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Looking for a profitable fast-growing stock? Look at Press Corp

22 Jul 2016 • About Press Corp ($PESD) • By InTwits

Press Corp is a fast-growing stock in General Industrials industry. Its revenue performance, profitability and healthy financial model stands it out vs. other public companies on the market.

Growth story

Press Corp showed fast growth in the last financial year. Press Corp's revenue surged on 17.8% in FY2015. In addition to revenue Press Corp also keeps delivering EBITDA growth. It was 2.04% in FY2015

If we look for the longer period Press Corp showed fast revenue growth of 29.3% from 2012 to 2015 annually. EBITDA surged on 22.7% from 2012 to 2015 annually.

Press Corp ($PESD) financials for the last 5 years

mln. MWK 2011 2012 2013 2014 2015
Revenue growth, %111.1%52.6%20.3%17.8%
Gross margin, %75.4%58.9%54.4%56.0%54.5%
SG&A, %66.1%37.9%39.3%
EBITDA growth, %68.1%52.8%18.6%2.0%
EBITDA margin, %37.1%29.5%29.6%29.2%25.3%
Net Income3,4696,3409,37210,7344,197
Net Income margin, % 9.83%8.51%8.24%7.85%2.60%
CAPEX/Revenue, %22.7%21.3%8.48%12.1%8.96%
Net Debt/EBITDA0.2x-0.3x-0.8x-0.8x-0.4x
ROIC, %12.1%21.6%27.1%24.7%18.9%
ROE, %11.6%17.2%18.9%16.3%5.0%

Profitability and return on investment

EBITDA growth was partly attributed to margin expansion. In the longer period the company's EBITDA margin dropped on 4.20 pp from 29.5% in 2012 to 25.3% in 2015.

Press Corp shows attractive ROIC at 18.9% for the last 12 months which assumes stable development model. Three years ago it was a bit higher at 21.6%. It's average ROIC for the last three years was 23.6%.

Net Income margin dropped on 5.20 pp from 7.80% to 2.60% in 2015. In the last 3 years Press Corp's Net Income margin dropped on 5.90 pp from 8.50% in 2012 to 2.60% in 2015.

Press Corp operates at ROE of 5.04%. Average ROE for the last three years was 13.4%.

Capital expenditures (CAPEX)

To this fast growth Press Corp had to invest in CAPEX.In FY2015 Press Corp had CAPEX/Revenue of 8.96%. The company's CAPEX/Revenue dropped on 12.4 pp from 21.3% in 2012 to 8.96% in 2015. Average CAPEX/Revenue for the last three years was 9.86%.

Leverage (Debt)

Press Corp has negative net debt at -0.4x Net Debt/EBITDA - at the same time with high growth. In the last 3 years leverage surged on 0.04x from -0.32x in 2012 to -0.36x in 2015.

Peers in General Industrials

Below you can find Press Corp benchmarking vs. other companies in General Industrials industry. It's shown for the period of 5 years for the key financial metrics. Each table has median value for all the companies in the industry together with individual financial data of the top-5 companies in the industry by particular financial metric.

Top companies by Revenue growth, %

 FY2011 FY2012 FY2013 FY2014 FY2015
Top 5
Macfarlane Group ($MACF)-1.9%1.4%6.9%10.0%
Robinson ($RBN)-1.6%10.2%20.3%3.8%
Thyssenkrupp Ag ($0O1C)-2.8%-7.2%6.9%3.8%
Coral Products ($CRU)31.2%-0.2%-0.3%1.2%
Barloworld ($BWO)17.5%1.6%4.4%1.0%
Median (9 companies)1.3%1.4%3.2%1.0%
Press Corp ($PESD)111.1%52.6%20.3%17.8%

Top companies by Gross margin, %

 FY2011 FY2012 FY2013 FY2014 FY2015
Top 5
Macfarlane Group ($MACF)30.2%32.0%31.2%30.9%31.5%
Honeywell International Inc ($HON)21.8%24.9%27.4%28.2%30.7%
Smurfit Kappa Group ($SKG)27.9%28.6%28.9%29.5%30.0%
Coral Products ($CRU)18.5%22.1%24.6%23.7%29.6%
Jardine Strategic Hldgs ($88EI)24.7%24.0%24.0%25.4%25.5%
Median (9 companies)22.2%24.0%24.6%24.5%25.5%
Press Corp ($PESD)75.4%58.9%54.4%56.0%54.5%

Top companies by EBITDA margin, %

 FY2011 FY2012 FY2013 FY2014 FY2015
Top 5
Honeywell International Inc ($HON)9.7%13.5%16.6%16.8%20.0%
Jardine Strategic Hldgs ($88EI)28.8%15.0%13.3%13.5%15.1%
Smurfit Kappa Group ($SKG)13.1%13.4%12.8%12.7%14.3%
General Electric Co. ($GEC)17.6%17.2%16.5%13.3%10.4%
Barloworld ($BWO)8.0%8.4%9.1%10.0%10.3%
Median (9 companies)9.7%13.4%12.8%12.7%10.3%
Press Corp ($PESD)37.1%29.5%29.6%29.2%25.3%

Top companies by CAPEX/Revenue, %

 FY2011 FY2012 FY2013 FY2014 FY2015
Top 5
General Electric Co. ($GEC)8.9%10.5%9.4%6.1%6.3%
Smurfit Kappa Group ($SKG)3.8%4.3%4.4%5.3%5.3%
Robinson ($RBN)4.9%4.3%6.0%3.5%3.7%
Jardine Strategic Hldgs ($88EI)4.4%5.8%5.2%4.1%2.9%
Honeywell International Inc ($HON)2.2%2.3%2.4%2.7%2.8%
Median (9 companies)3.8%4.3%4.4%2.9%2.8%
Press Corp ($PESD)22.7%21.3%8.5%12.1%9.0%

Top companies by ROIC, %

 FY2011 FY2012 FY2013 FY2014 FY2015
Top 5
Honeywell International Inc ($HON)14.4%21.8%23.0%21.3%23.2%
Macfarlane Group ($MACF)15.1%17.9%22.2%19.0%17.8%
Smurfit Kappa Group ($SKG)10.2%10.8%11.2%11.8%13.9%
Barloworld ($BWO)12.4%14.0%13.5%14.1%12.9%
Thyssenkrupp Ag ($0O1C)15.7%-27.3%-6.5%10.8%9.5%
Median (9 companies)12.4%10.3%9.6%10.8%9.5%
Press Corp ($PESD)12.1%21.6%27.1%24.7%18.9%

Top companies by Net Debt / EBITDA

 FY2011 FY2012 FY2013 FY2014 FY2015
Top 5
General Electric Co. ($GEC)11.8x10.5x8.9x12.0x10.6x
Coral Products ($CRU)1.5x1.5x2.9x3.4x2.7x
Smurfit Kappa Group ($SKG)2.9x2.9x2.6x2.7x2.6x
Thyssenkrupp Ag ($0O1C)1.1x3.4x4.5x2.0x1.8x
Barloworld ($BWO)1.1x1.5x1.4x1.2x1.7x
Median (9 companies)1.1x1.5x1.4x1.3x1.7x
Press Corp ($PESD)0.2x-0.3x-0.8x-0.8x-0.4x