Aytu BioScience, Inc. CAPEX surged on 945% and Revenue jumped on 277%
10/06/2020 • About Aytu BioScience, Inc. (
$AYTU) • By InTwits
Aytu BioScience, Inc. reported FY2020 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Aytu BioScience, Inc. is a fast growth stock: FY2020 revenue growth was 277%, 5 year revenue CAGR was 154% at FY2020 ROIC -36.7%
- The company operates at negative EBITDA Margin: -53.1%
- Aytu BioScience, Inc. spends a lot for Stock Based Compensation (SBC): average SBC/Revenue for FY2016-FY2020 is 0.0%. Average EBITDA Margin for the same period was -185.8%
- Aytu BioScience, Inc. has high CAPEX intensity: 5 year average CAPEX/Revenue was 48.3%. At the same time it's a lot of higher than industry average of 8.1%.
- CAPEX is quite volatile: $6m in FY2020, $1m in FY2019, $0m in FY2018, $6m in FY2017, $0m in FY2016
- The company has unprofitable business model: ROIC is -36.7%
- It operates with high leverage: Net Debt/EBITDA is 7.4x while industry average is
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
Aytu BioScience, Inc.'s Revenue surged on 277%. Revenue growth showed acceleration in FY20Q4 - it increased 766.1% YoY. During the last 5 years Revenue growth bottomed in FY2018 at 13.6% and was accelerating since that time. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin surged on 140 pp from -193% to -53.1% in FY2020. EBITDA Margin followed a growing trend at 182 pp per annum in the last 5 years.
Gross Margin increased on 2.7 pp from 69.9% to 72.7% in FY2020. During FY2016-FY2020 Gross Margin bottomed in FY2018 at 44.0% and was growing since that time. SG&A as a % of Revenue dropped on 137 pp from 263% to 126% in FY2020. During FY2016-FY2020 SG&A as a % of Revenue topped in FY2017 at 547% and was declining since that time.
Net Income margin jumped on 321 pp from -371% to -49.3% in FY2020. Net Income margin followed a growing trend at 243 pp per annum in the last 5 years.
Investments (CAPEX, working capital and M&A)
In FY2020 the company had CAPEX/Revenue of 21.2%. Aytu BioScience, Inc.'s CAPEX/Revenue dropped on 169 pp from 190% in FY2017 to 21.2% in FY2020. For the last three years the average CAPEX/Revenue was 13.9%.
Return on investment
The company operates at negative ROIC (-36.7%) and ROE (-26.7%). ROIC surged on 128 pp from -164% to -36.7% in FY2020. ROE surged on 238 pp from -265% to -26.7% in FY2020. During the last 5 years ROIC bottomed in FY2017 at -286% and was growing since that time.
Leverage (Debt)
Debt level is 7.4x Net Debt / EBITDA and Debt / EBITDA. Debt surged while cash surged on 335%.
Aytu BioScience, Inc. has no short term refinancing risk: cash is higher than short term debt (3,749.1%).
Financial and operational results
FY ended 06/30/2020
Aytu BioScience, Inc. ($AYTU) key annual financial indicators| mln. $ | 2016 | 2017 | 2018 | 2019 | 2020 | 2020/2019 |
|---|
P&L
|
|---|
| Revenue | 2.562 | 3.222 | 3.660 | 7.320 | 27.632 | 277.5% |
| Gross Profit | 1.605 | 1.804 | 1.610 | 5.118 | 20.079 | 292.3% |
| SG&A | 8.825 | 17.608 | 17.732 | 19.240 | 34.802 | 80.9% |
| EBITDA | -20.830 | -15.761 | -17.109 | -14.120 | -14.685 | |
| Net Income | -28.180 | -22.508 | -10.188 | -27.132 | -13.621 | |
Balance Sheet
|
|---|
| Cash | 8.054 | 0.802 | 7.013 | 11.044 | 48.082 | 335.4% |
| Short Term Debt | 0.000 | 0.000 | 0.000 | 0.000 | 1.283 | |
| Long Term Debt | 0.000 | 0.000 | 0.000 | 0.000 | 11.897 | |
Cash flow
|
|---|
| Capex | 0.253 | 6.112 | 0.475 | 0.560 | 5.850 | 944.9% |
Ratios
|
|---|
| Revenue growth | 878.8% | 25.7% | 13.6% | 100.0% | 277.5% | |
