Filtronic reports 22.5% revenue decline in FY2016 and 6.8 pp EBITDA Margin decline from -39.7% to -46.5%
02 Aug 2016 • About Filtronic (
$FTC) • By InTwits
Filtronic reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Filtronic is a company in decline: FY2016 revenue growth was -22.5%, 5 years revenue CAGR was -2.6%
- The company operates at negative EBITDA Margin: -46.5%
- Filtronic spends a lot for Stock Based Compensation (SBC): average SBC/Revenue for FY2012-FY2016 is 0.0%. Average EBITDA Margin for the same period was -5.3%0
- Filtronic has low CAPEX intensity: 5 year average CAPEX/Revenue was 2.3%. At the same time it's in pair with industry average of 3.2%.
- CAPEX is quite volatile: 0.17 in FY2016, 0.20 in FY2015, 1.1 in FY2014, 1.5 in FY2013, 0.58 in FY2012
- The company has unprofitable business model: ROIC is at -79.3%
- It operates with high leverage: Net Debt/EBITDA is 9.4x while industry average is 0.7x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Filtronic ($FTC) key annual financial indicators
| mln. £ | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 26.082 | 39.976 | 32.900 | 17.524 | 13.580 | -22.5% |
| EBITDA | 1.465 | 4.318 | 0.641 | -6.949 | -6.310 | -9.2% |
| Net Income | 0.035 | 0.284 | -2.815 | -10.508 | -5.117 | -51.3% |
Balance Sheet
|
|---|
| Cash | 3.745 | 2.375 | 2.531 | 1.087 | 0.990 | -8.9% |
| Short Term Debt | 0.000 | 0.496 | 0.000 | 0.320 | 1.270 | 296.9% |
| Long Term Debt | 0.000 | 0.000 | 0.000 | 0.000 | 0.000 | |
Cash flow
|
|---|
| Capex | 0.579 | 1.532 | 1.058 | 0.201 | 0.172 | -14.4% |
Ratios
|
|---|
| Revenue growth | 68.0% | 53.3% | -17.7% | -46.7% | -22.5% | |
| EBITDA growth | -130.9% | 194.7% | -85.2% | -1,184.1% | -9.2% | |
| EBITDA Margin | 5.6% | 10.8% | 1.9% | -39.7% | -46.5% | -6.8% |
| Net Income Margin | 0.1% | 0.7% | -8.6% | -60.0% | -37.7% | 22.3% |
| CAPEX, % of revenue | 2.2% | 3.8% | 3.2% | 1.1% | 1.3% | 0.1% |
| ROIC | -7.9% | 4.8% | -14.9% | -80.4% | -79.3% | 1.1% |
| ROE | 0.2% | 1.4% | -15.2% | -82.0% | -60.7% | 21.3% |
| Net Debt/EBITDA | -2.6x | -0.4x | -3.9x | | | 0.0x |
Revenue and profitability
Filtronic's Revenue dropped on 22.5% in FY2016. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin jumped on 45.7 pp from -71.9% to -26.2% in FY2016.
Net Income marign surged on 22.3 pp from -60.0% to -37.7% in FY2016.
Capital expenditures (CAPEX) and working capital investments
In FY2016 the company had CAPEX/Revenue of 1.3%. CAPEX/Revenue decreased on 2.6 pp from 3.8% in FY2013 to 1.3% in FY2016. It's average CAPEX/Revenue for the last three years was 1.9%.
Return on investment
The company operates at negative ROIC (-79.26%) and ROE (-60.71%). ROIC increased slightly on 1.1 pp from -80.4% to -79.3% in FY2016. ROE surged on 21.3 pp from -82.0% to -60.7% in FY2016.
Leverage (Debt)
Debt level is 9.4x Net Debt / EBITDA and Debt / EBITDA. Net Debt / EBITDA didn't change in FY2016. Debt surged on 297% in FY2016 while cash decreased on 8.9% in FY2016.
