Clinigen Group EBITDA jumped on 49.0% and EBITDA Margin increased on 5.1 pp from 14.5% to 19.5%
17 Sep 2020 • About Clinigen Group (
$CLIN) • By InTwits
Clinigen Group reported FY2020 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Clinigen Group is a fast growth stock: FY2020 revenue growth was 10.4%, 5 year revenue CAGR was 22.3% at FY2020 ROIC 4.8%
- Clinigen Group has low CAPEX intensity: 5 year average CAPEX/Revenue was 0.4%.
- The company has potentially unprofitable business model: ROIC is 4.8%
- It operates with high leverage: Net Debt/EBITDA is 3.2x while industry average is 1.1x
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 surged on 10.4%. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin increased on 5.1 pp from 14.5% to 19.5% in FY2020.
Gross Margin increased on 2.8 pp from 39.9% to 42.7% in FY2020. SG&A as a % of Revenue showed almost no change in FY2020. SG&A as a % of Revenue followed a growing trend at 3.3 pp per annum in the last 5 years.
Net Income margin increased slightly on 1.6 pp from 1.1% to 2.7% in FY2020.
Investments (CAPEX, working capital and M&A)
The company's CAPEX/Revenue was 0.58% in FY2020. The company showed almost no change in CAPEX/Revenue from FY2017 to FY2020. It's average CAPEX/Revenue for the last three years was 0.44%.
Return on investment
The company operates at low ROIC (4.8%) and ROE (3.1%). ROIC increased slightly on 1.3 pp from 3.5% to 4.8% in FY2020. ROE increased slightly on 1.8 pp from 1.3% to 3.1% in FY2020.
Leverage (Debt)
Company's Net Debt / EBITDA is 3.2x and Debt / EBITDA is 4.6x. Net Debt / EBITDA dropped on 0.7x from 3.8x to 3.2x in FY2020. Debt jumped on 35.5% while cash jumped on 71.4%.
Clinigen Group has no short term refinancing risk: cash is higher than short term debt (3,327.9%).
Valuation and dividends
The company's trades at EV/EBITDA 11.6x and P/E 60.3x.
Financial and operational results
FY ended 30 Jun 2020
Clinigen Group ($CLIN) key annual financial indicators| mln. £ | 2016 | 2017 | 2018 | 2019 | 2020 | 2020/2019 |
|---|
P&L
|
|---|
| Revenue | 339.9 | 302.3 | 381.2 | 456.9 | 504.3 | 10.4% |
| Gross Profit | 96.1 | 122.7 | 138.7 | 182.3 | 215.1 | 18.0% |
| SG&A | 75.9 | 77.9 | 97.2 | 157.9 | 173.1 | 9.6% |
| EBITDA | 41.0 | 64.0 | 65.3 | 66.1 | 98.5 | 49.0% |
| Net Income | 13.5 | 3.8 | 27.4 | 5.2 | 13.7 | 163.5% |
Balance Sheet
|
|---|
| Cash | 27.8 | 27.8 | 36.3 | 83.5 | 143.1 | 71.4% |
| Short Term Debt | 70.0 | 8.6 | 0.0 | 0.0 | 4.3 | |
| Long Term Debt | 25.9 | 54.2 | 172.8 | 335.9 | 450.7 | 34.2% |
Cash flow
|
|---|
| Capex | 1.3 | 1.4 | 1.2 | 2.0 | 2.9 | 45.0% |
Ratios
|
|---|
| Revenue growth | 84.4% | -11.1% | 26.1% | 19.9% | 10.4% | |
| EBITDA growth | 4.5% | 56.1% | 2.0% | 1.2% | 49.0% | |
|
|---|
| Gross Margin | 28.3% | 40.6% | 36.4% | 39.9% | 42.7% | 2.8% |
| EBITDA Margin | 12.1% | 21.2% | 17.1% | 14.5% | 19.5% | 5.1% |
| SG&A, % of revenue | 22.3% | 25.8% | 25.5% | 34.6% | 34.3% | -0.2% |
| Net Income Margin | 4.0% | 1.3% | 7.2% | 1.1% | 2.7% | 1.6% |
| CAPEX, % of revenue | 0.4% | 0.5% | 0.3% | 0.4% | 0.6% | 0.1% |
|
|---|
| ROIC | 5.9% | 12.8% | 9.2% | 3.5% | 4.8% | 1.3% |
| ROE | 6.1% | 1.6% | 9.2% | 1.3% | 3.1% | 1.8% |
