Evocutis Net Income surged on 79.4% and EBITDA Margin increased on 6.1 pp from 43.9% to 50.0%
12 Feb 2020 • About Evocutis (
$EVO) • By InTwits
Evocutis reported FY2019 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Evocutis is a fast growth stock: FY2019 revenue growth was 49.0%, 5 year revenue CAGR was 49.8% at FY2019 ROIC 52.0%
- Evocutis has medium CAPEX intensity: 5 year average CAPEX/Revenue was 8.5%. At the same time it's in pair with industry average of 8.5%
- CAPEX is quite volatile: £19m in FY2019, £18m in FY2018, £10m in FY2017, £21m in FY2016, £5m in FY2015
- The company has highly profitable business model: ROIC is 52.0%
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
Evocutis's Revenue jumped on 49.0%. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin increased on 6.1 pp from 43.9% to 50.0% in FY2019. EBITDA Margin stuck to a growing trend at 3.4 pp per annum in the last 5 years.
Net Income margin increased on 6.9 pp from 34.0% to 40.9% in FY2019. Net Income margin stuck to a growing trend at 3.6 pp per annum in FY2015-FY2019.
Investments (CAPEX, working capital and M&A)
In FY2019 the company had CAPEX/Revenue of 5.2%. The company's CAPEX/Revenue dropped on 13.0 pp from 18.2% in FY2016 to 5.2% in FY2019. It's average level of CAPEX/Revenue for the last three years was 6.1%.
Return on investment
The company operates at high and attractive ROIC (52.0%) and ROE (67.6%). ROIC decreased slightly on 1.2 pp from 53.2% to 52.0% in FY2019. ROE increased on 6.2 pp from 61.3% to 67.6% in FY2019.
Leverage (Debt)
Debt level is -0.9x Net Debt / EBITDA and 0.1x Debt / EBITDA. Debt surged on 281% while cash surged on 115%.
Evocutis has no short term refinancing risk: cash is higher than short term debt (1,910.2%).
Financial and operational results
FY ended 30 Nov -0001
Evocutis ($EVO) key annual financial indicators| mln. £ | 2015 | 2016 | 2017 | 2018 | 2019 | 2019/2018 |
|---|
P&L
|
|---|
| Revenue | 76.4 | 115.5 | 178.4 | 245.4 | 365.8 | 49.0% |
| EBITDA | 27.0 | 44.6 | 80.6 | 107.7 | 182.9 | 69.9% |
| EBIT | 21.1 | | | | | |
| Interest expence | 0.0 | | | | | |
| Tax | 1.0 | | | | | |
| Net Income | 20.0 | 31.7 | 62.1 | 83.5 | 149.7 | 79.4% |
Balance Sheet
|
|---|
| Cash | 19.9 | 26.2 | 49.3 | 85.0 | 182.5 | 114.9% |
| Accounts Receivable | 12.1 | | | | | |
| Accounts Payable | 2.3 | | | | | |
| Short Term Debt | | 1.1 | 1.0 | 1.0 | 9.6 | 905.8% |
| Long Term Debt | | 7.4 | 6.7 | 5.6 | 15.5 | 175.5% |
Cash flow
|
|---|
| Capex | 4.8 | 21.0 | 10.4 | 17.9 | 19.0 | 6.1% |
Ratios
|
|---|
| Revenue growth | 57.3% | 51.2% | 54.5% | 37.6% | 49.0% | |
| EBITDA growth | 59.1% | 65.1% | 80.7% | 33.5% | 69.9% | |
|
|---|
| EBITDA Margin | 35.4% | 38.6% | 45.2% | 43.9% | 50.0% | 6.1% |
| EBIT Margin | 27.6% | | | | |
| Net Income Margin | 26.2% | 27.5% | 34.8% | 34.0% | 40.9% | 6.9% |
| CAPEX, % of revenue | 6.3% | 18.2% | 5.8% | 7.3% | 5.2% | -2.1% |
|
|---|
| ROIC | 62.4% | 59.8% | 70.1% | 53.2% | 52.0% | -1.2% |
| ROE | 59.3% | 58.9% | 71.5% | 61.3% | 67.6% | 6.2% |
| Net Debt/EBITDA | -0.7x | -0.4x | -0.5x | -0.7x | -0.9x | -0.1x |
