Benchmark Hldgs Debt surged on 86.9% and Revenue increased on 8.1%
24 Jan 2019 • About Benchmark Hldgs (
$BMK) • By InTwits
Benchmark Hldgs reported FY2018 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Benchmark Hldgs is a fast growth stock: FY2018 revenue growth was 8.1%, 5 year revenue CAGR was 40.6% at FY2018 ROIC -1.8%
- EBITDA Margin is quite volatile: 10.7% in FY2018, 11.1% in FY2017, -5.1% in FY2016, -9.4% in FY2015, 5.4% in FY2014
- Benchmark Hldgs has high CAPEX intensity: 5 year average CAPEX/Revenue was 19.9%. At the same time it's a lot of higher than industry average of 8.5%.
- CAPEX is quite volatile: £25m in FY2018, £33m in FY2017, £19m in FY2016, £14m in FY2015, £4m in FY2014
- The company has unprofitable business model: ROIC is -1.8%
- It operates with high leverage: Net Debt/EBITDA is 3.4x while industry average is 2.3x
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
Benchmark Hldgs's Revenue increased on 8.1%. Despite revenue decline the EBITDA margin expanded. EBITDA Margin jumped on 11.9 pp from -3.7% to 8.2% in FY2018.
Gross Margin increased on 4.4 pp from 44.5% to 48.9% in FY2018.
Net Income margin increased on 2.0 pp from -5.3% to -3.3% in FY2018. During FY2014-FY2018 Net Income margin bottomed in FY2015 at -27.1% and was growing since that time.
Investments (CAPEX, working capital and M&A)
In FY2018 the company had CAPEX/Revenue of 16.6%. Benchmark Hldgs showed big decline in CAPEX/Revenue of 15.2 pp from 31.8% in FY2015 to 16.6% in FY2018. Average CAPEX/Revenue for the last three years was 19.0%. The company maintained rich investment policy and has spent a lot to CAPEX (155% of EBITDA).
Return on investment
The company operates at negative ROIC (-1.8%) and ROE (-1.4%). ROIC showed almost no change in FY2018. ROE increased slightly on 0.69 pp from -2.1% to -1.4% in FY2018. During the last 5 years ROE bottomed in FY2015 at -18.7% and was growing since that time.
Leverage (Debt)
Company's Net Debt / EBITDA is 3.4x and Debt / EBITDA is 4.9x. Net Debt / EBITDA surged on 1.9x from 1.5x to 3.4x in FY2018. Debt surged on 86.9% while cash jumped on 28.3%.
Benchmark Hldgs has no short term refinancing risk: cash is higher than short term debt (2,682.6%).
Average interest expence paid by the company was 0.0063% in FY2018.
Management team
5.9% of the company is owned by insiders.
At the end of financial year the company had 968 employees. Average revenue per employee in FY2018 was £156,474.
Financial and operational results
FY ended 30 Sep 2018
Benchmark Hldgs ($BMK) key annual financial indicators| mln. £ | 2014 | 2015 | 2016 | 2017 | 2018 | 2018/2017 |
|---|
P&L
|
|---|
| Revenue | 35.4 | 44.2 | 109.4 | 140.2 | 151.5 | 8.1% |
| Gross Profit | 14.8 | 16.1 | 50.8 | 62.4 | 74.0 | 18.6% |
| EBITDA | 1.9 | -4.2 | -5.5 | 15.6 | 16.2 | 3.9% |
| EBIT | | | | | -8.7 | |
| Interest expence | | | | | 0.0 | |
| Tax | | | | | -9.3 | |
| Net Income | -1.3 | -12.0 | -18.3 | -7.4 | -5.0 | |
| Stock Based Compensation | | | | | 1.5 | |
Balance Sheet
|
|---|
| Cash | 16.5 | 13.6 | 38.1 | 18.8 | 24.1 | 28.3% |
| Inventory | | | | | 32.4 | |
| Short Term Debt | 0.1 | 0.1 | 0.3 | 6.2 | 0.9 | -85.6% |
| Long Term Debt | 0.1 | 0.1 | 37.4 | 36.5 | 78.9 | 116.4% |
Cash flow
|
|---|
| Capex | 3.9 | 14.0 | 18.7 | 32.7 | 25.1 | -23.4% |
Ratios
|
|---|
| Revenue growth | 28.4% | 25.0% | 147.5% | 28.2% | 8.1% | |
| EBITDA growth | -68.9% | -317.6% | 33.4% | -380.9% | 3.9% | |
|
|---|
| Gross Margin | 41.8% | 36.4% | 46.5% | 44.5% | 48.9% | 4.4% |
| EBITDA Margin | 5.4% | -9.4% | -5.1% | 11.1% | 10.7% | -0.4% |
| EBIT Margin | | | | | -5.7% |
| SBC, % of revenue | | | | | 1.0% |
