | 46.3% | 46.5% |
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% | |
| Animalcare Group ($ANCR) | 24.2% | 25.2% | 24.5% | 25.4% | 23.5% |
| Eastpharma Ltd ($EAST) | 21.1% | 15.6% | 16.1% | 23.3% | |
| Source Bioscience ($SBS) | 16.1% | 16.7% | 20.1% | 20.5% | |
| |
|---|
| Median (11 companies) | 16.1% | 14.5% | 16.1% | 20.0% | 18.0% |
|---|
| Beximco Pharmaceuticals ($BXP) | 29.1% | 26.9% | 27.2% | 26.6% | 28.9% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Taihua ($TAIH) | 0.9% | 0.1% | 1.6% | 62.2% | |
| Eastpharma Ltd ($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% | |
| Source Bioscience ($SBS) | 13.7% | 7.9% | 5.3% | 5.3% | |
| |
|---|
| Median (11 companies) | 2.7% | 3.1% | 2.4% | 4.9% | 1.6% |
|---|
| Beximco Pharmaceuticals ($BXP) | 11.1% | 26.1% | 24.8% | 19.4% | 13.5% |
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 ($CRX) | 4.3% | 8.4% | -9.7% | 15.0% | |
| Animalcare Group ($ANCR) | 14.0% | 15.4% | 14.2% | 14.8% | 13.8% |
| Ergomed ($ERGO) | 82.0% | 148.0% | 15.5% | 14.6% | |
| |
|---|
| Median (11 companies) | 9.3% | 8.9% | 8.4% | 13.8% | 11.4% |
|---|
| Beximco Pharmaceuticals ($BXP) | 9.7% | 8.9% | 8.7% | 9.6% | 10.9% |
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 | |
| Quantum Pharma ($QP.) | 6.4x | 8.3x | 15.5x | 0.8x | 2.8x |
| |
|---|
| Median (10 companies) | 0.3x | -0.5x | 0.8x | 0.7x | 0.4x |
|---|
| Beximco Pharmaceuticals ($BXP) | 1.1x | 1.5x | 1.5x | 1.4x | 1.0x |
