Evolus, Inc. (NASDAQ: EOLS)

Sector: Healthcare Industry: Drug Manufacturers - Specialty & Generic CIK: 0001570562
Market Cap 427.95 Mn
P/B -14.88
P/E -7.31
P/S 1.50
ROIC (Qtr) -30.20
Div Yield % 0.00
Rev 1y % (Qtr) 12.90
Total Debt (Qtr) 154.89 Mn
Debt/Equity (Qtr) -5.39

About

Evolus, Inc. (EOLS) is a global performance beauty company that operates in the cash-pay aesthetic market, which consists of medical products that consumers pay for directly out of pocket. This industry is primarily served by the company's main business activities, which include the development, manufacturing, and marketing of medical aesthetic products. Evolus operates in the United States, Canada, and certain European markets, focusing on the largest segments of the medical aesthetic market, such as aesthetic neurotoxins and dermal fillers. Evolus...

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Price action

Investment thesis

Bull case

  • Healthy cash reserves of 43.52M provide 17.58x coverage of short-term debt 2.48M, demonstrating strong liquidity position and minimal refinancing risk.
  • Retained earnings of (661.17M) represent substantial 22.99x of equity (28.76M), indicating strong internal capital generation.
  • Cash reserves of 43.52M provide solid 1.52x coverage of other non-current liabilities 28.63M, indicating strong liquidity.
  • Cash reserves of 43.52M exceed inventory value of 32.87M by 1.32x, indicating strong liquidity and inventory management.
  • Cash position of 43.52M represents healthy 0.64x of working capital 68.18M, demonstrating strong operational liquidity.

Bear case

  • Investment activities of (7.65M) provide weak support for R&D spending of 8.53M, which is -0.90x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • The company's operating cash flow of (50.28M) shows concerning coverage of stock compensation expenses of 21.72M, with a -2.31 ratio indicating potential earnings quality issues.
  • Operating cash flow of (50.28M) provides minimal -68.69x coverage of tax expenses of 732000, suggesting potential tax planning inefficiencies or unsustainable tax positions.
  • Free cash flow of (57.93M) provides weak coverage of capital expenditures of 7.65M, with a -7.57 ratio suggesting additional external financing needs for growth initiatives.
  • Operating earnings of (37.54M) show weak coverage of depreciation charges of 7.77M, with a -4.83 ratio indicating high capital intensity and potential reinvestment needs.

Peer comparison

Companies in the Drug Manufacturers - Specialty & Generic
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 ZTS Zoetis Inc. 56.15 Bn 21.18 5.98 7.27 Bn
2 TAK Takeda Pharmaceutical Co Ltd 48.92 Bn 221.13 1.66 36.24 Bn
3 HLN Haleon plc 46.13 Bn 25.59 3.29 -
4 TEVA Teva Pharmaceutical Industries Ltd 35.27 Bn 49.54 2.10 17.07 Bn
5 UTHR UNITED THERAPEUTICS Corp 21.76 Bn 17.11 6.95 0.00 Bn
6 VTRS Viatris Inc 14.87 Bn -4.03 1.05 14.44 Bn
7 NBIX Neurocrine Biosciences Inc 14.08 Bn 32.91 5.25 0.43 Bn
8 ELAN Elanco Animal Health Inc 11.64 Bn 323.29 2.54 4.32 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 2.38 24.98
EV to Cash from Ops. EV/CFO -10.36 -85.40
EV to Debt EV to Debt 3.36 265.88
EV to EBIT EV/EBIT -13.88 -32.65
EV to EBITDA EV/EBITDA -16.58 -29.50
EV to Free Cash Flow [EV/FCF] EV/FCF -9.00 -32.62
EV to Market Cap EV to Market Cap 1.22 -10.98
EV to Revenue EV/Rev 1.82 -700.14
Price to Book Value [P/B] P/B -14.88 27.22
Price to Earnings [P/E] P/E -7.31 -122.96
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Dividend Coverage Ratio 0.00 0.34
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 4.81
Dividend per Basic Share Div per Share (Qtr) 0.00 0.07
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 4.08
Interest Coverage Int. cover (Qtr) -1.85 -38.10
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -100.10 -157.22
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) -48.82 44,776.25
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 2.81
EBIAT Growth (1y) % EBIAT 1y % (Qtr) -2.43 24.45
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 9.70 18.14
EBIT Growth (1y) % EBIT 1y % (Qtr) -1.76 37.66
EBT Growth (1y) % EBT 1y % (Qtr) -4.90 108.18
EPS Growth (1y) % EPS 1y % (Qtr) -1.11 52.88
FCF Growth (1y) % FCF 1y % (Qtr) -124.40 -54.47
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 11.70 25.28
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 1.31 0.50
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.02
Cash Ratio Cash Ratio (Qtr) 0.65 2.10
Current Ratio Curr Ratio (Qtr) 2.02 3.92
Debt to Equity Ratio Debt/Equity (Qtr) -5.39 -1.11
Interest Cover Ratio Int Coverage (Qtr) -1.85 -38.10
Times Interest Earned Times Interest Earned (Qtr) -1.85 -38.10
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) -10.40 -62,432.09
EBIT Margin % EBIT Margin % (Qtr) -13.13 -63,260.88
EBT Margin % EBT Margin % (Qtr) -20.23 -66,726.96
Gross Margin % Gross Margin % (Qtr) 65.80 8,332.72
Net Profit Margin % Net Margin % (Qtr) -20.50 -66,728.37