Allergy Therapeutics Net Income jumped on 104% and Revenue increased on 6.1%
23 Sep 2020 • About Allergy Therapeutics (
$AGY) • By InTwits
Allergy Therapeutics reported FY2020 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Allergy Therapeutics is a growth stock: FY2020 revenue growth was 6.1%, 5 year revenue CAGR was 12.6% at FY2020 ROIC 16.9%
- Allergy Therapeutics has low CAPEX intensity: 5 year average CAPEX/Revenue was 2.9%. At the same time it's a lot of higher than industry average of 1.5%.
- CAPEX is quite volatile: £1m in FY2020, £2m in FY2019, £8m in FY2018, £8m in FY2017, £1m in FY2016
- The company has highly profitable business model: ROIC is 16.9%
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 increased on 6.1%. Despite revenue decline the EBITDA margin expanded. EBITDA Margin increased on 3.9 pp from 14.5% to 18.4% in FY2020. EBITDA Margin followed a growing trend at 8.2 pp per annum in FY2016-FY2020.
Gross Margin decreased slightly on 0.90 pp from 75.1% to 74.2% in FY2020. During FY2016-FY2020 Gross Margin topped in FY2018 at 75.1% and was declining since that time. SG&A as a % of Revenue decreased on 3.6 pp from 60.5% to 56.9% in FY2020. During FY2016-FY2020 SG&A as a % of Revenue topped in FY2017 at 63.4% and was declining since that time.
Net Income margin increased on 4.3 pp from 4.7% to 9.0% in FY2020. Net Income margin stuck to a growing trend at 8.1 pp per annum in the last 5 years.
Investments (CAPEX, working capital and M&A)
In FY2020 Allergy Therapeutics had CAPEX/Revenue of 2.9%. CAPEX/Revenue increased slightly on 0.56 pp from 2.3% in FY2017 to 2.9% in FY2020. For the last three years the average CAPEX/Revenue was 3.2%.
Return on investment
The company operates at good ROIC (16.9%) and ROE (17.4%). ROIC increased on 4.0 pp from 12.8% to 16.9% in FY2020. ROE increased on 5.9 pp from 11.4% to 17.4% in FY2020.
Leverage (Debt)
Debt level is -2.0x Net Debt / EBITDA and 1.0x Debt / EBITDA. Debt jumped on 400% while cash jumped on 34.7%.
Allergy Therapeutics has no short term refinancing risk: cash is higher than short term debt (1,632.6%).
Valuation and dividends
Allergy Therapeutics's trades at EV/EBITDA 6.0x and P/E 13.9x.
Financial and operational results
Allergy Therapeutics ($AGY) key annual financial indicators| mln. £ | 2016 | 2017 | 2018 | 2019 | 2020 | 2020/2019 |
|---|
P&L
|
|---|
| Revenue | 48.509 | 64.138 | 68.346 | 73.717 | 78.204 | 6.1% |
| Gross Profit | 34.439 | 47.367 | 51.333 | 55.338 | 58.003 | 4.8% |
| SG&A | 30.317 | 40.666 | 42.676 | 44.590 | 44.480 | -0.2% |
| EBITDA | -10.285 | 0.040 | -4.710 | 6.481 | 12.223 | 88.6% |
| Net Income | -13.072 | -2.481 | -7.533 | 3.467 | 7.058 | 103.6% |
Balance Sheet
|
|---|
| Cash | 23.406 | 22.122 | 15.533 | 27.440 | 36.962 | 34.7% |
| Short Term Debt | 0.295 | 0.391 | 0.644 | 0.694 | 2.264 | 226.2% |
| Long Term Debt | 3.070 | 2.936 | 2.414 | 1.742 | 9.915 | 469.2% |
Cash flow
|
|---|
| Capex | 1.232 | 1.500 | 2.005 | 2.810 | 2.264 | -19.4% |
Ratios
