Tristel revenue jumped on 11.5% in 2016 while EBITDA Margin decreased on 2.2 pp from 22.9% to 20.7%
17 Oct 2016 • About Tristel (
$TSTL) • By InTwits
Tristel reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Tristel is a growth stock: FY2016 revenue growth was 11.5%, 5 year revenue CAGR was 13.0% at FY2016 ROIC 17.5%
- Tristel has low CAPEX intensity: 5 year average CAPEX/Revenue was 3.2%. At the same time it's in pair with industry average of 5.1%.
- CAPEX is quite volatile: 0.50 in FY2016, 0.50 in FY2015, 0.68 in FY2014, 0.13 in FY2013, 0.41 in FY2012
- The company has highly profitable business model: ROIC is at 17.5%
- It operates with high leverage: Net Debt/EBITDA is -1.6x while industry average is -1.6x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Tristel ($TSTL) key annual financial indicators
| mln. £ | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 10.939 | 10.558 | 13.470 | 15.334 | 17.104 | 11.5% |
| Gross Profit | 7.428 | 7.014 | 9.404 | 10.661 | 12.555 | 17.8% |
| SG&A | | | 6.685 | 7.241 | 8.242 | 13.8% |
| EBITDA | 1.856 | 1.445 | 2.704 | 3.507 | 3.534 | 0.8% |
| Net Income | 0.707 | -1.264 | 1.298 | 2.215 | 2.102 | -5.1% |
Balance Sheet
|
|---|
| Cash | 0.705 | 0.627 | 2.664 | 4.045 | 5.715 | 41.3% |
| Short Term Debt | 0.082 | 0.065 | 0.042 | 0.000 | 0.000 | |
| Long Term Debt | 0.083 | 0.053 | 0.008 | 0.000 | 0.000 | |
Cash flow
|
|---|
| Capex | 0.407 | 0.131 | 0.677 | 0.496 | 0.499 | 0.6% |
Ratios
|
|---|
| Revenue growth | 17.8% | -3.5% | 27.6% | 13.8% | 11.5% | |
| EBITDA growth | 70.0% | -22.1% | 87.1% | 29.7% | 0.8% | |
| Gross Margin | 67.9% | 66.4% | 69.8% | 69.5% | 73.4% | 3.9% |
| EBITDA Margin | 17.0% | 13.7% | 20.1% | 22.9% | 20.7% | -2.2% |
| Net Income Margin | 6.5% | -12.0% | 9.6% | 14.4% | 12.3% | -2.2% |
| SG&A, % of revenue | | | 49.6% | 47.2% | 48.2% | 1.0% |
| CAPEX, % of revenue | 3.7% | 1.2% | 5.0% | 3.2% | 2.9% | -0.3% |
| ROIC | 6.5% | 3.5% | 15.9% | 20.1% | 17.5% | -2.6% |
| ROE | 5.8% | -10.7% | 11.2% | 16.8% | 14.4% | -2.3% |
| Net Debt/EBITDA | -0.3x | -0.4x | -1.0x | -1.2x | -1.6x | -0.5x |
Revenue and profitability
Tristel's Revenue surged on 11.5% in FY2016. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased on 7.9 pp from -7.0% to -14.9% in FY2016.
Gross Margin increased on 3.9 pp from 69.5% to 73.4% in FY2016. SG&A as a % of Revenue increased slightly on 0.97 pp from 47.2% to 48.2% in FY2016.
Net Income marign decreased on 2.2 pp from 14.4% to 12.3% in FY2016.
Capital expenditures (CAPEX) and working capital investments
In FY2016 the company had CAPEX/Revenue of 2.9%. Tristel showed small growth in CAPEX/Revenue of 1.7 pp from 1.2% in FY2013 to 2.9% in FY2016. It's average level of CAPEX/Revenue for the last three years was 3.7%.
Return on investment
The company operates at good ROIC (17.49%) and ROE (14.44%). ROIC decreased on 2.6 pp from 20.1% to 17.5% in FY2016. ROE decreased on 2.3 pp from 16.8% to 14.4% in FY2016.
Leverage (Debt)
The company has no debt. Cash surged on 41.3% in FY2016.