Appendix 1: Peers in Technology Hardware & Equipment
Below you can find Filtronic benchmarking vs. other companies in Technology Hardware & Equipment 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 |
|---|
| Trakm8 Holdings ($TRAK) | | -8.9% | 93.5% | 94.2% | 43.7% |
| Mti Wireless Edge ($MWE) | -13.5% | 5.6% | 6.8% | 36.5% | |
| Concurrent Technologies ($CNC) | -7.3% | -7.3% | 8.0% | 33.3% | |
| Toumaz Ld ($TMZ) | 279.7% | 150.3% | 19.5% | 22.1% | |
| Seeing Machines ($SEE) | 0.1% | 66.3% | 43.3% | 13.3% | |
| |
|---|
| Median (19 companies) | 0.1% | 1.3% | 3.4% | 1.1% | 24.2% |
|---|
| Filtronic ($FTC) | | 53.3% | -17.7% | -46.7% | -22.5% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Cml Microsystems ($CML) | 69.3% | 70.3% | 73.3% | 70.9% | 71.2% |
| Concurrent Technologies ($CNC) | 51.7% | 50.6% | 51.2% | 50.6% | |
| Trakm8 Holdings ($TRAK) | 63.8% | 71.9% | 57.2% | 45.2% | 48.3% |
| Vislink ($VLK) | 39.4% | 40.7% | 45.9% | 45.0% | |
| Seeing Machines ($SEE) | 61.4% | 64.1% | 59.8% | 44.9% | |
| |
|---|
| Median (19 companies) | 34.3% | 34.7% | 36.2% | 38.5% | 59.8% |
|---|
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Cml Microsystems ($CML) | 28.7% | 33.1% | 35.1% | 29.9% | 30.0% |
| Concurrent Technologies ($CNC) | 29.3% | 23.3% | 27.1% | 28.6% | |
| Pure Wafer ($PUR) | 16.3% | 17.0% | 31.5% | 27.4% | |
| Samsung Electronics Co ($SMSN) | 22.2% | 23.3% | 20.9% | 23.6% | |
| Trakm8 Holdings ($TRAK) | 7.1% | 6.8% | 12.9% | 14.0% | 15.8% |
| |
|---|
| Median (19 companies) | 3.8% | 6.8% | 6.4% | 5.6% | 22.9% |
|---|
| Filtronic ($FTC) | 5.6% | 10.8% | 1.9% | -39.7% | -46.5% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Samsung Electronics Co ($SMSN) | 11.4% | 10.1% | 10.7% | 12.9% | |
| Pure Wafer ($PUR) | 0.5% | 3.5% | 23.3% | 8.5% | |
| Tatung Co ($TAT) | 6.1% | 4.3% | 4.3% | 6.7% | |
| Sunplus Technology Co Ltd ($SUPD) | 4.8% | 6.3% | 15.0% | 4.5% | |
| Seeing Machines ($SEE) | 0.3% | 2.2% | 1.0% | 3.9% | |
| |
|---|
| Median (19 companies) | 2.1% | 2.0% | 1.9% | 1.8% | 1.8% |
|---|
| Filtronic ($FTC) | 2.2% | 3.8% | 3.2% | 1.1% | 1.3% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Trakm8 Holdings ($TRAK) | 3.8% | 1.9% | 18.7% | 22.5% | 20.8% |
| Concurrent Technologies ($CNC) | 14.6% | 8.2% | 14.1% | 20.9% | |
| Samsung Electronics Co ($SMSN) | 22.4% | 24.0% | 14.4% | 14.0% | |
| Telefonaktiebolaget Lm Ericsson ($0O87) | 13.7% | 11.1% | 10.3% | 13.5% | |
| Hon Hai Precision Industry ($HHPD) | 9.9% | 8.7% | 10.3% | 11.7% | |
| |
|---|
| Median (19 companies) | 0.7% | 6.0% | 6.7% | 4.3% | 15.4% |
|---|
| Filtronic ($FTC) | -7.9% | 4.8% | -14.9% | -80.4% | -79.3% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Tatung Co ($TAT) | 41.1x | 6.1x | 6.7x | 40.1x | |
| Vislink ($VLK) | -1.2x | -0.5x | -0.0x | 1.8x | |
| Mti Wireless Edge ($MWE) | -21.9x | 1.9x | -1.6x | 0.2x | |
| Telefonaktiebolaget Lm Ericsson ($0O87) | -0.1x | 0.0x | -0.2x | 0.1x | |
| Samsung Electronics Co ($SMSN) | -0.1x | -0.1x | -0.1x | -0.2x | |
| |
|---|
| Median (16 companies) | -0.8x | -0.8x | -1.3x | -1.2x | -0.9x |
|---|
