Stadium Group EBITDA dropped on 48.6% in 2016 and Revenue dropped on 27.0%
14 Mar 2017 • About Stadium Group (
$SDM) • By InTwits
Stadium Group reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Stadium Group is a company in decline: FY2016 revenue growth was -27.0%, 5 years revenue CAGR was -2.6%
- Stadium Group has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.3%. At the same time it's in pair with industry average of 3.7%.
- CAPEX is quite volatile: 0.62 in FY2016, 1.5 in FY2015, 0.21 in FY2014, 0.35 in FY2013, 0.40 in FY2012
- The company has business model with low profitability: ROIC is at 9.8%
- It operates with high leverage: Net Debt/EBITDA is 0.8x while industry average is 0.1x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Stadium Group ($SDM) key annual financial indicators
| mln. £ | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 40.989 | 42.215 | 41.747 | 53.872 | 39.310 | -27.0% |
| Gross Profit | 7.905 | 8.657 | 9.201 | 12.507 | 9.601 | -23.2% |
| SG&A | | 7.722 | 6.948 | 10.105 | 7.998 | -20.8% |
| EBITDA | 2.519 | 3.016 | 4.143 | 6.543 | 3.362 | -48.6% |
| Net Income | 1.230 | 0.144 | 1.444 | 1.383 | 1.361 | -1.6% |
Balance Sheet
|
|---|
| Cash | 4.034 | 4.282 | 6.233 | 8.489 | 3.727 | -56.1% |
| Short Term Debt | 1.047 | 1.629 | 2.814 | 2.967 | 0.632 | -78.7% |
| Long Term Debt | 2.872 | 2.540 | 8.361 | 7.805 | 5.750 | -26.3% |
Cash flow
|
|---|
| Capex | 0.404 | 0.353 | 0.206 | 1.465 | 0.618 | -57.8% |
Ratios
|
|---|
| Revenue growth | -8.8% | 3.0% | -1.1% | 29.0% | -27.0% | |
| EBITDA growth | -42.7% | 19.7% | 37.4% | 57.9% | -48.6% | |
| Gross Margin | 19.3% | 20.5% | 22.0% | 23.2% | 24.4% | 1.2% |
| EBITDA Margin | 6.1% | 7.1% | 9.9% | 12.1% | 8.6% | -3.6% |
| Net Income Margin | 3.0% | 0.3% | 3.5% | 2.6% | 3.5% | 0.9% |
| SG&A, % of revenue | | 18.3% | 16.6% | 18.8% | 20.3% | 1.6% |
| CAPEX, % of revenue | 1.0% | 0.8% | 0.5% | 2.7% | 1.6% | -1.1% |
| ROIC | 16.5% | 17.6% | 17.3% | 19.3% | 9.8% | -9.4% |
| ROE | 12.7% | 1.6% | 15.0% | 9.7% | 9.9% | 0.2% |
| Net Debt/EBITDA | -0.0x | -0.0x | 1.2x | 0.3x | 0.8x | 0.4x |
Revenue and profitability
The company's Revenue dropped on 27.0% in FY2016. Revenue decline was worsened by EBITDA margin decline. EBITDA Margin decreased on 3.6 pp from 12.1% to 8.6% in FY2016.
Gross Margin increased slightly on 1.2 pp from 23.2% to 24.4% in FY2016. SG&A as a % of Revenue increased slightly on 1.6 pp from 18.8% to 20.3% in FY2016.
Net Income marign increased slightly on 0.90 pp from 2.6% to 3.5% in FY2016.
Capital expenditures (CAPEX) and working capital investments
Stadium Group's CAPEX/Revenue was 1.6% in FY2016. Stadium Group showed small growth in CAPEX/Revenue of 0.74 pp from 0.84% in FY2013 to 1.6% in FY2016. For the last three years the average CAPEX/Revenue was 1.6%.
Return on investment
The company operates at low ROIC (9.84%) and ROE (9.93%). ROIC decreased on 9.4 pp from 19.3% to 9.8% in FY2016. ROE showed almost no change in FY2016.
Leverage (Debt)
Debt level is 0.8x Net Debt / EBITDA and 1.9x Debt / EBITDA. Net Debt / EBITDA jumped on 0.4x from 0.3x to 0.8x in FY2016. Debt dropped on 40.8% in FY2016 while cash dropped on 56.1% in FY2016.
Appendix 1: Peers in Electronic & Electrical Equipment
Below we provide Stadium Group benchmarking against other companies in Electronic & Electrical Equipment industry for the last 5 years. We show data for the top-5 companies by key financial metric together with the median value for all the companies in the industry.
