Northamber revenue decreased on 5.5% in 2016 and EBITDA Margin decreased slightly on 0.77 pp from -1.0% to -1.8%
28 Oct 2016 • About Northamber (
$NAR) • By InTwits
Northamber reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Northamber is a company in decline: FY2016 revenue growth was -5.5%, 5 years revenue CAGR was -12.6%
- The company operates at negative EBITDA Margin: -1.8%
- Northamber spends a lot for Stock Based Compensation (SBC): average SBC/Revenue for FY2012-FY2016 is 0.0%. Average EBITDA Margin for the same period was -0.9%0
- Northamber has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.4%. At the same time it's in pair with industry average of 3.2%.
- CAPEX is quite volatile: 0.032 in FY2016, 0.044 in FY2015, 0.026 in FY2014, 0.082 in FY2013, 6.8 in FY2012
- The company has unprofitable business model: ROIC is at -6.5%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Northamber ($NAR) key annual financial indicators
| mln. £ | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 100.6 | 77.5 | 62.9 | 65.5 | 61.8 | -5.5% |
| Gross Profit | 7.8 | 5.9 | 4.3 | 4.6 | 4.8 | 4.7% |
| SG&A | | | | 5.5 | 6.1 | 10.4% |
| EBITDA | 0.2 | -0.6 | -1.0 | -0.7 | -1.1 | 64.2% |
| Net Income | -0.0 | -1.0 | -1.2 | -0.9 | -1.2 | 38.9% |
Balance Sheet
|
|---|
| Cash | 4.3 | 6.1 | 5.1 | 5.4 | 5.5 | 0.5% |
| Short Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
| Long Term Debt | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 | |
Cash flow
|
|---|
| Capex | 6.8 | 0.1 | 0.0 | 0.0 | 0.0 | -27.3% |
Ratios
|
|---|
| Revenue growth | -16.9% | -23.0% | -18.9% | 4.1% | -5.5% | |
| EBITDA growth | -217.4% | -469.8% | 53.8% | -28.7% | 64.2% | |
| Gross Margin | 7.8% | 7.6% | 6.8% | 7.0% | 7.8% | 0.8% |
| EBITDA Margin | 0.2% | -0.8% | -1.5% | -1.0% | -1.8% | -0.8% |
| Net Income Margin | -0.0% | -1.3% | -1.8% | -1.4% | -2.0% | -0.6% |
| SG&A, % of revenue | | | | 8.5% | 9.9% | 1.4% |
| CAPEX, % of revenue | 6.8% | 0.1% | 0.0% | 0.1% | 0.1% | -0.0% |
| ROIC | -0.4% | -4.9% | -5.5% | -4.4% | -6.5% | -2.1% |
| ROE | -0.0% | -4.2% | -5.2% | -4.2% | -6.2% | -2.0% |
| Net Debt/EBITDA | -25.5x | | | | | 0.0x |
Revenue and profitability
Northamber's Revenue decreased on 5.5% in FY2016. Revenue decline was worsened by EBITDA margin decline. EBITDA Margin decreased slightly on 0.77 pp from -1.0% to -1.8% in FY2016.
Gross Margin increased slightly on 0.76 pp from 7.0% to 7.8% in FY2016. SG&A as a % of Revenue increased slightly on 1.4 pp from 8.5% to 9.9% in FY2016.
Net Income marign decreased slightly on 0.64 pp from -1.4% to -2.0% in FY2016.
Capital expenditures (CAPEX) and working capital investments
In FY2016 the company had CAPEX/Revenue of 0.052%. Northamber's CAPEX/Revenue showed almost no change from FY2013 to FY2016. For the last three years the average CAPEX/Revenue was 0.053%.
Return on investment
The company operates at negative ROIC (-6.53%) and ROE (-6.23%). ROIC decreased on 2.1 pp from -4.4% to -6.5% in FY2016. ROE decreased slightly on 2.0 pp from -4.2% to -6.2% in FY2016.
Leverage (Debt)
The company has no debt. Cash showed almost no change in FY2016.
Appendix 1: Peers in Technology Hardware & Equipment
Below you can find Northamber 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 ($SEE) | | 66.3% | 43.3% | 13.3% | 76.8% |
| |
|---|
| Median (19 companies) | 0.4% | 3.4% | 3.4% | 0.2% | 24.2% |
|---|
| Northamber ($NAR) | | -23.0% | -18.9% | 4.1% | -5.5% |
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 ($SEE) | 61.4% | 64.1% | 59.8% | 44.9% | 81.3% |
| |
|---|
| Median (18 companies) | 34.5% | 35.2% | 37.0% | 38.9% | 71.2% |
|---|
| Northamber ($NAR) | 7.8% | 7.6% | 6.8% | 7.0% | 7.8% |
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 ($TRAK) | 7.1% | 6.8% | 12.9% | 14.0% | 15.8% |
| |
|---|
| Median (19 companies) | 4.5% | 8.0% | 6.4% | 5.6% | 5.1% |
|---|
| Northamber ($NAR) | 0.2% | -0.8% | -1.5% | -1.0% | -1.8% |
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 ($SEE) | 0.3% | 2.2% | 1.0% | 3.9% | 1.6% |
| |
|---|
| Median (19 companies) | 2.1% | 2.0% | 2.3% | 1.8% | 1.7% |
|---|
| Northamber ($NAR) | 6.8% | 0.1% | 0.0% | 0.1% | 0.1% |
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% | 1.1% |
|---|
| Northamber ($NAR) | -0.4% | -4.9% | -5.5% | -4.4% | -6.5% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Tatung Co ($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 | -0.7x | -1.3x | -1.2x | -0.9x |
|---|
