Pressure Technologies EBITDA dropped on 46.5% in 2016 and EBITDA Margin decreased slightly on 2.0 pp from 10.0% to 8.0%
13 Dec 2016 • About Pressure Technologies (
$PRES) • By InTwits
Pressure Technologies reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Pressure Technologies doesn't have a profitable business model yet: FY2016 ROIC is -1.6%
- Pressure Technologies has low CAPEX intensity: 5 year average CAPEX/Revenue was 4.4%. At the same time it's a lot of higher than industry average of 3.1%.
- CAPEX is quite volatile: 0.88 in FY2016, 6.3 in FY2015, 1.8 in FY2014, 0.78 in FY2013, 0.73 in FY2012
- The company has unprofitable business model: ROIC is at -1.6%
- It operates with high leverage: Net Debt/EBITDA is 2.3x while industry average is -34.2x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Pressure Technologies ($PRES) key annual financial indicators
| mln. £ | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 30.442 | 34.383 | 54.015 | 53.816 | 35.753 | -33.6% |
| Gross Profit | 7.738 | 10.295 | 15.738 | 15.760 | 9.542 | -39.5% |
| SG&A | | | 7.904 | 11.942 | 9.923 | -16.9% |
| EBITDA | 3.016 | 4.469 | 7.813 | 5.380 | 2.876 | -46.5% |
| Net Income | 1.271 | 2.200 | 3.711 | 0.699 | -0.688 | -198.4% |
Balance Sheet
|
|---|
| Cash | 2.693 | 4.044 | 6.356 | 3.459 | 6.073 | 75.6% |
| Short Term Debt | 0.006 | 0.000 | 0.180 | 0.337 | 0.242 | -28.2% |
| Long Term Debt | 0.000 | 0.000 | 0.324 | 10.236 | 12.411 | 21.2% |
Cash flow
|
|---|
| Capex | 0.727 | 0.776 | 1.792 | 6.250 | 0.883 | -85.9% |
Ratios
|
|---|
| Revenue growth | 31.6% | 12.9% | 57.1% | -0.4% | -33.6% | |
| EBITDA growth | 55.7% | 48.2% | 74.8% | -31.1% | -46.5% | |
| Gross Margin | 25.4% | 29.9% | 29.1% | 29.3% | 26.7% | -2.6% |
| EBITDA Margin | 9.9% | 13.0% | 14.5% | 10.0% | 8.0% | -2.0% |
| Net Income Margin | 4.2% | 6.4% | 6.9% | 1.3% | -1.9% | -3.2% |
| SG&A, % of revenue | | | 14.6% | 22.2% | 27.8% | 5.6% |
| CAPEX, % of revenue | 2.4% | 2.3% | 3.3% | 11.6% | 2.5% | -9.1% |
| ROIC | 11.6% | 20.7% | 22.1% | 3.9% | -1.6% | -5.5% |
| ROE | 8.0% | 13.1% | 13.7% | 1.9% | -1.9% | -3.9% |
| Net Debt/EBITDA | -0.9x | -0.9x | -0.7x | 1.3x | 2.3x | 1.0x |
Revenue and profitability
Pressure Technologies's Revenue dropped on 33.6% in FY2016. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin surged on 15.8 pp from -19.3% to -3.5% in FY2016.
Gross Margin decreased on 2.6 pp from 29.3% to 26.7% in FY2016. SG&A as a % of Revenue increased on 5.6 pp from 22.2% to 27.8% in FY2016.
Net Income marign decreased on 3.2 pp from 1.3% to -1.9% in FY2016.
Capital expenditures (CAPEX) and working capital investments
In FY2016 the company had CAPEX/Revenue of 2.5%. The company's CAPEX/Revenue showed almost no change from FY2013 to FY2016. It's average CAPEX/Revenue for the last three years was 5.8%.
Return on investment
The company operates at negative ROIC (-1.56%) and ROE (-1.93%). ROIC decreased on 5.5 pp from 3.9% to -1.6% in FY2016. ROE decreased on 3.9 pp from 1.9% to -1.9% in FY2016.
Leverage (Debt)
Debt level is 2.3x Net Debt / EBITDA and 4.4x Debt / EBITDA. Net Debt / EBITDA jumped on 1.0x from 1.3x to 2.3x in FY2016. Debt jumped on 19.7% in FY2016 while cash jumped on 75.6% in FY2016.
Appendix 1: Peers in Industrial Engineering
Below you can find Pressure Technologies 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 ($ABDP) | | 36.8% | 13.8% | 19.3% | 23.9% |
| Flowtech Fluidpower ($FLO) | -5.8% | -5.1% | 17.7% | 18.7% | |
| Somero Enterprise Inc ($SOMA) | 47.1% | 40.1% | 31.5% | 18.5% | |
| |
|---|
| Median (23 companies) | 11.6% | 2.9% | -0.0% | 5.0% | 1.6% |
|---|
| Pressure Technologies ($PRES) | | 12.9% | 57.1% | -0.4% | -33.6% |
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 ($AFS) | 42.8% | 40.8% | 38.9% | 40.5% | |
| |
|---|
| Median (21 companies) | 31.3% | 30.0% | 33.2% | 34.2% | 30.1% |
|---|
| Pressure Technologies ($PRES) | 25.4% | 29.9% | 29.1% | 29.3% | 26.7% |
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% | 22.7% |
| Mincon Group ($MCON) | 22.9% | 30.0% | 22.7% | 17.6% | |
| |
|---|
| Median (23 companies) | 8.6% | 8.0% | 7.4% | 7.9% | 10.2% |
|---|
| Pressure Technologies ($PRES) | 9.9% | 13.0% | 14.5% | 10.0% | 8.0% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| 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 ($ABDP) | 2.2% | 5.6% | 2.5% | 4.2% | 7.9% |
| Braime(T.F.& J.H.)(Hldgs) ($BMTO) | 2.3% | 9.6% | 5.6% | 3.8% | |
| Hms Hydraulic Mach & Sys Grp ($HMSG) | 4.4% | 4.5% | 3.6% | 3.7% | |
| |
|---|
| Median (23 companies) | 2.4% | 2.0% | 2.4% | 2.2% | 4.2% |
|---|
| Pressure Technologies ($PRES) | 2.4% | 2.3% | 3.3% | 11.6% | 2.5% |
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% | 28.0% |
| Rotork ($76ID) | 50.0% | 45.4% | 38.1% | 21.9% | 17.0% |
| |
|---|
| Median (23 companies) | 14.2% | 11.4% | 10.8% | 9.5% | 7.1% |
|---|
| Pressure Technologies ($PRES) | 11.6% | 20.7% | 22.1% | 3.9% | -1.6% |
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 ($AVG) | 3.1x | 0.7x | 1.2x | 3.6x | -22.4x |
| 600 Group ($SIXH) | | 3.2x | 2.2x | 3.1x | |
| Chamberlin ($CMH) | 0.5x | 0.4x | | 2.2x | 2.2x |
| |
|---|
| Median (23 companies) | 0.5x | 0.6x | 0.6x | 0.7x | -0.0x |
|---|
| Pressure Technologies ($PRES) | -0.9x | -0.9x | -0.7x | 1.3x | 2.3x |
