Evocutis reports 72.0% CAPEX growth in 2018 and 37.6% Revenue growth
14 Feb 2019 • About Evocutis (
$EVO) • By InTwits
Evocutis reported 2018 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Evocutis is a fast growth stock: 2018 revenue growth was 37.6%, 5 year revenue CAGR was 44.6% at 2018 ROIC 53.2%
- Evocutis has medium CAPEX intensity: 5 year average CAPEX/Revenue was 8.2%. At the same time it's in pair with industry average of 8.3%
- CAPEX is quite volatile: £18m in 2018, £10m in 2017, £21m in 2016, £5m in 2015, £2m in 2014
- The company has highly profitable business model: ROIC is 53.2%
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
Evocutis's Revenue jumped on 37.6%. Having stable revenue the company managed to increase EBITDA margin. EBITDA Margin surged on 25.2 pp from -416% to -390% in FY2018. EBITDA Margin followed a growing trend at 2.8 pp per annum in 2014-2018.
Net Income margin decreased slightly on 0.82 pp from 34.8% to 34.0% in 2018. Net Income margin grew at 2.7 pp per annum in the last 5 years.
Investments (CAPEX, working capital and M&A)
The company's CAPEX/Revenue was 7.3% in 2018. Evocutis's CAPEX/Revenue increased slightly on 1.0 pp from 6.3% in 2015 to 7.3% in 2018. For the last three years the average CAPEX/Revenue was 10.4%.
Return on investment
The company operates at high and attractive ROIC (53.2%) and ROE (61.3%). ROIC dropped on 16.9 pp from 70.1% to 53.2% in 2018. ROE dropped on 10.2 pp from 71.5% to 61.3% in 2018.
Leverage (Debt)
Company's Net Debt / EBITDA is -0.7x and Debt / EBITDA is 0.1x. Debt dropped on 14.1% while cash jumped on 72.4%.
Evocutis has no short term refinancing risk: cash is higher than short term debt (8,942.2%).
Valuation and dividends
The company's trades at EV/EBITDA 1.6x and P/E 2.9x.
Financial and operational results
FY ended 31 Dec 2018
Evocutis ($EVO) key annual financial indicators| mln. £ | 2014 | 2015 | 2016 | 2017 | 2018 | 2018/2017 |
|---|
P&L
|
|---|
| Revenue | 48.5 | 76.4 | 115.5 | 178.4 | 245.4 | 37.6% |
| EBITDA | 17.0 | 27.0 | 44.6 | 80.6 | 107.7 | 33.5% |
| EBIT | | 21.1 | | | | |
| Interest expence | | 0.0 | | | | |
| Tax | | 1.0 | | | | |
| Net Income | 12.1 | 20.0 | 31.7 | 62.1 | 83.5 | 34.3% |
Balance Sheet
|
|---|
| Cash | 8.3 | 19.9 | 26.2 | 49.3 | 85.0 | 72.4% |
| Accounts Receivable | | 12.1 | | | | |
| Accounts Payable | | 2.3 | | | | |
| Short Term Debt | 0.0 | | 1.1 | 1.0 | 1.0 | 0.0% |
| Long Term Debt | 0.0 | | 7.4 | 6.7 | 5.6 | -16.0% |
Cash flow
|
|---|
| Capex | 1.7 | 4.8 | 21.0 | 10.4 | 17.9 | 72.0% |
Ratios
|
|---|
| Revenue growth | 25.2% | 57.3% | 51.2% | 54.5% | 37.6% | |
| EBITDA growth | 49.8% | 59.1% | 65.1% | 80.7% | 33.5% | |
|
|---|
| EBITDA Margin | 35.0% | 35.4% | 38.6% | 45.2% | 43.9% | -1.3% |
| EBIT Margin | | 27.6% | | | |
| Net Income Margin | 24.9% | 26.2% | 27.5% | 34.8% | 34.0% | -0.8% |
| CAPEX, % of revenue | 3.5% | 6.3% | 18.2% | 5.8% | 7.3% | 1.5% |
