Anpario Net Income dropped on 30.9% in 2016 and EBITDA Margin decreased on 2.7 pp from 17.7% to 15.0%
08 Mar 2017 • About Anpario (
$ANP) • By InTwits
Anpario reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Anpario has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.6%. At the same time it's a lot of higher than industry average of 21.7%.
- CAPEX is quite volatile: 0.73 in FY2016, 0.30 in FY2015, 0.29 in FY2014, 0.47 in FY2013, 0.12 in FY2012
- The company has business model with low profitability: ROIC is at 8.9%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Anpario ($ANP) key annual financial indicators
| mln. £ | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 23.509 | 25.950 | 23.449 | 23.322 | 24.340 | 4.4% |
| Gross Profit | 7.660 | 9.075 | 9.496 | 10.470 | 11.445 | 9.3% |
| SG&A | | 6.144 | 6.447 | 6.916 | 7.603 | 9.9% |
| EBITDA | 3.821 | 3.306 | 3.406 | 4.127 | 3.653 | -11.5% |
| Net Income | 2.104 | 2.574 | 3.160 | 3.736 | 2.580 | -30.9% |
Balance Sheet
|
|---|
| Cash | 3.694 | 4.779 | 6.631 | 9.337 | 11.112 | 19.0% |
| 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 | 0.117 | 0.470 | 0.289 | 0.301 | 0.729 | 142.2% |
Ratios
|
|---|
| Revenue growth | 22.5% | 10.4% | -9.6% | -0.5% | 4.4% | |
| EBITDA growth | 72.4% | -13.5% | 3.0% | 21.2% | -11.5% | |
| Gross Margin | 32.6% | 35.0% | 40.5% | 44.9% | 47.0% | 2.1% |
| EBITDA Margin | 16.3% | 12.7% | 14.5% | 17.7% | 15.0% | -2.7% |
| Net Income Margin | 8.9% | 9.9% | 13.5% | 16.0% | 10.6% | -5.4% |
| SG&A, % of revenue | | 23.7% | 27.5% | 29.7% | 31.2% | 1.6% |
| CAPEX, % of revenue | 0.5% | 1.8% | 1.2% | 1.3% | 3.0% | 1.7% |
| ROIC | 15.9% | 14.7% | 13.6% | 13.8% | 8.9% | -5.0% |
| ROE | 12.4% | 13.5% | 14.7% | 15.1% | 9.4% | -5.8% |
| Net Debt/EBITDA | -1.0x | -1.4x | -1.9x | -2.3x | -3.0x | -0.8x |
Revenue and profitability
The company's Revenue increased on 4.4% in FY2016. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 3.7 pp from 8.0% to 11.7% in FY2016.
Gross Margin increased on 2.1 pp from 44.9% to 47.0% in FY2016. SG&A as a % of Revenue increased slightly on 1.6 pp from 29.7% to 31.2% in FY2016.
Net Income marign decreased on 5.4 pp from 16.0% to 10.6% in FY2016.
Capital expenditures (CAPEX) and working capital investments
In FY2016 the company had CAPEX/Revenue of 3.0%. Anpario showed small growth in CAPEX/Revenue of 1.2 pp from 1.8% in FY2013 to 3.0% in FY2016. Average CAPEX/Revenue for the last three years was 1.8%.
Return on investment
The company operates at low ROIC (8.87%) and ROE (9.36%). ROIC decreased on 5.0 pp from 13.8% to 8.9% in FY2016. ROE decreased on 5.8 pp from 15.1% to 9.4% in FY2016.
Leverage (Debt)
The company has no debt. Cash jumped on 19.0% in FY2016.
Valuation
The company's trades at EV/EBITDA 15.3x and P/E 26.0x while industy averages are 15.6x and 19.1x. The company's EV/(EBITDA-CAPEX) is 19.1x with the industry average at 19.0x.
Appendix 1: Peers in Pharmaceuticals & Biotechnology
Below we provide Anpario 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 | 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 ($BXP) | | 12.9% | 6.8% | 15.7% | 6.3% |
| Quantum Pharma ($QP.) | | 26.0% | 10.8% | 15.4% | 13.4% |
| Pharmstandard OJSC ($PHST) | 19.1% | 12.4% | -27.7% | 14.5% | |
| |
|---|
| Median (11 companies) | 8.2% | 12.4% | 6.8% | 5.1% | 8.4% |
|---|
| Anpario ($ANP) | | 10.4% | -9.6% | -0.5% | 4.4% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Pfizer Inc ($PFZ) | 82.0% | 81.4% | 80.7% | 80.3% | 76.7% |
| Cyprotex ($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% | |
| Beximco Pharmaceuticals ($BXP) | 47.3% | 46.1% | 45.5% | 46.3% | 46.5% |
| |
|---|
| Median (11 companies) | 45.1% | 46.0% | 45.5% | 44.0% | 50.5% |
|---|
| Anpario ($ANP) | 32.6% | 35.0% | 40.5% | 44.9% | 47.0% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Pfizer Inc ($PFZ) | 41.9% | 41.9% | 37.9% | 34.8% | 33.6% |
| Pharmstandard OJSC ($PHST) | 26.1% | 30.3% | 30.9% | 29.0% | |
| Beximco Pharmaceuticals ($BXP) | 29.1% | 26.9% | 27.2% | 26.6% | 28.9% |
| Animalcare Group ($ANCR) | 24.2% | 25.2% | 24.5% | 25.4% | 23.5% |
| Eastpharma Ltd ($EAST) | 21.1% | 15.6% | 16.1% | 23.3% | |
| |
|---|
| Median (11 companies) | 16.1% | 15.6% | 18.5% | 20.5% | 26.2% |
|---|
| Anpario ($ANP) | 16.3% | 12.7% | 14.5% | 17.7% | 15.0% |
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% | 13.5% |
| 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 ($CRX) | 3.5% | 12.0% | 12.9% | 5.3% | |
| |
|---|
| Median (11 companies) | 3.5% | 4.7% | 4.0% | 5.3% | 3.2% |
|---|
| Anpario ($ANP) | 0.5% | 1.8% | 1.2% | 1.3% | 3.0% |
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 ($ERGO) | 82.0% | 148.0% | 15.5% | 14.6% | |
| |
|---|
| Median (11 companies) | 8.4% | 8.9% | 8.4% | 9.6% | 10.0% |
|---|
| Anpario ($ANP) | 15.9% | 14.7% | 13.6% | 13.8% | 8.9% |
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 | 2.2x |
| Beximco Pharmaceuticals ($BXP) | 1.1x | 1.5x | 1.5x | 1.4x | 1.0x |
| |
|---|
| Median (10 companies) | 0.6x | 1.5x | 1.5x | 1.1x | 1.6x |
|---|
| Anpario ($ANP) | -1.0x | -1.4x | -1.9x | -2.3x | -3.0x |
