Amiad Water Systems Ltd EBITDA surged on 72.4% in 2015 and EBITDA Margin increased on 4.3 pp from 6.0% to 10.2%
24 Mar 2016 • About Amiad Water Systems Ltd (
$AFS) • By InTwits
Amiad Water Systems Ltd reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Amiad Water Systems Ltd has low CAPEX intensity: 5 year average CAPEX/Revenue was 2.6%. At the same time it's in pair with industry average of 3.1%.
- CAPEX is quite volatile: 2.1 in 2015, 2.6 in 2014, 2.4 in 2013, 5.1 in 2012, 4.0 in 2011
- The company has business model with average profitability: ROIC is at 10.2%
- It operates with high leverage: Net Debt/EBITDA is 0.7x while industry average is 0.5x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Amiad Water Systems Ltd ($AFS) key annual financial indicators
| mln. $ | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 117.3 | 130.8 | 118.8 | 118.5 | 118.8 | 0.3% |
| Gross Profit | 51.2 | 56.0 | 48.4 | 46.1 | 48.1 | 4.6% |
| SG&A | | | | 39.6 | 36.5 | -7.7% |
| EBITDA | | 14.3 | 9.6 | 7.1 | 12.2 | 72.4% |
| Net Income | 7.1 | 8.1 | 3.7 | -1.0 | 4.9 | -589.2% |
Balance Sheet
|
|---|
| Cash | 11.8 | 14.3 | 14.9 | 14.1 | 17.0 | 20.8% |
| Short Term Debt | 16.7 | 13.4 | 10.5 | 23.2 | 14.2 | -38.9% |
| Long Term Debt | 16.8 | 18.2 | 18.0 | 12.2 | 11.7 | -4.4% |
Cash flow
|
|---|
| Capex | 4.0 | 5.1 | 2.4 | 2.6 | 2.1 | -19.3% |
Ratios
|
|---|
| Revenue growth | 31.1% | 11.5% | -9.2% | -0.3% | 0.3% | |
| EBITDA growth | | | -33.2% | -26.2% | 72.4% | |
| Gross Margin | 43.6% | 42.8% | 40.8% | 38.9% | 40.5% | 1.7% |
| EBITDA Margin | 0.0% | 10.9% | 8.0% | 6.0% | 10.2% | 4.3% |
| Net Income Margin | 6.0% | 6.2% | 3.1% | -0.8% | 4.1% | 5.0% |
| SG&A, % of revenue | | | | 33.4% | 30.7% | -2.7% |
| CAPEX, % of revenue | 3.4% | 3.9% | 2.0% | 2.2% | 1.8% | -0.4% |
| ROIC | 11.5% | 12.8% | 6.8% | 4.0% | 10.2% | 6.3% |
| ROE | 14.8% | 15.5% | 6.7% | -1.9% | 9.1% | 10.9% |
| Net Debt/EBITDA | | 1.2x | 1.4x | 3.0x | 0.7x | -2.3x |
Revenue and profitability
Amiad Water Systems Ltd's Revenue showed almost no change in 2015. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin increased on 4.3 pp from 6.0% to 10.2% in 2015.
Gross Margin increased slightly on 1.7 pp from 38.9% to 40.5% in 2015. SG&A as a % of Revenue decreased on 2.7 pp from 33.4% to 30.7% in 2015.
Net Income marign increased on 5.0 pp from -0.85% to 4.1% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 Amiad Water Systems Ltd had CAPEX/Revenue of 1.8%. The company's CAPEX/Revenue decreased on 2.1 pp from 3.9% in 2012 to 1.8% in 2015. For the last three years the average CAPEX/Revenue was 2.0%.
Return on investment
The company operates at low ROIC (10.24%) and ROE (9.08%). ROIC increased on 6.3 pp from 4.0% to 10.2% in 2015. ROE surged on 10.9 pp from -1.9% to 9.1% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 0.7x and Debt / EBITDA is 2.1x. Net Debt / EBITDA dropped on 2.3x from 3.0x to 0.7x in 2015. Debt dropped on 27.0% in 2015 while cash surged on 20.8% in 2015.
