Beximco Pharmaceuticals (DSE:BXPHARMA) - Share price, News & Analysis

Q: What is the Fair Price of BXPHARMA when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

BXPHARMA (BDT150.2) is trading below our estimate of [[fair value]] (BDT153.98)

BXPHARMA fundamental analysis
Snowflake Score
Valuation	4/6
Future Growth	3/6
Past Performance	5/6
Financial Health	5/6
Dividends	3/6

BXPHARMA Stock Overview

Beximco Pharmaceuticals Limited manufactures and markets generic pharmaceutical formulation products and active pharmaceutical ingredients in Bangladesh.

Rewards

Trading at 2.5% below our estimate of its fair value

Earnings are forecast to grow 13.11% per year

Earnings grew by 25.3% over the past year

Risk Analysis

Unstable dividend track record

Beximco Pharmaceuticals Competitors

Beacon Pharmaceuticals

DSE:BEACONPHAR

৳56.6b

Renata

DSE:RENATA

৳139.7b

Square Pharmaceuticals

DSE:SQURPHARMA

৳187.6b

ACME Laboratories

DSE:ACMELAB

৳18.3b

Price History & Performance

Summary of all time highs, changes and price drops for Beximco Pharmaceuticals
Historical stock prices
Current Share Price	৳150.20
52 Week High	৳255.40
52 Week Low	৳140.70
Beta	0.87
1 Month Change	-0.40%
3 Month Change	-9.08%
1 Year Change	-22.46%
3 Year Change	100.75%
5 Year Change	55.72%
Change since IPO	1,004.96%

Shareholder Returns

	BXPHARMA	BD Pharmaceuticals	BD Market
7D	-6.1%	-2.7%	-2.3%
1Y	-22.5%	-5.2%	-11.4%

Return vs Industry: BXPHARMA underperformed the BD Pharmaceuticals industry which returned -5.2% over the past year.

Return vs Market: BXPHARMA underperformed the BD Market which returned -11.4% over the past year.

Price Volatility

Is BXPHARMA's price volatile compared to industry and market?
BXPHARMA volatility
BXPHARMA Average Weekly Movement	4.0%
Pharmaceuticals Industry Average Movement	3.8%
Market Average Movement	4.7%
10% most volatile stocks in BD Market	6.5%
10% least volatile stocks in BD Market	2.5%

Stable Share Price: BXPHARMA is not significantly more volatile than the rest of BD stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: BXPHARMA's weekly volatility (4%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1976	n/a	Nazmul Hassan	https://www.beximcopharma.com

Beximco Pharmaceuticals Limited manufactures and markets generic pharmaceutical formulation products and active pharmaceutical ingredients in Bangladesh. The company offers allergic disorder, analgesics and antipyretic, anti-infective, antiviral, cardiovascular, central nervous system, cough and cold, endocrine and diabetes, eye care, gastrointestinal, hormone and steroid, intravenous fluid, musculoskeletal, oncology, respiratory, urogenital, skin care, vitamin and mineral supplement, and other products, as well as contract manufacturing services to other companies. It provides its products in various dosage forms, including solid, liquid, cream and ointment, suppositories, metered dose and dry powder inhaler, nasal spray, sterile, lyophilized injectable, and large volume intravenous fluids.

Beximco Pharmaceuticals Fundamentals Summary

How do Beximco Pharmaceuticals's earnings and revenue compare to its market cap?
BXPHARMA fundamental statistics
Market Cap	৳67.01b
Earnings (TTM)	৳5.74b
Revenue (TTM)	৳33.66b

11.7x

P/E Ratio

2.0x

P/S Ratio

Is BXPHARMA overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
BXPHARMA income statement (TTM)
Revenue	৳33.66b
Cost of Revenue	৳17.90b
Gross Profit	৳15.76b
Other Expenses	৳10.02b
Earnings	৳5.74b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	12.86
Gross Margin	46.82%
Net Profit Margin	17.04%
Debt/Equity Ratio	25.9%

How did BXPHARMA perform over the long term?

See historical performance and comparison

Dividends

2.3%

Current Dividend Yield

27%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is BXPHARMA undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for BXPHARMA?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for BXPHARMA. This is calculated by dividing BXPHARMA's market cap by their current preferred multiple.
What is BXPHARMA's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	৳67.01b

BXPHARMA key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	2.4x
Enterprise Value/EBITDA	10.1x
PEG Ratio	0.9x

Price to Earnings Ratio vs Peers

How does BXPHARMA's PE Ratio compare to its peers?

BXPHARMA PE Ratio vs Peers

The above table shows the PE ratio for BXPHARMA vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	26.3x
BEACONPHAR Beacon Pharmaceuticals	60.5x	n/a	৳56.6b
RENATA Renata	25.2x	17.8%	৳139.7b
SQURPHARMA Square Pharmaceuticals	10.1x	11.4%	৳187.6b
ACMELAB ACME Laboratories	9.2x	n/a	৳18.3b
BXPHARMA Beximco Pharmaceuticals	11.7x	13.1%	৳67.0b

Price-To-Earnings vs Peers: BXPHARMA is good value based on its Price-To-Earnings Ratio (11.7x) compared to the peer average (26.3x).

