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AIP

Adcock Ingram HoldingsJSE:AIP Stock Report

Market Cap

R7.9b

7D

3.7%

1Y

16.5%

Updated

18 Oct, 2021

Data

Company Financials +
AIP fundamental analysis
Snowflake Score
Valuation0/6
Future Growth0/6
Past Performance2/6
Financial Health6/6
Dividends3/6

AIP Overview

Adcock Ingram Holdings Limited manufactures, markets, and distributes healthcare products in South Africa, the United States, Canada, the United Kingdom, rest of Europe, and internationally.

Risk Analysis

Unstable dividend track record


Adcock Ingram Holdings Competitors

Viatris

NasdaqGS:VTRS

US$16.3b

Teva Pharmaceutical Industries

NYSE:TEVA

US$10.8b

Bausch Health Companies

NYSE:BHC

US$10.1b

Richter Gedeon Vegyészeti Gyár Nyilvánosan Muködo Rt

BUSE:RICHTER

Ft1.6t

Price History & Performance

Summary of all time highs, changes and price drops for Adcock Ingram Holdings
Historical stock prices
Current Share PriceR48.53
52 Week HighR39.19
52 Week LowR49.50
Beta0.37
1 Month Change1.63%
3 Month Change10.30%
1 Year Change16.46%
3 Year Change-17.31%
5 Year Change3.39%
Change since IPO42.53%

Recent News & Updates

Shareholder Returns

AIPZA PharmaceuticalsZA Market
7D3.7%0.6%0.7%
1Y16.5%84.3%20.7%

Return vs Industry: AIP underperformed the ZA Pharmaceuticals industry which returned 87.5% over the past year.

Return vs Market: AIP underperformed the ZA Market which returned 21.3% over the past year.

Price Volatility

Is AIP's price volatile compared to industry and market?
AIP volatility
AIP Beta0.37
Industry Beta0.56
Market Beta1

Stable Share Price: AIP is less volatile than 75% of ZA stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: AIP's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1890n/aAndy Hallhttps://www.adcock.co.za

Adcock Ingram Holdings Limited manufactures, markets, and distributes healthcare products in South Africa, the United States, Canada, the United Kingdom, rest of Europe, and internationally. It offers a portfolio of over the counter products, prescription medicines, and consumer products, as well as instrumentation and surgical products. The company also provides pharmaceutical products in a range of therapeutic classes, such as women’s health, cannabidiol, antiretroviral, dermatology, central nervous system, respiratory, ophthalmology, generics, cardiovascular, pain, gastroenterology, energy supplements, colds and flu, personal care, feminine hygiene, digestive well-being, allergies, baby care, cough, food and nutrition supplements, vitamins, and minerals supplements.

Adcock Ingram Holdings Fundamentals Summary

How do Adcock Ingram Holdings's earnings and revenue compare to its market cap?
AIP fundamental statistics
Market CapR7.85b
Earnings (TTM)R657.46m
Revenue (TTM)R7.78b

11.9x

P/E Ratio

1.0x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
AIP income statement (TTM)
RevenueR7.78b
Cost of RevenueR5.13b
Gross ProfitR2.64b
ExpensesR1.99b
EarningsR657.46m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)4.06
Gross Margin34.00%
Net Profit Margin8.45%
Debt/Equity Ratio0.3%

How did AIP perform over the long term?

See historical performance and comparison

Dividends

3.7%

Current Dividend Yield

43%

Payout Ratio

Valuation

Is Adcock Ingram Holdings undervalued compared to its fair value and its price relative to the market?

11.94x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: AIP (ZAR48.53) is trading above our estimate of fair value (ZAR37.13)

Significantly Below Fair Value: AIP is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: AIP is poor value based on its PE Ratio (11.9x) compared to the African Pharmaceuticals industry average (9.4x).

PE vs Market: AIP is poor value based on its PE Ratio (11.9x) compared to the ZA market (11.2x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate AIP's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: AIP's PB Ratio (1.7x) is in line with the XF Pharmaceuticals industry average.


