Oxford BioDynamics Plc revenue dropped on 23.5% and EBITDA Margin dropped on 176 pp from -191% to -368%
10 Dec 2019 • About Oxford BioDynamics Plc (
$OBD) • By InTwits
Oxford BioDynamics Plc reported FY2019 financial results today. Here are the key drivers of the company's long term financial model:
- The company operates at negative EBITDA Margin: -367.8%
- Oxford BioDynamics Plc spends a lot for Stock Based Compensation (SBC): average SBC/Revenue for FY2015-FY2019 is 9.3%. Average EBITDA Margin for the same period was -250.5%. In FY2019 SBC/Revenue was even higher: 30.2%
- Oxford BioDynamics Plc has high CAPEX intensity: 5 year average CAPEX/Revenue was 42.1%. At the same time it's in pair with industry average of 44.1%
- CAPEX is quite volatile: £1m in FY2019, £1m in FY2018, £3m in FY2017, £1m in FY2016, £0m in FY2015
- The company has unprofitable business model: ROIC is -19.8%
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
The company's Revenue dropped on 23.5%. During FY2015-FY2019 Revenue growth topped in FY2016 at 55.4% and was decelerating since that time. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin dropped on 176 pp from -191% to -368% in FY2019.
SG&A as a % of Revenue surged on 65.6 pp from 91.3% to 157% in FY2019. Stock Based Compensation (SBC) as a % of Revenue surged on 13.8 pp from 16.4% to 30.2% in FY2019.
Net Income margin dropped on 144 pp from -165% to -309% in FY2019.
Investments (CAPEX, working capital and M&A)
The company's CAPEX/Revenue was 44.1% in FY2019. CAPEX/Revenue jumped on 25.0 pp from 19.1% in FY2016 to 44.1% in FY2019. For the last three years the average CAPEX/Revenue was 39.0%. During the last 5 years CAPEX as a % of Revenue bottomed in FY2016 at 19.1% and was growing since that time.
Inventories as a % of Revenue surged on 14.5 pp from 12.3% to 26.8% in FY2019.
Return on investment
The company operates at negative ROIC (-19.8%) and ROE (-14.9%). ROIC decreased on 3.1 pp from -16.6% to -19.8% in FY2019. ROE decreased on 2.4 pp from -12.5% to -14.9% in FY2019.
Leverage (Debt)
The company has no debt. Cash dropped on 15.2%.
Management team
Insider ownership is 13.4%. Insider ownership didn't change in 2019.
Financial and operational results
FY ended 30 Sep 2019
Oxford BioDynamics Plc ($OBD) key annual financial indicators| mln. £ | 2015 | 2016 | 2017 | 2018 | 2019 | 2019/2018 |
|---|
P&L
|
|---|
| Revenue | 0.702 | 1.091 | 1.183 | 1.186 | 0.907 | -23.5% |
| SG&A | 0.687 | 0.903 | 1.350 | 1.083 | 1.423 | 31.4% |
| EBITDA | -1.170 | -2.162 | -3.761 | -2.271 | -3.336 | |
| EBIT | | | | -2.602 | -3.723 | |
| Tax | | | | 0.470 | 0.586 | 24.7% |
| Net Income | -1.005 | -1.730 | -3.804 | -1.953 | -2.800 | |
| Stock Based Compensation | | | | 0.195 | 0.274 | 40.5% |
Balance Sheet
|
|---|
| Cash | 8.435 | 6.730 | 9.386 | 18.278 | 15.498 | -15.2% |
| Inventory | | | | 0.146 | 0.243 | 66.4% |
| 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 | 0.523 | 0.208 | 0.425 | 0.439 | 0.400 | -8.9% |
Ratios
|
|---|
| Revenue growth | 6.5% | 55.4% | 8.4% | 0.3% | -23.5% | |
| EBITDA growth | 63.2% | 84.8% | 74.0% | -39.6% | 46.9% | |
|
|---|
| EBITDA Margin | -166.7% | -198.2% | -317.9% | -191.5% | -367.8% | -176.3% |
| EBIT Margin | | | | -219.4% | -410.5% | -191.1% |
| SG&A, % of revenue | 97.9% | 82.8% | 114.1% | 91.3% | 156.9% | 65.6% |
| SBC, % of revenue | | | | 16.4% | 30.2% | 13.8% |
| Net Income Margin | -143.2% | -158.6% | -321.6% | -164.7% | -308.7% | -144.0% |
| CAPEX, % of revenue | 74.5% | 19.1% | 35.9% | 37.0% | 44.1% | 7.1% |
|
|---|
| ROIC | -17.7% | -28.3% | -43.0% | -16.6% | -19.8% | -3.1% |
| ROE | -14.1% | -21.1% | -40.9% | -12.5% | -14.9% | -2.4% |
People
|
|---|
| Insider ownership | | | | 13.4% | 13.4% | 0.0% |
Peers in Life Sciences Tools & Services
Below we provide Oxford BioDynamics Plc benchmarking against other companies in Life Sciences Tools & Services 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.
