600 Group EBITDA dropped on 114% in 2016 while Revenue increased on 3.4%
01 Sep 2016 • About 600 Group (
$SIXH) • By InTwits
600 Group reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- 600 Group doesn't have a profitable business model yet: FY2016 ROIC is -1.9%
- The company operates at negative EBITDA Margin: -1.1%
- EBITDA Margin is quite volatile: -1.1% in FY2016, 7.9% in FY2015, 5.8% in FY2014, 4.0% in FY2013, -0.1% in FY2012
- 600 Group has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.9%. At the same time it's in pair with industry average of 2.1%.
- CAPEX is quite volatile: 1.5 in FY2016, 0.94 in FY2015, 0.55 in FY2014, 0.13 in FY2013, 0.96 in FY2012
- The company has unprofitable business model: ROIC is at -1.9%
- It operates with high leverage: Net Debt/EBITDA is 0.5x while industry average is -33.1x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
600 Group ($SIXH) key annual financial indicators
| mln. £ | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 39.393 | 41.788 | 41.707 | 43.794 | 45.269 | 3.4% |
| Gross Profit | 19.589 | 13.250 | 13.857 | 14.420 | 14.476 | 0.4% |
| EBITDA | -0.059 | 1.687 | 2.408 | 3.477 | -0.494 | -114.2% |
| Net Income | -14.849 | 3.936 | 1.852 | 2.333 | 1.157 | -50.4% |
Balance Sheet
|
|---|
| Cash | 0.409 | 1.025 | 1.149 | 0.902 | 0.765 | -15.2% |
| Short Term Debt | 2.579 | 1.332 | 3.982 | 3.295 | 3.275 | -0.6% |
| Long Term Debt | 5.824 | 5.100 | 2.475 | 8.405 | 11.376 | 35.3% |
Cash flow
|
|---|
| Capex | 0.963 | 0.129 | 0.545 | 0.944 | 1.522 | 61.2% |
Ratios
|
|---|
| Revenue growth | 8.1% | 6.1% | -0.2% | 5.0% | 3.4% | |
| EBITDA growth | -103.3% | -2,959.3% | 42.7% | 44.4% | -114.2% | |
| Gross Margin | 49.7% | 31.7% | 33.2% | 32.9% | 32.0% | -0.9% |
| EBITDA Margin | -0.1% | 4.0% | 5.8% | 7.9% | -1.1% | -9.0% |
| Net Income Margin | -37.7% | 9.4% | 4.4% | 5.3% | 2.6% | -2.8% |
| CAPEX, % of revenue | 2.4% | 0.3% | 1.3% | 2.2% | 3.4% | 1.2% |
| ROIC | -5.8% | 4.1% | 5.7% | 6.6% | -1.9% | -8.5% |
| ROE | -103.6% | 27.5% | 8.4% | 8.2% | 3.1% | -5.1% |
| Net Debt/EBITDA | | 3.2x | 2.2x | 3.1x | | -3.1x |
Revenue and profitability
The company's Revenue increased on 3.4% 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 decreased slightly on 0.95 pp from 32.9% to 32.0% in FY2016.
Net Income marign decreased on 2.8 pp from 5.3% to 2.6% in FY2016.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 3.4% in FY2016. CAPEX/Revenue increased on 3.1 pp from 0.31% in FY2013 to 3.4% in FY2016. For the last three years the average CAPEX/Revenue was 2.3%.
Return on investment
The company operates at negative ROIC (-1.94%) and low but positive ROE (3.07%). ROIC decreased on 8.5 pp from 6.6% to -1.9% in FY2016. ROE decreased on 5.1 pp from 8.2% to 3.1% in FY2016.
Leverage (Debt)
Debt level is 0.5x Net Debt / EBITDA and Debt / EBITDA. Net Debt / EBITDA dropped on 3.1x from 3.1x to in FY2016. Debt surged on 25.2% in FY2016 while cash dropped on 15.2% in FY2016.
Appendix 1: Peers in Industrial Engineering
Below you can find 600 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 ($SOMA) | 47.1% | 40.1% | 31.5% | 18.5% | |
| |
|---|
| Median (23 companies) | 11.7% | 2.9% | 2.8% | 0.3% | -3.6% |
|---|
| 600 Group ($SIXH) | | 6.1% | -0.2% | 5.0% | 3.4% |
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 ($AFS) | 42.8% | 40.8% | 38.9% | 40.5% | |
| |
|---|
| Median (21 companies) | 31.0% | 29.9% | 30.2% | 34.2% | 30.1% |
|---|
| 600 Group ($SIXH) | 49.7% | 31.7% | 33.2% | 32.9% | 32.0% |
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 ($MCON) | 22.9% | 30.0% | 22.7% | 17.6% | |
| |
|---|
| Median (23 companies) | 9.0% | 8.2% | 7.5% | 8.2% | 8.8% |
|---|
| 600 Group ($SIXH) | -0.1% | 4.0% | 5.8% | 7.9% | -1.1% |
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) ($BMTO) | 2.3% | 9.6% | 5.6% | 3.8% | |
| |
|---|
| Median (23 companies) | 2.4% | 2.3% | 2.4% | 2.2% | 4.2% |
|---|
| 600 Group ($SIXH) | 2.4% | 0.3% | 1.3% | 2.2% | 3.4% |
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 ($76ID) | 50.0% | 45.4% | 38.1% | 21.9% | 17.0% |
| |
|---|
| Median (23 companies) | 14.2% | 12.3% | 11.0% | 9.5% | 9.9% |
|---|
| 600 Group ($SIXH) | -5.8% | 4.1% | 5.7% | 6.6% | -1.9% |
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 ($AVG) | 3.1x | 0.7x | 1.2x | 3.6x | |
| Chamberlin ($CMH) | 0.5x | 0.4x | | 2.2x | 2.2x |
| Hms Hydraulic Mach & Sys Grp ($HMSG) | 2.3x | 2.0x | 5.2x | 2.1x | |
| |
|---|
| Median (23 companies) | 0.5x | 0.1x | 0.1x | 0.7x | 0.9x |
|---|
| 600 Group ($SIXH) | | 3.2x | 2.2x | 3.1x | |