Future Growth

How is Adcock Ingram Holdings forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

4.6%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if AIP's forecast earnings growth is above the savings rate (8.8%).

Earnings vs Market: Insufficient data to determine if AIP's earnings are forecast to grow faster than the ZA market

High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: AIP's revenue (4.6% per year) is forecast to grow slower than the ZA market (6.1% per year).

High Growth Revenue: AIP's revenue (4.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: AIP's Return on Equity is forecast to be low in 3 years time (14.7%).


Past Performance

How has Adcock Ingram Holdings performed over the past 5 years?

8.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AIP has high quality earnings.

Growing Profit Margin: AIP's current net profit margins (8.5%) are lower than last year (9.2%).


Past Earnings Growth Analysis

Earnings Trend: AIP's earnings have grown by 8.7% per year over the past 5 years.

Accelerating Growth: AIP's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: AIP had negative earnings growth (-2.8%) over the past year, making it difficult to compare to the Pharmaceuticals industry average (10%).


Return on Equity

High ROE: AIP's Return on Equity (14.1%) is considered low.


Financial Health

How is Adcock Ingram Holdings's financial position?


Financial Position Analysis

Short Term Liabilities: AIP's short term assets (ZAR3.7B) exceed its short term liabilities (ZAR2.0B).

Long Term Liabilities: AIP's short term assets (ZAR3.7B) exceed its long term liabilities (ZAR388.0M).


Debt to Equity History and Analysis

Debt Level: AIP's debt to equity ratio (0.3%) is considered satisfactory.

Reducing Debt: AIP's debt to equity ratio has reduced from 15.7% to 0.3% over the past 5 years.

Debt Coverage: AIP's debt is well covered by operating cash flow (3380.7%).

Interest Coverage: AIP's interest payments on its debt are well covered by EBIT (21.2x coverage).


Balance Sheet


Dividend

What is Adcock Ingram Holdings's current dividend yield, its reliability and sustainability?

3.71%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: AIP's dividend (3.71%) is higher than the bottom 25% of dividend payers in the ZA market (3.07%).

High Dividend: AIP's dividend (3.71%) is low compared to the top 25% of dividend payers in the ZA market (8.09%).


Stability and Growth of Payments

Stable Dividend: AIP's dividend payments have been volatile in the past 10 years.

Growing Dividend: AIP's dividend payments have not increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (42.9%), AIP's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: AIP's dividends in 3 years are forecast to be well covered by earnings (44% payout ratio).


Next Steps

Management

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

4.7yrs

Average management tenure


CEO

Andy Hall (59 yo)

5.92yrs

Tenure

R12,397,000

Compensation

Mr. Andrew Gideon Hall, also known as Andy, CA (SA), BPharm has been the Chief Executive Officer of Adcock Ingram Holdings Limited since November 11, 2015. Mr. Hall served as Financial Director and Deputy...


CEO Compensation Analysis

Compensation vs Market: Andy's total compensation ($USD844.09K) is about average for companies of similar size in the ZA market ($USD731.45K).

Compensation vs Earnings: Andy's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

Experienced Management: AIP's management team is considered experienced (4.7 years average tenure).


Board Members

Experienced Board: AIP's board of directors are not considered experienced ( 2.3 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.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

Adcock Ingram Holdings Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Adcock Ingram Holdings Limited
  • Ticker: AIP
  • Exchange: JSE
  • Founded: 1890
  • Industry: Pharmaceuticals
  • Sector: Pharmaceuticals & Biotech
  • Market Cap: R7.850b
  • Shares outstanding: 161.76m
  • Website: https://www.adcock.co.za

Number of Employees


Location

  • Adcock Ingram Holdings Limited
  • 1 New Road
  • Midrand
  • Gauteng
  • 1682
  • South Africa

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/18 21:36
End of Day Share Price2021/10/18 00:00
Earnings2021/06/30
Annual Earnings2021/06/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.