Ms International reports 17.1% EBITDA growth and 8.3% Revenue growth
10 Jun 2016 • About Ms International (
$MSI) • By InTwits
Ms International reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is quite volatile: 7.5% in FY2016, 6.9% in FY2015, 10.1% in FY2014, 12.5% in FY2013, 18.4% in FY2012
- Ms International has low CAPEX intensity: 5 year average CAPEX/Revenue was 3.1%. At the same time it's in pair with industry average of 3.2%.
- CAPEX is quite volatile: 2.3 in FY2016, 0.83 in FY2015, 0.94 in FY2014, 1.3 in FY2013, 2.7 in FY2012
- The company has business model with low profitability: ROIC is at 7.1%
- It operates with high leverage: Net Debt/EBITDA is -3.5x while industry average is -31.6x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Ms International ($MSI) key annual financial indicators
| mln. £ | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 55.948 | 54.494 | 47.130 | 45.503 | 49.282 | 8.3% |
| Gross Profit | 19.234 | 15.184 | 12.864 | 10.740 | 12.869 | 19.8% |
| SG&A | | | 6.954 | 6.643 | 7.909 | 19.1% |
| EBITDA | 10.291 | 6.799 | 4.746 | 3.137 | 3.672 | 17.1% |
| Net Income | 6.310 | 4.420 | 2.574 | 1.353 | 1.584 | 17.1% |
Balance Sheet
|
|---|
| Cash | 10.037 | 13.447 | 14.286 | 17.148 | 12.758 | -25.6% |
| Short Term Debt | | 0.000 | 0.000 | 0.000 | 0.000 | |
| Long Term Debt | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | |
Cash flow
|
|---|
| Capex | 2.711 | 1.252 | 0.940 | 0.833 | 2.330 | 179.7% |
Ratios
|
|---|
| Revenue growth | 3.2% | -2.6% | -13.5% | -3.5% | 8.3% | |
| EBITDA growth | 28.8% | -33.9% | -30.2% | -33.9% | 17.1% | |
| Gross Margin | 34.4% | 27.9% | 27.3% | 23.6% | 26.1% | 2.5% |
| EBITDA Margin | 18.4% | 12.5% | 10.1% | 6.9% | 7.5% | 0.6% |
| Net Income Margin | 11.3% | 8.1% | 5.5% | 3.0% | 3.2% | 0.2% |
| SG&A, % of revenue | | | 14.8% | 14.6% | 16.0% | 1.4% |
| CAPEX, % of revenue | 4.8% | 2.3% | 2.0% | 1.8% | 4.7% | 2.9% |
| ROIC | 30.7% | 17.6% | 11.0% | 5.9% | 7.1% | 1.2% |
| ROE | 23.3% | 15.4% | 8.8% | 4.7% | 5.6% | 0.9% |
| Net Debt/EBITDA | -1.0x | -2.0x | -3.0x | -5.5x | -3.5x | 2.0x |
Revenue and profitability
The company's Revenue increased on 8.3% in FY2016. Despite revenue decline the EBITDA margin expanded. EBITDA Margin increased on 6.6 pp from 20.8% to 27.3% in FY2016.
Gross Margin increased on 2.5 pp from 23.6% to 26.1% in FY2016. SG&A as a % of Revenue increased slightly on 1.4 pp from 14.6% to 16.0% in FY2016.
Net Income marign showed almost no change in FY2016.
Capital expenditures (CAPEX) and working capital investments
Ms International's CAPEX/Revenue was 4.7% in FY2016. The company showed CAPEX/Revenue growth of 2.4 pp from 2.3% in FY2013 to 4.7% in FY2016. Average CAPEX/Revenue for the last three years was 2.9%.Ms International maintained rich investment policy and has spent a big chunk of EBITDA (63.5%) to CAPEX.
Return on investment
The company operates at low ROIC (7.09%) and ROE (5.62%). ROIC increased slightly on 1.2 pp from 5.9% to 7.1% in FY2016. ROE increased slightly on 0.91 pp from 4.7% to 5.6% in FY2016.
Leverage (Debt)
The company has no debt. Cash dropped on 25.6% in FY2016.
Appendix 1: Peers in Industrial Engineering
Below we provide Ms International benchmarking against other companies in Industrial Engineering 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 |
|---|
| 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 ($SOMA) | 47.1% | 40.1% | 31.5% | 18.5% | |
| |
|---|
| Median (23 companies) | 11.6% | 6.1% | 2.8% | 5.0% | -8.9% |
|---|
| Ms International ($MSI) | | -2.6% | -13.5% | -3.5% | 8.3% |
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 ($AFS) | 42.8% | 40.8% | 38.9% | 40.5% | |
| |
|---|
| Median (21 companies) | 31.0% | 30.0% | 33.2% | 34.2% | 35.2% |
|---|
| Ms International ($MSI) | 34.4% | 27.9% | 27.3% | 23.6% | 26.1% |
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 ($MCON) | 22.9% | 30.0% | 22.7% | 17.6% | |
| |
|---|
| Median (23 companies) | 8.6% | 8.0% | 7.4% | 8.2% | 10.2% |
|---|
| Ms International ($MSI) | 18.4% | 12.5% | 10.1% | 6.9% | 7.5% |
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) ($BMTO) | 2.3% | 9.6% | 5.6% | 3.8% | |
| |
|---|
| Median (23 companies) | 2.4% | 2.0% | 2.4% | 2.2% | 4.1% |
|---|
| Ms International ($MSI) | 4.8% | 2.3% | 2.0% | 1.8% | 4.7% |
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 ($76ID) | 50.0% | 45.4% | 38.1% | 21.9% | 17.0% |
| |
|---|
| Median (23 companies) | 13.5% | 11.4% | 10.8% | 9.5% | 12.8% |
|---|
| Ms International ($MSI) | 30.7% | 17.6% | 11.0% | 5.9% | 7.1% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Tricorn Group ($TCN) | -0.3x | 0.9x | 5.8x | 4.0x | 7.2x |
| Slingsby(H.C.) ($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 ($CMH) | 0.5x | 0.4x | | 2.2x | 2.2x |
| |
|---|
| Median (23 companies) | 0.5x | 0.6x | 0.6x | 1.1x | 1.3x |
|---|
| Ms International ($MSI) | -1.0x | -2.0x | -3.0x | -5.5x | -3.5x |