Appendix 1: Peers in Industrial Engineering
Below you can find Amiad Water Systems Ltd 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, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Pressure Technologies ($PRES) | | 31.6% | 12.9% | 57.1% | -0.4% |
| Avingtrans ($AVG) | | -11.3% | 40.8% | 33.1% | -62.6% |
| Somero Enterprise Inc ($SOMA) | | 47.1% | 40.1% | 31.5% | 18.5% |
| Energy Technique ($ETQ) | | 22.6% | 6.4% | 26.7% | 12.7% |
| Northbridge Industrial Services ($NBI) | 28.9% | 23.7% | 22.0% | 19.4% | |
| |
|---|
| Median (22 companies) | 11.3% | 12.6% | 6.3% | 1.4% | 5.0% |
|---|
| Amiad Water Systems Ltd ($AFS) | | 11.5% | -9.2% | -0.3% | 0.3% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Somero Enterprise Inc ($SOMA) | 46.7% | 48.7% | 52.2% | 54.0% | 55.8% |
| Northbridge Industrial Services ($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 ($MCON) | 51.6% | 42.6% | 49.1% | 43.2% | 40.2% |
| |
|---|
| Median (20 companies) | 30.1% | 30.3% | 28.9% | 29.7% | 32.7% |
|---|
| Amiad Water Systems Ltd ($AFS) | 43.6% | 42.8% | 40.8% | 38.9% | 40.5% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Northbridge Industrial Services ($NBI) | 30.9% | 30.3% | 29.2% | 32.4% | |
| Rotork ($76ID) | | 27.0% | 27.6% | 28.0% | 25.0% |
| Somero Enterprise Inc ($SOMA) | 3.8% | 12.6% | 23.9% | 27.4% | 28.2% |
| Mincon Group ($MCON) | 34.0% | 22.9% | 30.0% | 22.7% | 17.6% |
| Ab Dynamics ($ABDP) | 12.3% | 21.3% | 18.9% | 20.1% | 24.0% |
| |
|---|
| Median (22 companies) | 8.3% | 8.5% | 8.0% | 7.4% | 8.2% |
|---|
| Amiad Water Systems Ltd ($AFS) | | 10.9% | 8.0% | 6.0% | 10.2% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Braime(T.F.& J.H.)(Hldgs) ($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% | 2.5% |
| 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) | 2.3% | 2.4% | 2.3% | 2.4% | 2.5% |
|---|
| Amiad Water Systems Ltd ($AFS) | 3.4% | 3.9% | 2.0% | 2.2% | 1.8% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Somero Enterprise Inc ($SOMA) | -7.0% | 6.0% | 34.1% | 51.7% | 54.3% |
| 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 ($PRES) | 6.4% | 11.6% | 20.7% | 22.1% | 3.9% |
| |
|---|
| Median (22 companies) | 14.2% | 14.6% | 12.5% | 11.0% | 10.0% |
|---|
| Amiad Water Systems Ltd ($AFS) | 11.5% | 12.8% | 6.8% | 4.0% | 10.2% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Tricorn Group ($TCN) | 0.0x | -0.3x | 0.9x | 5.8x | 4.0x |
| Avingtrans ($AVG) | 2.0x | 3.1x | 0.7x | 1.2x | 3.6x |
| 600 Group ($SIXH) | 2.7x | | 3.2x | 2.2x | 3.1x |
| Chamberlin ($CMH) | 1.6x | 0.5x | 0.4x | | 2.2x |
| Pressure Technologies ($PRES) | -1.5x | -0.9x | -0.9x | -0.7x | 1.3x |
| |
|---|
| Median (15 companies) | 0.1x | -0.3x | -0.3x | -0.1x | 0.5x |
|---|
| Amiad Water Systems Ltd ($AFS) | | 1.2x | 1.4x | 3.0x | 0.7x |