Top companies by Revenue growth, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Lpa Group ($LPA) | | -3.9% | -4.5% | -3.4% | 31.7% |
| Solid State ($SSP) | | 21.7% | 1.9% | 13.9% | 20.6% |
| Morgan Advanced Materials ($BA29) | | -4.9% | -3.8% | -1.1% | 8.5% |
| Dewhurst ($DWHA) | | -15.2% | 6.7% | -1.4% | 2.6% |
| Holders Technology ($HDT) | | -8.6% | -5.5% | -16.9% | 1.7% |
| |
|---|
| Median (11 companies) | -41.5% | -5.6% | -3.8% | -1.4% | -0.8% |
|---|
| Stadium Group ($SDM) | | 3.0% | -1.1% | 29.0% | -27.0% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Zytronic ($ZYT) | 36.3% | 30.8% | 36.6% | 41.9% | 42.8% |
| Elektron Technology ($EKT) | 40.6% | 37.5% | 34.8% | 35.6% | 37.2% |
| Maruwa Co Ltd ($MAW) | 31.6% | 28.6% | 32.8% | 30.0% | 35.9% |
| Solid State ($SSP) | 27.8% | 26.1% | 29.2% | 30.5% | 31.8% |
| Apc Technology Group ($APC) | 29.5% | 30.3% | 36.6% | 23.0% | 31.7% |
| |
|---|
| Median (9 companies) | 27.8% | 27.2% | 29.2% | 25.0% | 31.7% |
|---|
| Stadium Group ($SDM) | 19.3% | 20.5% | 22.0% | 23.2% | 24.4% |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Zytronic ($ZYT) | 25.3% | 18.8% | 22.9% | 27.8% | 25.6% |
| Maruwa Co Ltd ($MAW) | 22.3% | 17.7% | 17.8% | 14.7% | 19.6% |
| Morgan Advanced Materials ($BA29) | 13.7% | 13.1% | 9.8% | 12.8% | 14.6% |
| Dewhurst ($DWHA) | 12.9% | 12.6% | 13.7% | 14.7% | 13.4% |
| Solid State ($SSP) | 6.7% | 6.3% | 17.3% | 9.7% | 11.2% |
| |
|---|
| Median (11 companies) | 6.7% | 5.3% | 4.5% | 4.4% | 9.3% |
|---|
| Stadium Group ($SDM) | 6.1% | 7.1% | 9.9% | 12.1% | 8.6% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Lpa Group ($LPA) | 9.1% | 2.0% | 14.8% | 1.8% | 6.0% |
| Maruwa Co Ltd ($MAW) | 23.8% | 15.3% | 7.6% | 6.5% | 4.4% |
| Morgan Advanced Materials ($BA29) | 2.9% | 3.8% | 3.7% | 7.0% | 4.0% |
| Walsin Lihwa Corp ($WALS) | 4.0% | 1.5% | 0.9% | 1.1% | 2.3% |
| Solid State ($SSP) | 1.1% | 1.0% | 1.3% | 1.4% | 2.0% |
| |
|---|
| Median (11 companies) | 3.0% | 2.7% | 1.4% | 1.4% | 1.9% |
|---|
| Stadium Group ($SDM) | 1.0% | 0.8% | 0.5% | 2.7% | 1.6% |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Dewhurst ($DWHA) | 29.2% | 20.7% | 24.5% | 27.3% | 24.6% |
| Solid State ($SSP) | 22.3% | 19.7% | 44.5% | 20.0% | 23.0% |
| Morgan Advanced Materials ($BA29) | 17.9% | 16.3% | 10.9% | 18.4% | 21.9% |
| Zytronic ($ZYT) | 23.0% | 11.9% | 17.0% | 22.7% | 18.1% |
| Lpa Group ($LPA) | 13.8% | 6.8% | 7.0% | 2.1% | 13.4% |
| |
|---|
| Median (11 companies) | 13.8% | 6.7% | 4.7% | 3.9% | 9.0% |
|---|
| Stadium Group ($SDM) | 16.5% | 17.6% | 17.3% | 19.3% | 9.8% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Walsin Lihwa Corp ($WALS) | 5.3x | 8.7x | 3.9x | 4.6x | 2.7x |
| Morgan Advanced Materials ($BA29) | 1.4x | 1.5x | 2.3x | 1.8x | 1.7x |
| Lpa Group ($LPA) | 1.9x | 0.7x | 1.5x | 3.8x | 1.3x |
| Solid State ($SSP) | 1.4x | 1.2x | 0.4x | 0.7x | 0.7x |
| Elektron Technology ($EKT) | 0.7x | 1.7x | 3.8x | 0.8x | 0.5x |
| |
|---|
| Median (9 companies) | 1.0x | 0.9x | 1.0x | 0.7x | 0.5x |
|---|
| Stadium Group ($SDM) | -0.0x | -0.0x | 1.2x | 0.3x | 0.8x |