|
|---|
| ROIC | 68.6% | 62.4% | 59.8% | 70.1% | 53.2% | -16.9% |
| ROE | 64.1% | 59.3% | 58.9% | 71.5% | 61.3% | -10.2% |
| Net Debt/EBITDA | -0.5x | -0.7x | -0.4x | -0.5x | -0.7x | -0.2x |
People
|
|---|
| Insider ownership | | 17.2% | | | | |
| Employees | | 1,338 | | | | |
| Revenue/Employee, th. £ | | 57 | | | | |
Peers in Pharmaceuticals & Biotechnology
Below we provide Evocutis 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 |
|---|
| Benchmark Hldgs ($BMK) | | 25.0% | 147.5% | 28.2% | 8.1% |
| Quantum Pharma ($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 ($ANP) | -9.6% | -0.5% | 4.4% | 20.1% | |
| |
|---|
| Median (14 companies) | 6.8% | 4.0% | 7.2% | 8.1% | 2.1% |
|---|
| Evocutis ($EVO) | | 57.3% | 51.2% | 54.5% | 37.6% |
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% | 87.3% |
| Astrazeneca ($AZN) | 78.0% | 81.2% | 82.1% | 80.8% | 77.7% |
| Pfizer Inc ($PFZ) | 80.7% | 80.3% | 76.7% | 78.6% | 79.0% |
| GlaxoSmithKline ($GSK) | 68.2% | 63.0% | 66.7% | 65.7% | 66.8% |
| |
|---|
| Median (14 companies) | 47.1% | 45.6% | 48.4% | 52.8% | 72.2% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Pfizer Inc ($PFZ) | 37.9% | 34.8% | 33.6% | 37.9% | 38.0% |
| Astrazeneca ($AZN) | 20.8% | 28.3% | 32.5% | 29.9% | 32.8% |
| Beximco Pharmaceuticals ($BXP) | 27.2% | 26.6% | 28.9% | 27.3% | |
| Eastpharma Ltd ($EAST) | 16.1% | 23.3% | 23.9% | 22.9% | |
| Animalcare Group ($ANCR) | 24.5% | 25.4% | 23.5% | 20.9% | |
| |
|---|
| Median (14 companies) | 18.5% | 21.9% | 15.4% | 16.6% | 24.1% |
|---|
| Evocutis ($EVO) | 35.0% | 35.4% | 38.6% | 45.2% | 43.9% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| C4X Discovery Hldg ($C4XD) | 1.1% | | 15.1% | 28.0% | 0.6% |
| Benchmark Hldgs ($BMK) | 10.9% | 31.8% | 17.1% | 23.4% | 16.6% |
| Beximco Pharmaceuticals ($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% | |
| |
|---|
| Median (14 companies) | 3.8% | 5.3% | 4.6% | 4.4% | 3.8% |
|---|
| Evocutis ($EVO) | 3.5% | 6.3% | 18.2% | 5.8% | 7.3% |
Top companies by ROIC, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Indivior ($INDV) | | 172.1% | 85.9% | 107.2% | 110.6% |
| GlaxoSmithKline ($GSK) | 15.2% | 42.9% | 10.9% | 20.2% | 23.3% |
| Animalcare Group ($ANCR) | 14.2% | 14.8% | 13.8% | 12.0% | |
| Beximco Pharmaceuticals ($BXP) | 8.7% | 9.6% | 10.9% | 11.2% | |
| Anpario ($ANP) | 13.6% | 13.8% | 9.2% | 11.1% | |
| |
|---|
| Median (14 companies) | 7.3% | 12.8% | 9.2% | 10.3% | 9.5% |
|---|
| Evocutis ($EVO) | 68.6% | 62.4% | 59.8% | 70.1% | 53.2% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Cathay International Hldgs Ltd ($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 | 2.0x |
| GlaxoSmithKline ($GSK) | 2.9x | 0.9x | 3.1x | 2.1x | 3.0x |
| Pfizer Inc ($PFZ) | 1.8x | 2.1x | 2.2x | 2.1x | 2.0x |
| |
|---|
| Median (11 companies) | 0.8x | 0.8x | 1.3x | 2.1x | 2.0x |
|---|
| Evocutis ($EVO) | -0.5x | -0.7x | -0.4x | -0.5x | -0.7x |
