Elektron Technology EBITDA increased on 9.4% in 2016 and EBITDA Margin increased slightly on 0.88 pp from 7.2% to 8.1%
09 Jun 2016 • About Elektron Technology (
$EKT) • By InTwits
Elektron Technology reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Elektron Technology is a company in decline: FY2016 revenue growth was -2.5%, 5 years revenue CAGR was -2.9%
- Elektron Technology has low CAPEX intensity: 5 year average CAPEX/Revenue was 2.0%. At the same time it's in pair with industry average of 2.1%.
- CAPEX is quite volatile: 0.80 in FY2016, 0.50 in FY2015, 0.70 in FY2014, 1.5 in FY2013, 1.9 in FY2012
- The company has potentially unprofitable business model: ROIC is at 7.0%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Elektron Technology ($EKT) key annual financial indicators
| mln. £ | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 63.100 | 55.700 | 46.300 | 44.400 | 43.300 | -2.5% |
| Gross Profit | 25.600 | 20.900 | 16.100 | 15.800 | 16.100 | 1.9% |
| SG&A | | | | | 14.900 | |
| EBITDA | 6.100 | 3.000 | 2.100 | 3.200 | 3.500 | 9.4% |
| Net Income | 1.900 | -0.400 | -6.700 | 0.200 | 0.600 | 200.0% |
Balance Sheet
|
|---|
| Cash | 0.800 | 1.200 | 0.800 | 0.600 | 0.600 | 0.0% |
| Short Term Debt | 3.900 | 1.000 | 5.200 | 2.300 | 2.200 | -4.3% |
| Long Term Debt | 1.300 | 5.200 | 3.600 | 1.000 | 0.000 | -100.0% |
Cash flow
|
|---|
| Capex | 1.900 | 1.500 | 0.700 | 0.500 | 0.800 | 60.0% |
Ratios
|
|---|
| Revenue growth | 26.1% | -11.7% | -16.9% | -4.1% | -2.5% | |
| EBITDA growth | -9.0% | -50.8% | -30.0% | 52.4% | 9.4% | |
| Gross Margin | 40.6% | 37.5% | 34.8% | 35.6% | 37.2% | 1.6% |
| EBITDA Margin | 9.7% | 5.4% | 4.5% | 7.2% | 8.1% | 0.9% |
| Net Income Margin | 3.0% | -0.7% | -14.5% | 0.5% | 1.4% | 0.9% |
| SG&A, % of revenue | | | | | 34.4% | 34.4% |
| CAPEX, % of revenue | 3.0% | 2.7% | 1.5% | 1.1% | 1.8% | 0.7% |
| ROIC | 24.1% | 7.9% | 3.3% | 9.9% | 7.0% | -2.9% |
| ROE | 12.5% | -2.7% | -61.8% | 2.2% | 5.3% | 3.1% |
| Net Debt/EBITDA | 0.7x | 1.7x | 3.8x | 0.8x | 0.5x | -0.4x |
Revenue and profitability
The company's Revenue decreased on 2.5% in FY2016. Despite revenue decline the EBITDA margin expanded. EBITDA Margin increased slightly on 0.88 pp from 7.2% to 8.1% in FY2016.
Gross Margin increased slightly on 1.6 pp from 35.6% to 37.2% in FY2016.
Net Income marign increased slightly on 0.94 pp from 0.45% to 1.4% in FY2016.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 1.8% in FY2016. Elektron Technology's CAPEX/Revenue decreased slightly on 0.85 pp from 2.7% in FY2013 to 1.8% in FY2016. It's average CAPEX/Revenue for the last three years was 1.5%.
Return on investment
The company operates at low ROIC (6.97%) and ROE (5.33%). ROIC decreased on 2.9 pp from 9.9% to 7.0% in FY2016. ROE increased on 3.1 pp from 2.2% to 5.3% in FY2016.
Leverage (Debt)
Company's Net Debt / EBITDA is 0.5x and Debt / EBITDA is 0.6x. Net Debt / EBITDA dropped on 0.4x from 0.8x to 0.5x in FY2016. Debt dropped on 33.3% in FY2016 while cash didn't change in FY2016.
Appendix 1: Peers in Electronic & Electrical Equipment
Below we provide Elektron Technology benchmarking against other companies in Electronic & Electrical 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.
