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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 21.2%.
  • 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


The company's Revenue jumped 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. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 7.9 pp from -1.9% to 6.0% in FY2020. EBITDA Margin grew 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 the last 5 years 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 the last 5 years 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 stuck to a growing trend at 243 pp per annum in FY2016-FY2020.

Investments (CAPEX, working capital and M&A)


The company's CAPEX/Revenue was 21.2% in FY2020. Aytu BioScience, Inc.'s CAPEX/Revenue dropped on 169 pp from 190% in FY2017 to 21.2% in FY2020. It's average CAPEX/Revenue for the last three years 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 FY2016-FY2020 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 jumped while cash jumped 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. $201620172018201920202020/2019
P&L
Revenue2.5623.2223.6607.32027.632277.5%
Gross Profit1.6051.8041.6105.11820.079292.3%
SG&A8.82517.60817.73219.24034.80280.9%
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
Cash8.0540.8027.01311.04448.082335.4%
Short Term Debt0.0000.0000.0000.0001.283
Long Term Debt0.0000.0000.0000.00011.897
Cash flow
Capex0.2536.1120.4750.5605.850944.9%
Ratios
Revenue growth878.8%25.7%13.6%100.0%277.5%
EBITDA growth177.2%-24.3%8.6%-17.5%4.0%

Gross Margin62.6%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 revenue344.4%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 revenue9.9%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. $FY20Q1FY20Q2FY20Q3FY20Q4 YoY change
P&L
Revenue13815 0.6%76.9%243.0%766.1%
EBITDA-4-4-3-4 ----
Net Income-5-0-5-3 ----
Balance Sheet
Cash756248 76.9%-70.5%325.1%335.4%
Short Term Debt0041 ----
Long Term Debt00912 --94.2%74.6%-
Ratios
Gross Margin73.9%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.