Chamberlin Debt dropped on 15.8% in 2016 and Net Debt / EBITDA decreased on 0.028x from 2.2x to 2.2x
24 May 2016 • About Chamberlin (
$CMH) • By InTwits
Chamberlin reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Chamberlin is a company in decline: FY2016 revenue growth was -14.3%, 5 years revenue CAGR was -2.5%
- EBITDA Margin is quite volatile: 4.2% in FY2016, 4.2% in FY2015, -1.2% in FY2014, 5.5% in FY2013, 6.3% in FY2012
- Chamberlin has low CAPEX intensity: 5 year average CAPEX/Revenue was 3.1%. At the same time it's in pair with industry average of 3.0%.
- CAPEX is quite volatile: 0.81 in FY2016, 0.71 in FY2015, 0.44 in FY2014, 0.23 in FY2013, 0.18 in FY2012
- The company has potentially unprofitable business model: ROIC is at 1.6%
- It operates with high leverage: Net Debt/EBITDA is 2.2x while industry average is -32.1x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Chamberlin ($CMH) key annual financial indicators
| mln. £ | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 45.532 | 42.197 | 38.562 | 40.835 | 34.988 | -14.3% |
| Gross Profit | 8.880 | 8.051 | 6.149 | 8.223 | 7.331 | -10.8% |
| SG&A | 7.145 | 6.798 | 6.905 | 7.236 | 6.501 | -10.2% |
| EBITDA | 2.887 | 2.304 | -0.478 | 1.718 | 1.465 | -14.7% |
| Net Income | 1.247 | 0.747 | -1.604 | 0.016 | -0.261 | -1,731.3% |
Balance Sheet
|
|---|
| Cash | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | |
| Short Term Debt | 1.558 | 0.981 | 3.041 | 3.392 | 2.941 | -13.3% |
| Long Term Debt | 0.000 | 0.000 | 0.600 | 0.400 | 0.251 | -37.3% |
Cash flow
|
|---|
| Capex | 1.185 | 1.353 | 1.018 | 1.261 | 1.468 | 16.4% |
Ratios
|
|---|
| Revenue growth | 14.4% | -7.3% | -8.6% | 5.9% | -14.3% | |
| EBITDA growth | 64.5% | -20.2% | -120.7% | -459.4% | -14.7% | |
| Gross Margin | 19.5% | 19.1% | 15.9% | 20.1% | 21.0% | 0.8% |
| EBITDA Margin | 6.3% | 5.5% | -1.2% | 4.2% | 4.2% | -0.0% |
| Net Income Margin | 2.7% | 1.8% | -4.2% | 0.0% | -0.7% | -0.8% |
| SG&A, % of revenue | 15.7% | 16.1% | 17.9% | 17.7% | 18.6% | 0.9% |
| CAPEX, % of revenue | 2.6% | 3.2% | 2.6% | 3.1% | 4.2% | 1.1% |
| ROIC | 15.7% | 10.7% | -21.5% | 4.7% | 1.6% | -3.1% |
| ROE | 14.8% | 8.6% | -21.1% | 0.2% | -4.7% | -4.9% |
| Net Debt/EBITDA | 0.5x | 0.4x | | 2.2x | 2.2x | -0.0x |
Revenue and profitability
The company's Revenue dropped on 14.3% in FY2016. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased slightly on 0.88 pp from 7.2% to 8.1% in FY2016.
Gross Margin increased slightly on 0.82 pp from 20.1% to 21.0% in FY2016. SG&A as a % of Revenue increased slightly on 0.86 pp from 17.7% to 18.6% in FY2016.
Net Income marign decreased slightly on 0.79 pp from 0.039% to -0.75% in FY2016.
Capital expenditures (CAPEX) and working capital investments
In FY2016 Chamberlin had CAPEX/Revenue of 4.2%. The company showed small growth in CAPEX/Revenue of 0.99 pp from 3.2% in FY2013 to 4.2% in FY2016. Average CAPEX/Revenue for the last three years was 3.3%.Battling declining revenue Chamberlin made large investments to CAPEX (100% of EBITDA) but that didn't help at least in this year.
Return on investment
The company operates at low but positive ROIC (1.56%) and negative ROE (-4.66%). ROIC decreased on 3.1 pp from 4.7% to 1.6% in FY2016. ROE decreased on 4.9 pp from 0.25% to -4.7% in FY2016.
Leverage (Debt)
Company's Net Debt / EBITDA is 2.2x and Debt / EBITDA is 2.2x. Net Debt / EBITDA decreased on 0.028x from 2.2x to 2.2x in FY2016. Debt dropped on 15.8% in FY2016 while cash didn't change in FY2016.