Top companies by Revenue growth, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Stadium Group ($SDM) | -8.8% | 3.0% | -1.1% | 29.0% | |
| Flowgroup ($FLOW) | -92.9% | 125,263.6% | 141.9% | 21.1% | |
| Solid State ($SSP) | 22.2% | 21.7% | 1.9% | 13.9% | |
| Zytronic ($ZYT) | -0.3% | -15.4% | 9.3% | 12.6% | |
| Apc Technology Group ($APC) | -5.4% | 58.7% | -4.7% | 10.4% | |
| |
|---|
| Median (12 companies) | -2.8% | -4.9% | -1.1% | 2.4% | -6.8% |
|---|
| Elektron Technology ($EKT) | | -11.7% | -16.9% | -4.1% | -2.5% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Zytronic ($ZYT) | 36.3% | 30.8% | 36.6% | 41.9% | |
| Solid State ($SSP) | 27.8% | 26.1% | 29.2% | 30.5% | |
| Maruwa Co Ltd ($MAW) | 31.6% | 28.6% | 32.8% | 30.0% | 35.9% |
| Lpa Group ($LPA) | 28.3% | 27.2% | 29.6% | 27.4% | |
| Holders Technology ($HDT) | 24.6% | 29.3% | 24.1% | 25.0% | |
| |
|---|
| Median (10 companies) | 27.3% | 26.1% | 24.1% | 24.1% | 25.9% |
|---|
| Elektron Technology ($EKT) | 40.6% | 37.5% | 34.8% | 35.6% | 37.2% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Zytronic ($ZYT) | 25.3% | 18.8% | 22.9% | 27.8% | |
| Maruwa Co Ltd ($MAW) | 22.3% | 17.7% | 17.8% | 14.7% | 19.6% |
| Dewhurst ($DWHA) | 12.9% | 12.6% | 13.7% | 14.7% | |
| Morgan Advanced Materials ($BA29) | 13.7% | 13.1% | 9.8% | 12.8% | 14.6% |
| Stadium Group ($SDM) | 6.1% | 7.1% | 9.9% | 12.1% | |
| |
|---|
| Median (12 companies) | 6.6% | 5.3% | 5.7% | 7.1% | 14.6% |
|---|
| Elektron Technology ($EKT) | 9.7% | 5.4% | 4.5% | 7.2% | 8.1% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Morgan Advanced Materials ($BA29) | 2.9% | 3.8% | 3.7% | 7.0% | 4.0% |
| Maruwa Co Ltd ($MAW) | 23.8% | 15.3% | 7.6% | 6.5% | 4.4% |
| Zytronic ($ZYT) | 3.6% | 2.8% | 1.4% | 4.7% | |
| Stadium Group ($SDM) | 1.0% | 0.8% | 0.5% | 2.7% | |
| Dewhurst ($DWHA) | 2.7% | 1.3% | 0.9% | 1.9% | |
| |
|---|
| Median (12 companies) | 2.9% | 2.0% | 1.3% | 1.6% | 4.0% |
|---|
| Elektron Technology ($EKT) | 3.0% | 2.7% | 1.5% | 1.1% | 1.8% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Dewhurst ($DWHA) | 29.2% | 20.7% | 24.5% | 27.3% | |
| Zytronic ($ZYT) | 23.0% | 11.9% | 17.0% | 22.7% | |
| Solid State ($SSP) | 22.3% | 19.7% | 44.5% | 20.0% | |
| Stadium Group ($SDM) | 16.5% | 17.6% | 17.3% | 19.3% | |
| Morgan Advanced Materials ($BA29) | 17.9% | 16.3% | 10.9% | 18.4% | 21.9% |
| |
|---|
| Median (12 companies) | 13.8% | 6.7% | 7.0% | 3.9% | 9.0% |
|---|
| Elektron Technology ($EKT) | 24.1% | 7.9% | 3.3% | 9.9% | 7.0% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Walsin Lihwa Corp ($WALS) | 5.3x | 8.7x | 3.9x | 4.6x | |
| Lpa Group ($LPA) | 1.9x | 0.7x | 1.5x | 3.8x | |
| Morgan Advanced Materials ($BA29) | 1.4x | 1.5x | 2.3x | 1.8x | 1.7x |
| Solid State ($SSP) | 1.4x | 1.2x | 0.4x | 0.7x | |
| Stadium Group ($SDM) | -0.0x | -0.0x | 1.2x | 0.3x | |
| |
|---|
| Median (9 companies) | 0.7x | 0.3x | 0.8x | 0.3x | 0.3x |
|---|
| Elektron Technology ($EKT) | 0.7x | 1.7x | 3.8x | 0.8x | 0.5x |
