Somero Enterprise Inc is a growth stock to keep your eyes on
08 Mar 2016 • About Somero Enterprise Inc (
$SOMA) • By InTwits
Pay attention to Somero Enterprise Inc as a growth stock. Its revenue performance, profitability and healthy financial model stands it out vs. other public companies on the market.
Growth story
Somero Enterprise Inc showed fast growth in the last financial year. Somero Enterprise Inc's revenue surged on 18.5% in FY2015. In addition to revenue Somero Enterprise Inc also keeps delivering EBITDA growth. It was 22.2% in FY2015
If we look for the longer period Somero Enterprise Inc showed fast revenue growth of 29.7% from 2012 to 2015 annually. EBITDA surged on 69.9% from 2012 to 2015 annually.
Somero Enterprise Inc ($SOMA) financials for the last 5 years
| mln. $ | 2011 | 2012 | 2013 | 2014 | 2015 |
|---|
| Revenue | 22 | 32 | 45 | 59 | 70 |
|---|
| Revenue growth, % | | 47.1% | 40.1% | 31.5% | 18.5% |
|---|
| Gross margin, % | 46.7% | 48.7% | 52.2% | 54.0% | 55.8% |
|---|
| SG&A, % | | | 36.1% | 30.8% | 29.3% |
|---|
| EBITDA | 1 | 4 | 11 | 16 | 20 |
|---|
| EBITDA growth, % | | 380.3% | 166.6% | 50.6% | 22.2% |
|---|
| EBITDA margin, % | 3.85% | 12.6% | 23.9% | 27.4% | 28.2% |
|---|
| Net Income | -2 | 1 | 5 | 15 | 12 |
|---|
| Net Income margin, % | -10.7% | 3.17% | 11.9% | 24.5% | 16.4% |
|---|
| |
| CAPEX | 0 | 1 | 1 | 1 | 4 |
|---|
| CAPEX/Revenue, % | 0.608% | 1.72% | 1.76% | 2.06% | 5.93% |
|---|
| Debt | 5 | 3 | 3 | 1 | 1 |
|---|
| Cash | 0 | 1 | 6 | 8 | 14 |
|---|
| Net Debt/EBITDA | 5.5x | 0.5x | -0.3x | -0.4x | -0.6x |
|---|
| |
| ROIC, % | -7.0% | 6.0% | 34.1% | 51.7% | 54.3% |
|---|
| ROE, % | -11.6% | 5.2% | 24.5% | 53.2% | 33.5% |
|---|
Profitability and return on investment
Margin expansion supported EBITDA growth. EBITDA margin increased slightly on 0.800 pp from 27.4% to 28.2% in 2015. In the longer period Somero Enterprise Inc's EBITDA margin surged on 15.6 pp from 12.6% in 2012 to 28.2% in 2015.
Somero Enterprise Inc shows attractive ROIC at 54.3% for the last 12 months which assumes stable development model. During the last three years it surged - it was 6.01% in FY2012. It's average level of ROIC for the last three years was 46.7%.
The company's Net Income margin dropped on 8.10 pp from 24.5% to 16.4% in 2015. If we look for the longer period the company's Net Income margin surged on 13.2 pp from 3.20% in 2012 to 16.4% in 2015.
Somero Enterprise Inc operates at ROE of 33.5%. Average ROE for the last three years was 37.0%.
Capital expenditures (CAPEX)
To this fast growth Somero Enterprise Inc had to invest in CAPEX.The company's CAPEX/Revenue was 5.93% in FY2015. CAPEX/Revenue surged on 4.20 pp from 1.72% in 2012 to 5.93% in 2015. For the last three years the average CAPEX/Revenue was 3.25%.
Leverage (Debt)
Having such a fast growth profile Somero Enterprise Inc keeps negative net debt at -0.6x Net Debt/EBITDA. In the last 3 years Somero Enterprise Inc's leverage dropped on 1.11x from 0.47x in 2012 to -0.64x in 2015.