|
|---|
| Revenue growth | 12.2% | 32.2% | 6.6% | 7.9% | 6.1% | |
| EBITDA growth | -562.7% | -100.4% | -11,875.0% | -237.6% | 88.6% | |
|
|---|
| Gross Margin | 71.0% | 73.9% | 75.1% | 75.1% | 74.2% | -0.9% |
| EBITDA Margin | -21.2% | 0.1% | -6.9% | 8.8% | 15.6% | 6.8% |
| SG&A, % of revenue | 62.5% | 63.4% | 62.4% | 60.5% | 56.9% | -3.6% |
| Net Income Margin | -26.9% | -3.9% | -11.0% | 4.7% | 9.0% | 4.3% |
| CAPEX, % of revenue | 2.5% | 2.3% | 2.9% | 3.8% | 2.9% | -0.9% |
|
|---|
| ROIC | -33.9% | -5.6% | -22.4% | 12.8% | 16.9% | 4.0% |
| ROE | -40.4% | -8.2% | -28.4% | 11.4% | 17.4% | 5.9% |
| Net Debt/EBITDA | | -469.9x | | -3.9x | -2.0x | 1.8x |
Peers in Pharmaceuticals & Biotechnology
Below you can find Allergy Therapeutics 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% | - |
| Clinigen Group ($CLIN) | - | -11.1% | 26.1% | 19.9% | 10.4% |
| Dechra Pharmaceuticals ($DPH) | - | 45.1% | 13.3% | 18.3% | 6.9% |
| Abcam ($ABC) | - | 26.5% | 7.4% | 11.4% | 0.0% |
| |
|---|
| Median (11 companies) | 7.6% | 12.5% | 7.7% | 10.4% | 8.6% |
|---|
| Allergy Therapeutics ($AGY) | - | 32.2% | 6.6% | 7.9% | 6.1% |
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% | - |
| Abcam ($ABC) | 70.2% | 70.1% | 69.9% | 70.5% | 69.3% |
| Ixico ($IXI) | 48.6% | 56.5% | 58.8% | 65.4% | - |
| GlaxoSmithKline ($GSK) | 66.7% | 65.7% | 66.8% | 64.9% | - |
| |
|---|
| Median (8 companies) | 48.4% | 51.2% | 62.8% | 65.1% | 49.6% |
|---|
| Allergy Therapeutics ($AGY) | 71.0% | 73.9% | 75.1% | 75.1% | 74.2% |
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% | - |
| Clinigen Group ($CLIN) | 12.1% | 21.2% | 17.1% | 14.5% | 19.5% |
| |
|---|
| Median (8 companies) | 17.0% | 18.8% | 20.6% | 20.9% | 15.0% |
|---|
| Allergy Therapeutics ($AGY) | -21.2% | 0.1% | -6.9% | 8.8% | 15.6% |
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 ($AZN) | 6.3% | 5.9% | 4.7% | 4.0% | - |
| GlaxoSmithKline ($GSK) | 5.5% | 5.1% | 4.4% | 3.7% | - |
| Genus ($GNS) | 3.0% | 2.9% | 3.8% | 3.5% | 4.5% |
| |
|---|
| Median (8 companies) | 4.0% | 3.7% | 3.8% | 3.6% | 3.0% |
|---|
| Allergy Therapeutics ($AGY) | 2.5% | 2.3% | 2.9% | 3.8% | 2.9% |
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 ($ABC) | 19.1% | 21.6% | 19.8% | 14.8% | 1.8% |
| Astrazeneca ($AZN) | 13.7% | 9.7% | 9.5% | 8.4% | - |
| Ixico ($IXI) | -63.3% | -50.5% | -14.9% | 5.0% | - |
| |
|---|
| Median (12 companies) | 9.7% | 10.9% | 9.3% | 5.0% | 5.0% |
|---|
| Allergy Therapeutics ($AGY) | -33.9% | -5.6% | -22.4% | 12.8% | 16.9% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Dechra Pharmaceuticals ($DPH) | 2.6x | 3.0x | 5.1x | 4.7x | 1.9x |
| Clinigen Group ($CLIN) | 1.7x | 0.5x | 2.1x | 3.8x | 3.2x |
| Genus ($GNS) | 1.2x | 2.3x | 4.7x | 3.0x | 1.3x |
| GlaxoSmithKline ($GSK) | 3.1x | 2.1x | 3.0x | 2.6x | - |
| Astrazeneca ($AZN) | 1.6x | 2.2x | 2.0x | 1.9x | - |
| |
|---|
| Median (8 companies) | 1.2x | 1.8x | 2.0x | 2.3x | 1.6x |
|---|
| Allergy Therapeutics ($AGY) | - | -469.9x | - | -3.9x | -2.0x |
