Avingtrans reports 1,658% Net Income growth and 3.4 pp EBITDA Margin growth from 7.4% to 10.7%
27 Sep 2016 • About Avingtrans (
$AVG) • By InTwits
Avingtrans reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Avingtrans is a company in decline: FY2016 revenue growth was -6.1%, 5 years revenue CAGR was -10.2%
- Avingtrans has medium CAPEX intensity: 5 year average CAPEX/Revenue was 5.4%. At the same time it's a lot of higher than industry average of 3.3%.
- CAPEX is quite volatile: 1.1 in FY2016, 0.83 in FY2015, 3.0 in FY2014, 2.1 in FY2013, 2.8 in FY2012
- The company has unprofitable business model: ROIC is at -0.4%
- It operates with high leverage: Net Debt/EBITDA is -22.4x while industry average is -34.3x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Avingtrans ($AVG) key annual financial indicators
| mln. £ | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 32.153 | 45.280 | 60.265 | 22.557 | 21.177 | -6.1% |
| Gross Profit | 7.621 | 11.656 | 14.457 | 2.423 | 3.149 | 30.0% |
| SG&A | | | 14.388 | 2.984 | 3.376 | 13.1% |
| EBITDA | 2.768 | 3.704 | 2.947 | 1.665 | 2.276 | 36.7% |
| Net Income | 0.935 | 7.497 | 2.914 | 1.771 | 31.136 | 1,658.1% |
Balance Sheet
|
|---|
| Cash | 1.849 | 8.881 | 7.204 | 6.337 | 56.503 | 791.6% |
| Short Term Debt | 5.720 | 7.536 | 7.209 | 9.052 | 4.206 | -53.5% |
| Long Term Debt | 4.576 | 3.950 | 3.581 | 3.199 | 1.251 | -60.9% |
Cash flow
|
|---|
| Capex | 2.759 | 2.072 | 2.992 | 0.832 | 1.062 | 27.6% |
Ratios
|
|---|
| Revenue growth | -11.3% | 40.8% | 33.1% | -62.6% | -6.1% | |
| EBITDA growth | -17.1% | 33.8% | -20.4% | -43.5% | 36.7% | |
| Gross Margin | 23.7% | 25.7% | 24.0% | 10.7% | 14.9% | 4.1% |
| EBITDA Margin | 8.6% | 8.2% | 4.9% | 7.4% | 10.7% | 3.4% |
| Net Income Margin | 2.9% | 16.6% | 4.8% | 7.9% | 147.0% | 139.2% |
| SG&A, % of revenue | | | 23.9% | 13.2% | 15.9% | 2.7% |
| CAPEX, % of revenue | 8.6% | 4.6% | 5.0% | 3.7% | 5.0% | 1.3% |
| ROIC | 3.0% | 4.4% | 1.9% | -1.3% | -0.4% | 0.9% |
| ROE | 4.0% | 27.7% | 9.2% | 5.3% | 62.9% | 57.6% |
| Net Debt/EBITDA | 3.1x | 0.7x | 1.2x | 3.6x | -22.4x | -26.0x |
Revenue and profitability
The company's Revenue decreased on 6.1% in FY2016. Revenue decline happened at the same time with EBITDA margin expansion. EBITDA Margin increased on 3.4 pp from 7.4% to 10.7% in FY2016.
Gross Margin increased on 4.1 pp from 10.7% to 14.9% in FY2016. SG&A as a % of Revenue increased on 2.7 pp from 13.2% to 15.9% in FY2016.
Net Income marign surged on 139 pp from 7.9% to 147% in FY2016.
Capital expenditures (CAPEX) and working capital investments
Avingtrans's CAPEX/Revenue was 5.0% in FY2016. CAPEX/Revenue showed almost no change from FY2013 to FY2016. It's average level of CAPEX/Revenue for the last three years was 4.6%.
Return on investment
The company operates at negative ROIC (-0.39%) and low but positive ROE (62.94%). ROIC increased slightly on 0.93 pp from -1.3% to -0.39% in FY2016. ROE jumped on 57.6 pp from 5.3% to 62.9% in FY2016.
Leverage (Debt)
Company's Net Debt / EBITDA is -22.4x and Debt / EBITDA is 2.4x. Net Debt / EBITDA dropped on 26.0x from 3.6x to -22.4x in FY2016. Debt dropped on 55.5% in FY2016 while cash jumped on 792% in FY2016.
Appendix 1: Peers in Industrial Engineering
Below you can find Avingtrans 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 ($SOMA) | 47.1% | 40.1% | 31.5% | 18.5% | |
| |
|---|
| Median (23 companies) | 13.1% | 2.9% | -0.0% | 5.0% | 1.6% |
|---|
| Avingtrans ($AVG) | | 40.8% | 33.1% | -62.6% | -6.1% |
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 ($AFS) | 42.8% | 40.8% | 38.9% | 40.5% | |
| |
|---|
| Median (21 companies) | 31.3% | 30.0% | 33.2% | 34.2% | 31.0% |
|---|
| Avingtrans ($AVG) | 23.7% | 25.7% | 24.0% | 10.7% | 14.9% |
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 ($MCON) | 22.9% | 30.0% | 22.7% | 17.6% | |
| |
|---|
| Median (23 companies) | 9.0% | 8.0% | 7.5% | 8.2% | 7.5% |
|---|
| Avingtrans ($AVG) | 8.6% | 8.2% | 4.9% | 7.4% | 10.7% |
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) ($BMTO) | 2.3% | 9.6% | 5.6% | 3.8% | |
| |
|---|
| Median (23 companies) | 2.4% | 2.0% | 2.4% | 2.2% | 4.1% |
|---|
| Avingtrans ($AVG) | 8.6% | 4.6% | 5.0% | 3.7% | 5.0% |
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 ($76ID) | 50.0% | 45.4% | 38.1% | 21.9% | 17.0% |
| |
|---|
| Median (23 companies) | 14.2% | 12.3% | 11.0% | 9.5% | 7.1% |
|---|
| Avingtrans ($AVG) | 3.0% | 4.4% | 1.9% | -1.3% | -0.4% |
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 | |
| 600 Group ($SIXH) | | 3.2x | 2.2x | 3.1x | |
| Chamberlin ($CMH) | 0.5x | 0.4x | | 2.2x | 2.2x |
| Hms Hydraulic Mach & Sys Grp ($HMSG) | 2.3x | 2.0x | 5.2x | 2.1x | |
| |
|---|
| Median (23 companies) | 0.1x | 0.1x | 0.1x | 0.7x | 0.9x |
|---|
| Avingtrans ($AVG) | 3.1x | 0.7x | 1.2x | 3.6x | -22.4x |
