These are the financial trends for Hyphens Pharma over the past 3 years from 2015 to 2017 pertaining to profit margins and ROEs.
2015 to 2017 (figures stated in that order)
Gross Profit Margins = 32.2%, 34.8%, 33.1%
Operating Profit Margins = 7.7%, 5.7%, 6.5%
Net Profit Margins = 6.5%, 5.2%, 5.4%
ROE = 33%, 26.7%, 32.3%
The operating profit margin and net profit margin seemed to have decreased by around 1% each over the past 3 years period. ROEs have maintained at slightly over 30% for the past 3 years.
The EV/ EBIT ratio is about 9.4 based on IPO price and market cap. It is not cheap, typical of an IPO. However, financials seem ok. Investors would be paying for their forward growth. If they can continue to deliver solid ROEs post-IPO on their growth and expansion plans for the next few years using the IPO proceeds, this would be a good buy. If not, it will not be worth overpaying for a growth that does not deliver.
These are the financial trends for Hyphens Pharma over the past 3 years from 2015 to 2017 pertaining to profit margins and ROEs.
2015 to 2017 (figures stated in that order)
Gross Profit Margins = 32.2%, 34.8%, 33.1%
Operating Profit Margins = 7.7%, 5.7%, 6.5%
Net Profit Margins = 6.5%, 5.2%, 5.4%
ROE = 33%, 26.7%, 32.3%
The operating profit margin and net profit margin seemed to have decreased by around 1% each over the past 3 years period. ROEs have maintained at slightly over 30% for the past 3 years.
The EV/ EBIT ratio is about 9.4 based on IPO price and market cap. It is not cheap, typical of an IPO. However, financials seem ok. Investors would be paying for their forward growth. If they can continue to deliver solid ROEs post-IPO on their growth and expansion plans for the next few years using the IPO proceeds, this would be a good buy. If not, it will not be worth overpaying for a growth that does not deliver.
Reply to @clim : You are most welcomed clim! =)