Peers in Industrial Engineering
Below you can find Somero Enterprise Inc benchmarking vs. other companies in Industrial Engineering 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 |
|---|
| Pressure Technologies ($PRES) | | 31.6% | 12.9% | 57.1% | -0.4% |
| Avingtrans ($AVG) | | -11.3% | 40.8% | 33.1% | -62.6% |
| Energy Technique ($ETQ) | | 22.6% | 6.4% | 26.7% | 12.7% |
| Northbridge Industrial Services ($NBI) | 28.9% | 23.7% | 22.0% | 19.4% | |
| Ab Dynamics ($ABDP) | | 36.9% | 36.8% | 13.8% | 19.3% |
| |
|---|
| Median (22 companies) | 19.2% | 11.6% | 4.5% | -0.1% | -0.2% |
|---|
| Somero Enterprise Inc ($SOMA) | | 47.1% | 40.1% | 31.5% | 18.5% |
Top companies by Gross margin, %
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| Northbridge Industrial Services ($NBI) | 59.0% | 57.0% | 54.0% | 48.4% | |
| Rotork ($76ID) | | 46.8% | 47.4% | 48.0% | 45.7% |
| Hydro International ($HYD) | 40.0% | 37.3% | 39.4% | 45.3% | 46.4% |
| Mincon Group ($MCON) | 51.6% | 42.6% | 49.1% | 43.2% | |
| Slingsby(H.C.) ($SLNG) | 44.5% | | | 40.0% | |
| |
|---|
| Median (20 companies) | 30.1% | 30.3% | 28.9% | 29.7% | 31.1% |
|---|
| Somero Enterprise Inc ($SOMA) | 46.7% | 48.7% | 52.2% | 54.0% | 55.8% |
Top companies by EBITDA margin, %
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| Northbridge Industrial Services ($NBI) | 30.9% | 30.3% | 29.2% | 32.4% | |
| Rotork ($76ID) | | 27.0% | 27.6% | 28.0% | 25.0% |
| Mincon Group ($MCON) | 34.0% | 22.9% | 30.0% | 22.7% | |
| Ab Dynamics ($ABDP) | 12.3% | 21.3% | 18.9% | 20.1% | 24.0% |
| Pressure Technologies ($PRES) | 8.4% | 9.9% | 13.0% | 14.5% | 10.0% |
| |
|---|
| Median (22 companies) | 8.4% | 8.5% | 7.9% | 7.4% | 7.9% |
|---|
| Somero Enterprise Inc ($SOMA) | 3.8% | 12.6% | 23.9% | 27.4% | 28.2% |
Top companies by CAPEX/Revenue, %
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| Braime(T.F.& J.H.)(Hldgs) ($BMTO) | 1.6% | 2.3% | 9.6% | 5.6% | |
| Avingtrans ($AVG) | 2.7% | 8.6% | 4.6% | 5.0% | 3.7% |
| Mincon Group ($MCON) | 3.4% | 8.0% | 4.1% | 4.3% | |
| Mitsubishi Electric Corp ($MEL) | 3.0% | 4.4% | 4.2% | 3.7% | 4.6% |
| Hms Hydraulic Mach & Sys Grp ($HMSG) | 4.1% | 4.4% | 4.5% | 3.6% | |
| |
|---|
| Median (22 companies) | 2.6% | 2.4% | 2.3% | 2.4% | 2.2% |
|---|
| Somero Enterprise Inc ($SOMA) | 0.6% | 1.7% | 1.8% | 2.1% | 5.9% |
Top companies by ROIC, %
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| Energy Technique ($ETQ) | -14.3% | 18.9% | 19.3% | 47.5% | 41.6% |
| Rotork ($76ID) | | 50.0% | 45.4% | 38.1% | 21.9% |
| Ab Dynamics ($ABDP) | | 44.4% | 34.3% | 28.4% | 31.4% |
| Pressure Technologies ($PRES) | 6.4% | 11.6% | 20.7% | 22.1% | 3.9% |
| Northbridge Industrial Services ($NBI) | 13.0% | 12.6% | 12.5% | 12.6% | |
| |
|---|
| Median (22 companies) | 14.2% | 14.6% | 12.1% | 11.0% | 8.6% |
|---|
| Somero Enterprise Inc ($SOMA) | -7.0% | 6.0% | 34.1% | 51.7% | 54.3% |
Top companies by Net Debt / EBITDA
| FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Top 5 |
|---|
| Tricorn Group ($TCN) | 0.0x | -0.3x | 0.9x | 5.8x | 4.0x |
| Renold ($RNO) | | 1.3x | | 5.4x | 1.1x |
| Hms Hydraulic Mach & Sys Grp ($HMSG) | 0.9x | 2.3x | 2.0x | 5.2x | |
| Amiad Water Systems Ltd ($AFS) | | 1.2x | 1.4x | 3.0x | |
| 600 Group ($SIXH) | 2.7x | | 3.2x | 2.2x | 3.1x |
| |
|---|
| Median (19 companies) | 0.1x | -0.3x | 0.4x | 0.3x | 0.5x |
|---|
| Somero Enterprise Inc ($SOMA) | 5.5x | 0.5x | -0.3x | -0.4x | -0.6x |