| EBITDA growth | 177.2% | -24.3% | 8.6% | -17.5% | 4.0% | |
|
|---|
| Gross Margin | 62.6% | 56.0% | 44.0% | 69.9% | 72.7% | 2.7% |
| EBITDA Margin | -812.9% | -489.2% | -467.4% | -192.9% | -53.1% | 139.7% |
| SG&A, % of revenue | 344.4% | 546.6% | 484.5% | 262.8% | 125.9% | -136.9% |
| Net Income Margin | -1,099.7% | -698.7% | -278.3% | -370.6% | -49.3% | 321.3% |
| CAPEX, % of revenue | 9.9% | 189.7% | 13.0% | 7.6% | 21.2% | 13.5% |
|
|---|
| ROIC | -168.9% | -285.8% | -226.1% | -164.3% | -36.7% | 127.6% |
| ROE | -219.3% | -319.6% | -116.9% | -264.5% | -26.7% | 237.9% |
Aytu BioScience, Inc. ($AYTU) key quoterly financial indicators
| mln. $ | FY20Q1 | FY20Q2 | FY20Q3 | FY20Q4 | | YoY change |
|---|
P&L
|
|---|
| Revenue | 1 | 3 | 8 | 15 | | 0.6% | 76.9% | 243.0% | 766.1% |
| EBITDA | -4 | -4 | -3 | -4 | | - | - | - | - |
| Net Income | -5 | -0 | -5 | -3 | | - | - | - | - |
Balance Sheet
|
|---|
| Cash | 7 | 5 | 62 | 48 | | 76.9% | -70.5% | 325.1% | 335.4% |
| Short Term Debt | 0 | 0 | 4 | 1 | | - | - | - | - |
| Long Term Debt | 0 | 0 | 9 | 12 | | - | -94.2% | 74.6% | - |
Ratios
|
|---|
| Gross Margin | 73.9% | 80.9% | 75.5% | 69.2% | | 2.6% | 10.2% | 1.4% | 7.1% |
| EBITDA Margin | -266.3% | -114.9% | -38.1% | -27.5% | | -66.5% | 101.1% | 111.4% | 195.5% |
| Net Income Margin | -342.3% | -6.7% | -65.4% | -21.2% | | -101.6% | 252.7% | 123.7% | 825.8% |
Peers in Pharmaceuticals
Below you can find Aytu BioScience, Inc. benchmarking vs. other companies in Pharmaceuticals 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 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| KemPharm, Inc. ($KMPH) | - | - | - | - | 3.5% |
| Oramed Pharmaceuticals Inc. ($ORMP) | - | 283.2% | -0.3% | 10.4% | 0.3% |
| |
|---|
| Median (2 companies) | - | 283.2% | -0.3% | 10.4% | 1.9% |
|---|
| Aytu BioScience, Inc. ($AYTU) | - | 25.7% | 13.6% | 100.0% | 277.5% |
Top companies by Gross margin, %
| Top | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Oramed Pharmaceuticals Inc. ($ORMP) | 23.6% | 92.4% | 103.5% | 96.7% | - |
| |
|---|
| Median (1 company) | 23.6% | 92.4% | 103.5% | 96.7% | - |
|---|
| Aytu BioScience, Inc. ($AYTU) | 62.6% | 56.0% | 44.0% | 69.9% | 72.7% |
Top companies by EBITDA margin, %
| Top | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| KemPharm, Inc. ($KMPH) | - | - | - | -153.0% | -38.2% |
| Oramed Pharmaceuticals Inc. ($ORMP) | -1,561.0% | -438.4% | -552.1% | -541.0% | -433.6% |
| |
|---|
| Median (2 companies) | -1,561.0% | -438.4% | -552.1% | -347.0% | -235.9% |
|---|
| Aytu BioScience, Inc. ($AYTU) | -812.9% | -489.2% | -467.4% | -192.9% | -53.1% |
Top companies by CAPEX/Revenue, %
| Top | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Oramed Pharmaceuticals Inc. ($ORMP) | 1.4% | 0.3% | 0.2% | 0.6% | 3.0% |
| KemPharm, Inc. ($KMPH) | - | - | - | 0.2% | 0.2% |
| |
|---|
| Median (2 companies) | 1.4% | 0.3% | 0.2% | 0.4% | 1.6% |
|---|
| Aytu BioScience, Inc. ($AYTU) | 9.9% | 189.7% | 13.0% | 7.6% | 21.2% |
Top companies by ROIC, %
| Top 5 | FY2016 | FY2017 | FY2018 | FY2019 | FY2020 |
|---|
| Oramed Pharmaceuticals Inc. ($ORMP) | -39.2% | -47.4% | -53.7% | -57.9% | -44.9% |
| Odonate Therapeutics, Inc. ($ODT) | -257.7% | -33.0% | -56.7% | -79.7% | -83.3% |
| Provention Bio, Inc. ($PRVB) | - | - | -67.2% | -62.6% | -102.8% |
| KemPharm, Inc. ($KMPH) | -88.1% | -61.1% | -217.3% | -192.5% | -113.5% |
| Pharmagreen Biotech Inc ($PHBI) | - | - | - | - | - |
| |
|---|
| Median (5 companies) | -88.1% | -47.4% | -62.0% | -71.1% | -93.1% |
|---|
| Aytu BioScience, Inc. ($AYTU) | -168.9% | -285.8% | -226.1% | -164.3% | -36.7% |