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 | FY2015 | FY2016 | FY2017 | FY2018 | FY2019 |
|---|
| C4X Discovery Hldg ($C4XD) | | -10.6% | -48.7% | 4,839.9% | |
| Ixico ($IXI) | | 4.9% | 25.8% | 31.2% | 40.2% |
| Benchmark Hldgs ($BMK) | | 147.5% | 28.2% | 8.1% | -15.9% |
| GlaxoSmithKline ($GSK) | | 16.6% | 8.2% | 2.1% | 9.5% |
| Pfizer Inc ($PFZ) | | 8.1% | -0.5% | 2.1% | -3.5% |
| |
|---|
| Median (7 companies) | 4.5% | 7.2% | 8.1% | 2.1% | 3.0% |
|---|
| Evocutis ($EVO) | | 51.2% | 54.5% | 37.6% | 49.0% |
Top companies by Gross margin, %
| Top 5 | FY2015 | FY2016 | FY2017 | FY2018 | FY2019 |
|---|
| Indivior ($INDV) | 90.4% | 89.9% | 90.5% | 87.3% | |
| Pfizer Inc ($PFZ) | 80.3% | 76.7% | 78.6% | 79.0% | 80.3% |
| Astrazeneca ($AZN) | 81.2% | 82.1% | 80.8% | 77.7% | |
| GlaxoSmithKline ($GSK) | 63.0% | 66.7% | 65.7% | 66.8% | 64.9% |
| Ixico ($IXI) | | 48.6% | 56.5% | 58.8% | 65.4% |
| |
|---|
| Median (6 companies) | 45.6% | 48.4% | 52.8% | 72.2% | 65.4% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2015 | FY2016 | FY2017 | FY2018 | FY2019 |
|---|
| Pfizer Inc ($PFZ) | 34.8% | 33.6% | 37.9% | 38.0% | |
| Indivior ($INDV) | 37.3% | 15.4% | 18.8% | 33.0% | |
| Astrazeneca ($AZN) | 28.3% | 32.5% | 29.9% | 32.8% | |
| GlaxoSmithKline ($GSK) | 50.2% | 15.9% | 20.6% | 24.1% | 29.5% |
| Benchmark Hldgs ($BMK) | -9.4% | -5.1% | 11.1% | 10.7% | |
| |
|---|
| Median (7 companies) | 21.9% | 15.4% | 16.6% | 24.1% | 18.1% |
|---|
| Evocutis ($EVO) | 35.4% | 38.6% | 45.2% | 43.9% | 50.0% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2015 | FY2016 | FY2017 | FY2018 | FY2019 |
|---|
| Benchmark Hldgs ($BMK) | 31.8% | 17.1% | 23.4% | 16.6% | |
| Astrazeneca ($AZN) | 5.4% | 6.3% | 5.9% | 4.7% | |
| GlaxoSmithKline ($GSK) | 5.8% | 5.5% | 5.1% | 4.4% | 3.7% |
| Pfizer Inc ($PFZ) | 2.9% | 3.5% | 3.7% | 3.8% | |
| Ixico ($IXI) | | 0.7% | 1.2% | 1.4% | 2.9% |
| |
|---|
| Median (7 companies) | 5.3% | 4.6% | 4.4% | 3.8% | 3.3% |
|---|
| Evocutis ($EVO) | 6.3% | 18.2% | 5.8% | 7.3% | 5.2% |
Top companies by ROIC, %
| Top 5 | FY2015 | FY2016 | FY2017 | FY2018 | FY2019 |
|---|
| Indivior ($INDV) | 172.1% | 85.9% | 107.2% | 110.6% | |
| GlaxoSmithKline ($GSK) | 42.9% | 10.9% | 20.2% | 23.3% | 18.0% |
| Pfizer Inc ($PFZ) | 9.1% | 9.2% | 10.9% | 12.3% | |
| Astrazeneca ($AZN) | 11.8% | 13.7% | 9.7% | 9.5% | |
| Benchmark Hldgs ($BMK) | -12.4% | -7.8% | -1.7% | -1.8% | |
| |
|---|
| Median (7 companies) | 12.8% | 9.2% | 10.3% | 9.5% | 5.0% |
|---|
| Evocutis ($EVO) | 62.4% | 59.8% | 70.1% | 53.2% | 52.0% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2015 | FY2016 | FY2017 | FY2018 | FY2019 |
|---|
| Benchmark Hldgs ($BMK) | | | 1.5x | 3.4x | |
| GlaxoSmithKline ($GSK) | 0.9x | 3.1x | 2.1x | 3.0x | 2.6x |
| Pfizer Inc ($PFZ) | 2.1x | 2.2x | 2.1x | 2.0x | |
| Astrazeneca ($AZN) | 1.3x | 1.6x | 2.2x | 2.0x | |
| Indivior ($INDV) | 0.4x | -1.0x | -1.8x | -2.1x | |
| |
|---|
| Median (5 companies) | 0.8x | 1.3x | 2.1x | 2.0x | -5.9x |
|---|
| Evocutis ($EVO) | -0.7x | -0.4x | -0.5x | -0.7x | -0.9x |