Appendix 1: Peers in Health Care Equipment & Services
Below you can find Tristel benchmarking vs. other companies in Health Care Equipment & Services 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 |
|---|
| Puricore ($PURI) | 11.3% | -33.6% | -45.5% | 36.5% | |
| Md Medical Group Invest ($MDMG) | 39.7% | 39.7% | 26.9% | 32.0% | |
| Lifeline Scientific Inc ($LSIC) | 18.7% | 10.2% | 6.0% | 11.8% | |
| Synergy Health ($SYR) | 8.6% | 15.8% | 5.3% | 7.5% | |
| Omega Diagnostics Group ($ODX) | | 1.2% | 2.9% | 4.4% | 5.3% |
| |
|---|
| Median (10 companies) | 9.9% | 7.0% | 5.2% | 2.6% | -5.1% |
|---|
| Tristel ($TSTL) | | -3.5% | 27.6% | 13.8% | 11.5% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Smith & Nephew ($SN.) | 74.1% | 74.7% | 74.8% | 75.3% | |
| Omega Diagnostics Group ($ODX) | 63.0% | 62.6% | 63.6% | 63.4% | 63.8% |
| Immunodiagnostic Systems Hldgs ($IDH) | 74.7% | 73.1% | 68.1% | 62.5% | 58.6% |
| Lifeline Scientific Inc ($LSIC) | 60.6% | 59.8% | 61.3% | 60.2% | |
| Abbott Laboratories ($ABT) | 54.3% | 53.2% | 54.5% | 57.1% | |
| |
|---|
| Median (10 companies) | 54.6% | 52.3% | 53.2% | 53.0% | 61.2% |
|---|
| Tristel ($TSTL) | 67.9% | 66.4% | 69.8% | 69.5% | 73.4% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Md Medical Group Invest ($MDMG) | 41.7% | 28.0% | 28.9% | 27.9% | |
| Synergy Health ($SYR) | 26.0% | 26.4% | 25.8% | 24.3% | |
| Immunodiagnostic Systems Hldgs ($IDH) | | 35.3% | 34.1% | 23.6% | -77.1% |
| Smith & Nephew ($SN.) | 27.8% | 26.9% | 25.2% | 23.1% | |
| Abbott Laboratories ($ABT) | 21.8% | 19.6% | 20.5% | 21.3% | |
| |
|---|
| Median (10 companies) | 19.0% | 17.9% | 19.3% | 19.5% | -33.5% |
|---|
| Tristel ($TSTL) | 17.0% | 13.7% | 20.1% | 22.9% | 20.7% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Synergy Health ($SYR) | 15.2% | 13.2% | 10.3% | 15.1% | |
| Md Medical Group Invest ($MDMG) | 65.2% | 42.8% | 43.4% | 8.2% | |
| Smith & Nephew ($SN.) | 6.4% | 7.8% | 8.1% | 7.7% | |
| Ekf Diagnostics Holdings ($EKF) | 3.7% | 3.7% | 2.8% | 7.6% | |
| Puricore ($PURI) | 2.4% | 3.2% | 15.4% | 7.3% | |
| |
|---|
| Median (10 companies) | 6.1% | 5.6% | 6.7% | 6.8% | 4.8% |
|---|
| Tristel ($TSTL) | 3.7% | 1.2% | 5.0% | 3.2% | 2.9% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Lifeline Scientific Inc ($LSIC) | 1.9% | 11.2% | 11.7% | 24.0% | |
| Md Medical Group Invest ($MDMG) | 19.9% | 9.5% | 11.0% | 11.8% | |
| Smith & Nephew ($SN.) | 22.0% | 18.6% | 14.7% | 11.1% | |
| Abbott Laboratories ($ABT) | 4.3% | 5.3% | 8.3% | 9.4% | |
| Synergy Health ($SYR) | 8.0% | 8.5% | 9.1% | 9.1% | |
| |
|---|
| Median (10 companies) | 4.3% | 7.9% | 8.7% | 6.7% | -24.0% |
|---|
| Tristel ($TSTL) | 6.5% | 3.5% | 15.9% | 20.1% | 17.5% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Synergy Health ($SYR) | 2.1x | 1.9x | 1.5x | 1.6x | |
| Smith & Nephew ($SN.) | 0.3x | 0.2x | 1.4x | 1.3x | |
| Abbott Laboratories ($ABT) | 2.1x | 0.8x | 0.9x | 0.9x | |
| Md Medical Group Invest ($MDMG) | 0.2x | 0.2x | 2.0x | 0.6x | |
| Lifeline Scientific Inc ($LSIC) | -4.4x | -0.6x | -0.3x | -1.0x | |
| |
|---|
| Median (8 companies) | 0.2x | 0.1x | -0.3x | -0.2x | -0.7x |
|---|
| Tristel ($TSTL) | -0.3x | -0.4x | -1.0x | -1.2x | -1.6x |