| Net Debt/EBITDA | 1.7x | 0.5x | 2.1x | 3.8x | 3.2x | -0.7x |
Peers in Pharmaceuticals & Biotechnology
Below you can find Clinigen Group 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 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Evocutis ($EVO) | 51.2% | 54.5% | 37.6% | 49.0% | - |
| Ixico ($IXI) | 4.9% | 25.8% | 31.2% | 40.2% | - |
| Dechra Pharmaceuticals ($DPH) | - | 45.1% | 13.3% | 18.3% | 6.9% |
| Abcam ($ABC) | - | 26.5% | 7.4% | 11.4% | 0.0% |
| Astrazeneca ($AZN) | -6.9% | -2.3% | -1.7% | 10.4% | - |
| |
|---|
| Median (11 companies) | 8.1% | 18.2% | 7.0% | 9.5% | 6.9% |
|---|
| Clinigen Group ($CLIN) | - | -11.1% | 26.1% | 19.9% | 10.4% |
Top companies by Gross margin, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Pfizer Inc ($PFZ) | 76.7% | 78.6% | 79.0% | 80.3% | - |
| Astrazeneca ($AZN) | 82.1% | 80.8% | 77.7% | 79.8% | - |
| Allergy Therapeutics ($AGY) | 71.0% | 73.9% | 75.1% | 75.1% | - |
| Abcam ($ABC) | 70.2% | 70.1% | 69.9% | 70.5% | 69.3% |
| Ixico ($IXI) | 48.6% | 56.5% | 58.8% | 65.4% | - |
| |
|---|
| Median (8 companies) | 48.6% | 54.9% | 68.3% | 67.9% | 56.6% |
|---|
| Clinigen Group ($CLIN) | 28.3% | 40.6% | 36.4% | 39.9% | 42.7% |
Top companies by EBITDA margin, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Evocutis ($EVO) | 38.6% | 45.2% | 43.9% | 50.0% | - |
| GlaxoSmithKline ($GSK) | 15.9% | 20.6% | 24.1% | 29.5% | - |
| Abcam ($ABC) | 34.5% | 36.9% | 34.6% | 27.5% | 15.5% |
| Astrazeneca ($AZN) | 32.5% | 29.9% | 32.8% | 27.4% | - |
| Dechra Pharmaceuticals ($DPH) | 18.1% | 11.2% | 10.2% | 10.1% | 12.9% |
| |
|---|
| Median (8 companies) | 17.0% | 14.3% | 17.4% | 18.8% | 14.5% |
|---|
| Clinigen Group ($CLIN) | 12.1% | 21.2% | 17.1% | 14.5% | 19.5% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Abcam ($ABC) | 4.6% | 4.7% | 7.0% | 6.8% | 4.9% |
| Evocutis ($EVO) | 18.2% | 5.8% | 7.3% | 5.2% | - |
| Astrazeneca ($AZN) | 6.3% | 5.9% | 4.7% | 4.0% | - |
| Allergy Therapeutics ($AGY) | 2.5% | 2.3% | 2.9% | 3.8% | - |
| GlaxoSmithKline ($GSK) | 5.5% | 5.1% | 4.4% | 3.7% | - |
| |
|---|
| Median (8 companies) | 4.0% | 3.7% | 3.8% | 3.8% | 4.5% |
|---|
| Clinigen Group ($CLIN) | 0.4% | 0.5% | 0.3% | 0.4% | 0.6% |
Top companies by ROIC, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Evocutis ($EVO) | 59.8% | 70.1% | 53.2% | 52.0% | - |
| GlaxoSmithKline ($GSK) | 10.9% | 20.2% | 23.3% | 18.0% | - |
| Abcam ($ABC) | 19.1% | 21.6% | 19.8% | 14.8% | 1.8% |
| Allergy Therapeutics ($AGY) | -33.9% | -5.6% | -22.4% | 12.8% | - |
| Astrazeneca ($AZN) | 13.7% | 9.7% | 9.5% | 8.4% | - |
| |
|---|
| Median (12 companies) | 9.7% | 9.7% | 7.1% | 8.4% | 5.2% |
|---|
| Clinigen Group ($CLIN) | 5.9% | 12.8% | 9.2% | 3.5% | 4.8% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Dechra Pharmaceuticals ($DPH) | 2.6x | 3.0x | 5.1x | 4.7x | 1.9x |
| Genus ($GNS) | 1.2x | 2.3x | 4.7x | 3.0x | 1.3x |
| GlaxoSmithKline ($GSK) | 3.1x | 2.1x | 3.0x | 2.6x | - |
| Astrazeneca ($AZN) | 1.6x | 2.2x | 2.0x | 1.9x | - |
| Evocutis ($EVO) | -0.4x | -0.5x | -0.7x | -0.9x | - |
| |
|---|
| Median (8 companies) | 1.1x | 1.8x | 2.0x | 0.5x | 1.3x |
|---|
| Clinigen Group ($CLIN) | 1.7x | 0.5x | 2.1x | 3.8x | 3.2x |
