Trakm8 Hldgs reports 32.6% EBITDA growth and 1.6 pp EBITDA Margin growth from 8.7% to 10.2%02 Jul 2018
• About Trakm8 Holdings ($TRAK
) • By InTwits
Trakm8 Hldgs reported FY2018 financial results today. Overall looking at the company's long term financial model we can say that:
- Trakm8 Hldgs has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.6%. At the same time it's a lot of higher than industry average of 2.1%.
- CAPEX is quite volatile: 0.091 in FY2018, 0.18 in FY2017, 0.45 in FY2016, 0.36 in FY2015, 0.30 in FY2014
- The company has potentially unprofitable business model: ROIC is at 4.6%
- It operates with high leverage: Net Debt/EBITDA is 1.1x while industry average is 0.8x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Trakm8 Hldgs ($TRAK) key annual financial indicators
|Short Term Debt||0.500||0.576||0.981||1.051||1.151||9.5%|
|Long Term Debt||1.792||2.236||3.976||4.806||5.621||17.0%|
|Net Income Margin||5.1%||9.5%||13.0%||5.5%||5.2%||-0.3%|
|SG&A, % of revenue||47.8%||35.3%||30.7%||46.6%||46.8%||0.3%|
|CAPEX, % of revenue||3.3%||2.0%||1.8%||0.7%||0.3%||-0.4%|
Revenue and profitability
The company's Revenue surged on 12.4% in FY2018. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin increased slightly on 1.6 pp from 8.7% to 10.2% in FY2018.
Gross Margin showed almost no change in FY2018. SG&A as a % of Revenue showed almost no change in FY2018.
Net Income marign showed almost no change in FY2018.
Capital expenditures (CAPEX) and working capital investments
In FY2018 the company had CAPEX/Revenue of 0.30%. The company showed small CAPEX/Revenue decline of 1.7 pp from 2.0% in FY2015 to 0.30% in FY2018. It's average level of CAPEX/Revenue for the last three years was 0.91%.
Return on investment
The company operates at low ROIC (4.64%) and ROE (7.42%). ROIC increased slightly on 1.00 pp from 3.6% to 4.6% in FY2018. ROE showed almost no change in FY2018.
Company's Net Debt / EBITDA is 1.1x and Debt / EBITDA is 2.2x. Net Debt / EBITDA dropped on 0.6x from 1.7x to 1.1x in FY2018. Debt surged on 15.6% in FY2018 while cash jumped on 74.5% in FY2018.
Trakm8 Hldgs's trades at EV/EBITDA 12.3x and P/E 22.0x.
Appendix 1: Peers in Technology Hardware & Equipment
Below we provide Trakm8 Hldgs benchmarking against other companies in Technology Hardware & Equipment industry for the last 5 years. We show data for the top-5 companies by key financial metric together with the median value for all the companies in the industry.