Price to Earnings Ratio vs Industry

How does BXPHARMA's PE Ratio compare vs other companies in the Asian Pharmaceuticals Industry?

Price-To-Earnings vs Industry: BXPHARMA is good value based on its Price-To-Earnings Ratio (11.7x) compared to the BD Pharmaceuticals industry average (20.2x)

Price to Earnings Ratio vs Fair Ratio

What is BXPHARMA's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

BXPHARMA PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	11.7x
Fair PE Ratio	16.1x

Price-To-Earnings vs Fair Ratio: BXPHARMA is good value based on its Price-To-Earnings Ratio (11.7x) compared to the estimated Fair Price-To-Earnings Ratio (16.1x).

Share Price vs Fair Value

What is the Fair Price of BXPHARMA when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: BXPHARMA (BDT150.2) is trading below our estimate of fair value (BDT153.98)

Significantly Below Fair Value: BXPHARMA is trading below fair value, but not by a significant amount.

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is less than 20% higher than the current share price.

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Future Growth

How is Beximco Pharmaceuticals forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

Future Growth Score

3/6

Future Growth Score 3/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

13.1%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: BXPHARMA's forecast earnings growth (13.1% per year) is above the savings rate (3.6%).

Earnings vs Market: BXPHARMA's earnings (13.1% per year) are forecast to grow faster than the BD market (11.5% per year).

High Growth Earnings: BXPHARMA's earnings are forecast to grow, but not significantly.

Revenue vs Market: BXPHARMA's revenue (15% per year) is forecast to grow faster than the BD market (9.1% per year).

High Growth Revenue: BXPHARMA's revenue (15% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: BXPHARMA's Return on Equity is forecast to be low in 3 years time (14%).

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Past Performance

How has Beximco Pharmaceuticals performed over the past 5 years?

Past Performance Score

5/6

Past Performance Score 5/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

21.0%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: BXPHARMA has high quality earnings.

Growing Profit Margin: BXPHARMA's current net profit margins (17%) are higher than last year (16.2%).

Past Earnings Growth Analysis

Earnings Trend: BXPHARMA's earnings have grown significantly by 21% per year over the past 5 years.

Accelerating Growth: BXPHARMA's earnings growth over the past year (25.3%) exceeds its 5-year average (21% per year).

Earnings vs Industry: BXPHARMA earnings growth over the past year (25.3%) exceeded the Pharmaceuticals industry 22.9%.

Return on Equity

High ROE: BXPHARMA's Return on Equity (12.9%) is considered low.

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Financial Health

How is Beximco Pharmaceuticals's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: BXPHARMA's short term assets (BDT17.9B) exceed its short term liabilities (BDT12.5B).

Long Term Liabilities: BXPHARMA's short term assets (BDT17.9B) exceed its long term liabilities (BDT8.8B).

Debt to Equity History and Analysis

Debt Level: BXPHARMA's net debt to equity ratio (24.2%) is considered satisfactory.

Reducing Debt: BXPHARMA's debt to equity ratio has increased from 16.6% to 25.9% over the past 5 years.

Debt Coverage: BXPHARMA's debt is well covered by operating cash flow (52.4%).

Interest Coverage: BXPHARMA's interest payments on its debt are well covered by EBIT (8.1x coverage).

Balance Sheet

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Dividend

What is Beximco Pharmaceuticals's current dividend yield, its reliability and sustainability?

Dividend Score

3/6

Dividend Score 3/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Cash Flow Coverage

2.33%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: BXPHARMA's dividend (2.33%) is higher than the bottom 25% of dividend payers in the BD market (1.2%).

High Dividend: BXPHARMA's dividend (2.33%) is low compared to the top 25% of dividend payers in the BD market (3.87%).

Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, BXPHARMA has been paying a dividend for less than 10 years.

Growing Dividend: BXPHARMA's dividend payments have increased, but the company has only paid a dividend for 8 years.

Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (27.2%), BXPHARMA's dividend payments are well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its reasonably low cash payout ratio (49.7%), BXPHARMA's dividend payments are well covered by cash flows.

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Management

How experienced are the management team and are they aligned to shareholders interests?

13.3yrs

Average management tenure

CEO

Nazmul Hassan

13.25yrs

Tenure

Mr. Nazmul Hassan, MP has been the Managing Director at Beximco Pharmaceuticals Limited since May 2009. Mr. Hassan served as the Managing Director of Shinepukur Ceramics Limited until November 14, 2013. Mr...

Leadership Team

Experienced Management: BXPHARMA's management team is seasoned and experienced (13.3 years average tenure).

Board Members

Experienced Board: BXPHARMA's board of directors are not considered experienced ( 1.9 years average tenure), which suggests a new board.

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/08/12 00:00
End of Day Share Price	2022/08/11 00:00
Earnings	2022/03/31
Annual Earnings	2021/06/30