| Net Income Margin | -3.7% | -27.1% | -16.8% | -5.3% | -3.3% | 2.0% |
| CAPEX, % of revenue | 10.9% | 31.8% | 17.1% | 23.4% | 16.6% | -6.8% |
|
|---|
| ROIC | 1.9% | -12.4% | -7.8% | -1.7% | -1.8% | -0.1% |
| ROE | -5.4% | -18.7% | -8.0% | -2.1% | -1.4% | 0.7% |
| Net Debt/EBITDA | -8.5x | | | 1.5x | 3.4x | 1.9x |
| Interest expence / Average debt | | | | | 0.0% | |
People
|
|---|
| Insider ownership | | | | | 5.9% | |
| Employees | | | | | 968 | |
| Revenue/Employee, th. £ | | | | | 156 | |
Peers in Pharmaceuticals & Biotechnology
Below we provide Benchmark Hldgs 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 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Evocutis ($EVO) | 25.2% | 57.3% | 51.2% | 54.5% | |
| Quantum Pharma ($QP.) | 10.8% | 15.4% | 13.4% | 26.8% | |
| Ixico ($IXI) | | | 4.9% | 25.8% | 31.2% |
| Ergomed ($ERGO) | 39.7% | 42.7% | 30.0% | 21.4% | |
| Anpario ($ANP) | -9.6% | -0.5% | 4.4% | 20.1% | |
| |
|---|
| Median (14 companies) | 4.8% | 4.0% | 7.2% | 8.1% | 2,435.6% |
|---|
| Benchmark Hldgs ($BMK) | | 25.0% | 147.5% | 28.2% | 8.1% |
Top companies by Gross margin, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| C4X Discovery Hldg ($C4XD) | 96.3% | | 95.7% | 97.9% | |
| Indivior ($INDV) | 91.5% | 90.4% | 89.9% | 90.5% | |
| Astrazeneca ($AZN) | 78.0% | 81.2% | 82.1% | 80.8% | |
| Pfizer Inc ($PFZ) | 80.7% | 80.3% | 76.7% | 78.6% | |
| GlaxoSmithKline ($GSK) | 68.2% | 63.0% | 66.7% | 65.7% | |
| |
|---|
| Median (13 companies) | 47.9% | 46.3% | 48.5% | 56.5% | 58.8% |
|---|
| Benchmark Hldgs ($BMK) | 41.8% | 36.4% | 46.5% | 44.5% | 48.9% |
Top companies by EBITDA margin, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Evocutis ($EVO) | 35.0% | 35.4% | 38.6% | 45.2% | |
| Pfizer Inc ($PFZ) | 37.9% | 34.8% | 33.6% | 37.9% | |
| Astrazeneca ($AZN) | 20.8% | 28.3% | 32.5% | 29.9% | |
| Beximco Pharmaceuticals ($BXP) | 27.2% | 26.6% | 28.9% | 27.3% | |
| Eastpharma Ltd ($EAST) | 16.1% | 23.3% | 23.9% | 22.9% | |
| |
|---|
| Median (14 companies) | 20.1% | 24.4% | 15.9% | 19.7% | -22.4% |
|---|
| Benchmark Hldgs ($BMK) | 5.4% | -9.4% | -5.1% | 11.1% | 10.7% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| C4X Discovery Hldg ($C4XD) | 1.1% | | 15.1% | 28.0% | 0.6% |
| Beximco Pharmaceuticals ($BXP) | 24.8% | 19.4% | 13.5% | 19.4% | |
| Eastpharma Ltd ($EAST) | 7.1% | 6.2% | 6.7% | 10.3% | |
| Cathay International Hldgs Ltd ($CTI) | 4.0% | 5.5% | 6.2% | 8.2% | |
| Astrazeneca ($AZN) | 3.8% | 5.4% | 6.3% | 5.9% | |
| |
|---|
| Median (14 companies) | 3.5% | 5.3% | 4.6% | 4.4% | 1.0% |
|---|
| Benchmark Hldgs ($BMK) | 10.9% | 31.8% | 17.1% | 23.4% | 16.6% |
Top companies by ROIC, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Indivior ($INDV) | | 172.1% | 85.9% | 107.2% | |
| Evocutis ($EVO) | 68.6% | 62.4% | 59.8% | 70.1% | |
| GlaxoSmithKline ($GSK) | 15.2% | 42.9% | 10.9% | 20.2% | |
| Animalcare Group ($ANCR) | 14.2% | 14.8% | 13.8% | 12.0% | |
| Beximco Pharmaceuticals ($BXP) | 8.7% | 9.6% | 10.9% | 11.2% | |
| |
|---|
| Median (14 companies) | 8.5% | 14.2% | 10.2% | 10.9% | -22.2% |
|---|
| Benchmark Hldgs ($BMK) | 1.9% | -12.4% | -7.8% | -1.7% | -1.8% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Cathay International Hldgs Ltd ($CTI) | 6.3x | 12.7x | 20.5x | 21.7x | |
| Quantum Pharma ($QP.) | 15.5x | 0.8x | 2.8x | 4.2x | |
| Astrazeneca ($AZN) | 0.8x | 1.3x | 1.6x | 2.2x | |
| GlaxoSmithKline ($GSK) | 2.9x | 0.9x | 3.1x | 2.1x | |
| Pfizer Inc ($PFZ) | 1.8x | 2.1x | 2.2x | 2.1x | |
| |
|---|
| Median (11 companies) | 0.8x | 0.8x | 1.0x | 2.1x | |
|---|
| Benchmark Hldgs ($BMK) | -8.5x | | | 1.5x | 3.4x |