Appendix 1: Peers in Industrial Engineering
Below you can find Chamberlin 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 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Mincon Group ($MCON) | 53.5% | -17.1% | 4.2% | 28.8% | |
| Ab Dynamics ($ABDP) | 36.9% | 36.8% | 13.8% | 19.3% | |
| Flowtech Fluidpower ($FLO) | -5.8% | -5.1% | 17.7% | 18.7% | |
| Somero Enterprise Inc ($SOMA) | 47.1% | 40.1% | 31.5% | 18.5% | |
| Hydro International ($HYD) | 11.7% | -7.2% | -0.1% | 17.7% | |
| |
|---|
| Median (22 companies) | 11.6% | 6.1% | 2.8% | 0.2% | 1.6% |
|---|
| Chamberlin ($CMH) | | -7.3% | -8.6% | 5.9% | -14.3% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Somero Enterprise Inc ($SOMA) | 48.7% | 52.2% | 54.0% | 55.8% | |
| Hydro International ($HYD) | 37.3% | 39.4% | 45.3% | 46.4% | |
| Rotork ($76ID) | 46.8% | 47.4% | 48.0% | 45.7% | 44.3% |
| Northbridge Industrial Services ($NBI) | 57.0% | 54.0% | 48.4% | 43.4% | |
| Amiad Water Systems Ltd ($AFS) | 42.8% | 40.8% | 38.9% | 40.5% | |
| |
|---|
| Median (20 companies) | 31.3% | 30.0% | 33.2% | 33.6% | 37.2% |
|---|
| Chamberlin ($CMH) | 19.5% | 19.1% | 15.9% | 20.1% | 21.0% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Northbridge Industrial Services ($NBI) | 30.3% | 29.2% | 32.4% | 32.5% | |
| Somero Enterprise Inc ($SOMA) | 12.6% | 23.9% | 27.4% | 28.2% | |
| Rotork ($76ID) | 27.0% | 27.6% | 28.0% | 25.0% | 22.8% |
| Ab Dynamics ($ABDP) | 21.3% | 18.9% | 20.1% | 24.0% | |
| Mincon Group ($MCON) | 22.9% | 30.0% | 22.7% | 17.6% | |
| |
|---|
| Median (22 companies) | 9.0% | 8.2% | 7.5% | 8.8% | 10.4% |
|---|
| Chamberlin ($CMH) | 6.3% | 5.5% | -1.2% | 4.2% | 4.2% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Pressure Technologies ($PRES) | 2.4% | 2.3% | 3.3% | 11.6% | |
| Somero Enterprise Inc ($SOMA) | 1.7% | 1.8% | 2.1% | 5.9% | |
| Mitsubishi Electric Corp ($MEL) | 4.4% | 4.2% | 3.7% | 4.6% | 4.1% |
| Ab Dynamics ($ABDP) | 2.2% | 5.6% | 2.5% | 4.2% | |
| Braime(T.F.& J.H.)(Hldgs) ($BMTO) | 2.3% | 9.6% | 5.6% | 3.8% | |
| |
|---|
| Median (22 companies) | 2.4% | 2.0% | 2.4% | 2.2% | 4.1% |
|---|
| Chamberlin ($CMH) | 2.6% | 3.2% | 2.6% | 3.1% | 4.2% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Somero Enterprise Inc ($SOMA) | 6.0% | 34.1% | 51.7% | 54.3% | |
| Energy Technique ($ETQ) | 18.9% | 19.3% | 47.5% | 41.6% | |
| Renold ($RNO) | 18.8% | -12.7% | -2.5% | 41.3% | 39.1% |
| Ab Dynamics ($ABDP) | 44.4% | 34.3% | 28.4% | 31.4% | |
| Rotork ($76ID) | 50.0% | 45.4% | 38.1% | 21.9% | 17.0% |
| |
|---|
| Median (22 companies) | 13.5% | 12.3% | 11.0% | 10.0% | 17.0% |
|---|
| Chamberlin ($CMH) | 15.7% | 10.7% | -21.5% | 4.7% | 1.6% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Tricorn Group ($TCN) | -0.3x | 0.9x | 5.8x | 4.0x | |
| Avingtrans ($AVG) | 3.1x | 0.7x | 1.2x | 3.6x | |
| 600 Group ($SIXH) | | 3.2x | 2.2x | 3.1x | |
| Hms Hydraulic Mach & Sys Grp ($HMSG) | 2.3x | 2.0x | 5.2x | 2.1x | |
| Braime(T.F.& J.H.)(Hldgs) ($BMTO) | 0.6x | 1.2x | 1.4x | 1.5x | |
| |
|---|
| Median (22 companies) | 0.1x | 0.2x | 0.3x | 0.6x | 0.4x |
|---|
| Chamberlin ($CMH) | 0.5x | 0.4x | | 2.2x | 2.2x |
