Indivior Net Income jumped on 374% and EBITDA Margin surged on 14.2 pp from 18.8% to 33.0%
14 Feb 2019 • About Indivior (
$INDV) • By InTwits
Indivior reported 2018 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Indivior is a company in decline: 2018 revenue growth was -8.1%, 5 years revenue CAGR was -3.7%
- EBITDA Margin is quite volatile: 33.0% in 2018, 18.8% in 2017, 15.4% in 2016, 37.3% in 2015, 52.7% in 2014
- Indivior has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.7%. At the same time it's a lot of higher than industry average of 1.7%.
- CAPEX is quite volatile: $11m in 2018, $30m in 2017, $20m in 2016, $27m in 2015, $0m in 2014
- The company has highly profitable business model: ROIC is 110.6%
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
Indivior's Revenue decreased on 8.1%. Revenue decline happened at the same time with EBITDA margin expansion. EBITDA Margin jumped on 14.2 pp from 18.8% to 33.0% in 2018. During 2014-2018 EBITDA Margin bottomed in 2016 at 15.4% and was growing since that time.
Gross Margin decreased on 3.2 pp from 90.5% to 87.3% in 2018. SG&A as a % of Revenue dropped on 15.6 pp from 62.9% to 47.4% in 2018. During 2014-2018 SG&A as a % of Revenue topped in 2017 at 62.9%.
Net Income margin jumped on 22.1 pp from 5.3% to 27.4% in 2018. During the last 5 years Net Income margin bottomed in 2016 at 3.3% and was growing since that time.
Investments (CAPEX, working capital and M&A)
In 2018 Indivior had CAPEX/Revenue of 1.1%. CAPEX/Revenue decreased slightly on 1.6 pp from 2.7% in 2015 to 1.1% in 2018. For the last three years the average CAPEX/Revenue was 1.9%.
Leverage (Debt)
Debt level is -2.1x Net Debt / EBITDA and 0.7x Debt / EBITDA. Debt dropped on 50% while cash increased on 7.1%.
Indivior has no short term refinancing risk: cash is higher than short term debt (23,100.0%).
Valuation and dividends
Indivior's trades at EV/EBITDA 0.1x and P/E 2.6x.
Management team
Indivior's CEO Shaun Thaxter is a founder and has spent 5 years with the company.
Financial and operational results
FY ended 31 Dec 2018
Indivior ($INDV) key annual financial indicators| mln. $ | 2014 | 2015 | 2016 | 2017 | 2018 | 2018/2017 |
|---|
P&L
|
|---|
| Revenue | 1,115 | 1,014 | 1,058 | 1,093 | 1,005 | -8.1% |
| Gross Profit | 1,020 | 917 | 951 | 989 | 877 | -11.3% |
| SG&A | 314 | 393 | 664 | 688 | 476 | -30.8% |
| EBITDA | 588 | 378 | 163 | 206 | 332 | 61.2% |
| Net Income | 403 | 228 | 35 | 58 | 275 | 374.1% |
Balance Sheet
|
|---|
| Cash | 331 | 467 | 692 | 863 | 924 | 7.1% |
| Short Term Debt | 17 | 34 | 101 | 5 | 4 | -20.0% |
| Long Term Debt | 719 | 571 | 434 | 477 | 237 | -50.3% |
Cash flow
|
|---|
| Capex | 0 | 27 | 20 | 30 | 11 | -63.3% |
Ratios
|
|---|
| Revenue growth | -8.3% | -9.1% | 4.3% | 3.3% | -8.1% | |
| EBITDA growth | -18.7% | -35.7% | -56.9% | 26.4% | 61.2% | |
|
|---|
| Gross Margin | 91.5% | 90.4% | 89.9% | 90.5% | 87.3% | -3.2% |
| EBITDA Margin | 52.7% | 37.3% | 15.4% | 18.8% | 33.0% | 14.2% |
| SG&A, % of revenue | 28.2% | 38.8% | 62.8% | 62.9% | 47.4% | -15.6% |
| Net Income Margin | 36.1% | 22.5% | 3.3% | 5.3% | 27.4% | 22.1% |
| CAPEX, % of revenue | 0.0% | 2.7% | 1.9% | 2.7% | 1.1% | -1.7% |
|
|---|
| ROIC | 2,081.5% | 172.1% | 85.9% | 107.2% | 110.6% | 3.4% |
| Net Debt/EBITDA | 0.7x | 0.4x | -1.0x | -1.8x | -2.1x | -0.2x |
Peers in Pharmaceuticals & Biotechnology
Below you can find Indivior 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 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Evocutis ($EVO) | | 57.3% | 51.2% | 54.5% | 37.6% |
| Benchmark Hldgs ($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 ($ERGO) | 39.7% | 42.7% | 30.0% | 21.4% | |
| |
|---|
| Median (14 companies) | 6.8% | 4.5% | 8.1% | 10.4% | 8.1% |
|---|
| Indivior ($INDV) | | -9.1% | 4.3% | 3.3% | -8.1% |
Top companies by Gross margin, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| C4X Discovery Hldg ($C4XD) | 96.3% | | 95.7% | 97.9% | |
| Astrazeneca ($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% |
| Ixico ($IXI) | | | 48.6% | 56.5% | 58.8% |
| |
|---|
| Median (13 companies) | 46.3% | 44.9% | 47.7% | 49.1% | 66.8% |
|---|
| Indivior ($INDV) | 91.5% | 90.4% | 89.9% | 90.5% | 87.3% |
Top companies by EBITDA margin, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Evocutis ($EVO) | 35.0% | 35.4% | 38.6% | 45.2% | 43.9% |
| Pfizer Inc ($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 ($EAST) | 16.1% | 23.3% | 23.9% | 22.9% | |
| |
|---|
| Median (14 companies) | 18.5% | 21.9% | 15.9% | 17.5% | 24.1% |
|---|
| Indivior ($INDV) | 52.7% | 37.3% | 15.4% | 18.8% | 33.0% |
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 ($CTI) | 4.0% | 5.5% | 6.2% | 8.2% | |
| |
|---|
| Median (14 companies) | 3.8% | 5.3% | 5.5% | 5.5% | 4.4% |
|---|
| Indivior ($INDV) | 0.0% | 2.7% | 1.9% | 2.7% | 1.1% |
Top companies by ROIC, %
| Top 5 | FY2014 | FY2015 | FY2016 | FY2017 | FY2018 |
|---|
| Evocutis ($EVO) | 68.6% | 62.4% | 59.8% | 70.1% | 53.2% |
| GlaxoSmithKline ($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 ($ANP) | 13.6% | 13.8% | 9.2% | 11.1% | |
| |
|---|
| Median (14 companies) | 8.4% | 12.8% | 9.2% | 10.3% | 9.5% |
|---|
| Indivior ($INDV) | | 172.1% | 85.9% | 107.2% | 110.6% |
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 ($PFZ) | 1.8x | 2.1x | 2.2x | 2.1x | 2.0x |
| |
|---|
| Median (11 companies) | 0.8x | 0.8x | 1.3x | 2.1x | 2.0x |
|---|
| Indivior ($INDV) | 0.7x | 0.4x | -1.0x | -1.8x | -2.1x |
