Tricorn Group reports 47.5% EBITDA decline and 15.0% Revenue decline
08 Jun 2016 • About Tricorn Group (
$TCN) • By InTwits
Tricorn Group reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Tricorn Group is a company in decline: FY2016 revenue growth was -15.0%, 5 years revenue CAGR was -3.7%
- EBITDA Margin is quite volatile: 2.3% in FY2016, 3.7% in FY2015, 2.7% in FY2014, 10.3% in FY2013, 8.2% in FY2012
- Tricorn Group has low CAPEX intensity: 5 year average CAPEX/Revenue was 2.9%. At the same time it's in pair with industry average of 3.1%.
- CAPEX is quite volatile: 0.63 in FY2016, 0.31 in FY2015, 0.69 in FY2014, 0.98 in FY2013, 0.47 in FY2012
- The company has unprofitable business model: ROIC is at -4.4%
- It operates with high leverage: Net Debt/EBITDA is 7.2x while industry average is -31.7x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Tricorn Group ($TCN) key annual financial indicators
| mln. £ | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 24.706 | 21.347 | 21.222 | 21.186 | 18.016 | -15.0% |
| Gross Profit | 8.221 | 7.793 | 7.652 | 7.634 | 7.264 | -4.8% |
| SG&A | | | 7.669 | 7.458 | 7.231 | -3.0% |
| EBITDA | 2.026 | 2.199 | 0.583 | 0.777 | 0.408 | -47.5% |
| Net Income | 1.156 | 0.994 | -0.863 | -0.745 | -0.552 | -25.9% |
Balance Sheet
|
|---|
| Cash | 2.468 | 0.697 | 1.284 | 0.694 | 0.855 | 23.2% |
| Short Term Debt | 1.514 | 2.385 | 4.511 | 3.808 | 3.677 | -3.4% |
| Long Term Debt | 0.368 | 0.220 | 0.159 | 0.011 | 0.098 | 790.9% |
Cash flow
|
|---|
| Capex | 0.465 | 0.978 | 0.692 | 0.312 | 0.629 | 101.6% |
Ratios
|
|---|
| Revenue growth | 13.5% | -13.6% | -0.6% | -0.2% | -15.0% | |
| EBITDA growth | 36.9% | 8.5% | -73.5% | 33.3% | -47.5% | |
| Gross Margin | 33.3% | 36.5% | 36.1% | 36.0% | 40.3% | 4.3% |
| EBITDA Margin | 8.2% | 10.3% | 2.7% | 3.7% | 2.3% | -1.4% |
| Net Income Margin | 4.7% | 4.7% | -4.1% | -3.5% | -3.1% | 0.5% |
| SG&A, % of revenue | | | 36.1% | 35.2% | 40.1% | 4.9% |
| CAPEX, % of revenue | 1.9% | 4.6% | 3.3% | 1.5% | 3.5% | 2.0% |
| ROIC | 19.5% | 17.3% | -1.2% | 0.4% | -4.4% | -4.8% |
| ROE | 18.5% | 13.3% | -11.7% | -11.2% | -8.9% | 2.4% |
| Net Debt/EBITDA | -0.3x | 0.9x | 5.8x | 4.0x | 7.2x | 3.1x |
Revenue and profitability
The company's Revenue dropped on 15.0% in FY2016. Revenue decline was worsened by EBITDA margin decline. EBITDA Margin decreased slightly on 1.4 pp from 3.7% to 2.3% in FY2016.
Gross Margin increased on 4.3 pp from 36.0% to 40.3% in FY2016. SG&A as a % of Revenue increased on 4.9 pp from 35.2% to 40.1% in FY2016.
Net Income marign showed almost no change in FY2016.
Capital expenditures (CAPEX) and working capital investments
In FY2016 the company had CAPEX/Revenue of 3.5%. Tricorn Group showed small CAPEX/Revenue decline of 1.1 pp from 4.6% in FY2013 to 3.5% in FY2016. It's average CAPEX/Revenue for the last three years was 2.7%.The company has spent a lot to CAPEX (154% of EBITDA) which didn't stop revenue from falling.
Return on investment
The company operates at negative ROIC (-4.42%) and ROE (-8.87%). ROIC decreased on 4.8 pp from 0.36% to -4.4% in FY2016. ROE increased on 2.4 pp from -11.2% to -8.9% in FY2016.
Leverage (Debt)
Debt level is 7.2x Net Debt / EBITDA and 9.3x Debt / EBITDA. Net Debt / EBITDA surged on 3.1x from 4.0x to 7.2x in FY2016. Debt decreased slightly on 1.2% in FY2016 while cash jumped on 23.2% in FY2016.
Appendix 1: Peers in Industrial Engineering
Below you can find Tricorn Group 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 |
|---|
| Slingsby(H.C.) ($SLNG) | -4.2% | -4.3% | -9.9% | 35.5% | |
| Mincon Group ($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 ($SOMA) | 47.1% | 40.1% | 31.5% | 18.5% | |
| |
|---|
| Median (23 companies) | 11.5% | 6.1% | 2.8% | 5.0% | -3.6% |
|---|
| Tricorn Group ($TCN) | | -13.6% | -0.6% | -0.2% | -15.0% |
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 ($AFS) | 42.8% | 40.8% | 38.9% | 40.5% | |
| |
|---|
| Median (21 companies) | 31.0% | 29.9% | 30.2% | 32.9% | 30.1% |
|---|
| Tricorn Group ($TCN) | 33.3% | 36.5% | 36.1% | 36.0% | 40.3% |
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 ($MCON) | 22.9% | 30.0% | 22.7% | 17.6% | |
| |
|---|
| Median (23 companies) | 9.0% | 8.0% | 7.5% | 8.2% | 10.3% |
|---|
| Tricorn Group ($TCN) | 8.2% | 10.3% | 2.7% | 3.7% | 2.3% |
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) ($BMTO) | 2.3% | 9.6% | 5.6% | 3.8% | |
| |
|---|
| Median (23 companies) | 2.4% | 2.0% | 2.4% | 2.2% | 4.2% |
|---|
| Tricorn Group ($TCN) | 1.9% | 4.6% | 3.3% | 1.5% | 3.5% |
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 ($76ID) | 50.0% | 45.4% | 38.1% | 21.9% | 17.0% |
| |
|---|
| Median (23 companies) | 13.5% | 11.4% | 11.0% | 9.5% | 14.9% |
|---|
| Tricorn Group ($TCN) | 19.5% | 17.3% | -1.2% | 0.4% | -4.4% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Slingsby(H.C.) ($SLNG) | -3.3x | -4.6x | -3.7x | 3.7x | |
| Avingtrans ($AVG) | 3.1x | 0.7x | 1.2x | 3.6x | |
| 600 Group ($SIXH) | | 3.2x | 2.2x | 3.1x | |
| Chamberlin ($CMH) | 0.5x | 0.4x | | 2.2x | 2.2x |
| Hms Hydraulic Mach & Sys Grp ($HMSG) | 2.3x | 2.0x | 5.2x | 2.1x | |
| |
|---|
| Median (23 companies) | 0.5x | 0.1x | 0.1x | 0.7x | 0.9x |
|---|
| Tricorn Group ($TCN) | -0.3x | 0.9x | 5.8x | 4.0x | 7.2x |
