Indivior Plc (NASDAQ: INDV)

Sector: Healthcare Industry: Drug Manufacturers - Specialty & Generic CIK: 0001625297
Market Cap 4.55 Bn
P/B -21.96
P/E 27.39
P/S 3.85
ROIC (Qtr) 244.63
Div Yield % 0.00
Rev 1y % (Qtr) 2.28
Total Debt (Qtr) 356.00 Mn
Debt/Equity (Qtr) -1.72

About

Indivior PLC, a prominent player in the pharmaceutical industry, operates under the ticker symbol INDV. The company is renowned for its development and commercialization of innovative treatments for addiction and related disorders. Headquartered in the United Kingdom, Indivior boasts a diverse product portfolio that includes SUBLOCADE, PERSERIS, and other buprenorphine-based sublingual products. These primary products are used to treat opioid dependence and related disorders. Indivior's revenue is primarily generated through the sale of its products,...

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Price action

Investment thesis

Bull case

  • Healthy cash reserves of 445M provide 15.89x coverage of short-term debt 28M, demonstrating strong liquidity position and minimal refinancing risk.
  • Strong tangible asset base of 1.41B provides 3.97x coverage of total debt 356M, indicating robust asset backing and low credit risk.
  • Retained earnings of (346M) represent substantial 1.67x of equity (207M), indicating strong internal capital generation.
  • Cash reserves of 445M provide solid 1.35x coverage of other non-current liabilities 330M, indicating strong liquidity.
  • Cash reserves of 445M exceed inventory value of 155M by 2.87x, indicating strong liquidity and inventory management.

Bear case

  • Operating cash flow of 136M barely covers its investment activities of (32M), with a coverage ratio of -4.25, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of (32M) provide weak support for R&D spending of 107M, which is -0.30x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Cash reserves of 445M provide limited coverage of acquisition spending of (3M), which is -148.33x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • The company's operating cash flow of 136M shows concerning coverage of stock compensation expenses of 47M, with a 2.89 ratio indicating potential earnings quality issues.
  • Operating cash flow of 136M provides minimal 1.74x coverage of tax expenses of 78M, suggesting potential tax planning inefficiencies or unsustainable tax positions.

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 3.11 24.98
EV to Cash from Ops. EV/CFO 32.37 -85.40
EV to Debt EV to Debt 12.37 265.88
EV to EBIT EV/EBIT 14.87 -32.65
EV to EBITDA EV/EBITDA 14.77 -29.50
EV to Free Cash Flow [EV/FCF] EV/FCF 56.44 -32.62
EV to Market Cap EV to Market Cap 0.97 -10.98
EV to Revenue EV/Rev 3.73 -700.14
Price to Book Value [P/B] P/B -21.96 27.22
Price to Earnings [P/E] P/E 27.39 -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) 5.69 -38.10
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -241.18 -157.22
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 54.51 44,776.25
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 2.81
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 430.38 24.45
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 450.59 18.14
EBIT Growth (1y) % EBIT 1y % (Qtr) 516.90 37.66
EBT Growth (1y) % EBT 1y % (Qtr) 330.19 108.18
EPS Growth (1y) % EPS 1y % (Qtr) 295.52 52.88
FCF Growth (1y) % FCF 1y % (Qtr) 129.77 -54.47
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 1.87 25.28
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.83 0.50
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.02
Cash Ratio Cash Ratio (Qtr) 0.46 2.10
Current Ratio Curr Ratio (Qtr) 0.96 3.92
Debt to Equity Ratio Debt/Equity (Qtr) -1.72 -1.11
Interest Cover Ratio Int Coverage (Qtr) 5.69 -38.10
Times Interest Earned Times Interest Earned (Qtr) 5.69 -38.10
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 26.80 -62,432.09
EBIT Margin % EBIT Margin % (Qtr) 25.06 -63,260.88
EBT Margin % EBT Margin % (Qtr) 20.66 -66,726.96
Gross Margin % Gross Margin % (Qtr) 82.90 8,332.72
Net Profit Margin % Net Margin % (Qtr) 14.10 -66,728.37