Lincoln Pharmaceuticals Analysis

dividend

Pros

• Dividends per share have increased over the past 10 years.
• Dividends paid are thoroughly covered by earnings (17x coverage).
• Lincoln Pharmaceuticals's pays a higher dividend yield than the bottom 25% of dividend payers in India (0.76%).

Cons

• Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
• Lincoln Pharmaceuticals's dividend is below the markets top 25% of dividend payers in India (3.08%).

future

Pros

• Lincoln Pharmaceuticals's earnings growth is expected to exceed the low risk savings rate of 7.2%.
• Lincoln Pharmaceuticals's earnings are expected to exceed the low risk growth rate next year.
• Lincoln Pharmaceuticals's revenue growth is expected to exceed the India market average.

Cons

• Lincoln Pharmaceuticals's earnings are expected to grow by 15.9% yearly, however this is not considered high growth (20% yearly).
• Lincoln Pharmaceuticals's earnings growth is positive but not above the India market average.
• Lincoln Pharmaceuticals's revenue is expected to grow by 13.2% yearly, however this is not considered high growth (20% yearly).

health

Pros

• Lincoln Pharmaceuticals is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
• Lincoln Pharmaceuticals is profitable, therefore cash runway is not a concern.
• Lincoln Pharmaceuticals is profitable, therefore cash runway is not a concern.
• Debt is well covered by operating cash flow (144%, greater than 20% of total debt).
• Debt is covered by short term assets, assets are 7.6x debt.
• Lincoln Pharmaceuticals's cash and other short term assets cover its long term commitments.
• The level of debt compared to net worth has been reduced over the past 5 years (83.1% vs 12.3% today).
• Interest payments on debt are well covered by earnings (EBIT is 48.4x coverage).
• Lincoln Pharmaceuticals's level of debt (12.3%) compared to net worth is satisfactory (less than 40%).

Cons

• High level of physical assets or inventory.

management

Pros

• The average tenure for the Lincoln Pharmaceuticals board of directors is over 10 years, this suggests they are a seasoned and experienced board.
• Mahendrabhai's remuneration is lower than average for companies of similar size in India.
• Mahendrabhai's compensation has been consistent with company performance over the past year, both up more than 20%.

Cons

• The average tenure for the Lincoln Pharmaceuticals management team is less than 2 years, this suggests a new team.

misc

Pros

Cons

• Lincoln Pharmaceuticals is covered by less than 3 analysts.
• Lincoln Pharmaceuticals has significant price volatility in the past 3 months.

past

Pros

• Lincoln Pharmaceuticals has delivered over 20% year on year earnings growth in the past 5 years.
• Lincoln Pharmaceuticals used its assets more efficiently than the IN Pharmaceuticals industry average last year based on Return on Assets.

Cons

• Lincoln Pharmaceuticals's 1-year earnings growth is less than its 5-year average (8.4% vs 23.9%)
• Lincoln Pharmaceuticals's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
• Lincoln Pharmaceuticals has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
• Lincoln Pharmaceuticals's earnings growth has not exceeded the IN Pharmaceuticals industry average in the past year (8.4% vs 22.7%).

value

Pros

• Lincoln Pharmaceuticals's share price is below the future cash flow value, and at a moderate discount (> 20%).
• Lincoln Pharmaceuticals's share price is below the future cash flow value, and at a substantial discount (> 40%).
• Lincoln Pharmaceuticals is good value based on assets compared to the IN Pharmaceuticals industry average.
• Lincoln Pharmaceuticals is good value based on expected growth next year.
• Lincoln Pharmaceuticals is good value based on earnings compared to the IN Pharmaceuticals industry average.
• Lincoln Pharmaceuticals is good value based on earnings compared to the India market.
• 531633 outperformed the Market in India which returned -14.5% over the past year.

Cons

• 531633 underperformed the Pharmaceuticals industry which returned 26.7% over the past year.
• BSE:531633 is down -1.8% underperforming the Pharmaceuticals industry which returned 6.8% over the past month.
• BSE:531633 is down -1.8% underperforming the market in India which returned 8% over the past month.